Explain the nature of general purpose financial reports

Assignment Help Financial Accounting

Reference no: EM131990184 , Length: word count:2000

Financial Accounting and Reporting Assessment -

Unit Learning Outcomes covered in this assessment - The purpose of this assignment is to assess the following Learning Outcomes:

a. Describe and discuss the function and role of high quality financial accounting in the contemporary business environment.

b. Describe and discuss the application and basis of selected IFRSs set by the IASB.

c. Apply IFRSs including the framework in the preparation of general purpose financial statements.

d. Apply financial analytical skills to evaluate, explain and solve financial accounting problems relating to general purpose financial statements.

e. Design and develop an entity's accounting system to maintain financial information and facilitate the preparation of general purpose financial statements.

f. Compare, contrast and review financial accounting systems to ensure efficient and reliable financial accounting information.

g. Evaluate and appraise stock exchange listed entity's financial statements. Develop and communicate solutions to ethical issues orally and in writing.

Assignment Description -

Report - The Nikita Ltd which is a public company required to prepare general purpose financial reports, operates in a very competitive field, has been using historical cost in reporting their assets in the statement of financial position. The board of the company instructed the finance manager to use the fair value basis for the measurement of its non-financial assets (Property, plant & equipment). Some of those assets are very valuable and have in fact increased in value over the current period. In pursuing the board's decision CEO is arguing that, as there has been no decline in fair value during the current reporting period, no depreciation should be charged on company assets as done in the past.

Required: Assume you are the finance manager of the Nikita Ltd and write a report to the CEO.

Choose one of the company from the table listed below, access the Annual report of the selected company for the financial year 2017, and write a report incorporating the followings (1to7) while reviewing the selected annual report's financial statements and notes to cite examples in order to strengthen your arguments.

Report should incorporate the following sections.

Cover page
Table of contents
Executive summary
Introduction

1. Explain the nature of general purpose financial reports (GPFR) in the context of the AASB's current SAC 1 Definition of the Reporting Entity.

2. Describe what assets constitute property, plant and equipment (PPE), and what the recognition criteria are for PPE.

3. Outline and explain the requirements of AASB 116 in relation to:

(a) The acquisition of property, plant and equipment;

(b) The measurement of property, plant and equipment subsequent to acquisition.

4. What is meant by depreciation expense, and explain whether all assets are subject to depreciation?

5. How is useful life determined, and what is meant by residual value of an asset?

6. What is fair value? Discuss whether AASB 116 set fair value as the ceiling for the carrying amount of assets and the impact of AASB 112 tax effect accounting on assets carried at fair value.

7. Discuss whether CEO's argument is ethical when preparing the company's financial statements in accordance with AASB101.

8. Recommendations and Conclusion

Reference list (at least 5 references).

Attachment:- Assignment File.rar

Reference no: EM131990184

Questions Cloud

What is the annual equivalent cost of preferred alternative : What is the annual equivalent cost of the preferred alternative? Include the cost savings of the new machine as revenue for the new machine.

First payoff the outstanding balance on the old car : In order to buy a new car, you must first payoff the outstanding balance on the old car. What do you owe to the bank?

Consider any income-tax or depreciation effects : Your firm must decide if and when to replace an existing machine. Assume the MARR is 11% and do not consider any income-tax or depreciation effects.

Conducts customer segment research : B&B has a new baby powder ready to market. Calculate the NPV for the firm if it conducts customer segment research.

Explain the nature of general purpose financial reports : MA511/GA511 Financial Accounting and Reporting Assessment - Explain the nature of general purpose financial reports (GPFR) in the context of the AASB's

What is the? firm times interest earned? ratio : If Rondoelea had $44 million of debt outstanding with an average interest rate of 9.6 ?percent, what is the? firm's times interest earned? ratio?

Can you develop a scientific hypothesis and means of testing : Can you develop a scientific hypothesis and means of testing the cause of stomach ulcers? Are they caused by an infection? By too much acid?

