ABC Model of Accounting

ABC Model of Accounting

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Introduction :

There are different types of the factors and other associated features that  does allow the auditor to understand the level of the different types of the compliance of the concerned company in terms of the practice and the principles of corporate finance. Glendening, Pereira, Zhong& Cheng (2015)

Stated that the different types of the factors such as the size, profitability and the different types of the listing status are some of the few factors that are considered to be very important for the proper determination of the true nature and type of the compliance of the company in respect to the corporate financial reporting.

According to Davidson, Dey& Smith (2015), the Corporate financing is a special type of reporting system that is made to keep the Directors and the other important members of the Company, including the shareholders, the stake holders abreast with the different types of validated information that is required to monitor, govern as well as to make strategic decisions for the proper functioning of the concerned Company.

Ioannou&Serafeim (2017) stated that, one of the main features of the corporate financial reporting is that it allows the management of the organizations to review the proper type performance monitoring of the organization.

A proper understanding of the finance and the accounting systems will help to have a better focus on the decrease in the interest of the new entrant of the market (Gigler, Kanodia, Sapra&Venugopalan, 2014).

It has also been observed that the Financial reporting has served other important purposes such as the financial reporting is the process to share the performance of each of the different types of the departments of the company with the stakeholders of the concerned company (Glendening, Pereira, Zhong& Cheng, 2015).

 

Company Profile :BlueScope Steel

Blue Scope Steel is one of the important companies in Australia and its economy, since 1915. It has a recognized portfolio for business as well as for different types of the diversified products. They have a large number of valued partners in different parts of the world for strengthening their network and allowing them a great feasibility in their concerned business. The concerned organization is engaged in the business activity of flat product steel.

The major products of this concerned company involves ; steel slab, hot rolled coil, steel plate, automotive steel, galvanized steel, coated steel and other types of products. It’s head office is in Melbourne, Australia. It has its business operations in Australian Pacific islands, New Zealand, Asia and the North America. 

ABC Model Of Accounting ;

The Importance :

As per the proposed accounting model the company will be able to gather and record specific type of the information that is required to develop and implement future Corporate Strategies.

The company is actively engaged in the different types of activities that are related to the preparation and manufacture of flat steel. The proposed system of accounting will have a combined exposure of inventory blended with accounts.

It is customary for every type of manufacturing organization to have a perfect and transparent picture of the amount and the nature of the raw materials that are used in the company. The best implications of Kaizen and supply chain management depends on Logistics which again depends on Inventory for its related and proper performance.

The accounting system of this company actually shows the implementation to a large extent. It shows the several strategies of how the implementation can be done with basic quality project.

There are several incidents which shows various progress method of how they get accustomed with the condition. This company has a huge financial system thus showing a high pattern of relevant work and its structure.

This has a high potential factor which shows the different ranges of coordination. They get changed if a high variable of attribute and its system gets analyzed. They have a high potential in improvement as well as in settings of several approach.

The localization and its arrangement are an important factor here. It has shown the quality of degradation as well as in multi version quality. They are complete accustomed with the invention part thus showing the manufacture of the different flat process. This steel has a huge implementation but this process has an invention strategy and this has a replication category with a grouping system.

There are several ways which determines the ranges in the quality thinking and how they get distorted. The distortion should be prevented in all cases. They are manufactured and cleared with every meeting and its strategic thinking. It has shown the several properties with high gathering concept that has several perception.

To its large extent it has different quality of demonstrating the variation and thus showing the value of reliable portion that defines the technology in a severe portion thus showing the eligible in different status of relation. It has shown the criteria of showing the great technology and definition in a several matter of document. It has shown the analysis to a huge extent.

This has shown the great distorted cases in several actions of matching showing individuality everywhere.In relation with all companies the pattern of realization and its effective study has a combination of several factors that shows the capability of selecting several factors relation with different schematic process. The stating process should be delighted with production of stated factors with defined system.

This process of relation with the slated matter. It has cooperating with delusion of defining the system of allotment with realizing and its variation with the systematic varies with the costing process of systematic analysis. Each analytical section should be done with preferable version delusion with the solution cases.

This is a matter if highlighted with the dignified with the alluring systematic analytical process. In cases of several factors there are major destined values of economy.

In each case of setting is the adjusted with the system in the allocated systematic analytical in case of together showing the validation in each analysis of various factors that are not matched and they are not assumed with the dignified allocation with the various factors with the quality various factors with all delighted version of all things and thus showing the eligibility factor of the company. In this system of various matter of publication is being systematic and they are defined through systems and this is a major part of all values that are being distorted in all sectors.

This has a creation with the designated systematic values of all appreciating in all it’s based and they are defined through the values of the compilation in all sets and they are defined with all modulations.

