Blackmore's Limited: Contemporary Accounting Issues - ACC303 Report

This report analyzes contemporary accounting issues faced by Blackmore’s Limited, an Australian health supplements company. The report delves into several key issues, including the decline in share price, the impact of China's new e-commerce law on online business registration and sales of therapeutic drugs, a decrease in sales within the China segment, and the slashing of dividends. The analysis evaluates the impact of these issues on various stakeholders, such as investors and the company itself. The report includes recommendations for accountants, such as cutting expenses, managing records, and leveraging technology to improve sales in Asia. The conclusion highlights the challenges accountants face, including high expenses and low sales, and emphasizes the need for proactive financial management to navigate these contemporary issues. The report references external sources to support its findings and recommendations.

ACCOUNTING
Contemporary Issues In Accounting

INTRODUCTION
 The aim of power point presentation is to analyse the
current social issues in accounting and evaluate their
impact on the different stakeholders.
 The company that has been selected for this report is
Blackmore’s limited which is an Australian health
supplements company that came into existence in the
year 1930 by naturopath Maurice Blackmore.

CONTEMPORARY ISSUES OF
ACCOUNTING
Share price fall
 In the year January 2018, the high price of the share
was recorded as 171.59 which continued to deny
continuously.
 It has been found that the company broke all the
records when the prices of the share declined with
68.29.

CONTINUE…
New e-commerce law by China
 The new law builds upon the legal system within
China. One of the essential features of the new law
includes the registration of the online business and its
different activities such as sales of therapeutic drugs.
 To meet the rules and regulations the accountants
deals with the issue to manage the funds because it
will cost the most to the company and it is considered
as one of the major expenses.

CONTINUE…
Decline in sales
 Sales in the china segment were down 15% on the
prior year to approx. $122 million.
 It has been found that the decline in the sales drains
the working cash and contributes in improving the
credit use.
Dividend slashed
 The company has announced a final dividend of the
amount $0.70 per share which an almighty from the
last year's dividend of $1.55.
 Investors have been hitting the sell button even since
the company released their results.

RECOMMENDATIONS
 It is suggested to the accountants that they should try
to cut some other expenses like promotion, campaign
and others.
 The accountants should manage the proper records as
well as the budget of the company.
 Blackmore’s company should make use of updated
and new technology or software.
 The company should focus on improving sales in the
other region of Asia as well as in China by abiding all
the rules and regulations.

CONCLUSION
 At the end of the report, this is concluded that
presently there are different issues which are faced by
the accountants while performing the practice of
accounting.
 Issues for accountant who includes high expenses,
high rate of interest, low sales of product and many
others.

REFERENCES
 Clark, E. (2019) China's new e-commerce law: A step
in the right direction [Online]. Available from:
http://www.china.org.cn/opinion/2019-01/09/content_7
4355741.htm
[Accessed on 18th January 2020]
 Ashe-Edmunds, S. (2020) Factors That Lead to
Financial Distress for a Company [Online]. Available
from:
https://smallbusiness.chron.com/factors-lead-financial-
distress-company-72188.html
[Accessed on 18th January 2020]
 Rankin, M., Stanton, P., McGowan, S., Ferlauto, K. and
Tilling, M. (2012) Contemporary issues in accounting.