Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
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MANAGEMENT ACCOUNTING1
Table of Contents
Introduction......................................................................................................................................3
Discussion:.......................................................................................................................................3
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

MANAGEMENT ACCOUNTING2
Executive Summary
West Ltd is an organization and the owner of the two brands in the fishing industry. The
company is involved in the production and selling of frozen and canned fish. The company is a
dolphin friendly company assume by the people. This is the reason for its huge goodwill and
brand image. The company got a proposal in doing a campaign against the whalers in the oceans.
The marketing manager proposed that the repair cost of the ship have to be funded by the
company. The company thinks to capitalize the repair cost to the carrying cost. The report
contains a detailed analysis about these proposal acceptance according to the accounting
standards.

MANAGEMENT ACCOUNTING3
Introduction
The company West Ltd is a prime company in sale of frozen and canned fish. The
products of the company are being sold under two brand name Artic Fresh and Tropical Taste.
Fishes that were been caught in southern Australia are sold under the brand name Artic Fresh and
the fishes that were been caught in the northern oceans are being sold under the brand name
Tropical taste. West ltd acquired all the assets and liabilities of fishy tales that was the
developing companies of the brand Tropical Taste. The marketing manager has suggested the
company to disrupt the whalers. This will result in increased for the goodwill and environmental
reputation of the company. The company is known as the Dolphin friendly as they have done a
campaign previously to ensure that the dolphins have not been affected by the tuna fishing. The
marketing manager has also explained that if any damage occurs to Steve Irwin during the event
then the company have to fund the cost for its repairs. The company has decided to capitalize the
cost with the carrying amount of the brand. The purpose of this report is to analyze the problem
with proper accounting standards.
Discussion:
The marketing manager of the company has very good selling ideas for the company. The
company is popular and has a brand name as because of their campaigns initiatives. The
campaigns done previously by the company increases the goodwill and the brand image of the
company. This also shows that the company is very much concerned about the environment and
has the responsibility in preserving it. The new initiative that the marketing manager wants to
take from the side of the company is to disrupt the whalers in the oceans. The whalers are the
persons who generally harm the whales of the oceans as then they can have their meat, blubber
and the skin of the whales. The main reason behind this is that latter they will be able sale those
things in exchange of money (Urquhart and Acott, 2014). The marketing manager of the
company had shown a concern about the ship, this is the reason why the, marketing manager had
propose the board of the directors to bear the cost the cost for repairing the damaged portion of
the ships that may occur during the event. The marketing manager of West Ltd had little
knowledge about the accounting transactions and the accounting standards that needed to be
followed. The manager believes that this proposal will not effect on the revenue earned by the