Accounting Theory & Current Issues For Business Emphasis

Nature and Value to the Society of the research

Discuss about the Accounting Theory & Current Issues for Business Emphasis.

Each and every organization in the world has increased their consciousness with creating the environmental impact. The contemporary business organization provides emphasis on the enhancement of the effective business strategies which is seems to be requisite for the enhancement if the company in order to avoid the unnecessary legal issues. The progress helps in creating the progress in the organization and thereby the establishment of the company focuses on the appropriate eco-friendly environment (CBC, 2016). Moreover, in order to create the eco-friendly environment, the research and the development processes are carried out and at the same time, the profitability of the organization is focused with creating the enhancement in the organization. The improvement of the quality of the products helps in creating the appropriate enhancement of the organization and thereby the production of the eco-friendly products helps in the enhancement of the production with including the feeds for the fishes. In this provided case study, the company or the organization which is depicted is Bio-sustainable Feeds (Lothe, 2013). The Company provides emphasis on the research and the development department for the appropriate improvement of the products that are related to the fish feeds and thereby the consideration are created for the improvement in the research and thereby the profitability is also decided. The cost effective characteristics also seems to be improved with the improvement of the sustainability and thereby the company can be improved in an appropriate way for gaining sustainability for the organization. Apart from all these, the company seems to be focusing for the appropriate establishment of the eco-friendly environment and thereby the improvement of the social acceptance is considered (Sarker et al., 2016).

Case studies noted that the company Bio sustainable Feeds put great emphasis on performing corporate social responsibilities by creating products targeted at different strata of peoples from the society. The company spent millions of dollars in creating products with lesser use of natural resources (Sen, 2008). The research & development team used bacteria to create fish feeds from wood chips; sugar cane residue was highly appreciated and widely accepted by different strata of society. The company get millions of dollars in grants from the Australian government and the also hold patents worth millions of dollars.

The nature of research done by BSF Ltd impeccably works on helping people get nutritional quotients from low cost food of their company. And it also works in reducing the use of the highly beneficial and at risk of extinction of natural resources. They help create fish with high nutritional value which everyone can afford and they do so using piscavorian fish. With this research, they are not only increasing their own profitability by catering to everyone from the economy but also help sustain an image on environment conscious company (Burrow and Kleindl, 2012). They are developing methane gas from dumps, sewage and food processing plants thereby reducing bio-waste. And this is BSF Ltd’s policy to please both common people and environmentalists and stay on top the exchange charts. The Research and Development division of BSF LTD’s are also scouting for patents worth millions of dollars over a period a many years

Issues with the early research

The first research of the BSF Ltd depicts the arrangements made for the creation of the sustainable environment. The first research seems to be based on the plant based feeds that are depicted with creating the value of the research and thereby the research seems to be unsuccessful during the first attempt created. It thereby also helps in creating the values for the research and thereby the research depicts the conversion of the fish feeds which are generally depicted at the rate of the low fish and thereby the considerations are created by the 30kg of the plant feeds into the 10 kg fish. In the research, the actual conversion rate was 30 kg of the plant based feeds into the 1kg of the high value fish. In the research 1/3^rd of the fish dies due to the growing mature fish were lesser (CBC, 2016). The process of diverting the quality food crops into the poor people which are considered for the purpose of diverting the fish value. It thereby also helps in creating disadvantages for the poor people and thereby the creation of the malnutrition is depicted. The production of the fish feeds or the aqua cultural feeds contain the human nutritional foods and the company BSF is depicted. Therefore, the production of aquaculture or fish feed contains nutritional complements such as fatty acid and the company use this components in production of superior quality fish feed that are beneficial for rich people and poor people are deprived from this process.         

The research is a method that is taken in a scientific way so that create bias as well as the subjectivity should be avoided. The method of the research should add the value as well as probable tools and techniques that at the time of applying on the subject should give proper outcome. The method and techniques are also important for running research which adds the method with the rational as well as the sequential methods (Schermerhorn, 2005). These chronological as well as the rational process are set up by the academic and empirical example, which are presented by one who is performing the research. The degree  of control as well as rigor are described during the transfer of the research and so that make difference in one’s discipline.

Research development is described as the application of the research for the advantage of the company and so that describe the changes that are taken for creating balance in the system of the company. It gives the way of the improvement of the goods line so that the growth and development of the company experience are concentrated in this specific case study (Sen, 2008).  The process of innovation is going on in the form of research development, which relies on the improvement of the research atmosphere, which is described in this particular case so that the cost of the research are deemed with referring the provided case.

Nature and differences between research and development

Innovation is deemed to be one of the most vital means that make a company competitive in the market. Thus, the only path to maintain the competitive benefit is to save the innovative concept as well as stop other companies to utilize them. Patent is a way that provides the companies facilities to protect innovative ideas from the other companies (Berk and DeMarzo, 2007). Patent are considered to be the asset of the company as well as it is important to calculate approximately the value of the patent. In the balance sheet it is shown as an intangible asset. The research work of BSF Ltd. to produce fish feed from sugar cane, wood chips and recaptured methane gas by using bacteria is a unique as well as innovative idea. The estimated cost for the research was $160 million AUD as well as other cost of $200 million AUD in order to develop value for bringing it in to the market. Commonwealth scientific and industrial research organization has invested $500 million AUD in BSF Ltd and spend cumulative $500 million AUD for the research of BSF Ltd (Hillier, 2010). Besides this, the commonwealth scientific and industrial research organization additional $200 million for the development of aqua cultural feeds. The innovative concept of the company BSF Ltd helps in creating a patent value of about $700 million AUD within two years. The rebate for the project is 8% per year. The market value of the patent of the BSF ltd for the fish feed is $700 AUD. The innovative idea helps in increasing the reputation of the company in the market as well as improves the good will of the company. Patent help in protecting the unique idea of the company in legalise way (Holton, 2012). The evaluation as well as determination of the market value of the companies helps in determining the growth of the companies.     

