Running head: FINANCIAL ACCOUNTING 2

Name of Student

Institution Affiliation

Date
FINANCIAL ACCOUNTING 2 1

Nic Baker

Accountant

Baker and associates a public accounting firm

For: Managing director, Baker and associates a public accounting firm,

Level 2, 55 York Street,

Sydney NSW 2000,

16/0/2019.

Scott White

Managing director, White Pty Ltd

Level 2, 55 York Street,

Sydney NSW 2000

Dear Scot:

RE: RESPONSE TO TE EMAIL SENT ON 14/09/2019 ON MATTERS AFFECTING

YOUR ORGANIZATION

Thank you for our email. I have read through your email, and based on the organizational

concerns raised. I am writing this letter to address the highlighted concerns of your email. I

understand the challenges faced by your organization and the difficulty you might be facing

when trying to make some decisions concerning the well-being of the organization. Especially on

matters concerning accounting expertise.

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I hope that all the concerns you raised in your email are well responded to below. In case of any

unclear response to your raised concern, be free to contact us for more clarification of ideas and

information. We will always be here at your service.

I believe the advice I have provided will serve the organization to your expectation. As our key

role is to ensure success and a smooth running of your organization. I wish you the best of luck.

Thank you.

Yours sincerely

Nic Baker
FINANCIAL ACCOUNTING 2 3

Case 1

For the company to be competitive in the market, it should ensure that its product in the market

are of good quality and its customers are well served to satisfaction. These ensure that the

company stands another chance to claim provision of quality services to its customers in the

market Cooper& Turner. (2018). Thus, the company should recognize the provision of stated

warrant following all the warranty pre-stated conditions and avoid implied terms to the warranty

agreement by its customers.

For instance, when the company ignores the provision of the warranty to its customers. And a

customer who may have by a slight chance know they have warranted a remedy of their

purchased product in case of manufacturers defect on the purchased product. With slight research

on the outside market, most of the company's competitors provide such services to their

customers Zhang, et al. (2018). Thus, denial of such services to the company's customers

Cooper& Turner. (2018). And the company's competitors providing it Dinwiddie, et al. (2019).

There is a high likelihood that the company's customers are likely to move to the part of the

market where their needs are fully satisfied. Denial of such services to the company's customers

can assure a significant loss of customers. Such effects bring about a negative impact on the

company's economy.

The likelihood of warrant cases being intense is so minimal and does not guarantee a loss to the

company. Instead, it ensures that the company secures its customers by catering to the

company’s manufacturing process defect on its product. Provision of warranty to its products

also gives the companies customers the confidence that the quality of the product they are buying

is assured. And the money they are paying for products gets them exactly what they want

Cooper& Turner. (2018). Thus, customers will have the confidence to purchase their products in
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the company. Since they are sure of not buying faulty devices, and in case of a faulty product,

they can get a remedy for their purchases until when their product requirement and preference

are met.

However, in the provision of warranty services by the company, the company should take into

consideration that they only cater to the company-based defects on their products Dinwiddie, et

al. (2019). Warranty conditions should be preset and should have an express condition. For

example, in the form "if," "on this condition," "provided this," "In the event that," and "subject

to." These help the company in preventing frauds from taking advantage of the provided service

while ensuring that its customers are well served to satisfaction Zhang, et al. (2018).

On a mandatory suggestion, the company should provide warranty services to its customers. To

gain its customer's trust. Also, the warranty period should be limited to a period where the

warranted devices will not have undergone wear and tear due to its long-time and intense use.

And finally, the warranty service should be equally beneficial to both parties involved. That is to

the company and its customers.

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Case 2

Multiple factors can lead to an organization deciding to estimate the recoverable amount of entity

assets formally as for the case in your situation. The estimate of your future cash flow that you

expect to derive is so minimal while operating on half of your organization standard capacity for

such a long period. Also adopting to catch up with the reduced-price rates of chips production by

your competitor can be so minimal under such circumstances if the organization chooses to

continue being operational with such undetermined risks. The carrying amount of the

organization is likely to exceed the sum of the undiscounted cash flow expected, to result from

the operation of the company over the estimated 3-year period of half normal rate operations.

