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Question - Australia Food Ltd is a company with several branches across Victoria and NSW. The Company produces various food products including meats and milks. You work as a management accountant in this company.
Your manager has asked one of your colleagues in the management accounting department to Make a comparative profit or loss report for the current and previous month. The manager wants the report to cover only meat production in Victoria's branches. Your colleague suggests that since the company has different branches and products, financial statements should cover all of the company's activities. He also suggested that the report should be prepared for a financial year in accordance with accounting standards.
Required - Using your knowledge of financial and managerial accounting, general and specific purpose financial reports and various users of accounting information, advise your colleague as to the approach they should adopt to meet the manager's requirements and ensure the information correctly reflects the department's operations.
For each of the above numbered paragraphs, prepare the necessary adjusting entry (including an explanation) if no adjusting entry is required, explain why
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