Question

4. What is a stranded asset? Provide an example of a stranded asset and be prepared to explain why you believe it is a stranded asset – your example may be an asset that is not related to sustainability.

5. What are the whistleblowers’ obligations to his or her employer? Under what circumstances might it be the right thing to do to provide information on your workplace to an external regulator?

Answer 1

1). Stranded Assets - Stranded assets are those assets which need to be highly devalued (Write down) due to technological advancement, Climate changes..

These are very useful to identify because ignorance on time can make our asset becomes our liability. Finance executive dealing with these account need to identify and impair that assets on timely basis Which ensure that assets shown in the books are exactly the same which can fetch in the market and entity is in no risk of liquation of business due to lack of capital resources to run the business. These are the obsolete assets which is just exist in the books but have no economical value.

Example - Engines..

Due to government environment regulation govt can ban the engines which are of particular type that is not good for the environment.

In that case those who are in possession of the engines need to write it off suddenly in their books because it will have no use and no value in the market.

2) Whistleblower is a person who report the wrong doing in the organisation. Whistle blower policy is accepted by almost all the organisation.

It is the duty of the whistle blower to first inform internally about the matter and if no solution is achieved then take out the matter from the organisation and report to third party or external agencies.

In that case whistle blower can face many issue even loss of job reputation thereby legal protection is also provided to whistle blower if reauired.