A) Boafo Ltd is a listed company that supplies packaging material to a large domestic client based in Accra. In the year ended 31st December 2017, the company began selling its products to a packaging company, Kanu Ltd based in Nigeria on a trial basis. Kanu Ltd stipulate that prices must be set in Nigeria Naira (N), and Boafo agreed to this in order to achieve the goal of expansion into new African Markets An initial order for N5,250,000 was placed on 6 May 2017 bt Kanu Ltd, for delivery within 14 days. Boafo had agreed initial terms of 60 days with Kanu, which would reduce to 45 days for any sales made after a supply contract between the two companies was signed. Such a contract was expected to be worth a significant amount over two years, and would form almost 30% of Boafo’s forecast turnover. The finance Director of Boafo, Kojo Ablakwa, a Chartered Accountant, has made it very clear that he does not want profits to become volatile as a result of exchange differences. He has instructed the new financial controlled to depart from the requirements of IAS 21; Effects of changes in foreign currency exchange rates and tuck away exchange differences in the bottom of the statement of financial position, which she has agreed to do. In order to foster the relationship with Kanu and secure a two –year supply contract, Samuel Mensah, the CEO travelled to Nigeria in October 2017 and hosted a series of dinner and hospitality events for the senior management of Kanu Ltd. Samuel’s wife and two children accompanied him on the trip. Boafo Ltd met all travel, entertaining and accommodation costs associated with the trip to Required: Identify and explain the ethical issues for Boafo Ltd in the year ended 31 December 2017 and how they should be resolved. 

B) Whilst acknowledging the importance of high-quality corporate reporting, the recommendations to improve it are sometimes questioned on the basis that the marketplace for capital can determine the nature and quality of corporate reporting. It could be argued that additional accounting and disclosure requirements would only distort a market mechanism that already works well and would add costs to the reporting mechanism, with no apparent benefit. It could be argued that increased disclosure reduces risks and offers a degree of protection to users. However, increased disclosure has several costs to the preparer of financial statements. Many are those who think that the concept of integrate reporting should be given prominence and if possible, legislated and made compulsory for all listed entities. 

Required: 

1. Describe the scope of integrated reporting and discuss the relative benefits of integrated reporting to users of financial statements. 

2. Advice on the likely implications of introducing integrated reporting which an entity should consider before deciding to proceed with its adoption.