Question 1 (2 marks)

Australia Food Ltd is a company with several branches across Victoria and NSW. The Company produces various food products including meats and milks. You work as a management accountant in this company. Your manager has asked one of your colleagues in the management accounting department to prepare a comparative profit or loss report for the current and previous month. The manager wants the report to cover only meat production in Victorias branches. Your colleague suggests that since the company has different branches and products, financial statements should cover all of the companys activities. He also suggested that the report should be prepared for a financial year in accordance with accounting standards. Using your knowledge of financial and managerial accounting, general and specific purpose financial reports and various users of accounting information, advise your colleague as to the approach they should adopt to meet the managers requirements and ensure the information correctly reflects the departments operations.

Your answer needs to be in your own words and correctly referenced to receive full marks. (200 words)