GENTILES, MARK VENCHEN L.

BSA 401

CASE 1: THE INTEL CORPORATION

Required: Does Intel’s historically based financial reporting system contain the information Mr.
Grove needs? Justify your answer in no more than three (3) sentences.

 No, because in the instance of Intel, the financial reporting system does not have the
information that Mr. Grove needs because it is in charge of providing information about
the company to external parties like creditors and investors. Mr. Grove needs a
management reporting system rather than an FRS to be able to make the financial
decisions that his organization will require in the future.

CASE 2: THE RHINO FOODS

Required: What are the benefits to the company and to the employees of making the financial
statements available to all employees?

 An employee and management might have a strong working relationship since Rhino
Foods fosters honesty, open communication, and a sense of family. There would be
numerous advantages obtained because of the positive friendship. The first advantage is
that employees would be aware of the financial statements of the companies; they would
be informed of the operations and financial performance of their company, including any
gains or losses. Job performance and satisfaction make up the second factor. Naturally, if
a worker at Rhino Food believes that their employer trusts them enough to share the
financial statement with them, they will be eager to increase their work output, eager to
maintain the company's positive financial statement development, and eager to be more
devoted and productive for the company. Additionally, it increased employee control.
Obviously, people aim to perform better when they have more power. As a result,
workers would take action right away if they believed the financial statement had a
problem that needed to be resolved.