Accounting and Society: Detailed Analysis of Treloar Business Finances

This report analyzes the financial performance of Treloar Business Pty Ltd, a subsidiary of Treloar Holdings Pty Ltd, focusing on its accounting practices and adherence to standards. The assignment addresses the company's transition from a non-reporting entity to a public limited concern, necessitating the preparation of consolidated financial statements under AASB 1053. It explores the implications of stakeholder theory, identifying key stakeholders such as the Victorian Government, board of directors, and employees, and discusses how changes in business models and financial decisions affect these stakeholders. Furthermore, the report examines the role of FGF (Fair Go Foundation), its financial support, and the impact of its involvement on Treloar's financial management, including the application of the going concern concept and adherence to accounting standards. The conclusion suggests against handing over profits to FGF and recommends establishing a dedicated finance department to manage financial matters and mitigate associated risks. The report provides a detailed analysis of Treloar's financial operations, stakeholder relationships, and the influence of accounting standards on its business practices.

Running head: ACCOUNTING AND SOCIETY
ACCOUNTING AND SOCIETY
Name of the student:
Name of the university:
Author Note:

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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
In Response to requirement A................................................................................................2
In Response to requirement B................................................................................................2
In Response to requirement C................................................................................................3
In Response to requirement D................................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction:
The aim of the assignment deals with the chosen company which is Treloar Business
Pty Ltd. and further the details regarding the performance of the business have been depicted
accordingly. The Business of Treloar does not perform the accounting reports and in that case
FGF provides the assistance to the business in terms of the financial prospects. The company
in that case analyzes the financial information in a detailed manner along with help the
business of Treloar to prosper accordingly in terms of the financial circumstances.
Discussion:
In Response to requirement A
Treloar Buses Pty Ltd is basically regarded as the fully owned subsidiary of the
Treloar Holdings Pty Ltd which is further known as the (THPL). The company under the
rules and regulation of SAC 1 does not prepare the financial statements or the consolidated
financial statements. The head office of the Treloar buses is in the small town of Victorian
which is Terang. There are a total of 10 buses costing $295,000 each purchased from the
Warrnambool manufacturer from the Earl Industry. Till the year 2018, Treloar was not a
reporting entity due to the reason that company does not maintain or prepare financial report
for the purpose of analyzing the financial performance of the concern. But it is significant for
the business to prepare or rather maintain the financial records or statement in order to
analyze the financial status of the concern (Duska, Duska and Kury 2018).
In Response to requirement B
Once Treloar becomes a public limited concern from 1 July 2019, the company will
start to prepare the consolidated financial statement at the end of the year by evaluating all
the significant financial operations of the business. As per the accounting standard AASB

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1053, the financial statement of the concern is prepared based on the accounting norms and
regulations (Hoyle, Schaefer and Doupnik 2015).
In Response to requirement C
 The stakeholder theory is referred to as the business ethics and organizational
management which creates much value to the organization as a whole. The
stakeholders of the company are consists of the government, customer, employees and
many more. The company undertakes the projects based on the interest of the
stakeholders as the capital will be obtained from the stakeholders of the company.
Each and every organization in that case tries to enhance the interest of the keys
stakeholders which will automatically increase the value of the firm. The stakeholders
of the business plays significant role in enhancing the business value of the firm
(Smith 2017).
 The key stakeholders of Treloar as per the provided information are Victorian
Government, Board of directors and the employees of the concern. This are the
significant stakeholders of the concern (Loughran and McDonald 2016).
 The financial decisions of the upper level management of the company is based on the
current financial status of the business model. The effectiveness in the financial
performance of the concern is based on the interest of the key stakeholders. The
management analyze the current business model and on the basis of that takes the
major decision (Schaltegger and Burritt 2017). Change in the business model will
definitely effect the prospects of the concern and it will take huge amount of time for
the employees of the concern to get habituated with the changed business model. This
will further affect the financial performance of the company due to the fact that there
is technological and social changes which takes place within the system.

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In Response to requirement D
The FGF is registered with the Australian Charities and the Non- profit commission
(ACNC) where the financial controller in that case is Peter Risotto which includes the
termination of the profit contribution from Treloar to FGF (Kieso, Weygandt and Warfield
2016). The management of the concern on account of the FGF must be followed the going
concern concept. The Fair Go Foundation or FGF provides financial support to the refugees
and further disabled in the form of scholarship. The FGF accounts can be prepared based on
the going concern concept which each and every organization follows. Then it generally put
impact on the registration of the firm which will increase as there is financial support from
the FGF. The financial prospect of the charity is undertaken by the FGF as they understand
the implication of the business (Kaplan and Atkinson 2015).
FGF takes care of the financial performances of Treloar and further makes decisions
based on the current financial performances (Libby 2017). All the finance of Treloar is done
by the FGF and in case of decision making FGF provides assistance to the Treloar by
following the accounting standard. This will further help the company of Treloar to enhance
the current financial condition based on the past performances of the company.
Conclusion
From the above discussion it can be concluded that it would not be a good decision
for the business of Treloar to hand over the certain portion of profit to the FGF. Instead for
that the management must appoint the financial managers of a particular department in order
to manage the financial related matter of the concern. The financial risk which are associated
with the business are hence identified by the risk management department will take necessary
actions accordingly. It is not relevant for the business to hand over the financial matter

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followed based on the standards of the AASB to FGF. It will be a good decision for the
management to have a finance department in order to manage the finance related matters.

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References
Duska, R.F., Duska, B.S. and Kury, K.W., 2018. Accounting ethics. Wiley-Blackwell.
Hoyle, J.B., Schaefer, T. and Doupnik, T., 2015. Advanced accounting. McGraw Hill.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Kieso, D.E., Weygandt, J.J. and Warfield, T.D., 2016. Intermediate Accounting, Binder
Ready Version. John Wiley & Sons.
Libby, R., 2017. Accounting and human information processing. In The Routledge
Companion to Behavioural Accounting Research (pp. 42-54). Routledge.
Loughran, T. and McDonald, B., 2016. Textual analysis in accounting and finance: A
survey. Journal of Accounting Research, 54(4), pp.1187-1230.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Smith, M., 2017. Research methods in accounting. Sage.