Accounting: Business Reporting For Decision Making, 5th Edition Solution Manual

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1.1Solution Manualto accompanyAccounting: Business Reporting forDecision Making5eJacqueline Birt, Keryn Chalmers, SuzanneMaloney, Albie Brooks & Judy OliverPrepared byJacqueline Birt

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Chapter 1: Introduction to accounting1.2Chapter1:Introduction to accountingApply your knowledge1.1Provide an example of the different types of activities that would be performedby a management and financial accountant forJB Hi-Fi Ltd.The management accountant would perform activities such as capital budgeting for futurestore fit-outs, preparation of budgets and cost-volume-profit analysis for a newbusinessventuree.g.diversifying product range to include books.The financial accountant would perform activities such as preparation of financial reports i.e.income statement, balance sheet and the statement of cash flows in accordance withgenerallyaccepted accounting principles, which are represented by accounting standards includingthose issued by both the AASB and the IASBand the Corporations Act.1.2Whatisthedifferencebetweenaconsolidatedincomestatementandaconsolidatedstatement of comprehensive income? Explain with reference totheQantas Group.Acomprehensiveincome statement would list the revenue less expenses forQantas Group.Expenses would include;fuel,depreciation and amortisation,operating leases, finance costsand income tax expense.A statement of comprehensive income would include the profit for the year, changes in thefair value of cash flow hedges and exchange differences on translation offoreign operations.1.3Carbon accounting is a very important and huge growth area of accounting.Discuss the different stakeholders (and their information needs) that would beinterested in the carbon accounting report.StakeholderInformation needs1.ManagementLevels of carbon emissions can provide targets to improveenvironmental performance, can also be tied to executiveremuneration. Significant costs can lead to increased costsand reduced sales.2.InvestorsAssist in investmentdecision making. Research has foundthat firms with higher disclosures ofsustainabilitycarboninformation canlead to improved financial performance and share price.3.GeneralpublicInterested in comparing companies to determine if theyare managing their carbon risks and reducing emissions.

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.31.4The AASB's role has changed since the introduction of IFRS in 2005.Most ofthe Australianaccounting standards mandatedinAustralia areAustralianequivalents to IFRSs.Why do you think Australia has adopted Australianequivalents to IFRS?The Australian standard setter i.e. the AASB has changed its role since the adoption of IFRSin 2005. It is not solely making accounting standards for use by Australian reporting entities,much of that role is now undertaken by the IASB in its development of IFRS. IFRS adoptionmeans that the AASB can now contribute to the development of global financial reportingstandards. Most recently, the AASB provided export support on the IASB's discussion paperon 'extractive activities'.Adopting IFRS means that there is a reduction in standard settingcosts for Australia. Adopting Australian equivalents of IFRS means that there is still scopefor the AASB to tailor the IFRS to meet the needs of Australian entities. For example: certainIFRS standards will be made available to specific Australian entities rather than all Australianentities. Conversely, there will be other IFRS which the intention is for a more narrow groupof entities e.g. all listed companies and in Australia it might be applies to both proprietary andlimited companies. Adopting Australian equivalents means that there is also the scope tochange the wording of certain standards to “fit” the Australian business environment.1.5The sustainability report is a recent disclosure by some Australian companies.The Qantas Group’s sustainability report includes disclosures on occupationalhealth and safety, environmental information, customer information includingnumber of on-time arrivals and employee absenteeism.What do you think arethe advantages and disadvantages to the company of providing such disclosures?Such disclosures provide a positive signal about the company to various stakeholders such asconsumers, investors, general public, employees and suppliers. The disclosures can provideinformation to investors to determine the future of an entity and to assess the future cashflows for dividends and the possibility of capital growth of investment. Employees can usethe information to ascertain job security and future promotional opportunities.Suppliers ofthe entity can use the information to determine an entity’s ability to repay debt associatedwith purchases.1.6The historical cost nature of the annual report is seen as being a limitation offinancial accounting information. What do you think are the advantages anddisadvantages of using historical costs?Can you think of any alternative ways ofmeasuring assets that my provide advantages over using historical cost?Historical cost accounting requires that items in the annual report such as assets are reportedat their original cost. This has various advantages. Historical costs are seen as being reliablefigures where there has been evidence of the actual price e.g. invoice, receipt. Other methodsof valuation are not always reliable, as management can use their discretion (sometimesopportunistically)toarriveatthevaluewhichcouldbedetrimentaltothefirm.Disadvantages of using historical costs are that theymay not be relevant and for that reasonmay not reflect the real value of the firm. Lenders most likely would be interested in thehistorical cost of Balance Sheet items and if there are any impairment losses.Otheralternative methods includemarket valuefor assets such as land. For assets such as inventory,

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Chapter 1: Introduction to accounting1.4thenet realisable value would be worthwhile knowing (expected selling price less any costsof selling).

