Financial Accounting Theory

    Wanita Health Care Ltd (an Australian company) is a client of Traore Accounting (TA). Wanita Health Care Ltd (WHC) is involved in the provision of medical services and development and manufacture of pharmaceutical products. At present, WHC is listed on the Australian Securities Exchange (ASX) and TA has been providing both audit and non-audit services to WHC for the past fifteen years.

    WHC is currently seeking international expansion opportunities for its core business competencies. WHC advises that its core competencies are the provision of medical services and development and manufacture of pharmaceutical products. The company has already completed extensive marketing research seeking new opportunities for the international expansion of its medical services and pharmaceutical operations. As a result of this research the company has identified that Sweden would potentially be a suitable site for the formation of a publicly listed subsidiary.

    Miss Rokia has provided instructions for an individual report that is to be produced in section 3 below.

    Section 3: Individual Report

    Individual Report Requirements:

    1 You will be allocated a publically listed company in Sweden, listed on the Main Board of Stockholm Stock Exchange (SSE) that operates in a similar environment to Wanita Health Care Ltd, (i.e. in the health care industry). The company is Elekta AB (www.elekta.com). You need to refer to this Elekta’s website, and find the reports produced by Elekta for its stakeholders (this would generally include the annual report and other reports such as sustainability reports). These reports are normally available on the Elekta’s website.

    2 Drawing upon Elekta, its web site, annual report and other reports, you are required to present a written report to Wanita Health Care Ltd outlining your findings regarding the following issues:

    1. Describe the executive remuneration plan of Elekta.
    2. Applying Watts and Zimmerman’s Positive Accounting Theory, develop an appropriate remuneration plan for WHC’s new subsidiary in Sweden. Your discussion in this part should draw upon your understanding of the cultural and financial reporting context of Sweden.

    Your report should incorporate relevant accounting theories into your discussion, (Watts and Zimmerman’s Positive Accounting Theory, and cultural theories). Your report must be fully referenced in text and include a list of references. You should keep in mind that your report is for a client of your firm.

    1. The client report, including:
    a. Introduction;
    b. Findings
    c. Conclusion
    d. List of references

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