Financial Accounting Of An Instruction

Scope of the Company

Describe about the Financial accounting of an Instruction?

One of the major scopes of the task is to identify the compliance statutory requirement of the organisations (Body, 2008). Apart from that, the scope of the task will also highlight the policy and procedure of the organisations.

The organization tries to make sure that everything  it does to remain based on the high quality management practices and is very much has legal frameworks along with complaint that will  provide the business environment to minimize the risk to all who operates within it (Benedict & Elliot, 2011).

The above policy will give the staff to covers the entire required statutory and compliance training which will exemplifies some of the major concern areas within the organization are given below:

-Given equal prospects, diversity and cross culture business environment  

-provide the right kind of financial services to the customers

-Keeping up with employment (Berry, 2009).

-Managing the Information

-Research group and governance

-Health and safety learning for employees

-Checklist on maintaining of the laws  (Bhattacharyya, 2010)

Statutory requirement of the organization will help the organization to achieve the sanction of license and permission which is required by the laws of the nations  for creating process of opening of new business or the expansion of the business (Bienstock & Mentzer,  2008).

Some of the major act that is needed to be followed while fulfilling up the statutory requirement are factories act , PF and ESI act and payment of wages act , shop and establishment act etc in order to complete the process.

Apart from the above , the major act that is needed to be followed are :

Labour legislation act

Minimum wages act

Bonus act

Professional tax act has been fulfilled by the company or not.  

Statutory management services

Licensing and registration of the company: IT is one of the most important laws which must be fulfilled as per the various labour laws act.  Registration of the company requires memorandum of association and article of association in order to be  the law abiding company rather than being called illegal (Brigham, 2010).  

Preparation of financial statements: Managing of proper receipt and payment along with revenue generation of company is very much made as per periodical basis. This will company to enough chances of keep ways from the laws of taxation (Brigham & Houston, 2009).

Preparation of statutory report: statutory report must be made in order to understand whether company has done their proper filing of the company or not. Apart from that, the requirement will also give an enough scope to inspect whether the company has renewed its licenses or not or any other problems regarding law.

As per the Reviewing of the current practices like Coles retail store give below:

Topic	Related legislations are followed or not	HoD	Admin	Sales	Finance
Licenses along with registration   AOA and MOA is up to date	ABN act (Australian business number)	ü	N/A	N/a	N/A
Race equity	Race amendment  act 2006	ü	ü	ü	ü
Gender equality	Gender equality act 2007	ü	ü	ü	ü
Hygiene maintaining	AS 3806	ü	ü	ü	ü
Tax returns filing	Tax filing number (TFN)	ü	ü	No	ü
No manual handling of operations	Data protection act 1998 and regulation of 2004	ü	ü	ü	ü
Preparation of financial statements	TRAC act	ü	N/A	No	ü

Some of the major member who will be needed to complete the job are :

Identification of members

Board of directors

CPA

Company secretary

HR manager

Board of directors   are one most important part  who are needed to be involve the stator requirement making process in order keep them informing happening of the company.  CPA are financial reporter who are very much in require  to work as per the laws  and without hiding the facts (Duchac, 2006). Company secretary manages and control the entire operation of licensing to renewing the MOA and AOA. Lastly, involvement of the HR manager will look after the equal opportunity along with right set of behavior towards job are been provided or not.

Policy of the Company

The statutory compliance report will be submitted via electronic and as well in paper format to the compliance officer and the board of directors.  As the report is guidance documents that helps the members as well as regulatory body to revise the company performance and its fulfillment of regulations as per the company’s law (Ebers & Wied, 2007).. Besides that, report will be submitted very much secured network of electronic format so that it does not goes in wrong hand.

One of the major recommendation for the company is to fulfill the sewerage tax which  has been pending  since the  2008. Apart from that , company has not been shown its most recent takeovers of Australia for which disclosure is been pending that is needed to be taken  care before the date of 31^st march 2015 (Elmaleh, 2009). 

