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FNSACC504 Prepare financial reports for corporate entities

   

Added on  2019-11-08

12 Pages2988 Words179 Views
Running Head: ACCOUNTINGAccountingName of the Student:Name of the University:Authors Note:
FNSACC504 Prepare financial reports for corporate entities_1
MANAGEMENT2Table of ContentsPart 1:...............................................................................................................................................3Part 2:...............................................................................................................................................7References:....................................................................................................................................11
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MANAGEMENT3Part 1:Business organizations, whether companies or other forms of business organizations,have certain responsibilities towards their stakeholders. Stakeholders of a business organizationincludes shareholders, employees, labor, creditors, debtors, banks and financial institutions thathave provided financial assistance to such business organization, Government agencies, Taxauthority of a country and society as a whole. It is important for business organization whethercompanies or other forms of organizations to fulfill their responsibilities towards each and everystakeholder. Only by satisfying the interests of each and every stakeholder an organization cansuccessfully operate its business in the long run. Considering the main objectives of any businessorganization includes maximization of its earnings and shareholders’ wealth it would be onlypossible by providing careful attention to each and every stakeholders’ needs and interests(Tricker and Tricker 2015). Though it is the most important motivational factor for anorganization to maximize its profits and shareholders’ wealth however, it would not be ideal foran organization to use all possible means and ways to achieve these objectives. To ensurebusiness organizations stays within the ethical limits and legal boundaries while conducting itsbusiness operations various legislations have been enacted in different countries. A businessorganization by adhering to the provisions of these legislations while carrying on its business in aplace in addition to fulfilling the standard norms and regulations of fair competition and businesspractice will discharge its responsibility towards the society which is one of the cost importantstakeholders of a business organization. In case of business organizations and especiallycompanies operating in Australia the provisions of Corporations Act, 2001 are the mainguidelines to be followed while carrying on the business operations of the companies (Trickerand Tricker 2015). The provisions of the Corporations Act, 2001 have clearly mentioned the
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MANAGEMENT4highest standards of business practices that a business organization and a company should followwhile carrying its business operations. Thus business practices in Australia should be regulatedin accordance with the provisions of Corporations Act, 2001 to ensure that the practices are fairand not harmful to a society. Apart from the provisions of the Corporations Act, 2001 a businessorganization also needs to adhere to the code of professional ethics to ensure that the businesspractices are not in contradiction with the code of professional and ethics (Kaczorowska-Ireland2015). In addition to the corporations Act, 2001 and code of professional ethics a businessorganization, whether company of other form of business organization, will also have to abide bythe provisions of the Income Tax Assessment Act, 1936 in reporting its taxable profits andaccordingly for payment of income tax. Income Tax Assessment Act, 1936 is the prime statutoryenactment that guides the resident individuals and business organizations in the country inreporting its taxable profits and resultant tax liability from its business operations. In case ofdefault in complying with the provisions of the Income Tax Assessment Act, 1936 in reportingits taxable profits and resultant tax from business operations there are provisions for penalty andpunishment for such defaulting organizations. A business organization, especially a company, isconsidered as an artificial individual is liable towards the society in which it is operating byusing the resources of the place to adhere to the highest standard of professional ethics and to therelevant provisions applicable to such organization (Vogel et al. 2015). The income tax liability for a business organization arises due to the various operationsthat it undertook in order to run the operations of business. Calculation of income tax liability ofa business organization as well as a resident individual is to be made in accordance with theprovisions of the Income Tax Assessment Act, 1936 (ITAA). However, PAYG is a system whichallows business organizations to withhold tax on priority basis before computation of taxable
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