Acconting Policy assignment Sample

Running head: ACCOUNTING POLICY 1
ACCONTING POLICY REPORT
Name
Institution
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ACCOUNTING POLICY REPORT 1
Executive summary
From the accounting financial statement, the article is supposed to develop a report
focusing on the policy of the accounting applied by the Transurban Holdings. The article is dated
from 30th June 2013. The accounting article report has covered five primary elements. The
fundamental factors include critical current issues (Moatti, Ren, Anand & Dussauge 2015).
Accounting creativity and policies. Different accountants apply creativity with
accounting policies. These policies are not entirely broken or impaired. They are only adjusted to
fit the particular interest of the accountant and the accounting directors. The policy creativity
could also benefit the company.
The article also finds out the various kinds of motivations that could make a sustainable
company like Transaburn Holding Limited use accounting creativity. With multiple motives that
include; reputational damage, client privilege, and shareholders assent. This various reasons
make the report to narrow down and find out the exact motivation behind the company making
such a financial decision (Aribarg ET. Al 2018).
One of the motivations of the company accounting director is opportunistic behavior. The
article exploits the various ways in which the company accountants endorse opportunistic
behaviors. The report further tries to establish the multiple ways in which the opportunistic
behaviors can be remedied. This is so that they are not used anymore since they affect the
accounting standards of the company.
Introduction
Accounting standards are rules that guide how accounting directors measure, recognize
and find methods of recording financial information. Policymakers set these rules in partnership
with company's stakeholders.

ACCOUNTING POLICY REPORT 1
The financial statements, therefore, should conditionally follow these accounting
standards. Some of the standard accounting standards include; conditioning policy. These are the
central policy exploited by the accounting directors of Transaburn Holdings limited. The chosen
accounting policy, however, should be within the agreement to abide by the established
standards. For companies that do not abide by these policies, which is a very rare scenario, the
system allows for the implementation of an external strategy. The strategy, however, should
abide by all the accounting standards (Henderson et al 2018).
The three types of selections that can be based on three very fundamental policies. These
policies include; a choice based on accounting standard setters, the determination based on
accounting preparers of financial statements and creative accounting policy. The article exploits
the third policy. Use of creativity in accounting policies to benefit the financial statements being
reported for that particular fiscal year (Kullab & Yan 2018).
The company for the report
For this report, the chosen financial statement is from the Transurban Holding Limited.
Transurban Holding Management is in charge of managing and developing urban toll road
networks in Australia. It is a top 20 company on the ASX and has been in operation since 1996.
The financial statement is found at the following link.
https://www.transurban.com/content/dam/investor-centre/04/2013_Annual_report.pdf. The
report is dated 30 June 2013.
The company owns City Link in Melbourne. The City Link holds the major highways.
The company has operated in major Australian highways. Currently, the company has its stakes
in six tolled motorways in Sydney. The company is seeking to get to the cities of Brisbane
soon(Henderson, Peirson, Herbohn & Howieson 2015).

ACCOUNTING POLICY REPORT 1
The company engages in, network planning and forecasting as a way of getting more
contracts and doing more road networks. The deals can be from private owners or the
government. Secondly, the company engages in operations and customer management. There is
an operation that seeks to satisfy customers while getting the correct feedback. The feedback that
helps the company improve their operational scope.
The company has also advanced their technological systems by using smart products.
This move is to ensure that the company is attractable to the youth. The youth are easily attracted
to the exceptional products; therefore, the company takes advantage of this system as a way of
reaching such a population target (Gorm & Shklovski 2016).
The community also engages in CSRs as a way of helping the society. The company has
donated funds to orphanages and other institutions that favor the less privileged. This
philanthropic experience helps the company build the strong bond between it and the society.
The company makes revenues from four significant activities;
Toll and fee revenues. This is revenue collected from the road projects done by the
company.
Other road revenues. Revenue received from advertisements, rental, and avenues that are
related to the same.
Construction revenue. These are revenue that the company collects at the phase of
collecting an intangible asset. These assets are sold to third parties who are not part of the
shareholders of the company.
Management and business development revenue