The report will be generated every year and before every annual general meeting of the company.  During the time AGM, disclosure of the report of the statutory requirement will give the embers to sink their teeth into the part of the statutory report which is yet to be completed when the deadline is near.

Statutory report of the company will address the issues like central registration (service tax, PAN, TFN), state registration (VAT and professional tax) are duly completed or not. Apart from that, it will also determine renewal of the ABN number (Australian business number) and along with GST is fulfilled duly or not etc (Fleming & Vasigh, 2010).  Form CL08 is very much requiring to cancel the license. The report also suggest that, if the company will be assume that licence of the sick unit of the Australia will be closed by not renewing the annual compliance certificate  then the Coles  management is wrong. In order to close or cancel the license company must lodge CLO8 form. Failure to do so will create breach of law which will also regard as penalties (Gowthorpe, 2007).

Code of professional conduct has made the sum of norm for the organizations to helps them practical support and clarification. This law does not diminish the power of board member instead it work as per Tax Agent Services Act 2009 (TASA). However, the information given in the CPC is not an actual legal structure because it changes from time to time (Tpb.gov.au, 2015).

The Professional code of conduct is very much a code which will help to achieve the goal of professional and ethical standard of the registered tax agents and BAS agents (Harrison, 2008). While assessing the file of the company, if there is any major discrepancies between the documentation and client information then as per the principles of the professional code of conduct, Disclosing the information relating to client dealings without the consent of the client will be illegal (www.financialcounsellingaustralia.org.au, 2015).

Although there is code of conduct of honesty and integrity which suggest that, taxation laws must be made as per the client personal affairs which includes the looking after the client asset as in the best interest of the client.

Identifying the Requirement

 Without the consent of the client no information is passed to the third part without the consent of the client is been one of the major part of professional code of conduct. Since the discrepancies have been occurred then, filing of suit against the third part must be done because as an tax agent I need to work as per best interest for the clients (Api.org.au, 2015). Apart from that, the discrepancies information must be given to the client as soon as possible in order to take the large course of action against the defaulter under tax assessment act 1997.

As per the professional code of conduct, suggestion must be based on the competent. Here competent defines the fully proficient and suitable  to provide the information regarding the required task (Tpb.gov.au, 2015).  While giving the knowledge to the friend, an agent must have knowledge, skills, expertise and others resources in those areas.

As a professional tax agent I must convey the existing client to consult his/her friend with me personally and give the information that requires handling all of the ITR problems. The information must have the total expenses, total income, laws relating the state and central has been followed or not etc are some of the major queries that is needed to be looked before advising anything or rather coming to any kind of decision making (Buffett & Clark, 2008).  Before giving any kind of suggestion, ensuring that, taxation laws must be fulfilled along with TASA act must be fulfilled.  Under the tax regulation act 1997 without having prior information of client no request  can be proceed.  

Besides that, while advising, client rights and duties must be state clearly  under the taxation laws in order get the benefit of taxations . Along with that, client major responsibility of supplying the accurate and complete information as per his receipt and expenditure under the taxation laws will ensure to stay right side of the law.

As the case given, the client has been member of the company for many years, the document and evidence of the for the overseas trip for the conference has given by the client before going for filing the ITR (Button, Pezzini & Rossiter, 2010).  As per the professional code of conduct, I would suggest client to show the receipt and payment of expenditure of the overseas trip rather than only showing the images or the videos.

Besides that, after the evidence and other documents of travel expenditure which includes, fooding, accommodations, leisure and the length of trip along with travel fares will be needed for keeping accurate reasonable amount (Calomiris, 2010). Apart from that, the decision of tax deduction is also bed on the travel allowance received or not received.

	Overseas travel (Europe)
	Written evidence	Travel diary
Travelling for less than 6 nights  consistently	Yes	No
Travelling more than 6 nights	Yes	No

	Overseas travel (Europe)
	Written evidence	Travel diary
Travelling for less than 6 nights  consistently	Information required for the entire expenditure	No
Travelling more than 6 nights	Information required for the entire expenditure	Exception of law to the members of crew – NO Other general people –Yes

From the above information, as an tax agent,  while writing off the expenditure within the tax exemption , travelling allowance evidence must be needed to   support the evidence while  expecting the tax (Calomiris & Herring, 2011). 

