levels of pollution, waste, and other environmental risks. The ethical concern here is about fairness—
whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air
Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and
Solution Manual For
Accounting 7th Edition by Birt & Chalmers Chapter Overview
Chapter 1: Introduction to accounting and business decision
making
Apply your knowledge
a. Provide an example of the different types of activities that would be performed by
a management and a financial accountant for a large public company listed on the
ASX. (5 marks)
b. What are some of the advantages of business planning? (5 marks)
c. Sustainability accounting is a very important and huge growth area of accounting.
Discuss the different stakeholders (and their information needs) that would be
interested in sustainability reports. (10 marks)
d. Integrated reporting is a type of reporting that has been adopted in countries such
as South Africa. What do you think are the advantages and disadvantages to the
company of providing such disclosures? (10 marks)
e. What are the three elements of a business plan? Consider the situation of two sisters
contemplating a new business hiring surfboards and providing surf lessons on the
Sunshine Coast. Explain how the business plan would assist the sisters in planning
their business venture. (10 marks)
a. Provide an example of the different types of activities that would be performed by
a management and a financial accountant for a large public company listed on the
ASX.
The management accountant would perform activities such as capital budgeting for future store
fit-outs, preparation of budgets and cost–volume–profit analysis for a new business venture
(e.g. diversifying product range to include books).
The financial accountant would perform activities such as preparation of financial reports (i.e.
statement of profit or loss, statement of financial position and the statement of cash flows) in
accordance with generally accepted accounting principles, which are represented by accounting
standards including those issued by both the AASB and the IASB and the Corporations Act.
b. What are some of the advantages of business planning?
Business planning provides a clear, formal statement of direction and purpose. It allows
management and employees of the entity to work towards a set of clearly defined goals in the
daily operations of the business. It also assists the business entity in evaluating the business.
,
, c. Sustainability accounting is a very important and huge growth area of accounting.
Discuss the different stakeholders (and their information needs) that would be
interested in sustainability reports.
Stakeholder Information needs
1. Management Sustainability reporting can improve stakeholder relations, create market
opportunities, increase control over environmental disclosure, satisfy a
mandatory or signatory reporting need, gain the confidence of investors,
insurers and financial institutions, trigger internal improvement in
environmental performance and gain external recognition or awards.
Meeting environmental targets can increase remuneration for
management.
2. Investors The disclosures can provide information to investors to determine the
future of an entity and to assess future cash flows for dividends and the
possibility of capital growth of investment.
3. Employees Employees can use the information to ascertain job security and future
promotional opportunities.
4. Suppliers Suppliers of the entity can use the information to determine an entity’s
ability to repay debt associated with purchases.
5. General Interested in comparing companies to determine their sustainability
public practices.
d. Integrated reporting is a type of reporting that has been adopted in countries such
as South Africa. What do you think are the advantages and disadvantages to the
company of providing such disclosures?
levels of pollution, waste, and other environmental risks. The ethical concern here is about fairness—whether it
is just for these communities to bear a larger share of the negative impacts of industrial development and
environmental degradation.Legally, environmental regulations such as the Clean Air Act or the Clean Water
Act are designed to curb pollution and protect public health. However, enforcement of these laws is often
inadequate, and the legal system may not always provide sufficient redress for communities that suffer from
environmental harm. This raises questions about the effectiveness of current legal structures in promoting
environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change presents a
particularly difficult ethical and legal challenge. While the causes of climate change are now widely accepted
(mainly human activities such as burning fossil fuels and
Integrated reporting combines social, environmental, financial and governance
information. It provides a clear and concise representation of how an organisation
demonstrates stewardship and how it creates and sustains value. It is based on the six
capitals of financial capital, manufactured capital, human capital, intellectual capital,
natural capital, and social and relationship capital.
Advantages of adopting IR include:
more integrated thinking and management
greater clarity on business issues and performance
improved corporate reputation and stakeholder relationships
more efficient reporting for both users and preparers of reports
employee engagement
improved gross margins although financial benefits of adopting IR may take time to
realise
the integrated report gives a holistic image of the organisation, by combining the financial
, and nonfinancial information.
