Report on Working Ethically
Ethics in a broader term means moral principles that are responsible for governing an individual’s behaviour while performing a certain activity. Working ethically refers to working with utmost honesty and diligence. It is very crucial that individuals work in a manner which is rightfully accepted during a course of action. It is all about being fair with people, process and methods used to achieve a certain objective. The following report is based on practices of ethical working within various situations. These situations help to identify the meaning behind ethics and its importance within the decision-making process. These also explains the influence of cultural and environmental issues on business ethics. The report includes a demonstration of understanding of personal skills required to ensure dignity while treating the people. A detailed examination of equality and diversity issue is also briefly discussed. The main features of professional code of conduct are mentioned as well that are necessary for working ethically.
Working in a care home for elderly requires to delicately handle situation around the patients and members to enhance the quality of service. It is imperative that the staff of the care home be properly trained and understand the importance of working ethically and treating all the patients in a fair manner. As per the scenario, the employees of the care home are required to be briefed about the professional code of conduct, ethical decision-making and fair and equal treatment. The importance of ethics in decision-making is as follows: Compliance: It is essential that the decision-making of the employees fulfil the code of ethics as well as the values of the Care home. This is crucial to ensure an appropriate system of quality care for the patients. The employees also must undertake consideration of the legal requirement required to be fulfilled by the Care home. In this manner, the staff as well as the manager could ensure compliance of values in their decision-making. Promotion of Good: The agenda of decision-making must be towards ensuring the promotion of good. This means, that by the decisions taken by the employees on individual as well as a group level, it is imperative that it does not impose any harm to the patients, colleagues or the external stakeholders, for instance, the families of the patients. They must make it certain that their decision minimizes risks and harms and promote safety and good. Responsibility: It must be taken into account of the employees that their decisions fulfil their responsibilities which they have towards the patients. This might mean giving them timely medication, enhancement in sanity and cleanliness and so forth. Ethics in decision-making would help the staff of the care home to fulfil their responsibility with utmost honesty and consistency. Preservation of Rights: The utmost objective of decision-making in the care home is to protect and preserve the rights of the patients within the organisation. Ethics in the decision-making of the employees also must promote the preservation of rights of the manager, staff and internal and external stakeholders of the care home.
In 2015, recoverable amount is higher than carrying figure so there is no journal entry has been made.
C. Explaining the reasons for impairment
In 2014, carrying amount is $200000, whereas recoverable amount implies for $110000. Hence, carrying amount is higher than recoverable cost which shows the loss of $90000. Carrying cost – recoverable amount $200000 – $110000 = $90000
D. Presenting the amount of plant and equipment in balance sheet
In balance sheet, revaluate amount of plant and equipment is recorded by business entity after doing final reversal.
Interpreting the technical requirements and importance of international accounting standards
International Accounting standards have high level of importance which ensures high level transparency and standardization in the financial statements. Hence, final accounts which are prepared according to IFRS are highly reliable in nature and thereby helps stakeholders in making decisions (Florou, Kosi and Pope, 2017). However, technical knowledge is highly required among the individuals or accounting personnel to deal with the aspects of International Accounting Standards such as IAS 12 and 26 etc. In this, accounting personnel must have ability to recognize deferred tax assets and liabilities. Moreover, assets, revenue received in advance, other liabilities, unrecognized items; consolidated financial statements are the main bases of taxation (Warren, 2016). By taking into consideration all such bases accounting personnel can assess or determine the tax liability. In addition to this, in IAS 12 contains rules regarding the measurement of deferred tax. Along with this, tax rate are also varied from one year to another. In this, accounting personnel is required to update with changing rules and policies. Through this, finance manager and accounting personnel would become able to determine suitable tax liability. In addition to this, IAS 26 serves information about retirement plans which can be distinguished into two types such as defined benefit and contribution plan. Hence, it clearly presents information about the recording, measurement and disclosure of information regarding the retirement benefit plans. Hence, for effective presentation accounting personnel must have knowledge regarding the rules and regulations which are related to it (Bond, Govendir and Wells, 2016). Thus, by considering all such aspects it can be said that technical and conceptual knowledge is highly required for dealing with the standards more effectively and efficiently. Moreover, reporting and measurement aspect of pension plan is highly differing from one standard to another (McPhail, Macdonald and Ferguson, 2016). For instance: UK GAAP has different rules in relation to treatment on pension benefits in against to IAS. Hence, conceptual understanding and knowledge is highly required for dealing with the amount of retirement benefits and deferred tax amount. There are several key issues which are associated with financial reporting enumerated below:
- Reporting needs and requirements are mentioned in the regulations which business entity requires following for ensuring transparency in the final accounts. However, sometimes is not possible for the business organization to comply with all the rules to the large extent.
- Further, some government authorities have framed and introduced legislation which entail that companies are not obliged to prepare financial statements according to accounting standards. Moreover, sometimes treasurer directives also enforce accounting standard which company has to follow for the preparation of financial statements.
- Bond, D., Govendir, B. and Wells, P., 2016. An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136.Accounting & Finance.
- Florou, A., Kosi, U. and Pope, P.F., 2017. Are international accounting standards more credit relevant than domestic standards?.Accounting and Business Research.47(1). pp.1-29.
- McPhail, K., Macdonald, K. and Ferguson, J., 2016. Should the international accounting standards board have responsibility for human rights?.Accounting, Auditing & Accountability Journal.29(4). pp.594-616.
- Warren, C. M., 2016. The impact of International Accounting Standards Board (IASB)/International Financial Reporting Standard 16 (IFRS 16).Property Management.34(3).