The systematic creation has the dealings of the company and this shows the analysis of various factors that has delighted portions that can be matched with several coordinating factors. The fact are analyzed thus showing their dilution rate with a wide gap of economy.

There are several virtue with delusion and its changing effects are advised with the gap of adjusting lines with the selecting various gaps of de-attachment that helps in secretion of several multi combination of several allocating parts.

This are compared with the various portable factor that are highlighted with the zonal group of creating several virtue of depreciation and thus creating a gap with full pleasing determinants value of the allocation and it has a great division of several factors. This has a huge analysis which actually help to determine the resting phases of the company. The light and its alternative values are secreting thus giving a deposit of financial status.

The regional portion of company has a great idea of creating a proper strategy and this has a gap of creating a strong version of several compartmental study. This has a huge gap showing a large validity and its new strength are determined thus showing the values of determined the values of depreciating and the gain and loss of the company.

The locating agents are created and this actually shows a great advancement of detects and this is the validation of company and how it’s secreting that thus defining the terminology to a values of several allocation and this defines the system of allocation and this has a great advantage of several cooperation agent and this defines the exact creative nature of several portions of defining pattern of description and how they get analyzed with several cooperation and it has changed the auditing report too

With the exchange pattern of graph limitation and their dedicating lines are submitted accordingly thus description of several encrypted version of several enlargement. This has a great achievement regarding its financial crisis.

It has a great advantage of enlighten the selection process of different criteria and how it’s changing pattern are segmented and thus showing the ranges of different cooperating agents that they are highlighted accordingly. This has a huge range of different portions and this actually becomes a great matter of different amplitude.

A great systematic analytical different portions of every value that are discharged through different allocating and they are different portions of several and they are defined through the systematic function.

This has a great advantage of changes which shows the different cases of the enlargement portion and this helps in gathering the contributed values which has several section of enlargement and this has a great connection with learning system.

Each grounded part is matched up with the profiles which shows the exact power system of its calculations and their grounded ideas. It has quality work with several identities thus showing the great range of creative approach with negative discharge. This has a huge excretion and food pattern.

Accounting Information System (AIS)

The AIS is a subsystem of the MIS. It helps in updating the company as BlueScope Steel in developing the different types of the financial reports for the concerned process. It will help the concerned company to have a better decisive advantage over the strategic decisions that it can develop from the analysis of the financial records.

The proposed form of the ABC model of the AIS will help to keep the share-holders updated about the different types of financials niches of the company by the help of generation of MIS and will also ensue smooth performance of the concerned system. 

The Accounting Process

The accounting system starts when a financial event is recognized and recorded by the AIS.

  1. Journalize. It is a system of recording different types of the financial transactions into the concerned system. This will help BlueScope Steel to find a detailed account of the different types of income, expenditures as well as the suspended accounts of the concerned systems.
  2. Post. AIStransfers journal entry’s to different types of the concerned ledgers of the company BlueScope Steel. This allows the company to keep a track record of all the possible transactions made in a particular financial year in a flaw less way.
  3. Trial Balance.  The  trial  balance  is  a  summary  of  all  the  accounts  in  a general ledger and the balances in those accounts. By the help of the Trial balance the BlueScope Steel will be able to find a current situation of the company and will be able to develop future corporate strategies for its proper implementation.
  4. Entries for Adjustments :These type of entries are made at the end of each financial year of the said company, i.e, BlueScope Steel.
  5. Reports. The income statement and the balance sheetof Blue Scope Steel are the two main type of the financial information system that are provided by the AIs for the better understanding of the concerned company.
  6. Closure. After the accounting reports are made it has been found that the accountants of BlueScope Steel are actively involved in the activity to prepare the accounting records for the next financial year. 

The Model of the ABC Accounting System :

The ABC Model of accounting will be a blended Company specific software that will allow a clear interaction between the journal entries of the stock maintenance as well as the different types of the income and the expenses related with the journal entries.

This software unlike the other ready made software’s that are available in the commercial market will allow for a proper representation of the logistics and stock inventory, on a daily, weekly, monthly and a quarterly basis.

The monthly and the quarterly reports will be helpful to analyze the inventory and the Supply chain management of the concerned organization. Most of the commercial software’s that are available do provide graphical measures and representation of the accounts and inventories.

In this type of accounting software it will be linked with the Management information system, so that the directors and Share Holders can have a direct access to the present financial condition of the said company. This software will also predict the availability of resources and the amount of sale made in different locations emphasizing on the current situation of the present company.

The different types of the inventory and accounts related financial information will be refined and a monthly MIS report will be generated to the Directors of the concerned Company for a better and escalated performance of the said company.

The Software will also allow for the representation of different types of financial ratios and financial leverages that will be able to represent a proper financial status of the company.