Legislative requirements: Legislative requirement give the agent to follow the certain norms while performing their duties.  There are number of regulations are made for the tax agents in order to fulfill their duties under the laws and regulations.  One of the major difference of legislative requirement and code of conduct is that, code of conduct is been made as per the tax agent and legal is made for both agent and tax payer (Cheng & Yang, 2013)..  Besides that, other difference is that, legislative requirement is must be fulfilled by the company because breach which will make the company in wrong side of the law.

Examination of Current Practices

Legislative requirement are very much different from the code of conduct because the legislative requirement are made for every   human being and organization. It comprises of various laws starting from fraudulent to murder to other various crimes (Cortese, 2006).

Code of professional conduct: Whereas, code of conduct is made for the tax agents and BAS agents.  These tax agents must be work as  per the legislation requirement  such as BAS agent section 20-5 of TASA. Code of conduct is only for the person who is filing the tax on behalf of the client. Code of ethics is very much limited to tax agents and other BAS agents where as legislative requirement is made for everyone. Professional Code conduct is only for professional and tax payers who are filing their returns (Creedy, 2009).  Tax agents work as per the legislation set by the tax agent service act 2009. Code of conducts is very different from the legislation requirement because code of conduct strictly based on codes such as honesty , integrity, independent , confidentiality and competency. Legal requirement is based company’s performance,  branches, its employees and its surroundings. It is basically norms needed to be followed if breached it would be unlawful (Ato.gov.au, 2015).

 While assessing the tax agent of divorced couple business jointly own and control  by the married couple once treated as das the partnership as per the federal tax of Australia.  Since the couple is divorced, therefore both of them have  can run the  same business as they have now become the business partner (Asic.gov.au, 2015). As the business can be run by both because business is altogether a separate legal entity and the owner are separate entity.

Apart from that, now both them have to file the ITR (Income tax return) on the separately as now they are no more a couple. As a separate and single businessman, they can file ITR on the basis of their income earned. No one can use another name or take advantages of another income as both are being separated (Api.org.au, 2015). In this case both of the individuals are no more announce as couple but as business partner.   As partners the business is owned and control by both of the couple and salary and income is being received as per their shares of the investment or as per the investment ratio. 

Both of the couple must have separate banks accounts and joint account must be dissolved as both them are no more married.

‘You must take reasonable care in ascertaining a client’s state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement you are making or an activity you are undertaking on behalf of the client.’

This principle of the code of professional conduct is falls under the 9 number clause. Here reasonable care states that, taking care at the time of reasonable situation. These all range of factors is totally depend upon the various factors including tax agent services and level of expertise and experience of the client (www.financialcounsellingaustralia.org.au, 2015).

Involve Others

In order to become the tax agent some of the major qualities that are required are competent persons, skilled, expertise, qualification in the major filed  etc are some major requirement for being an tax agents.

While describing the case, asking the client right set of questions based on the expertise and knowledge in the same area will be give the tax agent right and significant information. Apart from that,   if the client has not disclosed the entire information or hiding the information  then , the agent must be enquiring the complete information and accuracy of the information  for which it needs the evidence (Warren, 2010). Apart from that, if the information is been established previously by client is been accurate and has no doubt then the information must be supplied by the client taken in to considerations. Moreover, if the information supplies is very much inconsistent and poor then further enquiry can be conducted or examining the records are some of the major responsibility conducted by tax agents.

 If the  tax agent without enquiring and willfully  goes  does the  ITR filing of the client then the entire fault will be  on the tax agents as he/she was responsible for the  claim . if the information does not provided the tax agent  then the client can claim against the tax agents because he  need to supply the entire information of client (Russell, 2008). Client again can sue the tax agent under not performing the professional code of conduct.