Disadvantages of adopting IR include:
very time consuming
it is hard for the organisation to determine which information should be disclosed, since
they want to report only the material aspects, yet they also want to be fully transparent and
disclose as much as is required by the stakeholders
non-financial information is not as easy to obtain as financial information.
levels of pollution, waste, and other environmental risks. The ethical concern here is about fairness—
whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act or
the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of these
laws is often inadequate, and the legal system may not always provide sufficient redress for communities
that suffer from environmental harm. This raises questions about the effectiveness of current legal structures
in promoting environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change
presents a particularly difficult ethical and legal challenge. While the causes of climate change are now
widely accepted (mainly human activities such as burning fossil fuels and
e. What are the three elements of a business plan? Consider the situation of two sisters
contemplating a new business hiring surfboards and providing surf lessons on the
Sunshine Coast. Explain how the business plan would assist the sisters in planning
their business venture.
The three elements/components of a business plan are:
marketing
operations
finance.
The business plan would provide the sisters with a clear statement of purpose and direction for
their business. It would allow them to both work towards a set of clearly defined goals, thus
enhancing the likelihood of the goals being reached. It also provides them with a suitable means
of periodically evaluating the performance of their business. Different quantifiable targets, such
as sales of surfboards, the number of surfboards sold, market share and profitability, can be
compared with the actual results at the end of the plan period. The business plan also would
encourage the sisters to effectively review all aspects of their operations, which could foster a
more effective use of scarce resources, such as staff, time and money, and improve coordination
and internal communication. Finally, the process of collecting information, analysing it and
integrating it into a written plan can help ensure that the sisters have adequately researched the
business idea.
whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air
Act or the Clean Water Act are designed to curb pollution and protect public health. However,
enforcement of these laws is often inadequate, and the legal system may not always provide sufficient
redress for communities that suffer from environmental harm. This raises questions about the
effectiveness of current legal structures in promoting environmental justice.#### 7.2 **Climate Change
and Global Responsibility**Climate change presents a particularly difficult ethical and legal challenge.
While the causes of climate change are now widely accepted (mainly human activities such as burning
fossil fuels and
Solution Manual For
Accounting 7th Edition by Birt & Chalmers Chapter Overview
Chapter 1: Introduction to accounting and business decision
making
Apply your knowledge
a. Provide an example of the different types of activities that would be performed by
a management and a financial accountant for a large public company listed on the
ASX. (5 marks)
b. What are some of the advantages of business planning? (5 marks)
c. Sustainability accounting is a very important and huge growth area of accounting.
Discuss the different stakeholders (and their information needs) that would be
interested in sustainability reports. (10 marks)
d. Integrated reporting is a type of reporting that has been adopted in countries such
as South Africa. What do you think are the advantages and disadvantages to the
company of providing such disclosures? (10 marks)
e. What are the three elements of a business plan? Consider the situation of two sisters
contemplating a new business hiring surfboards and providing surf lessons on the
Sunshine Coast. Explain how the business plan would assist the sisters in planning
their business venture. (10 marks)
a. Provide an example of the different types of activities that would be performed by
a management and a financial accountant for a large public company listed on the
ASX.
The management accountant would perform activities such as capital budgeting for future store
fit-outs, preparation of budgets and cost–volume–profit analysis for a new business venture
(e.g. diversifying product range to include books).
The financial accountant would perform activities such as preparation of financial reports (i.e.
statement of profit or loss, statement of financial position and the statement of cash flows) in
accordance with generally accepted accounting principles, which are represented by accounting
standards including those issued by both the AASB and the IASB and the Corporations Act.
b. What are some of the advantages of business planning?
Business planning provides a clear, formal statement of direction and purpose. It allows
management and employees of the entity to work towards a set of clearly defined goals in the
daily operations of the business. It also assists the business entity in evaluating the business.
,
, c. Sustainability accounting is a very important and huge growth area of accounting.
Discuss the different stakeholders (and their information needs) that would be
interested in sustainability reports.
