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ACCG8123: Accounting Standards and Practice

   

Added on  2021-05-25

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1ACCG8123: Accounting Standards and PracticeSession 1, 2021Individual Assignment Application Of Professional Judgment OnImpairment Testing OfWoolworths Group LimitedBusiness Research ReportDue: Word limit: 1,200 words
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2ContentsOverview......................................................................................................................................3Short Brief About Woolworths....................................................................................................3Role of Professional Judgement in Accounting...........................................................................3The management reached two professional decisions.................................................................3Calculation of the useful lives of both tangible and intangible properties..............................3Loss of ability..............................................................................................................................4Woolworths Group Ltd. has written down the impairment.........................................................4Improvement in Applications of Estimations..............................................................................4Recommendation.........................................................................................................................5Critical analysis...........................................................................................................................6Conclusion...................................................................................................................................6References........................................................................................................................................6Appendices..................................................................................................................................8Appendix B..................................................................................................................................9Appendix C................................................................................................................................10
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3OverviewThe study aims to portray the value of accounting knowledge and the role of professionaljudgment in accounting. Woolworths Corporation, an S&P/ASX constituent organization thatadheres to IFRS and AASB guidelines, has been chosen to conduct this research. The is Business is one of Australia's most prestigious firms, with a reputation for excellent customerservice. The study discusses asset deficiency and its meaning, as well as actionablerecommendations for change.Short Brief About WoolworthsThe corporation is a profit-making organization of cutting-edge technologies and world-classprofessionals [ CITATION Van20 \l 1033 ]. This article summarises the Company's accountingassumptions and policies, mostly in the area of asset/CGU impairment and the rationale for suchestimates and policies. The strategy follows a stringent protocol.In the event of a global crisis or trade war, taking a cautious approach to estimate the recoverableprices of assets/ CGUs is a smart idea.Role of Professional Judgement in AccountingSound judgement necessitates a significant amount of planning, thorough experience, andassociated practise within the context provided by auditing, accounting, and ethical standards tomake adequate decisions on a particular condition that may arise as a result of an internal audit. When preparing annual reports, the organization will choose accounting policies and forecasts toproduce favourable outcomes for the Company's name[ CITATION AlD18 \l 1033 ].When preparing similar information for its clients, an organization's professional judgement ensures that it meets the policies and guidelines set by regulatory bodies such as the AASB and ASIC.The management reached two professional decisions.Calculation of the useful lives of both tangible and intangible properties.The management buys properties for commercial purposes, including shipping, installation, taxes(if not recoupable), and all other expenses. The assets face wearDepreciation is the term used to describe the wear and tear that occurs over time. Two elementsare needed for depreciation to be applied, namely deflation rates in percent and the expected lifeof properties. It is where clinical judgment and practice come into play.
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