The CFO proposes to include an additional measure of earnings: earnings before interest, tax, depreciation, amortization and COVID (EBITDAC) in press releases and conference calls. He argues that EBITDAC highlights what the company's performance might have been had it not been for the impact of COVID.

On the basis of both of the fundamental characteristics of the Conceptual Framework for Financial Reporting, evaluate whether EBITDAC provides useful information for decision making. You must specifically refer to each of the fundamental characteristics.

E3.\" Cassowary Creek Confectionary Ltd. * Cassowary Creek Confectionery (CCC) Ltd is on artificial company created for the purpose of this case study. History The company takes its name from a region in the Victorian countryside. The original homestead stood near a creek which in the past provided its source of water, so vital for the agricultural economy that pervaded the region. Its life began as a sheep station in the late 18805, but after many generations the emphasis ofthe business had also changed. Many bouts of drought and famine over the decades made the owners and homesteaders re-look ' ' ' " - " ' '1' ' " ' rs: had been very entrepreneurial rely sheep, to beef cattle, to -usiness for some while. But Sought became more frequent -_-u|ted in huge losses. \"eff some of their land and is grape production. They :-me other attempts, they -:' able for a time. The market ooked around for ideas for g nuts and fruit with " ning as a confectionary manufacturing company ecur'ities Exchange since ' company. It makes and sells ,- chocolates are '-. It has retail stores in .-'na||y (e.g., London, ' -at a foray \fits factory is based on the outskirts of Melbourne where land is not at such a premium and is also close to many distribution centres. The unemployment rates in these outskirts are high and the Ideal government is very supportive of business activities that can support the local economy. The company employs many people from the surrounding communities and area and that has been its focus right from the beginning. It likes to support the local community and the economy. The past year has been particularly hard with shutdowns and lockdowns due to the COViD 19 pandemic. Sales and production have seen significant decreases. Finding a way forward has been the corporate directors' main focus but what to do to turn around strategically is not always clear and easy. Despite the competition and the ever-changing conditions, the company is still strongly committed to and making it a priority to achieving the following: Ethical ands 5ft: Using only :- ' Refusal to 4 otherwise, r, ery _ be itforcecl or A point w--: olely in Australia, despite the fact th '. Senior Board of Directors. There are y pany. The six Executive Exhibit 2 _ Directors -; ChiefExe .' : descendant ofthe 18805. While a direct i hey are able to keep the I}: rted working with the I'lessly within the become CEO when he mpany with emphasis nenetration. descenda name Cas , family bus'_ business a :2 took over '_ on increa -* children went off to University and when she had more time on her hands to devote fully to the business as it grew. Chief Financial Ofcer (CFO) Alexander Chao is the Chief Financial Officer at the company. Alexander studied Commerce at University and graduated with Honours. Immediately after graduation, he got a lab with one of the Big 4 accounting firms and started as an Auditor. He also further qualified as a Chartered Accountant with the Institute in Australia. The long hours and the many late nights at work made him rethink his goals and ambitions as his immediate family grew. He left the Accounting firm to take up a position as a Financial Controller at Coles Myer Group. This was his last job before he joined the company as CFO. Director of Logistics and Production '. -.1 :_ . ,_ , . . _ :2" it comes to Logistics and Production. He has had many years' service with the company. He carries with him a wealth of knewledge and experience pertinent to the company. The loss of his services would be a serious setback for the company as he carries in his head the history, the setbacks, and the problems the com {any has been through. H knows al_|.par_ts of the operations of the company pa 7'- I " n. Christopher has an engineering iin the organisation. His engineering, aspects and phases of the manuf _f- nds and has been instrument. Director of _' :is in her late twenties. Eugenie M .- - r: Bachelors de ree in She works Marketing . . - _ gm - lol- 'W'aSm-W . . . :';ree to increase her working kn Vline platforms that are fast becomi 'ie company for the past' 5 years and 7: Director of :- ed the family business :1; department to begin 1 ' even headed a I with at the 7 my e. Charles Mci" soon after h r with, but fo' \fExhibit 1 Australia ~ Chocolate market The Australian Chocolate market stood at $2.9 billion, and is projected to surpass $4.3 billion by 2023. This has been achieved primarily by growing chocolate consumption and rising demand for niche products such as organic chocolate products. Moreover, the industry has recently witnessed an increasing focus of chocolate manufacturers on offering innovative products, like Cadbury Dairy Milk with Oreo in mint and strawberry flavours. This is expected to positively inuence the country's chocolate market in the coming years. Rising number of health-conscious consumers, increasing demand for premium chocolates, and the rapid expansion of e-commerce are some of the factors that would fuel growth in Australia ' -- .- '- - -.--.---...-_.- W _._ 2023). ' permarkets, convenience ii. Accessed on 16Jan,2021 7 h.com