question archive Archer, Maddie and Dillon became friends seven years ago when they travelled together to Indonesia on a surfing trip organised by a local travel company
Archer, Maddie and Dillon became friends seven years ago when they travelled together to Indonesia on a surfing trip organised by a local travel company
Subject:AccountingPrice: Bought3
Archer, Maddie and Dillon became friends seven years ago when they
travelled together to Indonesia on a surfing trip organised by a local travel company. At the time of the trip they were each taking a break before starting their university studies. Despite studying different courses and attending different universities, they have remained friends since their trip to Indonesia and still surf together regularly at their local surf beach. They have often talked about starting a business together and believe that with their combined skills and passions that they have a real chance of success in establishing a surfing business that provides premium surfboards, wetsuits and apparel. After much deliberation and input from family and friends, they have decided to name their business Armadillo Surf Designs (ASD). We will follow Archer, Maddie and Dillon and explore a number of accounting and accountability related issues. But first, let's meet Archer, Maddie and Dillon.
-Archer is 26 years old and spent most of his childhood living in various parts of Europe as his parents often travelled for work. He moved to Australia to attend University and has remained living in Australia ever since. He speaks French, Spanish and English fluently and has friends and connections all over Europe. Archer studied engineering at University and has since worked in a number of engineering roles. He enjoys designing and making objects and has a passion for shaping surfboards in his shed. He has even managed to sell a couple of custommade surfboards to some of the local surfers.
-Maddison is known as Maddie to her friends and is 25 years old. She studied photography at university and chose a number of electives from the business faculty having always had the dream of owning her own business. She does freelance photography work, loves travel and the outdoors and carries her camera with her everywhere. Maddie is particularly passionate about travel and surf photography and has over 350 000 followers on Instagram. She recently won a photography competition and was awarded approximately $25 000 worth of camera equipment and an all-expenses paid trip to Hawaii which she plans to take some time in the next 12 months.
-Dillon is 25 years old and has been surfing since the age of five. He has always lived near the beach and comes from a family of surfers. He is an animal lover and is passionate about the environment, particularly the marine environment. He regularly organises 'clean-up' initiatives at his local beaches. Dillon studied marketing at University and now works full-time as a marketing manager at one of the major surf retailers where he has worked on and off for the past 10 years. He has also returned to university part-time to study environmental science. He loves animals and when the surf is flat, he will take his three dogs for a run and swim at the beach instead.
-BACKGROUND: ADDITIONAL INFORMATION Archer, Maddie and Dillon decided to set up ASD as a partnership. They plan to start small but have hopes to grow quickly. They are in the process of looking for a warehouse to rent but are keen to start promoting their business to the local surfing community. Dillon has used his marketing background to write up a marketing plan and as part of this plan, ASD will be sponsoring their first annual local beach 'clean-up' at some of the local surf beaches. Sponsorship involves promoting the event in order to recruit volunteers, providing the necessary equipment such as gloves, rubbish bags and sunscreen, providing prizes to participants and issuing letters of appreciation to all those involved. ASD has posted about the event on their Facebook page. Maddie has also included some posts on her Instagram page, and these have attracted a lot of interest. ASD has hired Archer's neighbour Sam who has a marketing and events management background to assist with the co-ordination and administration of the event. A key purpose of the event is to raise brand awareness and to demonstrate that ASD cares about environmental sustainability and the future of our oceans. They will also use this opportunity to showcase a limited range of their products and will be selling branded t-shirts and hats at the event with the slogan 'save our oceans'. A number of the local surf shops have also agreed to stock the 'save our oceans' range.
Question 1 . Dillon studied introductory accounting as part of his marketing degree. Now that he, Archer and Maddie are moving ahead with the business, he is reviewing his study materials and notes a definition of accountability as 'the duty to provide an account or reckoning of those actions for which one is held responsible' (Gray, Adams and Owen 2014, p. 50). In order to fulfil this duty, Dillon understands that it is necessary to first identify their stakeholders and to also understand their stakeholders' needs and expectations.
a. List five potential stakeholders of ASD.
b. For each of the stakeholders identified in part a, discuss the information they may potentially need and/or expect and how this might influence the information that ASD chooses to report.
