Reference no: EM132309374 , Length: word count:2000

Objective and Content:

The purpose of this essay is to provide an understanding of concepts and principles in business accounting. You also need to support your explanation based on the Australian Conceptual Framework for accounting standards setting or other relevant documents such as GAAP (General Accepted Accounting Principles). Furthermore, you should be able to identify the implementation of accounting standard in business practices.

Read the following statement and answer listed questions:

Telstra bought a piece of land in 2010 for $52 million. The market value of this property in June 2018 worth more than $200 million. The accountant suggested that Telstra Ltd should revalue the asset. This notion is consistent with the qualitative characteristic of faithful presentation.

In your report, you should address the following questions:

1) Provide your comments regarding the aforementioned statement. Explain.

2) Based on the analysis of Australian financial regulatory framework, discuss what are the fundamental characteristics of accounting information in Australian business practices.

3) Provide an example (or examples) of fundamental characteristics (refer to item 2)) presented in the annual report of the chosen company. Discuss.

4) In your opinion, from the perspective of the investors and securities market, discuss how the investors or securities markets will react to the disclosure of such information identified in item 3).

5) Demonstration of effective communication and logic presentation

The quality of this essay will be assessed based on the following criteria:

o Identify and evaluate the implementation of concept, principle or relevant requirements of accounting standards in the annual report of the chosen company.
o Use paragraphs from the Australian Conceptual Framework, AASB 101 Presentation of Financial Statements or others as guidelines to support your discussion if necessary.
o Demonstrate effective communication, logical presentation and integrated evaluation.

Attachment:- Essay.rar