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AASB 16 and its Impact on Financial ReportingRequirement 1 AASB 16 brings with itself single lessee accounting model and requires a lessee to recognize all the assets and liabilities of the leases which have a time period of more than 12 months. If the underlying asset is of low value, then there is no need to recognize it. This new standard brings many changes in lease accounting used by many companies. Specifically, the lessee accounting ch...
Identification of Key Audit Matters for Each BankIn the report a few companies from various industry segments have been analyzed. On this basis of the analysis the key audit matters have been found. The identification of the key audit matter i.e. which topic required most audit analysis focus for each company has been made. It has been investigated that every company basis its nature of business and working style has a separate key audit matte...
Motives behind directors not revaluing property, plant and equipmentThis particular requirement seeks to address benefits that are enjoyed by reporting entities by the adoption of international financial reporting standard which have the consequence of improving financial reporting quality. It is indicative of the fact that the establishment of accounting standards intends to ease the process of preparation of financial report and thereby faci...
Comparison of Audit FirmsThe study intends to compare Deloitte a company founded by William Welch Deloitte in 1845 in the UK. The company is considered to be leading among the “Big 4” audit companies in the world as the reports presented by Statista in 2017. Additionally, Deloitte provides huge service network of professionals in the world (Statista, 2017a). On the other hand, Lodha & Co a “non-Big 4” was establis...
Activity-based CostingBeach Energy Limited is an Australian company which deals in the oils and gas exploration and production of many types of energies. The company said to the company said to work mainly on the Cooper basin which is said to have energy sources and also an average of land having no less than 69000 square kilometres of area. It was in 1961 that the organization was founded and in the year 1962 the Australian securities exchang...
Importance of the new standardIn the Auditor’s Report, the Auditing Standard ASA 701 Communicating Key Audit Matters describes major topics that the auditor is obliged to state in his audit report. Many transactions are there, that have an influence on the organisation and it is useful all that has an impact on the company based on substance should be well mentioned in the audit report. The stated standard provides the auditor with the...
Summary of Ethical Violations and Standards Breached1.Based on the provided case studies, it could be found that Mary and Johnny have breached specific ethical principles and standards, which are enumerated as follows: In accordance with the professional scenario, it could be cited that there are two missing documents in the ABC Company’s work paper, which include the worksheet of a major item and final version of the signed letter of e...
Efficient Portfolio and Capital Allocation Line1.Mentioning about five asset classes and depicting about its nature based on Arithmetic Mean (AM), Geometric Mean (GM) and Standard Deviation of each: Year Australian Shares Australian Bonds (RBA cash rate) S&P500 (USD) US Fed Funds Rate (USD) Brent Oil (USD) 1996 9.90% 6.00% 22.96% 5.30% 31.80% 1997 8....
TaskThe art of observation and inserting the observation fear into the observed individuals could be termed as panopticism. Jeremy Bentham has established this theory and the following diagram would help in explaining the concept: As per the above diagram, the construction of the above place is simple because an observation tower is present in the centre and the cells are used for lodging the prisoners. This has helped the in-charge o...
Assessment task part A (Activity based costing)Activity based costing (ABC) is the accounting system that recognizes activities of a firm and then allocates the indirect costs to the products. The ABC system identifies the relationship among the products, cost and activities and through the relationship allocates the indirect cost to the products. However, few costs are not easy to allocate through ABC method. For instance, indirect cost lik...
Adelaide Brighton CementIn this particular report, Time-Driven Activity-Based Costing System (TDABC) is discussed from the viewpoint of a consultant recently employed in a firm. Therefore, it is assumed that one of the major clients of the firm is Adelaide Brighton Cement, which is one of the top manufacturing organisations of Australia. The first segment of the report would focus on the business operations of Adelaide Brighton Cement. Th...
The Corporation Act 2001 and its regulation of companiesThe corporation act regulates the companies in Australia and deals with the matter related to formation of the company, operation of the company, and duties of the officer, fundraising and takeover. The corporation act 2001 requires that the executive officers and directors of the company exercise their duty and discharge their power with care and diligence. The powers and the duties of ...
