Question 3 You obtained an Accounting & Finance degree three years ago and six months ago...

 

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Question 3 You obtained an Accounting & Finance degree three years ago and six months ago you passed all examinations of the Chartered Institute of Management Accountants (CIMA). You work as a finance analyst for a fruit and vegetable supply firm, Goodfruit whose annual turnover is about £80 million. Goodfruit supplies mainly UK retailers and has acquired subsidiary companies in Spain which purchase fruit from local growers. Your role involves typical accounting tasks (e.g., preparing group accounts, ensuring financial controls are adequate) but about 75% of your time is spent on analysis of supply chain costs. This is to ensure Goodfruit gets the best deal on price, which is very important given the extremely tight margins attainable. Recently, two issues have given you cause for concern. Firstly, Goodfruit claim to ensure all suppliers pay their staff well. The Chief Executive Officer (CEO) asked you to prepare a part of a Supplier Confidence report, to highlight the firm's good record in this regard. You have discovered that many suppliers based in southern Spain use migrant labour and offer poor terms and conditions to workers. "Don't include that" the CEO said to you. Secondly,. when preparing the group financial statements, you noticed one of the Spanish subsidiaries was not compliant with local laws in one respect. You recently completed a basic course on Spanish corporate law and learned that it requires that 10% of annual profits be provided as a reserve until the reserve is 20% of the firm's share capital. In the case of your subsidiary company, the reserve has not been created at all.e Requirement Write a memo to the CEO which: (a) Briefly describes each of the five principles that are included within CIMA's Code of Ethics. 13 Markse (b) Outlines how any of the five principles may apply in the scenarios described above and what course of action you would recommend. Question 3 You obtained an Accounting & Finance degree three years ago and six months ago you passed all examinations of the Chartered Institute of Management Accountants (CIMA). You work as a finance analyst for a fruit and vegetable supply firm, Goodfruit whose annual turnover is about £80 million. Goodfruit supplies mainly UK retailers and has acquired subsidiary companies in Spain which purchase fruit from local growers. Your role involves typical accounting tasks (e.g., preparing group accounts, ensuring financial controls are adequate) but about 75% of your time is spent on analysis of supply chain costs. This is to ensure Goodfruit gets the best deal on price, which is very important given the extremely tight margins attainable. Recently, two issues have given you cause for concern. Firstly, Goodfruit claim to ensure all suppliers pay their staff well. The Chief Executive Officer (CEO) asked you to prepare a part of a Supplier Confidence report, to highlight the firm's good record in this regard. You have discovered that many suppliers based in southern Spain use migrant labour and offer poor terms and conditions to workers. "Don't include that" the CEO said to you. Secondly,. when preparing the group financial statements, you noticed one of the Spanish subsidiaries was not compliant with local laws in one respect. You recently completed a basic course on Spanish corporate law and learned that it requires that 10% of annual profits be provided as a reserve until the reserve is 20% of the firm's share capital. In the case of your subsidiary company, the reserve has not been created at all.e Requirement Write a memo to the CEO which: (a) Briefly describes each of the five principles that are included within CIMA's Code of Ethics. 13 Markse (b) Outlines how any of the five principles may apply in the scenarios described above and what course of action you would recommend.

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acompetence Management accountant has to show a professional competence in the performance of their job by taken some courses to develop themselves an... View the full answer