Accounting Concepts and Measurement in Qube Holdings Limited

ACCOUNTING 1
UNIVERSITY NAME
STUDENT NAME
STUDENT ID
COURSE
DATE

ACCOUNTING 2
SUMMARY.
The main aim of preparing this this report is to discuss on the generally accepted accounting
concepts that has been feature in the company's report and their significance in facilitating
preparations of financial statements. The concepts mentioned include the going concern concept,
business entity concept, realization concept accounting period concept and money measurement
concept. The report further ascertains the importance of relevance and faithful representation as
the basic accounting characteristics. Faithful representation states that financial statements
should be prepared honestly without biasness. Financial statements should be relevant to the
users for them to use them in making financial decisions. Business entity concept is well brought
out as Qube Holding limited company is formed under the Corporations Act of Australia. The
entity also exhibits a going concern as its financial plans are more than one year

ACCOUNTING 3
Table of Contents
INTRODUCTION...........................................................................................................................................4
REALIZATION CONCEPT...............................................................................................................................4
GOING CONCERN CONCEPT.........................................................................................................................4
BUSINESS ENTITY CONCEPT.........................................................................................................................5
MEASUREMENT...........................................................................................................................................6
HISTORICAL COSTS MEASUREMENT............................................................................................................7
CURRENT VALUE MEASUREMENT...............................................................................................................8
QUBE HOLDINGS LIMITED MEASURMENT...................................................................................................8
QUBE HOLDING LIMITED DEPRECIATION....................................................................................................8
REVENUE MEASUREMENT AND RECOGNITION...........................................................................................9
INVESTEMENT PROPERTIES.........................................................................................................................9
RELEVANCE AND FAITHFUL REPRESENTATION............................................................................................9
EXAMPLES OF HOW RELEVANCE IS BROUGHT OUT IN BOOKS OF QUBE HOLDINGS LIMITED...................10
HOW FAITHFUL REPRESENTATION IS BROUGHT OUT IN THE STATEMENTS OF QUBE HOLDINGS LIMITED.
.................................................................................................................................................................. 11
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13
APPENDICES..............................................................................................................................................15
APPENDIX I: investment properties.......................................................................................................15
APPENDIX II: fair value measurement...................................................................................................15
APPENDIX III: NOTES..........................................................................................................................15
APPENDIX IV: NON-CONTROLLING INTERESTS......................................................................................15

ACCOUNTING 4
INTRODUCTION
Accounting concepts refers to assumptions, rules and principles that underlie preparations of
financial statements whereas measurement implies the technique employed by entities in
determining book values of accounting items. Measurement of financial items are brought out in
this report and qualitative characteristics of good financial information.
REALIZATION CONCEPT
It states that revenue from any commercial transactions should be encompassed in the accounting
records only after it has been realised. Realization means the creation of legal right to receive
consideration in a contract which is mainly money (Weil, Schipper & Francis, 2013).
The revenue is determined at its market value of the amount gained (Horton, Macve & Serafeim,
2011, pg. 492). Revenue obtained from the services delivery is only recognisable on provision of
the goods and income generated by offering storage facilities is recognisable on daily or weekly
basis. Wages and salaries liabilities, yearly leave and accumulated sick leave that are settled in
bracket of one year of the date of its reporting are recognized in respect of employees
services ,the reporting information and measured at amounts anticipated to be paid when
liabilities are paid .Long service liability is recognized in the provision for workers benefits and
weigh as the recent valence of the anticipated future obligations to be serviced as a result of
services offered by the workers prior to the date of reporting using the anticipated future wage
and salary ranks (pg. 62). On the bonus plan obligation is recognised as an expenditure for
bonuses where contracts require or when the original performance that has established such
important requirement.
GOING CONCERN CONCEPT
Views a business entity to be continuous operation that is expected to proceed to unforeseen
future. The concept states that the business has perpetual succession i.e. it continues to operate as
profits generated are used to advance the business (Dewi & Dewi, 2017, pg. 120). The enterprise
exists so long as the law that saw its establishment is still in practice and relevant to the laws of
the country or state in which entity is domicile (Goo, Chi &Shen, 2016, pg. 539).
Qube company exhibits a going concern concept i.e. by disclosing in its books of account the
retained earnings and a provision for reserve account of 7.0 million Australian dollars in 2016