Double Entry Bookkeeping In An Integrated Accounting SystemAn integrated accounting system is a software application, which standardises the processes to record transactions along with disseminating financial information. The following steps would be followed to implement an integrated accounting system: Firstly, the accounting method needs to be selected, which might be cash or accrual accounting. Cash accounting records cash receipt...
Defence Strategies in NetworkingInternet service providers face malicious threats from hackers every now and then that had formed the source of various risks associated with the transferring of internet to the clients. Therefore it is required that a network is made absolutely impermeable to assure that there is no risk associated with the networking system (Chang & Ramachandran, 2016). It becomes necessary that the defender system in a ne...
Date Details Debit ($) Credit ($) 01-Nov Bank and Cash a/c 1,540.00 To Revenue a/c 1,540.00 (Being cash received form a student towards fee for watch-making school) 02-Nov Drawings a/c 183.00 To Bank and Cash a/c 183.00 (Being s...
IASB Conceptual Framework and its emphasis on qualitative characteristicsThe effectiveness of details that are being represented in the financial statement are developed through the existing IASB conceptual framework through ensuring relevancy and reliability of those information. The qualitative characteristics of useful details and knowledge such as relevance and fundamental characteristics recognized in the IASB Conceptual Framework are to ...
Profitability measures: Profit margin, return on assets, return on equityThe investors who generally invests in equity are apprehensive about the ability of the company to create, preserve and raise the amount of income. The extent of profitability can be assessed various interconnected dimensions. Primarily there is a relationship of the profit of the company in accordance to the revenue, which is even known as the residual return on per sa...
Industry and Situation Analysis of CPU4UThe case study is about the company CPU4U that engages in manufacturing hardware components for computers, phones, automated manufacturing equipment and electronic equipment (Theriou 2015). After completing the report, it will be easy to understand and explain the concept of strategic management as used in the contemporary business environment. It will even help in identifying the suitable objectives as ...
Expectations from Capital Intensive AssetsA capital intensive asset is a significant portion of the component of the balance sheet of the company. Many giant companies like Reliance Industries; General Electric invests heavily in machineries and equipment. The industries which are highly capital intensive encompasses aviation, automobile, oil exploration etc.The investment in assets in such companies generally forms greater than 50% of the total...
Background and ContextThe auditing system is a methodical platform that measures the effectiveness with which the financial statements incorporate the true facts and figures regarding the financial performance of any firm. The internal and external control of auditing facilitate the process of evaluation of the financial statements as well as the accounting information that are being incorporated within the annual reports that reflects the fin...
Cut Off Risk AssertionAlmost all auditors are deemed to be some obligations that are evident in investigating and evaluating the financial statements of companies so that it might be made certain that they do not encompass any type of material misstatements due to any error or frauds. The stakeholders related with these companies in order to analyses the fairness and honesty within companies financial statements. At the time such financial sta...
InvestorsThere are many instances where the auditors have performed below the standards audit and were not able to provide the needed assurance dependably; and this whole aspect creates major risks for the key stakeholders of the companies (Hay 2015). This report takes into consideration the evaluation of Origin Energy’s key stakeholders as it would be helpful in measuring the effects of material misstatements on their decisions. The sec...
The importance of auditors doing their job to prevent material misstatementThe auditor’s report serves as a reasonable assurance as to the quality of audit being conducted and shows that the accounts of the company have been prepared without errors, omissions and material misstatements. It has direct repercussions on the decision making by the stakeholders and hence it warrants for due diligence and utmost importance. Greg Medcraft...
Introduction to CSL LimitedThe report provides a brief analysis of CSL Limited, giving bits of knowledge into its financial performance for the past ten years. The historical money related information is gathered for the years 2008 to 2017 including the the income statement, balance sheet and cash flow statement of the organization. The report starts with a concise presentation about the organization and its core practices. In the later part, th...
Activity-Based Costing for Manufacturing CompaniesIn the present era, the production process of multiple products in manufacturing companies is supported by various activities and department due to which it is not feasible to allocate overhead as per the single rate (Oseifuah, 2018). Therefore, traditional costing is not suitable as it leads to a wrong decision regarding cost consumption and profit generation for individual product or departme...