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.5ComprehensionQuestions1.7What is abusiness transaction and how does it relate to the accounting process?Illustrate the concept of a business transaction with five examples relating to aprovider of Chinese therapeutic massages.A business transaction can be defined as external exchanges of resources between the entityand another entity or individual that affects the assets, liabilities and owners’ equity items inan entity.The accounting process is the identifying, measuring and communicating ofeconomic information about an entity to a variety of users for decision-making purposes. Thefirst component of the process is the identification of business transactions which are thenmeasured and communicated to the different users of financial reports.Business transactions for aprovider of Chinese therapeutic massagesinclude the following:1. The contribution of capital by the owner to commence the business. This transaction wouldincrease cash (asset) and increase capital(equity).2. The purchase ofequipment(massage tables, massage chairs) on credit. This transactionwould increaseequipment(asset) and increase creditor (liability).3. The payment ofbuildingrent. This transaction would decrease cash (asset) and decreaseprofit (equity).4. The purchase of office equipment for cash. This transaction would increase officeequipment (asset) and decrease cash (asset).5. Withdrawal of business funds by owner. This transaction would decrease cash (asset) andincrease drawings/decrease capital (equity).1.8Differentiate between financial and management accounting. Give an example ofhowmanagementaccountingreportswouldbeincorporatedintofinancialaccounting reports.In differentiating between financial accounting and management accounting it is important toconsider the users of financial information—both internal and external users. Financialaccountants prepare and report information for external users(for exampleprospectiveinvestors or the tax office)and as such are subjected to regulation from GAAP,theCorporations Act and in some cases the ASX through their Listing Rules.Managementaccountants are concerned with the effective use of an entity’s resources, and in so doingassist the manager/s (i.e. internal users) of the entity in achieving their goal of enhancingcustomer and shareholder value.Therefore the management reports generated need to be upto date to be effective. Regulation in management accounting is much less formal and insome areas rules are basically non-existent.Ultimately there will be interaction between thefinancingaccounting and management accounting areas. The information provided bymanagement accountants will provide information for internal users that will be reflected inthe financial reports used by the external users.See Table 1.3, page 10,for a detailed list ofthe differences between financial and management accounting.

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Chapter 1: Introduction to accounting1.61.9Describe how accounting informationhelpsshareholdersand lendersto makedecisions concerning the operations and performance of the entity.Users of accounting information (both internal and external) requireaccountinginformationto assist them in the decision making process.External userssuch as investors, employees,banks, suppliers, government agencies (e.g.ATO) all have their own specific informationneeds. A potential investor will requirepastprofits and futureprofitprojections,as well asfuture growth prospects,to determine if the entity is a good investment proposition or not.Lenderswill be seeking details of the level of risk it is exposing itself to by lending money tothe entity plus the prospects of the entity repaying its’ debt.1.10Provide an example of a company that would produce a GPFSand a companythat would produce a SPFS. Who are the likely stakeholders of both types ofentities?An example of a company who would produce a GPFR would be Qantas Group, QantasGroup has various stakeholders such as investors, employees, customers, supplies, banks,regulatory bodies that would all require important information from the Qantas annual report.A company that would prepare a SPFScould be an entity such as a local governmentassociation.This type ofentitywouldprovide a set of financial statements in accordance withthe local government code of accounting practice and financial reporting and relevantAustralianaccountingstandards.Theassociationwouldnothaveadiverserangeofstakeholders and a special purpose financial statement would fit the requirement of itsstakeholders such as lenders and regulatory bodies.1.11Refertotherealitycheck‘AGlimpseintothefutureoftheaccountingprofession’. What are the major factors influencing the nature of accountingwork?The major factors influencing accountingwork include the following:•Technological change and globalisation–lower value transactional work is expectedto be fully automated andoff shoredto lower-cost markets. Therefore, tasks thatinvolve human ingenuity, creativity and innovation will be more in demand.•Retirement of baby boomers−from 2011 onwards, people coming into accountingwill be from a different generation and also have different values. There will possiblybe less career accountants and more mobile workers who have expertise globally andacross different entities.•Change in the structure of accounting firms–more consolidations in accounting firmsand the importance of mid-tier firms who are likely to experiencerestructuring interms of services offered to clients.