Question 2. Sam has been busy planning the event and has asked if there is any data that ASD would like to collect on the day of the event. Dillon believes that it would be a good idea to report back to the volunteers and the community about the impact of the beach clean-up but isn't too sure of the best way to go about this. He recalls from university that there are some generally accepted characteristics that information should possess. These qualitative characteristics are relevance, reliability (or faithful representation), comparability, verifiability, timeliness and understandability.
a. List THREE pieces of information that ASD might collect in relation to the beach clean-up event.
b. Explain TWO ways that ASD can ensure that the information reported in relation to the beach clean-up is useful to stakeholders. For example, rather than including the 6 information a couple of weeks later when the letters of appreciation are issued, ASD may report some of this information on their Facebook page throughout the day or on the evening of the event in order to report the information promptly and thereby assist ASD to meet the qualitative characteristic of timeliness.
-Archer is 26 years old and spent most of his childhood living in various parts of Europe as his parents often travelled for work. He moved to Australia to attend University and has remained living in Australia ever since. He speaks French, Spanish and English fluently and has friends and connections all over Europe. Archer studied engineering at University and has since worked in a number of engineering roles. He enjoys designing and making objects and has a passion for shaping surfboards in his shed. He has even managed to sell a couple of custommade surfboards to some of the local surfers.
-Maddison is known as Maddie to her friends and is 25 years old. She studied photography at university and chose a number of electives from the business faculty having always had the dream of owning her own business. She does freelance photography work, loves travel and the outdoors and carries her camera with her everywhere. Maddie is particularly passionate about travel and surf photography and has over 350 000 followers on Instagram. She recently won a photography competition and was awarded approximately $25 000 worth of camera equipment and an all-expenses paid trip to Hawaii which she plans to take some time in the next 12 months.
-Dillon is 25 years old and has been surfing since the age of five. He has always lived near the beach and comes from a family of surfers. He is an animal lover and is passionate about the environment, particularly the marine environment. He regularly organises 'clean-up' initiatives at his local beaches. Dillon studied marketing at University and now works full-time as a marketing manager at one of the major surf retailers where he has worked on and off for the past 10 years. He has also returned to university part-time to study environmental science. He loves animals and when the surf is flat, he will take his three dogs for a run and swim at the beach instead.
-BACKGROUND: ADDITIONAL INFORMATION Archer, Maddie and Dillon decided to set up ASD as a partnership. They plan to start small but have hopes to grow quickly. They are in the process of looking for a warehouse to rent but are keen to start promoting their business to the local surfing community. Dillon has used his marketing background to write up a marketing plan and as part of this plan, ASD will be sponsoring their first annual local beach 'clean-up' at some of the local surf beaches. Sponsorship involves promoting the event in order to recruit volunteers, providing the necessary equipment such as gloves, rubbish bags and sunscreen, providing prizes to participants and issuing letters of appreciation to all those involved. ASD has posted about the event on their Facebook page. Maddie has also included some posts on her Instagram page, and these have attracted a lot of interest. ASD has hired Archer's neighbour Sam who has a marketing and events management background to assist with the co-ordination and administration of the event. A key purpose of the event is to raise brand awareness and to demonstrate that ASD cares about environmental sustainability and the future of our oceans. They will also use this opportunity to showcase a limited range of their products and will be selling branded t-shirts and hats at the event with the slogan 'save our oceans'. A number of the local surf shops have also agreed to stock the 'save our oceans' range.
Question 1 . Dillon studied introductory accounting as part of his marketing degree. Now that he, Archer and Maddie are moving ahead with the business, he is reviewing his study materials and notes a definition of accountability as 'the duty to provide an account or reckoning of those actions for which one is held responsible' (Gray, Adams and Owen 2014, p. 50). In order to fulfil this duty, Dillon understands that it is necessary to first identify their stakeholders and to also understand their stakeholders' needs and expectations.
a. List five potential stakeholders of ASD.
b. For each of the stakeholders identified in part a, discuss the information they may potentially need and/or expect and how this might influence the information that ASD chooses to report.
Question 2. Sam has been busy planning the event and has asked if there is any data that ASD would like to collect on the day of the event. Dillon believes that it would be a good idea to report back to the volunteers and the community about the impact of the beach clean-up but isn't too sure of the best way to go about this. He recalls from university that there are some generally accepted characteristics that information should possess. These qualitative characteristics are relevance, reliability (or faithful representation), comparability, verifiability, timeliness and understandability.
a. List THREE pieces of information that ASD might collect in relation to the beach clean-up event.
b. Explain TWO ways that ASD can ensure that the information reported in relation to the beach clean-up is useful to stakeholders. For example, rather than including the 6 information a couple of weeks later when the letters of appreciation are issued, ASD may report some of this information on their Facebook page throughout the day or on the evening of the event in order to report the information promptly and thereby assist ASD to meet the qualitative characteristic of timeliness.
