TACC 401 : Principles of Accounting Assignment

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Principles Of Accounting (TACC 401)

Added on 2020-02-24

TACC 401 : Principles of Accounting Assignment

Principles Of Accounting (TACC 401)

Added on 2020-02-24

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TACC401

TABLE OF CONTENTSIntroduction................................................................................................................................3Main body..................................................................................................................................3Liquidation of ABC Learning................................................................................................3Liquidation of HIH insurance................................................................................................5Liquidation of One.Tel Phone Company...............................................................................5Conclusion..................................................................................................................................6References..................................................................................................................................7

TACC 401 : Principles of Accounting Assignment_2

INTRODUCTIONLiquidation can be defined as a situation of winding up of business in which assets aresold to pay off the remaining obligations. Liquidation can take place voluntarily orcompulsorily as per the conditions of business (Manganelli, Morano, and Tajani, 2014). Thepresent study is focused on the description of events that led up to liquidation of ABCLearning, HIH Insurance and One.Tel Phone Company. The financial stress of citedcompanies will be supported by the description of ethics and governance. MAIN BODYIn liquidation, entity winds up, sold its assets and the profits from sales are given tothe creditors or entities having claims on the company. The procedure of liquidations ismandatory if the wind up takes place as the consequence of an order of the court (Lessambo,2014). Other are considered as voluntary when the owners or shareholders engaged inoperating the business choose to end operations. The universal reasons of liquidations arelegal problems, insufficient desire, and bankruptcy, between the individuals running thebusiness to be maintaining it as operating.In past few years, several liquidations of multinational firms and strengthen businessentities have occurred in Australia. In accordance with the viewpoint of Foreman (2014),court rules stated that liquidations differ all over the world, but these measures classicallybegun by the business itself on behalf of their creditors or shareholders. The party desires tostart the proceeding while making a court filing describing the reason for choosingliquidations and if the request is accepted by the judge, then the firm must end theiroperations and supervisors and are generally agreed by the court to manage their assets sale(Chow, 2017). Liquidation is not primarily due to financial obligations as it is supported byvarious other reasons such as breach of ethical and legal aspects, frauds and inappropriatebusiness strategies. Liquidation of ABC LearningCompanies suffer from failure primarily because of financial dispensaries. Inaccordance with the ACCC (Australian competition and consumer commission)representative, ABC’s collapse was not because of increasing competition, but it has been

TACC 401 : Principles of Accounting Assignment_3

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