Identify the relevant facts of the case study

Assignment Help Case Study
Reference no: EM13289191

The following is a hypothetical case study where you are given an ethical problem and asked to work through the issues presented by the case study using aspects of the American Accounting Association ethical decision making model so that you can make a decision about what you will do.

The case study:

HOHO (Help Our Homeless Offspring) is a charity that works at reuniting homeless children with their families. It also operates numerous halfway homes for their care, counselling and shelter.

In funding its efforts, HOHO relies on a number of individual and corporate donors. It relies on their continued support at high funding levels to expand and sustain its initiatives. Many of the larger donors appreciate the profile that their donations bring, in particular from bi-annual charity drives.

HOHO is currently seeking to qualify for its biggest donation drive. This drive is responsible for a large proportion of its annual donations. The fundraising legislation and permit conditions mean that expenditure at the charity must be classified as either directly related to administrative/fundraising or charitable dollars. To qualify for the drive, the expenditure-to-funding ratio must be kept under 25%. These rules are very strict and the penalties are high in order to ensure non-charitable organisations do not take advantage of willing donors.

To succeed in their current environment, expensive TV advertising must be used. This will mean that costs exceed the 25% limit. The Chief Financial Officer (CFO) is hopeful that the need for TV advertising will be a short-term cost, i.e., the 25% ratio will be easy to meet in the near future.

The newly hired accountant for HOHO feels that there has been a misallocation of administrative costs so that they are classified as program costs (i.e. upper management is pressuring for costs to be misallocated). The Chief Financial Officer (CFO) justifies this by saying that:

  • all the other charities do it, and HOHO?s costs are actually better than those of other charities;
  • it is necessary to make companies donate funds; and
  • the charity will be back under the 25% ratio in the short term.

Scenario:

Imagine you are the financial controller of XYZ Ltd a corporation that is a very large donor to HOHO. You have recently become aware that its TV advertising has resulted in the charity violating the 25% expenditure ratio for its charity drive. You know your organisation favours the profile it receives from this charity and though other charities request donations, your organisation supports only HOHO.

Required:

1.      Answer the following questions, i.e. (a) to (d) inclusive, based on the Case Study and Scenario as presented above on page 2 and that you are the financial controller of XYZ Ltd.

(a) Identify the relevant facts of the above case study and to your role as financial controller and advisor to XYZ Ltd.

(b) List six stakeholders affected by the above case study and scenario.

(c) Identify the relevant ethical issues of the above case study and scenario and relate them back to the major principles, rules and values (see item 3 in the Resources list below: APES 110 Code of Ethics for Professional Accountants).

(d) Explain the consequences of each of the following actions, you could choose: o Doing nothing;

o Telling your corporation about the situation; and o Encouraging your corporation to work with HOHO

2  Reference List:

Includes any references you have used and cited in your report. You must use the Harvard referencing system as per the guide available from the UWS library website. (Note: the reference list is not included in the word count).

Reference no: EM13289191

Questions Cloud

Seeds for possible contamination of carcinogenic compounds : Ellen is a scientist, and working in a lab at USDA. She has been asked to screen maize seeds for a possible contamination of carcinogenic compounds. She decided to use Ames Test. Her examining one set of samples (sample A) gave her higher bacteria co..
Bar magnet is falling toward the center of a loop of wire : A bar magnet is  falling toward the center of a loop of wire, with the north pole  oriented downward. Viewed from the same side of the loop as the magnet,  as the north pole approaches the loop, what is the direction of the  induced current?
Prepare the budgets for the year 2013 : Bob's Bottling is a juice bottler. Bob's produces bottled orange juice from fruit concentrate purchased from suppliers in Florida, Arizona, and California. Prepare the following budgets for the year 2013 broken into quarters. Please include total for..
Finance Multiple Choices Questions : The High Growth Company’s last dividend was $1.50. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If High Growth’s required return is 13%, what is the compan..
Identify the relevant facts of the case study : Imagine you are the financial controller of XYZ Ltd a corporation that is a very large donor to HOHO. You have recently become aware that its TV advertising has resulted in the charity violating the 25% expenditure ratio for its charity drive.    Id..
Does the marginal productivity of labor diminish : Find the MPN for an increase of labor from 100 to 110. Compare this result with the MPN for an increase in labor from 110 to 120. Does the marginal productivity of labor diminish
In detail four different energy sources : In detail four different energy sources. Include within your discussion the pros/cons of each selected energy resource. In addition, how does each energy resource impact the environment? Do you have a recommendation on the best approach?
Health care organization’s marketing strategy : What are the implications for a hospital or health care organization’s marketing strategy/plan? Identify and define at least two impacts of reform on health care marketing in general.  Describe how health care marketers will play a role in helping th..
Strengths-weaknesses-opportunitiesand threats analysis : Would completing a strengths, weaknesses, opportunities, and threats (SWOT) analysis be advantageous when deploying a quality process? How do identification and correction of internal weaknesses result in a more successful deployment of the quality p..

Reviews

Write a Review

 

Case Study Questions & Answers

  From the scenario, prioritize the attributes of golds reling

From the scenario, prioritize the attributes of Golds Reling's brand from the brand map presented in the scenario according to the attributes that you believe would be most important to the new tablet's target market. Provide support for your respons..

  Discuss critically infosys current and future strategy

Discuss critically Infosys current and future strategy. What advice would you give Kris Gopalakrishnan and KShop has resulted in information overload among staff. What operational measures would you suggest to overcome such challenges?

  Review tarmac business case for diversity

Review Tarmac's Business Case for Diversity and the Learning Resources. Think about Tarmac's approach to managing diversity and how it relates to organisational behaviour concepts and human resource processes.

  Enron case shared activity

Enron was the first nationwide natural gas pipeline network in the United States. As the company grew, executives shifted the company's primary focus from energy delivery and infrastructure to investing in the stock market.

  Ebay inc internet success or fairy tale

Read the case study "eBay Inc.: Internet Success or Fairy Tale? "and answer the question below,   Use the 2002 financial statement data to replicate the Meyer's report calculations that illustrate the conclusion based on the 2001 data reached in the ..

  Mintendo game girl case study

Which option delivers the maximum profit for the supply chain: Sandra's plan, Bill's plan, or no promotion plan at all? How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

  Splash soft drinks case study

Splash Soft Drinks Inc. (SSD) has recently achieved sales that exceeded its expectations after it introduced a new beverage that was greatly welcomed by their customers. The company is currently considering opening a new plant to which some of the pr..

  Details of the task using tesco plc

Details of the task Using Tesco plc (www.tesco.com) as a case study, prepare a report of no more than 2,500 words that:

  What are the common manifestations of alcoholic cirrhosis

What are the common manifestations of alcoholic cirrhosis? Which of these are secondary to hepatocellular failure? Which are secondary to portal hypertension?

  Judge the extent to which the marketing plan at just us

From the case study, judge the extent to which the marketing plan at Just Us! is outdated. Propose two (2) ways that Just Us! could improve the customer experience and thus sustain future growth.

  Read natasha kingery case and answer the questions

Read the DATA CASE on pages 126-127 about Natasha Kingery who is considering furthering her education and is seeking financial advice. Determine the interest rate she is currently earning on her inheritance by going to Yahoo!

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd