Australian Accounting Theory and Issues Assignment Help

Australian Accounting Theory and Issues Assignment Help

Australian Accounting Theory and Issues Assignment Help

Introduction

In this Australian Accounting Theory and Issues Assignment Help a complete adamantine study has been prepared over the accounting theory concepts. In simple worlds accounting concepts are particular statements and brief of general accounting theories. Accounting theory concepts do not generally prescribe how economic events affects the business should be evaluated.  This provides gives a clear idea about how accounting theories concepts could be used in the business organization in order to mitigate internal and external risks. The report on Australian Accounting Theory and Issues Assignment Help has been prepared revolving around the accounting system of The Australian and New Zealand Banking. There are following concepts such as accrual concepts, business entity, money measurement, periodicity and realization concepts etc. Moreover this report provides a details comprehensive understanding over the accounting financial concepts and theories which should be followed by all the ASX top 100 listed corporations.

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Body context

Accounting theory concepts is very critical and required factors which should be used in the business functioning in order to manage records and data in determined approach. However, The Australian and New Zealand Banking being an Australian listed company have been used in this report for identifying all the possible core factors of accounting theory concept.

Background of the Australian and New Zealand Banking group

This company is commonly called ANZ Company which is the fourth largest bank by market capitalization in Australia. The CEO of the company is Shayne Cary Elliott who is making vigorous efforts for effective business functioning. The current revenue of the company has been drastically increasing and at present in 2016 company is divulging 21.07 Billion AUD.

 

 

Australian and New Zealand Banking

Incorporated

This company is results of merger and amalgamation of various company starting from 1835.

CEO

The CEO of the company is Shayne Cary Elliott which has been working its all the activities in order to shape the organization in growing ways.

Current stock price and  followed by companies

A $ 29.81

This company is followed by common wealth bank, Westpac bank and national Australian bank.

Australian and New Zealand Banking Group has been following different accounting theories and set of assumption. This study of accounting theory involves all types of practice such as historical and accounting practices. Theories of accounting standards and accounting principles are key concepts of breakdown of accounting theories in the business functioning of Australian and New Zealand Banking Group.

Accounting theories and accounting principles of Australian and New Zealand Banking Group provides that all the accounting information and monetary terms data should be relevant, reliable, comparable and consistent with the GAAP and accounting rules.

The accounting policies and theories related with methods that groups applies are fundamental to how it records its financial position and results of operation. Management must be able to judgment in selecting and applying many of the accounting principles and theories such as the accrue concept, business entity, money measurement concepts and further more. The accounting in the Australian and New Zealand Banking Group is based on the certain assumptions in order to limit the possible range of interpretation of business operation such as stability and continuity. This assumption is also called going concern concept in which business will be deemed to be working for longer period. Moreover accounting convention related with the group’s objectivity, prudence, materiality and consistency.  Australian and New Zealand Banking Group has been providing an additional measure of performance which is prepared or modified on the basis other than its accounting standards and principles. The guidance and other principles provided in ASIC regulatory guide 230 and IFRS rules and regulations have been followed in preparing financial statements.

Conceptual framework of accounting

This provides that Australian and New Zealand Banking Group needs to develop its financial statements as per IFRS accounting standard read with GAAP rules and regulations. This standard has been developed with a view to make standard reporting policies for all the ASX top 100 companies.  This accounting framework provides a clear guidance with the instruction to follow financial principles and accounting concepts in preparing all the financial statements. The conceptual frameworks which is part of financial accounting standard Board’s statements of financial accounting concepts, establish the main purpose of financial reporting by business (Tancredi,  et., AL.,  2013).

International financial reporting standard are the standards and interpretation which is adopted by international financial accounting board. All the information and preparation of financial statement in the organization is based upon all the rules and regulation of IFRS and accounting principles. There are following determine conceptual framework we can determine theoretical underpinning of financial accounting rules and regulations (Adams, et., AL., 2015).

General purpose financial statement          

General purpose financial statements are issued throughout the year in order to provide assistance to investors and creditors in making financial decision process. The set of financial statement is called financial statement that can be used by broad groups of people in order to make their effective business decision. Australian and New Zealand Banking Group prepare its financial statement as per international accounting standard and laws.  However, company has to issue an audit set of general- purpose financial statements by public company accounting oversight board. Australian and New Zealand Banking Group use quarterly earnings reports as well annual financial statement. There are various rules and regulation which has been followed in the business functioning and reporting of financial statement.

Australian and New Zealand Banking Group’ conventions

Usefulness

It depicts that all the financial statement of Australian and New Zealand Banking Group should provide information that must be useful for the stakeholders to make investment decisions.

Qualitative characteristics

Accounting principles used in forming all required documents must be relevant, reliable, comparable and consistent. Requiring financial statements adhere to GAAP rules accounting principles which are consistent from year to year.

Assumption

Australian and New Zealand Banking Group has been following fours assumption in preparing financial statements and accounting principles such as going concern, economic entity, monetary, periodicity assumption and so on (Adams, et., Al., 2015).

Historical cost and matching principles

Generally accepted accounting principles is required to be adherence to the historical cost and matching principles. By applying this concept of accounting theories Australian and New Zealand Banking Group matches all its receipt and expenses in determined approach.

The accrue concept

This concept is also known as matching concept which depicts that income arises from the events which affects the owner’s equity. In the business functioning of Australian and New Zealand Banking Group.

