Accounting : Page - 12

Materiality: Definition and CalculationMateriality is one of the most important element of the audit report of any company. It is covered by ASA 320, which states that materiality is very important for the overall audit planning by the auditor. Any kind of misstatements, omissions and errors are material in nature if they have any effect on the financials of the company and might end up affecting the overall decisions of the user of financia...

ASA 315, Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and EnvironmentWith the changes in time and applicability of the accounting standards, each and every auditor should undertake the possible auditing and accounting works. With the increasing complexity in the accounting and reporting frameworks, auditors have played pivotal role in the financial reporting compliance of company. The governance...

Overview of Vodafone PLC and SingTel OptusVodafone PLC and SingTel Optus are the two companies to be used to complete the exercise in this document. A brief description about the two companies and their operations would provide the point of references to the users of this document to understand the various elements discussed here. Vodafone PLC operates in Australia with the corporate identity of Vodafone Australia. The company is worldwide te...

Activity Based Costing ACTIVITY BASED COST REPORT PARTICULARS ARCHITECTURE FIRMS WINDOW TREATMENTS TOTAL TOTAL OF BOTH THE OPERATIONS ADAMS BETZ TOTAL CHATHAM DEDHAM ELM Direct Costs 147000 117200 264200 218400 115720 57040 391160 655360 Overhead Costs (WN1) 85100 136160 ...

Overview of Traditional Costing MethodActivity-based costing is a method of cost computation in which cost is determined by allocating overhead expenses on the basis of consumption of cost drivers. In this method, Cost behaviour pattern is time-related, volume related, scope related and transaction-related (Dale & Plunkett, 2017). Further, in the present era where the production process is comprised of several activities, this method ...

Concept of Impairment of AssetsIn order to keep the value of the assets up to date in the books, they are checked for impairment. Impairment refers to the state when the recoverable amount of the asset falls below the carrying amount. The difference between the carrying amount and recoverable amount is the impairment loss (Alvarez, 2013). The set of smallest group of assets, which are used by the enterprise to generate cash flows are ref...

Factors to consider when determining materialityThe company Magellan is engaged in the business of global investment. It invests the client’s capital in the global market and generates the higher returns to its clients as compared to its competitors. It has a team of professionals which analyze the best possible companies for the purpose of investment and provide the better return to its clients for their invested capital in the company....

Dick Smith's history and networkDick Smith was an Australian based retail company for dealing with the products related to consumer electronics. It sells wide range of products in 4 categories that is mobility, office, entertainment and various other services and products. It had 2 segments – Dick Smith New Zealand and Dick Smith Australia. Its store network includes more than 393 stores all over Australia and New Zealand (Dicksmith Au...

SWOT AnalysisThis report includes brief evaluation on case assessment of “The business,” which is assumed as strategic management system that is specialised in the retailing home improvement and outdoor living products. In the report with the development of different strategic tools and techniques, the market performance, and estimate, increase in performance are evaluated and analysed. The major objective of the report is to dev...

BackgroundImpairment of assets is a substantial accounting reconciliation as it is an important part of a company to identify the true recoverable value of the assets and liabilities recorded in the financial statement of company. According to AASB 136, Impairment of Assets, impairment means falling down in the value of assets whether indefinite or irrevocable of fixed assets including both tangible and non-tangible assets. It occurs due to th...

Expectations from StudentsAccording to one basic principle of impairment, one cannot introduce a specific asset above its recoverable value in balance sheet and it is considered as the higher of the fair value of the asset less value-in-use and selling cost. In case the former exceeds the latter, the companies are needed to consider the impairment and it is needed to make the comparison between recoverable value and carrying value. At the time...

Overview of the Patient Observation Health PolicyIn this paper, the health policy selected is the "Patient observation health policy" It involves monitoring the vital signs as the essential components while caring for the patients in order to assess the effects of the diseases and its treatment effects. It also involves procedural detection of complication and being in a position to detect and identify early signs in the health set up by nurse...