The organizational must fulfill the  requirement such as :

-equity and free of discriminations

-Ethically standard

-Employee engagement process

– monetary and non monetary recognitions

-tax paid  

-Industrial and workplace code of practices

Some of the legislation requirement the business may be require are given below:

-Company values and environment   

– work place procedures and assurance of the quality

-goals and objectives must be clear

-consistency in improvement

 Australian government has made some of the legislation under OHS   for the Australian companies who are conducting business in Australia Morales (Pedraza, 2011).  Development of the effective working team comprises of enhancing the innovation and creativity, developing the skills and knowledge and looking to improving the effectiveness and efficiency of the workers. Along with that, setting of priorities and managing the deadline which will help the company to achieve the goals.  

 Some of the task and details are given below:

Machinery	While operating the machine one must not be in drugs or alcohol  Besides that,  only trained officer need to operate the machine
Electricity	Never operate under faulty cords Don’t mix electricity with water
Lifting	Lifting of heavy machinery alone is big No-No Look for helps Planning the lift  if the lift is very much large
Accounting	Managing the accounting by IFRS norms Proper investigation and  operating under the proper enquiry before coming to the conclusions (Lewis et al. 2009).
Managing team	Participative form of leadership, NO blaming policy and  proper employee engagement process would help to complete the task

The code of ethics practice used by the financial services industry expresses the values and responsibilities. Some of the major code of  ethics within the Australian financial services industry is very much enforceable by law which states that commitment to deliver  certain standard of practice (Lewis et al. 2009).. Code of practice are very much has   enhance the standard of industry  along with complementing  legislative requirement and along with that developing the consumer confidence  in the particular industry.  As per the ASIC (Australian securities and Investment commission) code of conduct helps them to follow the code of conduct (RG 183) (Asic.gov.au, 2015).

Recommendations

Some of the major codes of practice by Australian banking association are given below:

Application of code: the code of banking practice is being commences on 2103 which specifies new banking services provided to customers.  The code also speaks giving the guarantee on behalf of customers (Api.org.au, 2015).

Key commitments: Some of the major key commitments given here are very much based on the standard practices which are required to improve the banking sector. Promoting for the better information’s for decision making will give the customer enough options for choosing their banking services they like. Compliance with laws by applying the relevant law while selling of their financial products for instance privacy law and money laundering act 2006.

Information about the services: Information regarding the term and conditions are mention in clear and wide letters so that it will be helpful for the general people to understand. The terms and conditions are very much maintain the confidentiality and obligations for handling the complaints and the make way for the customer to overcome the difficulty level (Hogan, 2012).

Resolving the disputes:   As per the Code of Compliance Monitoring committee (CCMC) for fair recommendations and use of external expertise as   per demand of customers.  Besides that,   CCMC websites annual report are is to cooperate  and comply with the  reasonable for of request. Internal disputes resolution will help in handling the disputes within the internal management (Garnaut, 2010).  The standard code for internal disputes suggest that, standard code of ethics  regulatory guides 165 presents that actual  implications  to empower CCMC which notify that, person who are investing the disputes must be able to complete and resolve the issues within the 21 days in the financial service sectors.

Some of the code of practices for financial advisors is given below:

Respect:  One of the most important part of the code of ethics where the financial advisors respect the entire people who are very much comes for the opinions and suggestions (Creedy, 2009). Code of conduct expresses the belief system which is pillar of the financial service industry.  

Responsibilities to self: As an financial advisors there are number of the responsibilities towards them such as showing them right path  while advising them for investment. Responsibilities of the advisors are to bring transparency within their business practices (Cortese, 2006). Apart from that, financial advisers must be take care of his/her duties to improve their physical and mental well being by reducing their work load.

 Setting of goals is one of the most important part of the every organizations. Setting goals must be very much real and are able to satisfy the time and place of the business. Setting of goals is one of the toughest parts for every organization because it must satisfy the vision of the company (Cheng & Yang, 2013).

While setting the Goals the goal must be evaluated on the basis of the SMART objectives:

Specific: The Goals must be specific and not merely vague. The goal of the company must be specific to its capacity and requirement. Specification is related to the company investment and its actual outcomes.

