Accounting Challenges and Solutions for Long-term Sustainability of an Organization
Please read the whole assessment brief before starting work on the Assessment Task.
The Assessment Task
This assessment aims at providing a vehicle for relating the learning outcomes of this module to the professional world of the students, drawing on and consolidating the material in the module. The project develops as students acquire additional information.
This is a course-long project, assigned early in the course. I have found that the results are far more comprehensive and balanced if the project is worked in parallel to the course work.
Should a student have insufficient accounting experience or should a student want to avoid talking about the organisation he is part of or employed by. The student should choose either a quoted company, a private company, a government enterprise, or a not-for-profit organisation in his/her home country to focus on for his project.
Students are encouraged to use the Microsoft whiteboard/ Padlet to exchange ideas and experiences about their chosen organisation’s accounting issues and challenges.
Provide and critically discuss the overview of your chosen organisation
The answer must include an overview of the:
– Organisation business, activities, location, size, markets and customers, number of employees, organisation structure, divisions, subsidiary companies etc.
– Governance systems, type of enterprise, governing body structure and size, members, board committees, and board information. As well as the governance processes adopted within the firm—how the board interacts with top management.
– External auditors of the firm, the rotation of auditors for the firm, any identified fraud
– The organisation’s corporate social activities: environmental, social, community, and employee adopted by the firm. (Lo d)
a). Critically identify and justify the accounting challenges and issues your chosen organisation faces in terms of governance, corporate social responsibility and ethical issues.
b). Assess your organisation’s position and propose solutions for the business’s long-term sustainability in line with findings from the literature review. (Lo a)
Assess the changes in accounting regulation in your home country, and critically analyse the implications for adopting this change by your chosen organisation.
Critically analyse the challenges faced by accounting professionals in business leadership in your country and assess if any of these challenges apply to your chosen organisation. Critically discuss possible solutions to overcome these challenges based on the literature review. (Lo c)
Note: all answers for Questions 2-4 must be supported with evidence from the literature review.
Complete a reflection section (300 words).
– Reflect on what you have learned by taking part in this module and applying the acquired knowledge in the context of the world of work. Also, reflect on how this module helped you to develop your interpersonal skills. Support your answers by identifying the challenges you faced and the solutions you have adopted to overcome these difficulties. (Lo e)
This Management Assignment
Overview of the chosen organization:
The chosen organization is a private company called XYZ Inc. It operates in the technology sector, specializing in developing software solutions for various industries, including healthcare, finance, and education. The organization is located in the United States and has a global presence with operations in several countries. The company has over 10,000 employees globally, with a well-defined organizational structure, including multiple divisions and subsidiary companies.
The company has a board of directors that oversees the organization’s operations, consisting of both internal and external directors. The board committees include audit, compensation, and governance committees. The board interacts with top management through regular meetings and periodic reports from the CEO and other executives. The organization follows best governance practices and emphasizes transparency and accountability.
The company’s external auditors are a Big Four accounting firm, with a rotation of auditors every five years. There have been no identified fraud cases to date.
Corporate Social Responsibility:
The organization has several corporate social responsibility initiatives, including environmental sustainability programs, community engagement programs, and employee wellness programs. The company has a strong commitment to social responsibility and has won several awards for its initiatives.
a) Accounting Challenges and Issues:
One significant challenge the organization faces is ensuring good governance practices and managing ethical issues. As the company operates globally, it faces several legal and regulatory compliance issues, and ensuring compliance can be a challenge. Another challenge is managing the financial reporting of the various divisions and subsidiaries, ensuring consistency and transparency. The organization also faces challenges related to environmental sustainability, managing the company’s carbon footprint, and complying with regulatory requirements.
b) Solutions for Long-term Sustainability:
To ensure the long-term sustainability of the organization, the company needs to prioritize good governance practices and ethics. It needs to ensure compliance with regulatory requirements and promote transparency and accountability across all its operations. The organization can also improve its sustainability practices by investing in renewable energy sources and adopting circular economy principles. Adopting technology solutions for monitoring and reporting on the organization’s environmental impact can also help improve sustainability practices.
c) Changes in Accounting Regulations:
In recent years, there have been several changes in accounting regulations in the United States, including changes related to revenue recognition, lease accounting, and goodwill impairment testing. These changes have significant implications for organizations like XYZ Inc., which operate globally and must comply with multiple accounting regulations. The company needs to ensure it has the necessary systems and processes in place to comply with these regulations and report accurate financial information.
d) Challenges faced by Accounting Professionals:
One of the significant challenges faced by accounting professionals in business leadership is managing ethical issues and ensuring compliance with regulations. As organizations operate in a global environment, it can be challenging to manage different legal and regulatory frameworks. Another challenge is managing financial reporting across multiple divisions and subsidiaries, ensuring consistency and accuracy. To overcome these challenges, accounting professionals need to prioritize ethical practices and compliance, invest in technology solutions, and promote transparency and accountability across the organization.
Taking part in this module has been a valuable learning experience, as it has enabled me to understand the challenges and issues faced by organizations in managing their accounting practices. Applying the acquired knowledge to the context of the world of work has been an enriching experience, as it has allowed me to develop critical thinking and problem-solving skills. The module has also helped me develop my interpersonal skills, including communication, collaboration, and teamwork, which are essential in the workplace. The challenges I faced during the project, such as managing different sources of information and synthesizing complex ideas, have helped me improve my analytical and research skills. Overall, this module has provided me with a comprehensive understanding of the role of accounting in promoting the long-term sustainability of organizations.