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ch18_EOC_material summary.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools ch18 EOC material... X Sign In 8 / 16 75% do Share Search 'Split P. Export PDF Classify cach of the three events above according to the risk classification framework (strategic, operational, legal and regulatory, and financial). 18.29 Shared bonus pool LO4 Sarah Tesar is the lead partner of a medium-sized accounting firm. The eight partners share in an annual bonus pool. The characteristics of the bonus pool system include The bonus pool size each year is calculated as 40 per cent of annual profit The bonus pool is allocated on the basis of bonus units awarded according to the partners' performance against target foes generated from new clients. This is meant to reinforce the firm's strategy of growth through new client acquisition. If the fees target is met, ane bonus unit is awarded; if the fees target is exceeded by 10 per cent, two bonus units are awarded; if the fees target is exceeded by 20 per cent, four bonus units are awarded, and if the fees target is exceeded by more than 20 per cent, six honus units are awarded. This year the annual profit was $2.2 million and the partner performance according to their fees from new clicat target was as follows: three partners achieved 10 per cent above target three Adobe Export PDF Convert PDF Files to Word or Excel Online Select PDF File CHAPTER 18 Rewards, incentives and risk management 697 ch18_OC_...mmary.pdf Convert to Microsoft Word (.docx) Document Language: English (U.S.) Change other partners achieved 20 per cent ahove target; and two partners exceeded the target by more than 20) per cent Required (a) Calculate: (i) the value of the Ixonus poil to be shared (ii) the value of one bonus unit (in the value of the bonus each manager would receive for the year, One of the partners, Russell Morris, has sought a meeting with Sarah to discuss the shared bonus pool system. He wrote in an email to Sarah I spend a lot of my time providing our in-house training programs... I can't be oul chasing new clients at the same time! Why do we only have cine measure for the bonus system? (b) How important is the selection of the bonus allocation formula and the measures) to be used? (c) In the light of Russell's email, would you advise Sarah to make any changes to the current system? Explain. Convert and edit PDFs with Acrobat Pro DC Start Free Trial I Type here to search O Et e ENG 2:04 PM 30/05/2020