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Report On Ethical & Legal Compliance Issues

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Added on  2020-02-24

Report On Ethical & Legal Compliance Issues

   Added on 2020-02-24

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RUNNING HEAD: Ethical issues and dilemmas from the financial statement of Dick smith 1Name of the student-Topic-Ethical issues and dilemmas from the financial statement of Dick smithUniversity name-
Report On Ethical & Legal Compliance Issues_1
Ethical issues and dilemmas from the financial statement of Dick smith2Table of ContentsIntroduction.................................................................................................................................................2Present description of company..............................................................................................................2Critically evaluation of Dick Smith Company in handling Earning Management and related issue of real activities management.................................................................................................................................3Conclusion...................................................................................................................................................5References...................................................................................................................................................7
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Ethical issues and dilemmas from the financial statement of Dick smith3IntroductionWith the increasing ramification of economic changes and complex business structure,Dick smith holding, a major electronic retailer has closed down its business due to several ethicaland legal compliance issues. It is evaluated that Dick smith holding company has failed tocomply with the international and financial reporting standards. In this report, study has beenprepared on the financial and non-financial aspects of Dick smith holding company and ethicaland legal compliance issues which have resulted to closure of the business (Mills and Woodford,2015).Present description of company Dick smith holding company is major retailer company which was acquired byAnchorage capital partner. This company was part of Woolworth Company which sold Dicksmith holding company to by Anchorage capital partner for AUD$ 115 million. After that DickSmith holding company got listed and sold its shares in market. However, due to the sluggishmarket conditions, Dick Smith Company had to face liquidation in its business process andclosed down its business. (Anchorage capital, 2017). The main ethical dilemma which was facedby Dick Smith Company was related to its less efficient financial reporting compliance programand disclosure of wrong information to its stakeholders. This resulted to sudden increase ofoverall market share of company and also increased its market capitalization of company byAUD $ 520 million. Market making process of directors and mangers of Dick Smith Companyreflects the sudden increase in overall share price of company and investors inclination towardsbuying company’s share (Adelopo, 2016). After collecting data from the secondary sources, it isconsidered that Dick smith company was sold by Woolworth to Anchorage capital partner for the
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