Solution Manual to accompany Accounting: Business Reporting for Decision Making 4e Jacqueline Birt‚ Keryn Chalmers‚ Suzanne Byrne‚ Albie Brooks & Judy Oliver Prepared by Jacqueline Birt John Wiley & Sons Australia‚ Ltd 2012 Chapter 1: Introduction to accounting Comprehension Questions 1.1 What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to a mobile phone distributor. A business
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introduction of main business of AGL and its financial performance. In addition‚ we compare the disclosure of PPE‚ intangible asset and leased assets & liabilities in the annual report 2008 with the AASB. After the analysis‚ it is clear to discover that the rules followed by the AGL comply with the AASB framework. Introduction AGL Energy Limited (AGK) began trading in the Australian Stock Exchange on the 12th of October 2006‚ and is the second largest provider in the gas‚ electricity and
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Accounting Standards Board (PSASB). The main aim was to demarcate the boundaries of financial reporting in that conceptual framework was to deal only with general purpose financial reporting. The ASRB was replaced by Australian Accounting Standards (AASB)‚ and four Statements of Accounting Concepts (SACs) developed in the 1990s. The main function of conceptual framework is to standardise the financial reporting for all business entities. Conceptual Framework There is no ‘absolute’ definition of a
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adopt IFRSS‚ in 1996‚ the AASB issued Policy Statement 6 International Harmonization Policy with objective to ‘pursue the development of an internationally accepted set of accounting standards which can be adapted in Australia’. There were several considerations why government decided to do so: 1. ‘The existing arrangements for accounting standard setting are confusing‚ inefficient and not conductive to stakeholder participation 2. There is duplication between the AASB and PSASB 3. Australian Accounting
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ADVANCED FINANCIAL ACCOUNTING 260 IMPAIRMENT QUIZ QUESTIONS 1. When should an entity conduct an impairment test? (2 Marks) Assets that are consider to have uncertain carrying amounts must be tested every year for impairment. Goodwill acquired in a business combination Intangible assets with an indefinite useful life Intangibles not yet ready for use Impairment testing of all other assets is required only if there is an indication that they might be impaired due to events
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Cola Amatil Brief Activities in Australia 2. Company’s brief financials 3. Company’s Strategy & Growth Drivers 2. Company’s Key Accounting Policies 1. Foreign currency translations (AASB 1012) 2. Inventories (AASB 1019) 3. Revenue (AASB 1004) 4. Changes in Accounting Policies (AASB 1001) 3. Flexibility in the Selection of Company’s Key Accounting Policies 4. Accounting strategy 5. Quality of Disclosures 6. Questionable accounting figures 7. Possibility to UNDO Distortions
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AFW3040 Assignment 1 Recently in June 2010‚ the International Accounting Standards Board and the Financial Accounting Standard Board initiated a joint project and released an exposure draft named Revenue from Contracts with Customers. This exposure draft emphasizes the status of revenue in assessing financial statements and states that revenue is conclusive in assessing a company’s operating situation and developing prospects. This statement has a profound influence on accounting industry and
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overall performance of the audit report‚ and therefore maintain the fundamental principles of integrity and objectivity. Auditor independence is possible‚ however it is quite hard to achieve as it requires auditors to meet all the guidelines set out by AASB and statutory requirements. (Bailey & Gramling) To achieve absolute auditor independence the auditor needs to be independent both in fact and in appearance in order for stakeholders to accept the auditor’s opinion on the financial reports of an
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References: AASB 101 (2013). Presentation of Financial Statements. Retrieved from: http://www.aasb.gov.au/admin/file/content105/c9/AASB101_09-07_COMPsep11_07-12.pdf Deloitte (2013). IAS 1 – Presentation of Financial Statements. Retrieved from: http://www.iasplus.com/en/standards/standard5
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Other 136.7 169.4 109.7 178.3 179.7 234.7 Total EBIT 701.8 816.2 695.8 679.3 567.0 1‚098.2 Source: Qantas Annual Reports Information on losses incurred by Qantas’s international operations would have been prepared and reported internally. Under AASB 8‚ that data should be spelt out in detail to shareholders‚ John Shanahan suggests. Segment reporting is often seen as an afterthought. It doesn’t change the results‚ it’s just more disclosure and the numbers are too aggregated to be useful. However
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