Australian Accounting
The complicated world of finance, business and accounting in today's world justifies the firm's customer base's inquiry into some proposed changes in accounting standards for leases. The purpose of this report is to inform clients on current and proposed accounting standards that are affecting their means to do business. This report will first give a brief history of these standards before describing the current practices that are used by this firm. The report will conclude by highlighting some proposed changes to these standards and give a glimpse to the future of this firm and the way it conducts business and how it will affect reporting of financial information.
History
The application of accounting standards assists in the production of financial information that is used as the basis for decision making by a wide variety of stakeholders Cortese (2009). Accounting standards in Australia were initially developed by the professional accounting bodies, and were enforceable under their codes of ethics . From 1966, the professional bodies jointly operated the Australian Accounting Research Foundation (AARF), which ultimately encompassed both the Accounting Standards Board (AcSB) and the Public Sector Accounting Standards Board (PSASB). These Boards worked closely together in preparing standards for private sector and public sector organisations.
At the start of 1984, the Accounting Standards Review Board (ASRB) was established by the Ministerial Council for Companies and Securities to review the standards produced by the profession and give them the force of company law, where approved by the ASRB. This system...
Lease Accounting Changes The author of this report is asked to answer to three major questions, all relating to the recent changes in accounting for leases under the Australian accounting standard both before and after the country's adherence of the IFRS (IFRS, 2013). The first point to answer to is the standard prior to the IFRS update relating to accounting for leases. The second point is to provide for the present
FASB Impacts The Financial Accounting Standards Board (FASB) was established with the Sarbanes-Oxley Act of 1933 (SOX) to establish accounting standards for protection of investors and other users of financial statements. Standards implemented by FASB have the full effect of law and holds public accounting firms accountable for assurance that financial statements are accurate and fairly presented to the investing public. It is vital to the accounting profession that public accounting
New Rules for Lease Accounting: The Controversy The Accounting Lease Controversy The Advantages of the new system Voices Against the New Lease Accounting Model The Accounting Lease Controversy The International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) jointly issued exposure drafts on August 17, 2010 proposing a new lease accounting paradigm. The EDs propose changes to simplify lease accounting and improve transparency. The new lease accounting model is based on
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience. The first principal qualitative characteristic is understandability. This relates not only to the information but
Financial Analysis Compilation Report I (We) have compiled an accompanying Statement of Financial Performance and Statement of Financial Position as of (at) June 30, XXXX, in accordance with the Statements of Standards (Putra, 2012) and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statement information that is the representation of management (owners). I (We) have not audited or
"Management believes that the accounting estimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual results could differ from the original estimates, requiring adjustments to these balances in future periods." Based on the data retrieved and the projections made, the accounting division will proceed to the development of the consolidated statements for all of GM subsidies and the overall group.
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