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Surviving financial distress : the case of too many herbs and spices

Margret, Julie 2005, Surviving financial distress : the case of too many herbs and spices, Journal of applied research in accounting and finance : JARAF, vol. 3, no. 2, Summer, pp. 51-67.

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Title Surviving financial distress : the case of too many herbs and spices
Author(s) Margret, Julie
Journal name Journal of applied research in accounting and finance : JARAF
Volume number 3
Issue number 2
Season Summer
Start page 51
End page 67
Publisher Institute of Certified Management Accountants
Place of publication Clayton, Vic.
Publication date 2005
ISSN 1443-9913
Keyword(s) conventional accounting
accounting misinformation
financial distress
Burns Philp
free cash flow
financial statement analysis
Summary Over 120 years ago Sir James Burns founded an organisation that is today, the international business group of Burns Philp and Company Ltd. The Group is widely known as a leading producer of yeast products and manufacturer of other bakery ingredients. Its ability to adapt to the ever-changing demands of business is widely recognised. During the late 1980’s however, after the group expanded into the herbs and spices industry its financial state deteriorated. Yet, arguably the Group had entered a market that complimented its then existing core-activities. This paper examines circumstances surrounding that venture into herbs and spices. It argues that the Group’s financial predicament, at that time, was exacerbated by the use of conventional accounting procedures. It illustrates that up-to-date market related financial details, in lieu of accounting book constructs, more aptly assist directors, managers, all stakeholders to conduct business and make informed economic decisions. This paper suggests that it is an entity’s current financial state of affairs, with regard to tangible market referents, that enables a firm’s strategic progress and facilitates proactive management; and in turn, assists in the sustainable development of business throughout the world.
Language eng
Field of Research 150105 Management Accounting
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2005, Institute of Certified Management Accountants
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Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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