Determine How You Would Generate Report

Measurable:  The goal must be measureable  in terms ROI (return on investment). Besides that, the goal also be measurable in terms of timing of achieving the objectives of the company.

Achievable: The goal must be achievable. The goal set must be authentic so that it can be achieved within the given period of time. Goal must be breakdown in short term format to achieve it (Cheng & Yang, 2013).

Realistic: The goal must be real because it can be achievable. Goals must be real in terms of achieving the rate of return and time.

Time: The goals must be real because it must be achieved as per the given time. The goal which is completed within the given time limit helps the company to set the bigger in future. This helps the company to reach at higher position and creates the higher brand value in competitive market (Lewis et al. 2009).

Change in technology has made the world and work simpler and easier. Technologies  has made the company globalised and information more local. With help of technologies and change management within the organization ahs helped the company to gain the large customer base.

Some of the technology advances that ahs change face of the companies are :

 SAP ERP: SAP ERP  is one of the major invention that has changed  face of technology by  integrating the  global business at one place (Russell, 2008).. ERP system is software which reduce the work of paper that makes the environment more ecological and carbon free.

 E-commerce: E-commerce is another place that has made the world glocal (Global + local). With the help of E-commerce financial services companies and along with retail sector has been able to sell their products in worldwide (Warren, 2010). E-commerce is one of the major platform that has embrace the secondary market via online trading of shares of NASDAQ and DAX where the investors can purchase or invest in different part of index throughout the world. 

Some of the major limitations of the financial sector are given below:

Lack of quality advising: One of the major limitation occurred in terms of decision making where the lack of training and proper practical knowledge regarding the financial products can create poor decision making for investors.  Apart from that, lack of quality judgment is also can crates financial loss for the investors and for the company (Hogan, 2012). Good quality comprise of the right kind of approach and practice in clarifying the rights and duties of both client and practicenor. This will be lacking if there is no training and development within the financial sector has been achieved. 

Low trusts and confidence: The lack of quality can turn into the low trust and confidence which will again can create the conflict of interest between the client and the agent (Garnaut, 2010). This may ruin the customer’s confidence of the investor investing in the capital market of financial service sector.

Lack of knowledge about the products:  Lack of knowledge of products can create big issues and discrepancies that may creates huge looses for the client and the investors. Lack of knowledge and training for selling of the financial products like MBS, derivative instrument and current account etc will be misjudge as per the risk taking capacity of the investors (Api.org.au, 2015).

Code of Professional Conduct

Reference List

Books

Benedict, A, & Elliot, B., (2011). Financial Accounting: An Instruction. 5^th ed. Mason: South-Western Cengage Learning.

Berry, A., (2009). Financial Accounting: an introduction. 4^th ed. California: Random House.

Bhattacharyya, A. K. (2010) Principles and Practice of Cost Accounting, 2^nd ed. Oxford: Butterworth Heinemann.

Bienstock, C. C. & Mentzer, J. T. (2008) Sales Forecasting Management, Thousand Oaks, CA: Sage Publications

Brigham, E. (2010) Financial Management: Theory and Practice. 5^th ed. London: Routledge.

Brigham, E., & Houston, J., (2009) Fundamentals of Financial Management. 5^th ed. London: McGraw-Hill

Buffett, M. and Clark, D. (2008) Warren Buffett and the Interpretation of Financial Statements. 4^th ed. London: Palgrave Macmillan.

Button, R., Pezzini, S. and Rossiter, N. (2010) ‘Understanding the price of new lending to households’, Bank of England Quarterly Bulletin, 50(3), 172–82.

Calomiris, C. W. (2010) Beyond Basel and the Dodd-Frank Bill, Mimeo: Columbia Business School.

Calomiris, C. W. and Herring, R. (2011) “Why and How To Design an Effective Contingent Capital Requirement,” Columbia Business School Working Paper, February

Duchac, J, E., (2006). Financial Accounting: an integrated statements approach. 3^rd ed. New York: John Wiley & Sons.

