Financial Accounting of an Instruction

Question: Describe about the Financial accounting of an Instruction? Answer: 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. Policy of the company: 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). Scope of the organization 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). Identifying the requirement: 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. Examination of current practices: 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) N/A N/a N/A Race equity Race amendment act 2006 Gender equality Gender equality act 2007 Hygiene maintaining AS 3806 Tax returns filing Tax filing number (TFN) No No manual handling of operations Data protection act 1998 and regulation of 2004 Preparation of financial statements TRAC act N/A No Involve others 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. Recommendations: 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 companys 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 31st march 2015 (Elmaleh, 2009). Determine how you would generate report 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 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. 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. Income tax return case 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. Suggestion for the overseas trip 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. If the client did not receive the travel allowance for the tip then, Overseas travel (Europe) Written evidence Travel diary Travelling for less than 6 nights consistently Yes No Travelling more than 6 nights Yes No If you receive the travel allowance then, 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). Difference between legislative requirements and code of professional conduct 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. 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 companys 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). Acting a tax agent 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. Principles for the Code of Professional Conduct for agents You must take reasonable care in ascertaining a clients 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). 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. Describe the process use to determine task 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 Dont 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 Ethical practices in the financial services industry 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). 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 informations 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. Importance of setting of goals 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. 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 and work practices 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. Limitations on people working in the financial sector 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 customers 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). Reference List Books Benedict, A, Elliot, B., (2011). Financial Accounting: An Instruction. 5th ed. Mason: South-Western Cengage Learning. Berry, A., (2009). Financial Accounting: an introduction. 4th ed. California: Random House. Bhattacharyya, A. K. 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