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Brief for Cabinet on the Accounting reforms in Australia

Number of Words : 3120

Number of References : 8

Contents

 This assignment is based on the following requirement –
 Situation:
 In early 2011, the new Australian Prime Minister is desperate for ideas to show the public that the new government is serious about economic reform. Last night the PM appeared on the 7:30 Report and said:
 “Kerry*, the Global Financial Crisis has hurt a great number of Australian working families. Inflation is a big issue. However, part of the financial problem is we do not have a logical and systematic way of accounting in the Australian financial markets. That is why the newly elected Australian Government is seeking to simplify accounting rules to measure things on a single logical theoretical foundation”
 * Kerry O’Brien is the presenter (journalist) for the ABC news and current affairs program The 7:30 Report.
 Freshly graduated from B.Bus (Acc) from Holmesglen, you took a graduate position as junior research analyst working for the Department of Prime Minster and Cabinet in Canberra. Your supervisor has told you that the PM has no idea what that “single logical foundation” might be but adds “if you know what it might be, please tell me now!”
 Requirements:
 You are asked to prepare a brief for Cabinet on accounting reform, maximum length of 3000 words. Ministers are interested in the following issues:
  What current problems or conflicts exist where accounting is not based on a single theory?
  Are there any viable alternative systems of accounting?
  Compare the costs and benefits of implementing each alternative?
  Is there any evidence to say the current system is sufficient?
  Will this reform represent a net benefit to Australia and why?
  Final recommendations for reform (if any).

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AKey : A - 6448

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