Balance Sheet and Consistency New Accounting
DQ 6.1, 6.2, 6.12, 6.13, 7.1 P6.9, P6.11, p7.7, P7.9 *
6.1 balance sheet income statement statement of cash flow * 6.2 to disclose the information about the company that may effect future decisions, but is not necessarily included in financial statements
6.12
asset must be from a past transaction must have future economic benefit control by the entity
6.13
must have a present obligation obligation involves economic cost in the future * * 7.1 no measurement of environmental impact no sustainability issue no measure of externalities * * 6.9 relevance how useful is the information to decision making reliability how accurate is the information, how truthful and unbais is it for the use of financial documents understandability not everyone who uses financial documents are accountants, does it attempt to be understandable so it can be utilized by everyone comparability does it have a similar system to its close competitors so that their positions and performance can be compared consistency does it use the same accounting method so that the progress of each year can be compared relevance and reliability ignore small payments such as taxi fees since it isn’t material, but then the reliability of the document isn’t accurate relevance and consistency new accounting methods for decision makers, but then there is an internal inconsistency comparability and consistency new accounting method to be more comparable to other firms, but internal inconsistency relevance and understandability information can be very complicated and difficult for decision makers to understand
6.11 annual leave: liability
1 mil payable: contingent liability purchased goodwill: asset patent: asset excess of research and development cots: expense * * 7.7 scope 1: methane distruvtion scope 2: electricity scope 3: electricity from coal * * 7.9
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DQ 6.4, 6.7, 7.32 P6.4, P.6.14
6.4 woolworths ltd
6.1 balance sheet income statement statement of cash flow * 6.2 to disclose the information about the company that may effect future decisions, but is not necessarily included in financial statements
6.12
asset must be from a past transaction must have future economic benefit control by the entity
6.13
must have a present obligation obligation involves economic cost in the future * * 7.1 no measurement of environmental impact no sustainability issue no measure of externalities * * 6.9 relevance how useful is the information to decision making reliability how accurate is the information, how truthful and unbais is it for the use of financial documents understandability not everyone who uses financial documents are accountants, does it attempt to be understandable so it can be utilized by everyone comparability does it have a similar system to its close competitors so that their positions and performance can be compared consistency does it use the same accounting method so that the progress of each year can be compared relevance and reliability ignore small payments such as taxi fees since it isn’t material, but then the reliability of the document isn’t accurate relevance and consistency new accounting methods for decision makers, but then there is an internal inconsistency comparability and consistency new accounting method to be more comparable to other firms, but internal inconsistency relevance and understandability information can be very complicated and difficult for decision makers to understand
6.11 annual leave: liability
1 mil payable: contingent liability purchased goodwill: asset patent: asset excess of research and development cots: expense * * 7.7 scope 1: methane distruvtion scope 2: electricity scope 3: electricity from coal * * 7.9
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DQ 6.4, 6.7, 7.32 P6.4, P.6.14
6.4 woolworths ltd