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.71.12Listsixstakeholdersofaccountinginformation.Describetheinformationrequirementsforeachone;forexample,lenderswouldneedinformationregarding the business's ability to repay debt and service a loan.STAKEHOLDERS:INFORMATION NEEDS:Internal Stakeholders:Managersrequire information to determine make or buy decisions orwhether to expand or close down orwhether tochange banks.External Stakeholders:Investorseekinformationoncapitalgrowthprospectsandfuturedividend payments.Lendersneedinformation on the ability of the entity to repay its loans.Supplierswant to knowcan the entity pay for its supply purchasers.Consumersareinterested in the life expectancy of the entity and theentity’s ability to provideappropriate goods and services.Governmentagenciesfor example,ATO—requireinformation to determinetheamount of tax liability of the entity.Regulatory bodiesfor example,ASXand ASIC need to knowwhether the entity isfollowing theASX listing rules and therules and regulations ofthe Corporations Act.1.13One of the limitations of accounting information is the historical nature of thefinancial statements. Provide an example of an asset from the balance sheet ofQantas Ltdwhere the asset's historical cost may not reflect its current value.One example of an asset where the reported historical cost may not reflect its current value isproperty, plant andequipment. The note to the financial statements state thatthe property,plant and equipment are statedat cost less accumulated depreciation and impairment (if any).This amount may not reflect its current value. Impairment tests allow for the asset to bewritten down if its carrying amount exceeds its recoverable amount. However, there is noprovision for any revaluation upwards.1.14Darby Davisis considering purchasing a sushi barin the innerBrisbanesuburbofPaddington. Discuss three important issues thatDarbywould needto talk overwith her accountant before she purchases the sushi bar.Sarahshould seek the advice ofheraccountantregarding the following:1.Evaluate the purchase—from the accountant’s experience (orwithassistance fromhis/her professional association) advice can be obtained on whether the purchase is agood buy or note.g.through comparisons of similar recent sales; analysing past financialreports.2.Prepare budget forecastse.g.on sales—i.e. target salesof foodnecessary to make thepurchase worthwhile orto compare whether it isbetter financially to remain in your

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Chapter 1: Introduction to accounting1.8presentjobandmakepassiveinvestmentswithyourcapital.Thiswillenableaprospective buyer to evaluate if such sales are feasible by her.3.Explain the personal qualities required in owning such a businesse.g.long hours; tediouswork; customer relationships; impact on family life etc.1.15What are the benefits of professional association membership for accountinggraduates?Benefitsinclude:•further educationthrough the CPA,CA andMIPAprograms•technicalassistance on accounting standards and the Framework•support for graduates through the resources on the web,seminars and continuing educationprograms•guidancein relation to thecode of ethics for professional accountants1.16Give an example of the role accounting information plays in the investmentplanning for a retiredcricketeranda retired public servant.Accounting provides us with a language to help understandthe decision making processassociated with investment planning.A retiredcricketerwould use accounting toinitiallywork outa strategy for investing earnings and then tohelp keep track of his/herinvestmentswhich could include property, shares, luxury cars etc.A retired public servantwould have asuperannuation fundand possibly other investments. Accounting knowledge would assist inhelping to interpret the annual returns and fees from a superannuation policy and theperformance of the assets invested by the superannuation fund. It could also assist inchoosing investments that would provide most benefits to the retiree1.17What are some of the opportunities and threats for the accounting professionresulting from the large number of corporate collapses in theearly 2000s?The largenumber of corporate collapses in the early2000sand throughout the last decadeprovidesmany opportunities for the accounting profession.Such as:•employment in areas such as forensic accounting, insolvency, taxation, auditing•demand generally for accounting and audit services•demand foraccountants with experience working with global accounting standards•jobopportunities overseas with the Big 4 accounting firms and multinational entitiesThreats•Accounting professions’work under more scrutiny•There has been an increase in litigation against accountants and auditors•The demise of some accounting firms e.g. Arthur Andersen