Stakeholder Information needs
1. Management Sustainability reporting can improve stakeholder relations, create market
opportunities, increase control over environmental disclosure, satisfy a
mandatory or signatory reporting need, gain the confidence of investors,
insurers and financial institutions, trigger internal improvement in
environmental performance and gain external recognition or awards.
Meeting environmental targets can increase remuneration for
management.
2. Investors The disclosures can provide information to investors to determine the
future of an entity and to assess future cash flows for dividends and the
possibility of capital growth of investment.
3. Employees Employees can use the information to ascertain job security and future
promotional opportunities.
4. Suppliers Suppliers of the entity can use the information to determine an entity’s
ability to repay debt associated with purchases.
5. General Interested in comparing companies to determine their sustainability
public practices.
d. Integrated reporting is a type of reporting that has been adopted in countries such
as South Africa. What do you think are the advantages and disadvantages to the
company of providing such disclosures?
levels of pollution, waste, and other environmental risks. The ethical concern here is about fairness—whether it
is just for these communities to bear a larger share of the negative impacts of industrial development and
environmental degradation.Legally, environmental regulations such as the Clean Air Act or the Clean Water
Act are designed to curb pollution and protect public health. However, enforcement of these laws is often
inadequate, and the legal system may not always provide sufficient redress for communities that suffer from
environmental harm. This raises questions about the effectiveness of current legal structures in promoting
environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change presents a
particularly difficult ethical and legal challenge. While the causes of climate change are now widely accepted
(mainly human activities such as burning fossil fuels and
Integrated reporting combines social, environmental, financial and governance
information. It provides a clear and concise representation of how an organisation
demonstrates stewardship and how it creates and sustains value. It is based on the six
capitals of financial capital, manufactured capital, human capital, intellectual capital,
natural capital, and social and relationship capital.
Advantages of adopting IR include:
more integrated thinking and management
greater clarity on business issues and performance
improved corporate reputation and stakeholder relationships
more efficient reporting for both users and preparers of reports
employee engagement
improved gross margins although financial benefits of adopting IR may take time to
realise
the integrated report gives a holistic image of the organisation, by combining the financial
, and nonfinancial information.
Disadvantages of adopting IR include:
very time consuming
it is hard for the organisation to determine which information should be disclosed, since
they want to report only the material aspects, yet they also want to be fully transparent and
disclose as much as is required by the stakeholders
non-financial information is not as easy to obtain as financial information.
levels of pollution, waste, and other environmental risks. The ethical concern here is about fairness—
whether it is just for these communities to bear a larger share of the negative impacts of industrial
development and environmental degradation.Legally, environmental regulations such as the Clean Air Act or
the Clean Water Act are designed to curb pollution and protect public health. However, enforcement of these
laws is often inadequate, and the legal system may not always provide sufficient redress for communities
that suffer from environmental harm. This raises questions about the effectiveness of current legal structures
in promoting environmental justice.#### 7.2 **Climate Change and Global Responsibility**Climate change
presents a particularly difficult ethical and legal challenge. While the causes of climate change are now
widely accepted (mainly human activities such as burning fossil fuels and
e. What are the three elements of a business plan? Consider the situation of two sisters
contemplating a new business hiring surfboards and providing surf lessons on the
Sunshine Coast. Explain how the business plan would assist the sisters in planning
their business venture.
The three elements/components of a business plan are:
marketing
operations
finance.
The business plan would provide the sisters with a clear statement of purpose and direction for
their business. It would allow them to both work towards a set of clearly defined goals, thus
enhancing the likelihood of the goals being reached. It also provides them with a suitable means
of periodically evaluating the performance of their business. Different quantifiable targets, such
as sales of surfboards, the number of surfboards sold, market share and profitability, can be
compared with the actual results at the end of the plan period. The business plan also would
encourage the sisters to effectively review all aspects of their operations, which could foster a
more effective use of scarce resources, such as staff, time and money, and improve coordination
and internal communication. Finally, the process of collecting information, analysing it and
integrating it into a written plan can help ensure that the sisters have adequately researched the
business idea.