Ebers, M., & Wied, S., (2007). SWOT Analysis Robert Mondavi and the Wine Industry. 6^th ed. London: McGraw-Hill Education.

Elmaleh, M., (2009). Financial Accounting: A Mercifully Brief Introduction. 7^th ed. Princeton, NJ: Princeton University Press.

Fleming, K., & Vasigh, B., (2010). Foundations of Airline Finance: Methodology and Practice. 5^th ed. USA: Douglas Brooks.

Gowthorpe, C., (2007). Financial Accounting: for non specialists. 5^th ed. London: Routledge.

Harrison, W., (2008). Financial Accounting. 5^th ed. Heidelberg, New York: Springer Verlag.

Journals

Body, J. (2008). Design in the Australian Taxation Office. Design Issues, 24(1), 55-67. doi:10.1162/desi.2008.24.1.55

Cheng, H., & Yang, C. (2013). Some Taxation Theorems in the Hotelling Model. Australian Economic Papers, 52(3-4), 143-158. doi:10.1111/1467-8454.12013

Cortese, C. (2006). Taxation and the Australian Superannuation System: An International Comparison. Australian Accounting Review, 16(39), 77-85. doi:10.1111/j.1835-2561.2006.tb00362.x

Creedy, J. (2009). Personal Income Taxation: From Theory to Policy. Australian Economic Review, 42(4), 496-506. doi:10.1111/j.1467-8462.2009.00565.x

Garnaut, R. (2010). Principles and Practice of Resource Rent Taxation. Australian Economic Review, 43(4), 347-356. doi:10.1111/j.1467-8462.2010.00616.x

Hogan, L. (2012). Non-renewable resource taxation: policy reform in Australia*. Australian Journal Of Agricultural And Resource Economics, 56(2), 244-259. doi:10.1111/j.1467-8489.2012.00583.x

Lewis, K., Sandquist, K., Stark, A., & Grenyer, B. (2009). Towards a national psychology ethics code: Systematic analysis of Australian professional and registration board standards. Aus. Psychologist, 44(4), 263-269. doi:10.1080/00050060903062746

Morales Pedraza, J. (2011). A model of a code of ethics for tissue banks operating in developing countries. Cell And Tissue Banking, 13(4), 607-622. doi:10.1007/s10561-011-9279-8

Russell, D. (2008). Overview of Australian taxation of foreign trusts. Trusts & Trustees, 14(8), 537-541. doi:10.1093/tandt/ttn098

Warren, N. (2010). The Henry Review, State Taxation and the Federation. Australian Economic Review, 43(4), 409-421. doi:10.1111/j.1467-8462.2010.00614.x

Websites

Api.org.au,. (2015). The Australian Property Institute – Leading the property profession. Retrieved 17 March 2015, from https://www.api.org.au/menuitem/professional-and-technical-standards/code-of-professional-conduct

Asic.gov.au,. (2015). Codes of practice | ASIC – Australian Securities and Investments Commission. Retrieved 17 March 2015, from https://asic.gov.au/for-consumers/codes-of-practice/

Ato.gov.au,. (2015). Keeping travel expense records | Australian Taxation Office. Retrieved 17 March 2015, from https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel-expenses/Other-travel-expenses/Keeping-travel-expense-records/

TheAustralian,. (2015). Embrace change or we risk being left behind. Retrieved 17 March 2015, from https://www.theaustralian.com.au/opinion/embrace-change-or-we-risk-being-left-behind/story-e6frg6zo-1226499469340

Tpb.gov.au,. (2015). 0304 Code of Professional Conduct. Retrieved 17 March 2015, from https://www.tpb.gov.au/TPB/Obligations/Code_of_professional_conduct/TPB/Obligations/0304_Code_of_Professional_Conduct.aspx

www.financialcounsellingaustralia.org.au,. (2015). financial counseling Australia. Retrieved 17 March 2015, from https://www.financialcounsellingaustralia.org.au/FCA/media/CorporateMedia/Code-of-Ethical-Conduct-Final-Pdf-feb-2012.