The Success and Growth of Business Organization

Financial Accounting

Contents
Executive Summary................................................................................................... 3
Case Study Analysis................................................................................................... 3
Key Findings............................................................................................................... 6
Recommendations...................................................................................................... 7
Conclusion.................................................................................................................. 7
References................................................................................................................. 9

Executive Summary
The success and growth of business organization is largely dependent on the proficiency
of the accountants. The accountants must possess adequate skills and capabilities for promoting
trust and transparency in their business operations through complying with standard accounting
policies and regulations. The accountants must have proper knowledge of ethics and corporate
governance frameworks for developing an adequate understanding of their various roles and
responsibilities. As such, it can be said that ethics and corporate governance is a major
component of the skills base of the accountants. The accountants hold the responsibility of
protecting the interests of the stakeholders of a business organization through providing them
accurate and relevant information regarding its financial performance (Petraşcua and Tieanub,
2014). In this context, the present report is developed for providing an analysis of the importance
of ethics and governance in the field of accounting. This is carried out through examining the
ethics and governance issues presented in the given case study of Sunshine Ltd. The company
has changed its method of calculating deprecation without informing is stakeholders for
improving its profitability position in the future period of time. The report as such has also
examined the accounting standard of AASB 116 and its impact on the accountant’s role. At last,
it has also provided recommendations to the company to act ethically for ensuring its sustainable
growth and development.
Case Study Analysis
Sunshine Ltd, a department store, is using the method of straight-line for calculating
deprecation since its establishment. However, the general manager of the company at present has
asked the accountant of the company to incorporate the use of sum-of-years digits method in
place of straight-line method for calculating deprecation. This is done in context of the economic
slowdown expected by the company in the future years and thus such accounting change will
help the company in delivering consistent profits to its stakeholders and thus achieving this
satisfaction. However, such accounting practice of the company is unfair and unethical as it has
decided to conceal this information from its stakeholders by not disclosing this change in the
notes to financial statements.