Evaluation of Accounting Strategy for GrainCorp- myassignmenthelp

Question: Discuss about theEvaluation of Accounting Strategy for GrainCorp Company. Answer: Introduction Flexibility in accounting choices basically enables company managers to strategically communicate the aspect of economic information or distort performances (Drury, 2013). GrainCorp Company is an Australian public company domiciled in New South Wales, Australia. The company was formed in 1917 in order to transport corns from local collection areas on railways to the corn producing areas of New South Wales. GrainCorp Company core business is the storage and revival of grain and related products. Freedom Food Group Limited is considered to be a diversified food company that operates in Wellness and Health sector throughout a range of brand in Australia (Freedom Food Company financial reports, 2015 2016). This company offers great competition to the GrainCorp Company in the production of products and services. This assignment attempts to evaluate the accounting strategy by comparing GrainCorp Company and freedom Food Company as the rival company According to GrainCorp Company financial statements, it demonstrates that the company prepares its reports under accounting policies that comply with accounting standard as defined in the Corporations Act or other acceptable standards to ASX. The company ensures that its reports are in accordance with the Corporate Act of 2001 and its accounting interpretations and standards and are in conformity with other law requirements (Deegan, 2013). As compared to Freedom Food Company, the firm also prepares its financial reports in accordance with the Corporation Act of 2001. This activity is vital because it often ensures that the financial statements conform to the International Financial Reporting Standards (IFRS) (Deegan, 2013). GrainCorp Company also prepares its report under the historical cost convention as modified by the revaluation of financial liabilities and assets while Freedom Food Company also utilizes this accounting policy in preparation of its reports except for the revaluation of some of its financial instruments and noncurrent assets. The managers in GrainCorp Company are often paid significantly, and they are provided with diverse incentives that enable them to carry out their duties effectively. According to the company financial statements, managers are provided with performance-based incentives that basically enables them to work for the best of the company production. This is an important step that GrainCorp Company employs so as to beat off its main rival (Cuganesan, Dunford, and Palmer, 2011). The managers increase their production abilities because the increase in the company profits means that they will also increase their wages based on incentives. Freedom Food Company being GrainCorp Company main competitor have less incentive plan for its managers and thus hard to beat GrainCorp Company in production. According to GrainCorp Company financial statements, the company often change issues and policies through voting among the shareholders (Deegan, 2013). This is done if the policy anticipated will facilitate the production because the sole aim of this business is to make a profit and maximize its shareholder's wealth. The company transaction is usually structured so as to achieve productivity objective and increase its customer base in both Australia and globally. The company also structure its transactions so as to be the leading consumer company in Australia (Freedom Food Company financial reports, 2015 2016). As compared to Freedom Food Company, the company do not have any rationale to alter its policies which makes it hard for the company to outweigh its competitors (Drury, 2013). In this business, the company transactions are often structured in order to achieve its primary goal of being the best company for its customers. Bibliography Cuganesan, S., Dunford, R. and Palmer, I., 2012. Strategic management accounting and strategy practices within a public sector agency.Management Accounting Research,23(4), pp.245-260. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Drury, C.M., 2013.Management and cost accounting. Springer. Freedom Food Company financial reports. 2015 2016. Retrieved from https://www.asx.com.au/asxpdf/20160831/pdf/439tq97gm9ybc4.pdf GrainCorp Company financial reports. 2015 2016. Retrieved from https://www.asx.com.au/asxpdf/20131114/pdf/42kv617pltnh1t.pdf