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.91.18Compare and contrast the roles of theFinancial Reporting Council (FRC)andthe Australian Securities Exchange (ASX).The FRC is a statutory body made up of key stakeholders from the business community, theprofessional accounting bodies, governments and regulatory agencies. TheFRC’s role is tooversee the accounting and auditing standard-setting process for both the public and privatesectors in Australia.The ASXcontributes to company regulation in Australia as itregulateslisted entities on the stock exchange through its Business Rules and Listing Rules which arein addition to the regulations in the Corporations Act.1.19WhatisthedifferencebetweentheConceptualFramework'sfundamentalqualitative characteristics of relevance and faithful representation?Can youthink of any trade-offs between relevance and faithful representation?Relevance impliesthat the information should have predictive and confirmatory value forusers in making and evaluating economic decisions. Faithful representation implies that theinformation fully represent the phenomena it purports to represent. This means that thefinancial information will be complete, neutral and free from error.A trade-off can occur between relevance and faithful representation.An illustrationof thiswould be theaccounting practice of estimating doubtful debts expense.The process ofestimating doubtful debts expense is relevant to the decision making process. It is necessaryto determine an estimate so that revenues for the period can be appropriately matched withthe expenses for the period. However, if you estimate doubtful debts expense the estimatethat you use does not faithfully represent the actual amount of bad debts expense i.e. isunlikely to be an amount free from error. However, the process of estimating the expense isuseful to the decision maker.1.20How can the professional accounting bodies assist in standard setting?Professional bodies such asCPA Australia and the ICAAprovide feedback on exposuredrafts and forward any comments on to the AASB. They also inform their members of anyaccountingstandarddevelopmentsthroughnewslettersandbyconductingContinuousProfessional Education (CPE) sessions. The professional bodies’ websites provide on-goingadvice and information on a range of topics including the adoption of IFRS, theFrameworkand compliance issues.1.21Describethe major purpose of the ASX. What types of information does itprovide for a novice investor?The major purpose of the ASX is to provide an orderly and fair market in listed companies’shares and securities. It also regulates companies through its Business and ListingRules. TheASX Listing Rules govern the procedures and behaviour of all ASX listed companies andlisted trusts.Three examples of Listing Rules are:

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Chapter 1: Introduction to accounting1.10Chapter 5: Additional reporting on mining and exploration activities. This Listing Ruleconcerns the mining and exploration industry sector and the additional disclosures they mustmake such as details of the mining production and development activities and details ofexploration activities.Chapter17:Tradinghalts,suspensionandremoval.ThisListingRuleexplainstheinformation that an entity must provide to the ASX if there is going to be a trading halt. Suchas reasons for the halt and how long it will last.Chapter 14: Meetings. This Listing Rule outlines the ASX requirements for meetings such asgeneral meetings and directors’meetings.Other information that it provides for a novice investor includestutorials on how thesharemarket works; learning how to trade in the sharemarket and information on developingan investment strategy.1.22Whatisthe impact of the qualitative characteristic of 'materiality' on thepreparation of the financial statements?Thequalitative characteristic of 'materiality'is another important assumption in accounting.According to the accounting and legal professions, material information is that which affectsthe decisions made by users of the financial reports in which the information is disclosed.Determining a material item should include a quantitative and qualitative evaluation of thatitem. The factors that need to be considered are type of entity, size of entity and the industrythat the entity is operating in. Significant professional judgment is necessary.The impact ofthis characteristic on the preparation of financial statements is that information is onlydisclosed if it affects the decisions made by users of financial reports. Therefore, in financialreports amounts are rounded up to the nearest thousand or ten thousand. Individual assets arenot listed in the Balance Sheet-the notes to the financial reports would provide a descriptionof assets under each class of asset on the Balance Sheet.1.23The reality check'New mechanisms eyed by FASB, IASB in long march towardglobal comparability’ onpp.11-13looks at issues associated with the UnitedStates convergence with IFRSs.Whatdo you thinkare the advantages anddisadvantages of globalised financial reporting?The advantages of globalised financial reporting include; asingle set of global standards,greater consistency in financial reporting, cost savings in producing one set of reportsandgreater transparency in financial reports.The disadvantages of globalised financial reportingcould be thecosts associated with allapplicable entities adopting global standards. There are two types of costs: (1) informationand processing costs and (2) potential proprietary costs.For some entities there will beadditional costs associated with providinginformation complying with global standards andsome entities may have to disclose more information to comply with the standards and thispotentially could involve the release of commercially sensitive information to the market (e.g.additional disclosures on business and geographic segments of operations).