What is the value of share of wyatt oil today : Wyatt oil presently pays no dividend. If Wyatt Oil's cost of capital is 12%, then what is the value of a share of Wyatt oil today?

Analysis the investors profit or loss : The spot price of the market index is $900 when an investor goes long call option on the index at a strike price of $930 and premium of $6.00.

Reviews

len1990184

5/21/2018 12:46:28 AM

Total 2000 words. Submission Guidelines - All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page. The assignment must be in MS Word format, 1.5 spacing, 11-pt Calibri (Body) font and 2 cm margins on all four sides of your page with appropriate section headings. Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA referencing style for School of Business. Criterion 1: Structure and Clarity of the Report/Assignment - introductory paragraph, logical flow of clarity and structure of ideas and arguments, appropriate use of paragraph and headings to explain and discuss ideas, appropriate concluding paragraph and recommendations.

len1990184

5/21/2018 12:46:23 AM

Criterion 2: Body/contents - Explain the nature of general purpose financial reports (GPFR) in the context of the AASB’s current SAC 1 Definition of the Reporting Entity. Describe what assets constitute property, plant and equipment (PPE), and what the recognition criteria are for PPE. Outline and explain the requirements of AASB 116 in relation to: The acquisition of property, plant and equipment; The measurement of property, plant and equipment subsequent to acquisition. What is meant by depreciation expense, and explain whether all assets are subject to depreciation? How is useful life determined, and what is meant by residual value of an asset? assets.

len1990184

5/21/2018 12:46:17 AM

Criterion 3: Research and Analysis - quality of research undertaken, completeness of research and analysis, accuracy and depth of analysis, appropriate use of in-text and end text referencing, appropriate number of references used, quality of information sources, appendices, Total marks for criterion 3. Criterion 4: Presentation – layout, formatting, spelling/grammar, proof read and professional format.

Write a Review

Required(*) Message

Financial Accounting Questions & Answers

Standard and flexible budgeting system

Baker Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead. Selected data for the June production activity follows:

Compute the total tax liability

Ken Tremont and Tucker Bailey began a new consulting business on January? 1, 2015 . They organized the business as a C? corporation, KT, Inc. During 2015 ?, the corporation was successful and generated revenues of $ 1 comma 350,000 . KT had operating..

Question steve morgan controller for newton industries was

question steve morgan controller for newton industries was reviewing production cost reports for the year. one amount

What is the cost of direct materials used in production

For June, Fosina Company had beginning materials inventory of $50,000, ending materials inventory of $60,000, and materials purchases of $280,000. What is the cost of direct materials used in production?

Evaluate the return and risk associated with asset

Calculate the annual rate of return for each asset in each of the 10 preceding years, and use those values to find the average annual return for each asset

How many days does ken company have

how many days does Ken Company have from the date of purchase before the payment is considered to be late? Days

Uses the straight-line method for depreciation

XYZ Company purchased a refrigerated delivery truck for $65,000 on January 1, 2015. The plan is to use the truck for 5 years and then replace it. At the end of its useful life, the truck is expected to have a salvage value of $10,000. The fiscal year..

What was bachmans flexible budget variance

Timmer Bachman founded the Bachman Corporation over 25 years ago. The company's genesis was spurred by the unique climbing apparatus developed by Timmer, an avid mountaineer. What was Bachman's flexible budget variance? What was the budgeted contrib..

Explain will it decrease bystander affect

Will it decrease bystander affect. Did you know this law existed? Would it change the way you act if you did

Prepare the retained earnings statement

The balance in retained earnings on January 1, 2017, for Palmer Inc. was $750,000. During the year, the corporation paid cash dividends of $85,000 and distributed a stock dividend of $8,400. In addition, the company determined that it had understated..

Impair the ability to make reasonable estimate of returns

Many companies sell products allowing their customers the right to return merchandise if they are not satisfied. Because the return of merchandise can retroactively negate the benefits of having made a sale, List the criteria that must be met before ..

Flexible budget and variance analysis based on sameas sales

flexible budget and variance analysis based on same.as sales manager terry dewitt was given the following static budget

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages