Accounting and Financial Reporting

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
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ACCOUNTING AND FINANCIAL REPORTING
1
Executive Summary
The main purpose of the assessment is to analyse the reporting framework of Qantas ltd which is
engaged in aviation industry. The analysis would be considering the impairment testing protocols
which is followed by the business and also show the different assets which are impaired by the
management of the company for the year 2018. It is also to be evaluated if the business has
followed ASIC guidelines while showing disclosures and other important aspect in the annual
reports of the business.
Table of Contents

ACCOUNTING AND FINANCIAL REPORTING
2
Introduction......................................................................................................................................3
Part a................................................................................................................................................3
Role of Professional Judgement in Accounting...............................................................................3
Implications of inappropriate professional judgement on accounting information.....................4
Part b................................................................................................................................................4
Impaired Assets of Qantas Ltd....................................................................................................4
Estimation required for writing impairment................................................................................4
Amount of Write off....................................................................................................................5
Relevant Disclosures of Impairment Testing..............................................................................6
Part c................................................................................................................................................6
Part d................................................................................................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

ACCOUNTING AND FINANCIAL REPORTING
3
Introduction
The main purpose of the assessment is to analyse the business of Qantas Ltd which is
engaged in providing airlines services to the customers. The company is engaged in providing
aircraft services to the consumers. The financial reports provide important information to the
users regarding the financial health of organization (Investor.qantas.com. 2019). The assessment
would be focused on evaluating various aspects for testing of impairment charges of Qantas Ltd,
which can be considered as one of leading airline businesses operating in the country.
Part a
Role of Professional Judgement in Accounting
The concept of professional judgement involves accounting expertise and knowledge of
the same and it is to be noted that the same have significant importance in the field of
accounting. The quality of the financial reports which is prepared by a business is heavily
dependent on the accounting expertise and knowledge and also practical experience of the
accountant preparing the annual reports of a business (Linnenluecke et al. 2014). The only
concern which have affected the integrity of the accounting profession is the various scandals
which have taken place over the past years globally. This can be regarded as lack of ethical
conduct in the business and therefore hampering the reporting framework and reputation of the
accounting profession and the company. Professional judgement of an accountant can ensure that
proper ethical standard is maintained and thereby ensure that the quality of the financial reports
are appropriate and free from material misstatement.