Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1: Total 8 Marks (4 marks for A; 4 marks for 'B') You have recently been appointed as Junior Management Accountant in Department Alpha

image text in transcribed
Question 1: Total 8 Marks (4 marks for A; 4 marks for 'B') You have recently been appointed as Junior Management Accountant in Department Alpha at the Armidale Clothes Sales Company (ACSC). You report to Taylor Francis, a highly demanding boss, who is entrusted by the company to manage and run the department. The company policies require management to demonstrate profitable operations and the management members' performance is measured strictly accordingly. You are also accountable for your work to the Head, Management Accountants. Senior management team members at ACSC are pushed to pursue high profits. In this pursuit, Taylor Francis, visits you in your office and orders you to record in the business books a revenue transaction of $349,000 on June 30, 2019. As per the details of the transaction, the revenue amount, already received by ACSC, pertained to a Xangiang Company's confirmed order for a shipment of completed goods to them, however, as per the signed contract between the companies, ACSC had to ship the completed consignment of completed goods July 7, 2019. You feel pressured from Taylor who, based on the firm and paid for order from Xangiang Company, is demanding you to formally record the transaction as revenue on June 30, 2019. Taylor tries to convince you saying that the recording of the transaction will help "our" division to meet the set performance target for the financial year ending June 30, 2019. Review the above case scenario in the context of the four CIMA codes of professional conduct discussed in the prescribed textbook and provide a response to each of the following questions: A. What ethical and professional responsibilities you must fulfill under the given circumstances in the light of each of the four CIMA codes? B. What steps (describe any four) you will take as management accountant to handle the situation if Taylor is adamant and is consistently pressurizing you to follow his directions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Managers Financial Accounting

Authors: Morusu Sivasankar

1st Edition

6200624909, 978-6200624901

More Books

Students also viewed these Accounting questions

Question

How do books become world of wonder?

Answered: 1 week ago