Stability

In accounting the monetary units is normally assumed to be stable. At the time of preparing financial statement Australian and New Zealand Banking Group company has been

Accounting theories in the business function of the Australian and New Zealand Banking Group has provided very much helps either in preparation of financial statements and other required documents in determined approach.

Key elements of accounting theories

Accounting theories is more quantitative and provides effective guide for preparation of financial reporting. Firstly accounting policies in Australian and New Zealand Banking Group requires that all accounting and financial professionals operates under the fours set assumption in preparation of financial statements.
The first assumption divulges that business of Australian and New Zealand Banking Group is separate from its owners (Tancredi,et., AL., 2013).

The second assumption is based upon the fact that company is going concern and there is no chance of company is going in bad debts.

The third assumption provides that Australian and New Zealand Banking Group’s financial statement is prepared in Dollars terms not in the home production unit.

Financial statement and other documents must be prepared as per GAAP and IFRS rules.

Finally at the last assumption it is found that all the elements should be prepared on monthly, quarterly and annual basis (Gîju,. 2015).

Analysis

After evaluating financial statement of Australian and New Zealand Banking Group it is observed that company has been preparing it’s all its documents by following accrual, going concern and matching concept.  However, there are several accounting standard and IFRS rules and regulation has been followed in recording data in financial statements (Marland, et., AL.,  2015).

Australian and New Zealand Banking Group’ Accounting standard

IFRS-24

Significant controlled entities are disclosed in separate paper by related parties while entering into transaction with the organization. IFRS-24 provides that company should make prior disclosure in its general meeting of any related party transaction.

IAS- 37

Liabilities should be paid as per required conditions and on the stipulated date.

IAS-16

All the property underlying for charge will be transferred to lender if due amount of money is not paid in stipulated date.

IAS-12

If dividends are paid to shareholders then they will be entitled to receive tax free dividend and company will pay all the tax on their on hand.

IAS-7

This is related with maintain good amount of cash flow in the business functioning. Company is having high amount of cash outflow which results into destruction of liquidity of the company.

IFRS-3

Australian and New Zealand Banking Group has proposed plan to enter into strategic alliance with other partners for better business functioning. All the rules and regulations given in IFRS-3 must be followed in effective manner by the company.

IAS-1

Presentation of financial statement should be prepared as per IAS-1 accounting report standard.

IAS-2

This is related with inventory management of the organizations. Australian and New Zealand Banking Group has been following all the IAS -2 guidelines in order to make changes in its financial activities.

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Company has been meeting its entire obligation such as complying with laws and regulation and all the IFRS and accounting conventions has been followed by the accountant appointed in the company. However, the most important point which has been noticed is that in preparing trading and P&L account Australian and New Zealand Banking Group has failed to showcase all the proves related with invoices and other documents. Creditors, investors and other parties use this information in order to make effective investment decision making (Gomes, et., Al., 2014).

Conclusion

In this various parts and sub parts of IFRS and accounting theories concepts have been discussed. Australian Accounting Theory and Issues Assignment Help has made a critical view point about how company should prepare its financial statements. Financial statement of Australian and New Zealand Banking Group depicts all the required information of the organization working activities. All the accounting management conventions and principles are used as foundation in preparation of all the financial statements. This report has provided me deep understanding about accounting concepts and standards. Now in the end it would be said that Australian and New Zealand Banking Group has to make good changes in its reporting with a view to align its reporting quality on international level.

Recommendation

Australian and New Zealand Banking Group is One of ASX top 100 companies. It is observed that company is complying with all the international standard and accounting policies. All the organization should use accounting as discipline in its business functioning for recording required data. Australian and New Zealand Banking Group needs to make compliance in preparation of general accepting financial statement by complying with stated fours assumptions such as sustainability, use of reporting currency while reporting, matching concept, preparation of Financial statement on annual basis.  However, company has been divulging high amount of debts in its financial statements therefore there is need to create an account of provision of doubtfully debs in its business functioning. Accounting theory should be consistently evolved around preparation of financial statements. Company has to create direct nexus with organizations such as international accounting standards board. It helps organization to make changes in its accounting theories as per the changing needs of business in this ramification of economy. These rules, regulation and other GAAP policies have been used by Australian and New Zealand Banking Group in very significant manner. But company should increase its reporting guidelines as per international accounting standard.

References

Adams, P.W.R., Mezzullo, W.G. & McManus, M.C. 2015, "Biomass sustainability criteria: Greenhouse gas accounting issues for biogas and biomethane facilities", Energy Policy, vol. 87, pp. 95-109.
Baskerville, R.F., Jacobs, K., Vassili Joannides de Lautour & Sissons, J. 2016, "Ethnicity as inclusion and exclusion: Drawing on concept and practice in accounting research", Accounting, Auditing & Accountability Journal, vol. 29, no. 8, pp. 1262.
Crandall, D. & Phillips, F. 2002, "Using Hypertext in Instructional Material: Helping Students Link Accounting Concept Knowledge to Case Applications", Issues in Accounting 
Education,vol. 17, no. 2, pp. 163-183.
Devie, Tarigan, J. & Kunto, Y.S. 2008, "Application of accounting concepts in the workplace: a research of management accountant in Surabaya, Indonesia", Journal of International Business Research, vol. 7, no. 3, pp. 89.
Gîju, G.C. 2015, "Accounting Issues Regarding the Merger of Companies", Valahian Journal of Economic Studies, vol. 6, no. 3, pp. 99.

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