Direct tracing Salary of cell supervisor Direct tracing Power to heat and cool the plant in which cell is located Allocation Material used to produce the motors Direct tracing Maintenance of equipment of cells Driver tracing Labor used to produce the motors Direct tracing Depreciation on plant Allocation method Depreciation on equipment used to produce the motors Driver tracing Ordering cost that is i...

System of marriage and its impact on societyAccording to the authors, the article mainly analyses the term ‘marriage’. The authors describe the history of human society as the evolution and diffusion of different types of social institutions. One of the institutions that play an essential role has a unique place in the society is marriage. Marriage has become an instrument that performs its function of regulating conjugal and f...

Understanding Accrual Basis and Cash Basis AccountingThe present case facts brings forward the issue of accounting process and tax implications. As understood from the case of Frank Lloyd he began the business of architect. During the early phases Frank worked from garage before being appointed as the architect for the plan. Frank was even appointed as the architecture and soon began his business with the annual turnover amounted to $2.5 milli...

ESMA's 22nd Enforcement Decision AccountThe piece 22nd enforcement decision account declared by The “European Securities and Markets Authority-ESMA” dated on April 20th 2018 are considered for the current study. This piece of writing basically represents extracted information from private evidence of enforcement pronouncement. Inherently, it can be mentioned that the current batch manages definite decisions in relation to different...

DiscussionAuditing of the financial statements refers to the close examination of a business entity’s financial records. It can be carried out by an efficient and recognised external independent auditor, which is able to accurately judge the fairness of these financial statements. It is important for ensuring the accountability towards the different stakeholders of the business entities. The tax institutions, different financial institut...

Describe what happened and how: The incidence occurred on Wednesday when one of the clients fell and broke her wrist. The client had decided to use the emergency door since the exit door was already blocked by the boxes of paper. The client got helped by one of the agents who handled the exit door after hearing the call for help. The agent had no idea of what had happened and ended up criticizing the client's high heels. This made the ...

Advantages of Standard costing techniqueThe system of cost accounting bears great significance in the smooth functioning of the business of every organization. Various methods of cost accounting are in practice and every organization adopts that method of cost accounting which is most suitable for its business. We in our report will be discussing about one method of cost accounting, which is Standard Cost accounting system. Standard costing is...

DiscussionThe discussion deals with the implementation of a process in a company in order to audit the human capital of a business. It is very vital for an organizations to maintain a competitive position for a longer period of time, for that the human capital or the intellectual capital is regarded strength. In order to verify the skills and knowledge of the various intellectual capital of the business various techniques have been followed by...

MethodologyIn the given report the discussion will be held on the auditing, and key financial ratios regarding the balance sheet and the profit and loss statement (Sinha and Arena 2018). Many auditing procedures have been analysed in the report.The focus of this analysis will be on materiality. Significance of auditing contingency, audit, and auditing procedures and others will be discussedfrom the reports of Independence Group NL thatis an AS...

Unit Learning Outcomes assessedQuestion 1 Income Statement Sales Revenue  $            5,000.00 Direct Material  $                450.00 Direct Labour  $            1,600.00 ...

Advantages of Standard costing techniqueThere are various cost accounting techniques which are followed by different organizations. Standard Costing can be defined as a cost accounting technique with which an expected cost is substituted for an actual cost in the accounting records and then variances showing the difference between the expected cost and actual cost are calculated and recorded in the books. This accounting technique is being used ...

Task 1Organizational structures and market structure are crucial component while setting up a business. It is up to an individual to decide which structure they wish to apply in their business as well as which form of market to operate in. This paper is divided into two tasks, task one entails discussion of the three organizational structures and comparing their chain of command and span of control. The second task entails discussion of determ...

Migrating physical databases into the cloud is the latest business strategy that is being implemented in the latest business era. This is a result of the technological development and the urge of the business organizations to excel better than their competitors by adapting to these developments (Ahmad et al., 2015). In this particular case, a video-on-demand and pay-per-view or VOD and PPV organization is looking for a migration of their ...