Particulars	Debit ($)	Credit ($)
Grant	500
Commonwealth Scientific and Industrial Research Organization		500
Alternative aquaculture feeds	100
Cash		100
Research	500
cash		500
Development cost	200
cash		200
Patent	700
Cash		700

The journal entry record, summaries and show all the transactions of an organization. In the given case study, the company BSF Ltd. has received grant of an amount of $ 500 million from the Common Wealth Scientific and Industrial Research Organization. The grant amount is utilized by the company for the research and development process of innovative fish feed (Berk and DeMarzo, 2007). The total amount of money the company has invested for the research and development process of aquaculture feed is $700 million. The company has received and invested the cash amount in the developmental process. The journal entry shows the transactions of the process which includes cash received and expenditures of the company.  The success of the process depends on the amount of investment and with the aim of increasing the value in the market. The sale of the fish feed will help to determine the patent value in coming two year (Elliott and Elliott, 2008). The value of the innovative research can be measured with the help of patent value as shown in the financial report. The company has implemented all its strategies to increase its market share and achieving competitive advantage. The financial report shows revenues, expense, assets and liabilities during a period of time. The research and development department is mainly responsible for continuing and accomplishing the research process. The journal entry shows all the transaction from the year 2013 to 2016 of the company. The staff members have also contributed all its efforts in the research and development process. The grant amount is appropriately invested by the company in the development process (Moles, 2011). The accounting process helps to collect, store and analyze the transactions of the company. The accountants and auditors prepare the financial report of a company.        

Fair market value patent

The management of the BSF Ltd management provides the consideration regarding the patent value with depicting the case study. The control strategies that are depicted in this case helps in creating the appropriate usage of the bio-sustainable feeds for the fishes and thereby the preparation is seemed to be created with controlling the expenses regarding the creation of the control (Burrow and Kleindl, 2012). The strategies that are followed for the research are as follows:-

For the appropriate growth of the high quality fish, the preparation of the high quality products are undertaken in order to gain the consideration regarding the strategies.

The materials are prepared by the preparation of the food for the products with implementing new innovative ideas.

The appropriate usage of the plant materials are created with the usages of the plant feeds for the fishes.

The enhancement of the alternative agricultural feed s helps in creating the requisite growth of the fishes in order to creative innovation for the organization. The appropriate control measures are used in order to create advancement in the patent and thereby the creation of research depicts the enhancement of the research created. The creation of the research helps in the depicting the kind of the research made and thereby the historical enhancement of the research carried out by the organization is depicted in this report (Stittle and Wearing, 2008). It thereby helps in creating huge amount of costs with depicting the ineffective process of the fish feeds and thereby the control measures are depicted for the purpose of creating balance in the system of feeding the fish. The serious issues are depicted which can be easily evaluated with implementing the innovation made by the organization and thereby it enhances the control measures and thereby creating the systematic improvement.

References

Berk, J. and DeMarzo, P. (2007). Corporate finance. Boston: Pearson Addison Wesley.

Burrow, J. and Kleindl, B. (2012). Business Management. Mason, US: Cengage Learning.

CBC, (2016). ‘Greener’ fish farming could lead to unhealthier seafood. [online] CBC News. Available at: https://www.cbc.ca/news/technology/aquaculture-feed-1.3262922 [Accessed 28 Sep. 2016].

Elliott, B. and Elliott, J. (2008). Financial accounting and reporting. Harlow: Financial Times Prentice Hall.

Hillier, D. (2010). Corporate finance. London: McGraw-Hill Higher Education.

Holton, R. (2012). Global finance. Abingdon, Oxon: Routledge.

Lothe, R. (2013). [online] Available at: https://sciencenordic.com/fish-feed-research-may-helpreduce-world-hunger [Accessed 28 Sep. 2016].

Moles, P. (2011). Corporate finance. Hoboken, N.J.: Wiley.

Narayana Reddy, P., Appannaiah, H. and Sathyaprasad, B. (2010). Business management. Mumbai [India]: Himalaya Pub. House.

Rust, (2011). [online] Available at: https://www.nmfs.noaa.gov/aquaculture/docs/feeds/the_future_of_aquafeeds_final.pdf [Accessed 28 Sep. 2016].

Sarker, P., Kapuscinski, A., Lanois, A., Livesey, E., Bernhard, K. and Coley, M. (2016). Towards Sustainable Aquafeeds: Complete Substitution of Fish Oil with Marine Microalga Schizochytrium sp. Improves Growth and Fatty Acid Deposition in Juvenile Nile Tilapia (Oreochromis niloticus). PLOS ONE, 11(6), p.e0156684.

Schermerhorn, J. (2005). Management. New York: J. Wiley.

Sen, M. (2008). Business management. Jaipur, India: Oxford Book Co.

Spiceland, J., Sepe, J. and Nelson, M. (2011). Intermediate accounting. New York: McGraw-Hill Irwin.

Stittle, J. and Wearing, B. (2008). Financial accounting. Los Angeles: SAGE Publications.