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Issues in Accounting Assignment | Case Study of Sunshine Ltd

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Added on  2020-05-16

Issues in Accounting Assignment | Case Study of Sunshine Ltd

   Added on 2020-05-16

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1Case Study: Sunshine Limited
Issues in Accounting Assignment | Case Study of Sunshine Ltd_1
2Executive Summary The main purpose of this report is to analyse the case study on Sunshine Limited over theaccounting issues related to the changing method of depreciation. In this case the management atSunshine Limited told the accountant to change the depreciation method from the straight linemethod to sum of years digit method in order to make profits in the annual reports in next fouryears from 2016 to 2019. The findings shows that the decision made by the accountant to changethe depreciation method from the straight line method to sum of years digit method is not in bestinterest of the shareholders and also proves to unethical. It has also been found that nondisclosure of the change in the depreciation method under notes to accounts also violates themost important provisions given in the Australian Accounting Standard 116. Such violationshave raised the big question mark on the corporate governance principles followed at theSunshine Limited. It has been highly recommended to the Sunshine Limited to disclose thechange in deprecation accounting method under the notes to accounts of financial statements sothat shareholders must be aware about such change and make their decision wisely.
Issues in Accounting Assignment | Case Study of Sunshine Ltd_2
3ContentsExecutive Summary.........................................................................................................................2Introduction......................................................................................................................................4Detailed Analysis of the Sunshine Limited Case Study..................................................................4Key Findings....................................................................................................................................6Recommendations............................................................................................................................6Conclusion.......................................................................................................................................7References........................................................................................................................................8
Issues in Accounting Assignment | Case Study of Sunshine Ltd_3

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