For each of the following entities, identify the objectives of financial reporting that the entity 's managers might have In answering, consider who the stakeholders might be and which stakeholder(s) would be most important to the managers Explain how the objectives of financial reporting would inf...

a In this case the motivation would be to report lower profits to the union This would be consistent with a tax minimization objective which would be in line with the focus of some private companies T ...

For each of the following entities, identify the objectives of financial reporting that the entity's managers might

Question:

For each of the following entities, identify the objectives of financial reporting that the entity's managers might have. In answering, consider who the might be and which stakeholder(s) would be most important to the managers. Explain how the objectives of financial reporting would influence the accounting choices made by the managers.
a. A private company with a large labour union that is preparing for negotiations with the union.
b. An accounting firm that uses accounting income to determine the amount of tax the partners pay and the compensation the partners receive.
c. A private that repairs commercial vehicles. The company has one share holder who is also president of the company. The company urgently needs cash.
d. A public company planning to borrow a large amount of money to finance an
expansion.
e. A not-for-profit golf club. Membership fees, green fees, dining room charges, and pro shop sales are used to operate the club. Club members are elected to sit on the board of directors of the club.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...