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.111.24Explain the relationship betweenthe Australian Accounting Standards Board(AASB) and the International Standards Board (IASB).The AASB is responsible for the development of accountingstandards to be followed whenpreparing GPFRs (General Purpose Financial Reports). The standards have the force of lawunder the Corporations Act. Disclosing entities, public companies and large corporationsmust apply the standards when preparing their financial reports. Since 2005, the AASB hasreleased AIFRS–Australian Equivalents of International Financial Reporting Standardsissued by the IASB.1.25Growth areas for accountants in the future include sustainability reporting andmore specifically carbon accounting. What are the costs and benefits for entities inreporting their carbon ‘greenhouse gas’emissions?There are several benefits for firms in disclosing information about carbon ‘greenhouse gas’emissions. Information of this naturecan assist in determining how effective the company hasbeen in reducing carbon emissions and other pollutants. It can also provide information tospecial interest groups to determine whether the entity has considered environmental, socialor industrial aspects during its operations. Costs to the entities include information processingcosts and the potential loss of business to the entity if the information sends a negative signalabout the entity e.g. increases in greenhouse gas emissions and otherpollutants orincreasedwater consumption levels.1.26Briefly describe how the AASB develops accounting standards.Since 1 January 2005, Australian entities have complied withInternational FinancialReporting Standards (IFRS). TheAustralian Accounting Standards Board (AASB)isresponsible for the development and maintenance of high-quality financial reportingstandards in Australia, and to contribute to the ongoing development of global accountingstandards. The AASB provides input into current accounting standards issued by the IASB bycontributing to the due process. . The due process of an accounting standard includesidentifying a technical issue through submissions and other materials from interested parties;developing a project proposal to determine if the project is worthwhile; researching the issuecomprehensively; issuing an exposure draft, discussion paper or an invitation to comment;and issuing a draft interpretation.1.27 How do accounting standards assist large companies?The Corporations Act stipulates that large companies must apply accounting standards inpreparing their financial reports.The accounting standards assistwithconsistency in financialreportingand ensuring the users of financial reports (e.g. investors, consumers, employees,regulatory bodies) will have the necessary relevant and faithfully representative informationto assist them in their decision making. Without accounting standards, there would be nocomparability in financial accounting–firms would produce an income statement withdiffering amounts of information. Some firms would report large number of intangibleexpenditure and others would report minimal amounts or none at all. A lack of consistencywould make it impossible to compare one firm against another.

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Chapter 1: Introduction to accounting1.121.28 What is an IFRS and how does it impact on standard setting in Australia?Australia adopted Australian equivalents toInternational Financial Reporting Standards,(IFRS),from 1 January 2005. The adoption of IFRS helps ensure compliance withinternationally agreed principles, standards and codes of best practice. The adoption of IFRSalso reduces the amount of standard setting in Australia by the AustralianAccountingStandardsBoard,(AASB),which allows the AASB to focus on providing expert advice onsome of the InternationalAccountingStandardsBoardfuture projects and interpreting issuesarising out of the adoption of IFRS.1.29 What other accounting standard setters exist in the rest of the world?Other standard setters include: the Financial Accounting Standards Board (FASB), theInternational Accounting Standards Board (IASB), Singapore Accounting Standards Council(SASC), and the Accounting Standards Board of Japan (ASBJ).

