A number of companies have gone into liquidation because they have not been able to meet their liabilities when they fell due. In Australia, there are some well-publicised examples such as Aluminium...

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2019
STUDENT NAME –
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REFERNCING – HARVARD
WORDS - 1500
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EXECUTIVE SUMMARY:
In this report, discussions have been made on the APES 110 Code of Ethics set for professional accountants. Among all the code of ethics five codes has been discussed in detail, highlighting the norms to be followed by various companies.
Then the discussions have been made on three Australian companies, Aluminium Boats Australia, HIH Insurance and Stella Homes. All these companies liquidated due to non-payment of the liabilities. The events which mainly lead to the liquidation of these three companies has been discussed, the type of their liquidation. Corporate governance issues which were responsible for the downfall of these companies have also been tried to find out.
At first the situations have been analyzed with the help of research from journal and other research articles. In the end, a conclusion has been given based on the study of the whole report. A few recommendations have also been given.
Contents
EXECUTIVE SUMMARY:    1
APES 110 CODES OF ETHICS:    3
ALUMINIUM BOATS AUSTRALIA:    3
HIH INSURANCE:    4
STELLAR HOMES:    5
CONCLUSIONS:    6
RECOMMENDATIONS:    6
REFERENCES:    6
APES 110 CODES OF ETHICS:
Accounting Professional and Ethical Standards Board (APESB) set some standards for the practicing accountants. APES 110 is mainly the code of ethics. The code is set following Standards Board for Accountants (IESBA) of the International Federation of Accountants (IFAC). The main purpose of this code is to provide necessary guidelines regarding ethics in the professional conduct. This code applies to all the members engaged in business as well as the members engaged in public practice. It is consisted of ten sections for members in public practice along with other five sections for members in business.
Kaidonis, (2008), in his article has discussed various ethical standards mentioned by APES 110. His research has helped to understand the codes of ethics better. The research by Carey, Monroe and Shailer, (2014) has further enlightened the ethical codes. In this report, five codes of ethics are to be discussed.
As per Section 280, when a member in public practice provides a professional service to a client, he must ensure that there is no threat to comply with the fundamental principles. The professional member must not have any direct or indirect relation with the client or any of the directors of the client company or with its employees and officers.
Section 260 refers to some codes of ethics regarding gifts and hospitability. The client may offer the member in public practice or any of its family members any gift. The gift can be accepted only if it is not violating the fundamental principles. The nature, extent and value of the gift or offer are to be evaluated by the member.
Section 250 refers to the marketing or advertisement of the professional service. If a member ever plans to advertise his service to get clients, he must keep in mind that the advertisement must not violate the fundamental principles. While conducting marketing, the member engaged in public practice must not cause any disrepute for the profession or the service being provided.
Section 330 is for the members in business regarding sufficient expertise. A member must not ever lie to the client regarding the expertise or knowledge possessed by him. He should never mislead the client causing his loss from the expert advice provided by the member.
Section 320 is for the members engaged in business regarding the preparation and reporting of information. A member is responsible for the preparation and presentation of the business information by financial statement which helps others to take important decisions both internal as well as external. So, the information must be accurate and fairly obtained through verified sources. If the member is unsatisfied with information, he can notify those charged with governance and qualify the report.
ALUMINIUM BOATS AUSTRALIA:
Aluminium Boats is an Australian private limited company. It was involved in shipbuilding industry. The company used to build and repair boats. The company was built in 1999 with the mission of building finest aluminium and composite light crafts. It had built wide...