Impact of Bonus Incentive Scheme on Financial Statements

Principles of Accounting

TABLE OF CONTENTS
THE IMPACT OF BONUS INCENTIVE SCHEME ON THE FINANCIAL STATEMENTS....3
Stakeholders Identification.........................................................................................................3
Justification for the actions taken................................................................................................4
Ethical issues in the situation......................................................................................................4
Lucia deferring revenues and accruing as many expenses possible and still be ethical.............5
COMPUTERISED SHIPPING DOCUMENT................................................................................5
Stakeholders in the present situation...........................................................................................5
Ethical issues involved and action taken by keyboard operator.................................................6
In case of keyboard operator action taken to prevent the present situation................................7
REFERENCES................................................................................................................................8

THE IMPACT OF BONUS INCENTIVE SCHEME ON THE FINANCIAL
STATEMENTS
Stakeholders Identification
The stakeholders of Vroom Ltd are the individuals and groups which have to help the
company meet its strategic objective with the contribution of the experience and perspective
towards the project. The following are the identified stakeholders which are considered to have
interest in the business of the organization in one way or the other (Pandey, Sardana and Gupta,
2021).
Customers:
In this situation the customers of the organization cannot be effected directly. However,
the customers can get effected due to the fraudulent activities such as the deferring the business
profit. The customers of an organization are loyal to it due to the image which they have
developed. Such fraudulent activities can cause the image of the business to get reduced resulting
in loss of customers.
Employees:
The employees of the organization such as Lucia has some standards, rules and
regulations as an accountant which it wants to maintain. The manager telling Lucia to defer the
profit of the organization is breach of the accounting standards, rules and policies which is the
duty of Lucia (Kivits and Sawang, 2021).
Governments:
Government are usually the secondary stakeholders however in this scenario the
organization is provided allowance from the government from employing and training the
apprentice mechanics. Thus, in this scenario government is heavily effected as the business is
deferring its income in order to gain the allowance government provides to the business. This
amount provided by the business is tax-free and is direct fund for the mutual benefit of both
organization and social welfare planned by the government.
Investors:
The investors of the organization will also be effected due to these actions as they are the
person which are effected a lot from the business of the organization. They are the one which
makes their investment decision-making on the basis of the profit of the organization. Deferring
the profit will affect the decision-making of the investors.