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.13Problems1.30Australian Accounting StandardsThere are at least 50 Australian Accounting Standards. Go tothe AASB website atwww.aasb.gov.au and choose one. (Hint:Go to‘Quick Links’ and select ‘Table ofStandards’.)One of the recent accounting standards is the standard on fair valuemeasurement. Briefly describe the meaning of ‘fair value’ accounting. What is thepurpose of thisstandard?AASB 13 Fair Value is a recent accounting standard issued by the AASB. Fair value is amarket-based measurement. For some assets and liabilities, observable market transactions ormarket information might be available. The objective of a fair value measurement is toestimate the price at which an orderly transaction to sell the asset or transfer the liabilitywould take place between market participants at the measurement date under current marketconditions.The purpose of the standard is to define fair value and set out a single standard for measuringfair value and the required disclosures in the notes arising out of applying fair values to assetsand liabilities.1.31AASB andstandard settingThe AASB, as part of its work program, offers comment on documents such asproposedagendadecisions,exposuredrafts,draftexposuredrafts,invitationstocomment and discussion papers. Go to the ‘Workin progresspage of the AASB websiteat www.aasb.com.au andchoose‘Pending’. One of the topics listed relates to theexposure draft–ED 242 Leases. Summarise the main changes to this proposedstandard.The main changes of ED 242 Leases relate to theclassification of operating and financeleases. The following table summarises the current situation and the proposed changes.

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Chapter 1: Introduction to accounting1.141.32Professional institutionsCPA Australia, the ICAA and the Institute of Public Accountants (IPA) havedesignatedareas on their websites for technical resources and updates. Go to each of the respectivebodies’websites(www.cpaaustralia.com.au,www.charteredaccountants.com.auandwww.publicaccountants.org.au) and summarise the resources provided.CPA Australia,ICAAand IPAhave various resources to assist members with adoptingAIFRS. These resources include:•Articles on adopting AIFRS•Draft submissions from the professional associations on IASB’s exposure drafts•Latest news in relation to AIFRS•AIFRS compared to IFRS and the old GAAP•Interpretations and guidance•AIFRS fact sheets•IFRS implementation kit for the public and private sectors1.33Conceptual Frameworkand accounting standardsDescribe the relationship between theConceptual Frameworkand accounting standardAASB 116Property, Plant and Equipment.?The Australian accounting standards have the force of law under the Corporations Act fordisclosingentities.TheConceptualFrameworkcontainsstatementstoassistinthepreparation and presentation of financial reports however it does not have the force of lawand therefore its role is more to substantiate the accounting standards and provide furtherguidance on the application of the standards.AASB 116 Property, Plant and Equipment sets out the requirements for accounting for thenon-current asset Property, Plant and Equipment which for most companies is one of the

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Solution Manual to accompany Accounting: business reporting for decision making 5e1.15largest assets. TheConceptual Frameworkincludes the definitions of the elements of thefinancial statements such as assets, liabilities, expenses, revenues and equity. AASB 116 willapply the definition of asset as outlined in theConceptual Frameworkand use it as a base andpoint of reference for the definitions relating to Property, Plant and Equipment in the actualstandard.1.34International convergenceIt is argued that the convergence of our accounting standards with internationalstandardsand their subsequent adoption has broughtgreat benefits to the Australianeconomy.What are the benefits in relation to international trade?The adoption of international standards should have a number of benefits for the Australiaeconomy including:•A global language will be achieved for financial reporting. IFRS are now developed inconsultation with countries around the world.•Business, investors and other stakeholders will more effectively communicate, understandand engage.•With an increase in understanding of global financial reporting this should lead to moreinformed decision making by entities and their stakeholders.International trade willalsobenefit greatly from the adoption of international standards aswith IFRS there is a global language which enables consistency in financial reporting. It alsoreduces costs for individual entities as they no longer have to produce two sets of financialreports. A global language also increases transparency in financial reporting.1.35Disciplinary actionEvery time there is a spate of corporate collapses, the accounting profession has beenclosely scrutinised, and many members of the professional bodies have appeared beforedisciplinary hearings.The professional bodies publish a professional conduct reporteachyear.GototheInstituteofCharteredAccountantswebsiteatwww.charteredaccountants.com.au. Search for ‘professional conduct’. Click on thelatest professional conduct annualreport. Summarise the investigations and tribunalhearings and the nature of the allegations against the members of the accountingprofession.Instructor’s notes:Expect a variety of responses here depending on which annual report isaccessed.Responses could include:•Failure to observe a proper standard of professional care, skill orcompetence•Failure to respond to a client’s correspondence on personal and business tax returns•Continuing practising as an accountant in a business that was in the process of liquidation.•Failure to return client monies held in trust accounts•Failure to comply with the code of conduct.

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