These ascertain that at the end of the period. The organization is less likely to recover from the

losses incurred during the disaster period. And thus, it would be much more appropriate for your

accounting team. To fully resolve in estimating the recoverable amount of the entity’s assets

before the period of operating on half average capacity takes effect.

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Case 3

As an operational company, we have a lot of competitors in the market who are working so hard

to outsmart our services. And in doing so, the most significant concern is the talent embedded in

our employees. These create an uphill battle. And so, the most significant consideration for the

greater success in our company we should take int account the retention of our recruited

employees Mamorsky (2019). For the company to be able to retain its recruited employees and

make good use of their gained experience over the time they have worked in the company. It is

upon the company to provide its employees with quality services and benefits to avoid them

from being taken by other potential employers. Running in the market who are hungrily hunting

for experienced workers to boost their productivity and quality work delivery. It is far much less

costly to maintain an experienced working employee in a company than recruiting a new

employee Mamorsky (2019). These are because an experienced employee knows all the

workflow in the company, whereas a newly hired employee will require some time to adapt to

the working environment and gain an understanding of the workflow in the company.

Though no law regulates employees benefits from an employer. It is upon the companies own

capacitation to make a good impression by offering them a wide range of benefits that suits their

requirement. Such benefits will not only keep the employees around but will also, will give some

sense of concern and care to the employees improving their loyalty and trust to the organization.

There are several employee benefits that each an employee feels entitled to, although there is no

law stating the assurance of such benefits

First is medical insurance this a medical cover that an employee gets covered for nay medical

requirements incurred in the line of duty. If an employee gets injured while working in the
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company (in line of duty), the company takes the responsibility of paying their employee's

medical bills.

Secondly is life insurance, this is a cover where when a company employee is deceased. The

company provides support to the dependents of their employees.

Each an employee, as stated by the law (employment rights act which states that each eligible

employee is entitled to a reasonable amount of time off to care for their dependent) Dinwiddie, et

al. (2019). This law does not guarantee employees a payment when they are on leave, but as a

caring employer, it is advisable to give a fee for them to feel appreciated by the company. Also,

as a caring employer, you will not be so inhumane and have your sick workers forced to come to

work Mamorsky (2019). Thus, when a worker is sick, they should be entitled to leave sick to

seek medication for their sickness. Such entitlements come from our human nature, as no one

would want to be working in an office while not feeling well.

A survey conducted shows that a large number of employees get an average vacation of 12 days

after a whole year of service. Sixteen days after five years of service. Nineteen days after ten

years and 23 days after 20 years of employment. Such benefits, when offered to an employee,

make them feel appreciated, and this motivates them to work better for the good of the company.

Also, as a caring employer, you should take into consideration laying out retirement plans for

your employees. These are a cross-platform entitlement for all permanently employed

employees.

There are other benefits that an employee should be facilitated as a way of appreciation for

working for the company and also to motivate them to serve the company loyally.
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Reference

Cooper, T. A., & Turner, C. J. (2018). U.S. Patent No. 9,881,279. Washington, DC: U.S. Patent

and Trademark Office.

Dinwiddie, T. L., Rand, C. S., & Lucas, M. T. (2019). U.S. Patent Application No. 16/243,825.

Mamorsky, J. D. (2019). Employee Benefits Law: ERISA and Beyond. Law Journal Press.

Schwarzbichler, M., Steiner, C., & Turnheim, D. (2018). Impairment of Assets (Fixed Assets and

Goodwill). In Financial Steering (pp. 343-370). Springer, Cham.

Zhang, N., Fouladirad, M., & Barros, A. (2018). Evaluation of the warranty cost of a product

with type III stochastic dependence between components. Applied Mathematical Modelling, 59,

39-53.