The purpose of this assignment to achieve the following objectives:
* Explain the role that accounting principles and standards play in the preparation and presentation of financial reports.
* Explain the practical application of the various accounting methods studied in this unit.
* Discuss the merit, logical consistency and implications of the accounting methods studied in this unit.
You are required to research and critically evaluate financial statements (annual reports) of two ASX listed companies from two different industries. Your research should include at least 4 recent academic articles related to the standards you have chosen.
Your assignment should address the following research questions:
a. Differences in listed accounts, accounting policies and accounting standards commonly applied that can be explained by nature of industries.
b. Provide critical evaluation of the appropriateness of any one unique accounting standard used only in each of the two companies. In doing so, relevant academic based journal or reference book must be used in supporting or criticising the use of the said accounting standard.
c. Discuss the riskiness of the businesses/ companies based solely in the context of the annual reports (or financial statements) in terms of applied accounting policies or methods.
d. Conclude if selecting certain accounting standards or accounting policies demonstrated by companies’ disclosures will provide users of the report with a true and fair view of the companies’ state of business.