Exam CAPM topic 1 question 305 discussion

A predictive delivery approach is appropriate choice for implementing the new tax law changes in the accounting system because the government has published a new tax law that provides a clear set of requirements that need to be implemented. This clarity in requirements is a key characteristic that favours a predictive approach. Also companies have been given one year to implement the changes. This fixed timeline allows for better scheduling that aligns well with predictive methodologies. Although the changes may be new to the company (as suggested in option B), this doesn’t necessarily require an adaptive approach. The newness of a task doesn’t always dictate the need for adaptivity, especially when requirements are clear.

C. Predictive, because of the high risk that the company can be fined This option is the best fit because the predictive approach emphasizes planning, structure, and adherence to timelines. Since there is a high risk associated with non-compliance, it is crucial to follow a well-defined plan to implement the changes promptly and correctly. While the tax law is likely clear and stable, the context of implementation—including the urgency, potential risks, and the complexity of modifying an accounting system—leans more towards C (predictive). It emphasizes the need for a structured and comprehensive approach to minimize risks associated with compliance. In situations where regulations are involved, erring on the side of caution and thoroughness (as in the predictive approach) is generally more prudent.

A - a new tax law would be clearly defined and would not change within the year.

B - Adaptive, this is a new tax law in a short period of 1 year