Apply AASB 1001 to Report:
The Financial Report 2004 of Coles Myer Ltd has proven that the company has obliged the Standard of AASB 1001 Accounting Policies.
The report has satisfied relevance by Relevant financial information assisting users in making and evaluating decisions about the allocation of scarce resources(Statement of Financial Position-profit or loss). It assists them in making predictions about future situations and in forming expectations, or it plays a confirmatory role in respect of their past evaluations Financial information may be relevant because of its nature, itsnature and magnitude, or because of its magnitude in relation to its nature. Additional guidance on relevance is provided in SAC 3.
The financial report has reliable financial information which faithfully conveys to users theunderlying transactions and other events that have occurred. For financial information to be reliable, it needs to be free from bias. Reliable financial information does not lead users to conclusions that serve particular needs, desires or preconceptions of the preparers of financial reports.This is see on the last page of the report where it has been signed by accountants and the AASB representatives.
This financial report is able to compare aspects of an entity over time and compare aspects between entities at one time and over time. This implies that the recognition, measurement and presentation of transactions or other events need to be carried out in a consistent manner throughout an entity and over time for that entity, and that there needs to be consistency between entities in these regards. However, consistency should not impede the introduction of improved financial reporting. It is not acceptable for an entity to retain its accounting policies to the detriment of the concepts of relevance and reliability. Additional guidance on comparability is provided in SAC 3.
The financial report of Coles Myer shows that it is on a going concern basis due to the Statement if Financial Performance by viewing the Revenues inflow and Expenses outflow and coming to a profit at the end of the financial year.
The accrual basis recognises the financial effects of transactions or other events in the financial years in which they occur, to the extent that those financial effects can be recognised, irrespective of whether cash has been received or paid. Accrual accounting provides information about assets, liabilities, equity, revenues and expenses, and changes in them, that cannot be obtained by accounting only for cash receipts and payments.
The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions.
The goal of the Codification is to simplify the organization of thousands of authoritative U.S. accounting pronouncements issued by multiple standard-setters. To achieve this goal, the FASB initiated a project to integrate and topically organize all relevant accounting pronouncements issued by the U.S. standard-setters including those of the FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF)
"Accounting Standards Codification: Notice to Constituents (v4.1) About the Codification." FASB: Financial Accounting Standards Board. 30 Apr. 2010. Web. 26 Nov. 2010. .
Accounting is “a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information” (Accounting, n.d.). Financial information mentioned above includes any financial transactions done by the business. There are two types of accounting. The first one is accrual accounting, which realizes transactions at the time they occur and disregards whether or not cash transaction has occurred. This method is widely used in business, because it allows transactions to be completed over time and distance. Financial statements produced by accrual accounting reflect a sophisticated trade and a much more accurate snapshot of the business’ current situation. The opposite of accrual accounting is cash accounting, in which transactions are realized only when cash payment is made or received. This is the method used in personal finance.
In literature and the genre of fairytales, the aspect of time has the potential to play a particularly influential role in the portrayal of a story. Through generations, an author may rewrite a story and modify certain characteristics of it so that it is better suited for a certain era. These modifications can be dependent on the authors’ beliefs and values, the current events of that time period, stylistic language, or serve the purpose of conveying a message to the readers. For example, the original version of the story “Bluebeard,” written by Charles Perrault in the year 1697, has since been adjusted and rewritten by others in a more contemporary setting and era. In Angela Carter’s 1979 version of the story, “The Bloody Chamber,” the author
This accounting principle requires companies to use the accrual basis of accounting. The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received). The balance sheet is also affected at the time of the revenues by either an increase in Cash (if the service or sale was for cash), an increase in Accounts Receivable (if the service was performed on credit), or a decrease in Unearned Revenues (if the service was performed after the customer had paid in advance for the service).
Religion influences every aspect of a true devotee’s life. After the year 1931, C.S. Lewis was a devoted Christian and member of the Church of England. This means his faith when he wrote The Chronicles of Narnia was influential in what went into the writing of these stories. This influence was noticeable throughout all of the books in this series however it does not make the story automatically anything more then a great story. There are several basics of the Christian faith that C.S. Lewis believed and that are demonstrated in his writing. A few of the beliefs visible in these books are as follows: the death and resurrection of Jesus Christ, the creation of the world and evil entering the world after creation had occurred not at the same moment it was created, and that there will be an Antichrist who will war with the spiritual forces of good. When writing is influenced by a strong held belief it will show portions of this belief stronger where the author feels it stronger but this does not make mean the story is exactly like the belief held. It is assumed at times that because of the similarities between The Chronicles of Narnia and the Christian faith that it is an allegory similar to Paul Bunyan’s allegory Pilgrim’s Progress.
Regardless of C.S Lewis’ attempt to argue that The Chronicles of Narnia is simply a “supposal” it is clearly a Christian Allegory. Throughout all 7 books there are parallels to the stories in The Bible, and only a few times does Lewis even attempt to change small details. Even with these small changes in details it is still shockingly obvious that The Chronicles of Narnia is an allegory.
Going concern- IF the management plans to liquidate the entity or to stop trading, or has no another option, otherwise financial statements are present on a going concern basis.
Overflowing with Christian symbolism, The Chronicles of Narnia has enriched the lives of children of all ages for over half a century. C. S. Lewis revealed the origination of his "Masterpiece of Christian Allegory.” "The whole Narnian story is about Christ. That is to say, I asked myself ‘Supposing that there really was a world like Narnia and supposing it had (like our world) gone wrong and supposing Christ wanted to go into that world and save it (as He did ours), what might have happened?’ The stories are my answers. Since Narnia is a world of Talking Beasts, I thought He would become a Talking Beast there, as He became a man here. I pictured Him becoming a lion there because (a) the lion is supposed to be the king of beasts; (b) Christ
As benchmarking is comparatively a new phenomenon in small business enterprises, the alternative is to evaluate their financial performance using accounting ratios. Accounting ratios use facts and data from annual accounts and reveals the direction the organization is moving by comparing year on year performance. By the sheer nature of this data being internal, one can only get a glimpse of internal performance and hence this does not provide any comparison with the outside world .
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
(i) Judgement and materiality play a significant role in helping to ensure that the selection of accounting policies in presenting the financial statements for a true and fair picture of the company’s financials. This means that entities should provide the financial statements with comparability, consistency and clarity to users of these statements. Entities must follow accounting policies required by IFRS and AASB should be relevant to particular circumstance.
ABC LTD COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 NOTE 2012 Revenue 2 828,500 Cost of sales 3 (460,000) Gross profit 368,500 Other income 4 2,500 Operating expenses 5 361000 Profit before income tax 10000 Income tax expense (30%) 3,000 Profit for the year 7000 Other comprehensive income change in revaulation surplus 38500 Other comprehensive income for the year, net of tax 38500 Total comprehensive income for the year 45500 ABC LTD STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2012 NOTES 2012 ASSETS Current assets Cash and cash equivalents 6 100500 Trade and other receivables 7 45,200 Inventories 8 87700 Other current assets 9 7000
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.