TABL2741

Hi there, I just need help with planning out potential topics to talk about and the structure of the report. thank you, question is below:

You are an accountant employed by a large accounting firm which also provides advisory services to clients. You are tasked, as part of your professional duty, with providing advice to a director of a corporate client whose business structure involves the company being part of a corporate group. The client wishes to understand a bit more on the treatment of corporate groups. Your client is aware of the judicial quote (extracted below) and produces it to you for your attention and critical comment.

In Qintex Australia Finance Ltd v Schroders Australia Ltd (1990) 3 ACSR 267, Rogers CJ stated that:

'...there is today a tension between the realities of commercial life and the applicable law [in relation to the treatment of companies within a group] ...

...the High Court of Australia confirmed the need to preserve, as a matter of law, a rigid demarcation between wholly owned subsidiaries in the same group of companies, as well as their holding company. [This legal position cannot be altered].

...It may be desirable for Parliament to consider whether this distinction between the law and commercial practice should be maintained. This is especially the case today ...'

With the reference to the quote above (as modified for purposes of this assessment), discuss with your client whether you agree or not with these judicial statements. Your answer, in the form of a written report, must offer supporting reasons with reference to relevant law.