Comfort Meals (CM) is a not-for-profit organisation that prepares and distributes meals for homeless people in Adelaide. David Cunningham, who is a member of CPA Australia, is the Chief Financial Officer for CM. On the 28th July, 2019, CM’s Chief Executive Officer (CEO) successfully negotiated a loan for $1.8 million dollars (4% per annum interest) to fund the construction of new kitchen facilities. The new facilities will be completed and ready for use in November 2020.
David is now preparing the CM annual financial statements for the year ended 30th June, 2020. The relevant accounting standards require that the interest costs associated with such a loan should be capitalised (that is, treated as an asset, part of the cost of the new facilities). The CEO has just spoken to David regarding the accounting treatment for the loan and its interest costs. In particular, he has asked David to ensure that the interest costs on the loan are all expensed in the current accounting period. The reason for the request is that CM is about to approach the government for a new round of operating grant funding. This funding is essential to ensure that CM can continue its operations in the coming year because CM is dependent on government financial support for its day-to-day activities. “Our financial operating surplus must be as low as possible for this year”, he states. The CEO goes on to say, “Preferably we should be showing a loss so that we can maximise the amount of grant funding we receive from the government. Remember, without our services, the homeless of Adelaide would be left to starve. It’s all up to you to show the right figures!”
Required:
Using the DECIDE model, explain how David should respond to this situation. You should ensure that your analysis of the case is supported by reference to the Fundamental Ethical Principles and the values of the fundamental principles of the accounting profession as specified in APES 110. Three (3) courses of action should be identified and evaluated
Insert your response to Question 2 here:
Stakeholder Analysis (insert additional rows if needed):
Stakeholder Stakeholders’ Rights David’s Duties
Discuss remaining steps of DECIDE model here:
Sample Solution
Nearby people group ought to conform to government laws and homegrown guidelines. However long they meet the necessities of these chances, everybody has equivalent open doors for an amazing duration. Individuals who are qualified and put forth a valiant effort for the network lead the network. Society depends on unrestrained choice, except if rules are watched and nobody is harmed. Rules and guidelines are intended to ensure individuals of the general public so as to construct a protected and amicable network. There are two essential kinds of network networks, networks characterized by topographically characterized networks and geologically various factors. Instances of topographically characterized networks are networks or neighborhoods. The assembled houses share a typical space. Nearby economies and provincial organizations are additionally viewed as a component of the neighboring network. Individuals from the network are invested individuals in network wellbeing, and I am keen on this What is a network? Parker characterizes the network as individuals who share a typical space or locale, share a typical relationship, collaborate with one another, and are broadly utilized in the writing (Fritz, 1985). The people group comprises of common commitments and connections connecting people to establishments and relationship organizations. In most geological networks, there is a typical association and a pretty much free network. Schools, law requirement offices, and social government assistance offices are three instances of formal orgaInitially, socialism appeared to be an ideal for Russian residents. The understanding of Lenin's own Marxist evaluate should initially be a communist despot so as to accomplish socialism. Start things out to smother complaints and fights. Through compulsory measures, the new government got power and in 1917 Lenin took power. Themes that can improve the administration's vocation include: public talking, news coverage, relational correspondence, media framework presentation, correspondence hypothesis, correspondence research technique, hierarchical correspondence, conversation and conversation, manner of speaking hypothesis and analysis , Political correspondence, influence, media execution, tuning in, correspondence morals, execution research, execution. The connection among computerization and correspondence has gotten the subject of broad exploration by correspondence specialists. Numerous media communications offices offer specialization in data science, human data hypothesis and cycles or correspondence advancements, which regularly incorporate PCs, packed video, and interchanges through phone calls. Correspondence is wherever in the improvement cycle. Correspondence incorporates broad communications, broadcast communications, data and correspondence innovation (ICT), composed relational correspondence, and all the assets that society uses to make data stream. Its motivation is to urge individuals to give data, teach, convince, engage, propel, and advance conduct changes that add to the improvement of the nation. As indicated by Fraser and Restrepo - Estrada (2001), it states as follows. Correspondence is a necessary aspect of the improvement plan from the start, recognizing issues and needs, and assuming a significant part in point by point measures. Assessment ... Correspondence requires clear objectives, ID of different subjects, cautious data plan, and checking and input. "nizations inside the network that are especially significant for substance misuse. Guardians and understudy associations vary in structure, normal to most networks, and can assume a significant part in forestalling drug misuse. Local gatherings and individuals from the association cooperate to make, characterize, and take care of social issues by connecting with each other. Declining Drug Abuse: Sociological Strategy for Community Social Practice W. David Watts South West Texas State University Techniques for network based sociological practice are examined. With regards to social development of reasonable speculations, the function of sociologists in helping networks comprehend social issues has been dissected. When the network acknowledges young people 'substance misuse issues, the hypothesis of control and partners' affiliation can lead sociologists who wish to work with neighborhood pioneers to battle drug misuse. Network association, reinforce the association among guardians and different gatherings, bring down the network's capacity to bear drug misuse, assemble uphold for peer counteraction>
GET ANSWER