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Te Whare Wananga o te Upoko o te Ika a Maui


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Trimester One 2019
Tutorial 1: Users & Uses of Accounting; Ethical Decision Making

Objective of Tutorial:
At the end of this tutorial, students will
• Demonstrate understanding of the different uses and users of accounting information
• Demonstrate understanding of different ethical theories and apply these to a case study

We expect that with respect to the tutorial:

• Students will have prepared answers to the questions before the tutorial and will be able to
discuss them
• Tutors will provide guidance, but no model answers will be handed out.

Question 1 - Users
Different entities have different users of their accounting information. Find a company listed on the NZX
and a PBE, and complete the table below to answer each of the following sub-questions:

1. Provide an example of each type of entity (must be a NZ example).

2. Identify at least three (3) different users of each entity’s accounting information.
3. For each user you identified, provide one (1) example of what kind of information they would
need from the entity’s financial statements.

Type of Entity NZ Example Possible Users What info might this

user need?
NZX Listed Company 1.



Public Benefit Entity 1.


Question 2 – Ethics & Integrity

Case Study
Paul Sarver is the accountant at an unlisted company (i.e. its shares are not traded on a stock exchange).
The company has just received a patent on a product that is expected to yield substantial profits in a year
or two. At the moment, however, the company is experiencing financial difficulties; and because of
inadequate cash flow, is on the verge of defaulting on its bank loan.

At the end of the most recent financial year, the company’s CEO instructed Sarver not to record several
invoices as accounts payable. Sarver objected since the invoices represented genuine liabilities (future
outgoings). However, the CEO insisted that the invoices not be recorded until after year-end, when the
bank loan was expected to be renewed. After several very strenuous objections – expressed to both the
CEO and other members of senior management – Sarver finally complied with the instructions.

(adapted from Garrison, Noreen, & Brewer, 2008, p33)


Using one of the theories of ethics outlined in lecture (consequentialism, deontology, virtue-ethics),
explain whether you think what Paul did was ethical or not.

Tutorial assignment

Write a paragraph in answer to Question 2. Hand it to your tutor at the START of your tutorial.