The critical analysis of the ratios that is not available in the general and commercial software’s will be available in the present system of accounting software and it will be beneficial in reflecting the beta values as well as the type of the different investments policies depending on the financial statistics of the concerned company. 

Alignment of the ABC Model with the Companies Current Goals and Strategies :

Identification of the Companies Mission and Objectives :

Mission : The Mission of the said company is to be market leader in the production of Flat product steel and allied products.

Vision : To be a market Leader in the field of flat product Steel.. 

The ABC Model of accounting will help the said Company in a number of ways :

According to KhokanBepari, Rahman &TaherMollik (2014), According to the studies of Wang (2014), the present software will provide a great resource of information in terms of intangible assets and its financial status in the concerned company.Florou, Kosi& Pope (2017) highlighted that the present system of software will have a great impact in recording different types of intangible assets and its special type of treatment with respect to the concerned company. It will also help in providing timely information about different types of financial ratio and niches that may be required by the concerned Company. 

Identification of the Companies Corporate Strategies :

As per the study of the Gigler, Kanodia, Sapra&Venugopalan (2014), the modern form of the proposed type of the accounting system have designed the rules and the regulations in such a way that any kind of the unusual increase in the revenue of the company will also needs to be reported through the corporate financial reporting system.

In addition to this any type of misuse of inventory or wastage of inventory can also be tracked out by the help of the concerned accounting system. It has to be mentioned that the manufacturing companies have a great dependency on the different types of the raw materials that has been used in the concerned process.

As a result there should be an efficient system that will be useful to allow the management to know about the different types of the financial ratio and leverages from time to time or periodic intervals for a better type of financial planning for the concerned company.

This modern system of the accounting structure will also allow for a better way to calculate the beta value and other WACC assumptions for a better functioning of the concerned company 

Compatibility of the Corporate Strategies of the Company with the ABC Model :

The Present company in discussion can make use of the present accounting model to generate different types of accurate financial ratios as well as the different types of the financial statements that will be used to help the management to take better type of strategic decisions in the near future for the betterment of the said company. 

Two Recommendations for the implementation of the ABC Model :

  • To assist in the proper reflection of the financial statements, ratios and leverage of the dynamic market.
  • To help the stake holders to understand the risk in a much better way for the concerned business with respect to the dynamic market.

Another type of the Management Tool suitable for the Company :

Model 1 :

This model will help to show how the inventory, the accounts and the Management Information systems are connected with each other. This model will reflect an inter connection between the different types of the domains of Logistics, inventory and accounts. 

ABC Model of Accounting

Model 2 :

This model will illustrate how the information of the financial statements and the financial leverage will be helpful for the Directors and the Share holders to make a proper implementation of the concerned financial information of the said company.

ABC Model of Accounting

Model 3 ;

This model will reflect the different types of the activity management with relation to the accounting parameters of the concerned company.

ABC Model of Accounting

Discussions :

The above type of the models are self resilient structures to understand about the smooth working of the concerned company in a much better way. The above models do suggest a better and a more efficient way to record transactions and generation of MIS reports for financial performance of the concerned company, BlueScope Steel. 

References

  • Ahmed, A. H., Ahmed, A. H., Hussainey, K., &Hussainey, K. (2017). Is Egyptian corporate financial reporting becoming more conservative?. Journal of Financial Reporting and Accounting15(3), 333-346.
  • Alam, Z., & Rashid, K. (2014). Corporate financial reporting on the internet: A survey of websites of listed companies in Pakistan. IUP Journal of Corporate Governance13(3), 17.
  • Council, F. R. (2015). Developments in Corporate Governance and Stewardship 2014.
  • Council, F. R. (2015). Enhancing confidence in audit: Proposed revisions to the ethical standard, auditing standards, UK corporate governance code and Guidance on audit committees. consultation. London: Financial Reporting Council.
  • Davidson, R., Dey, A., & Smith, A. (2015). Executives’ “off-the-job” behavior, corporate culture, and financial reporting risk. Journal of Financial Economics117(1), 5-28.
  • Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender differences in financial reporting decision making: Evidence from accounting conservatism. Contemporary Accounting Research32(3), 1285-1318.
  • Hanlon, M., Hoopes, J. L., & Shroff, N. (2014). The effect of tax authority monitoring and enforcement on financial reporting quality. The Journal of the American Taxation Association36(2), 137-170.
  • Ioannou, I., &Serafeim, G. (2017). The consequences of mandatory corporate sustainability reporting.
  • Rashid, K., &Alam, Z. (2015). Corporate Financial Reporting on the Internet: A Survey of Websites of Listed Companies in Pakistan.
  • Sikka, P., &Stittle, J. (2017). Debunking the myth of shareholder ownership of companies: Some implications for corporate governance and financial reporting. Critical Perspectives on Accounting.

 

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