Accounting Concepts in context of DOMINO LIMITED

ACCOUNTING
CONCEPTS IN
CONTEXT OF DOMINO
LIMITED.
Module Number

Table of Contents
Introduction...................................................................................................................2
Descriptions of Accounting Concepts...........................................................................2
1) Business Entity Concept:...............................................................................................3
2) Money Measurement Concept:......................................................................................3
3) Going Concern Concept:................................................................................................3
4) Accounting Period Concept:..........................................................................................4
5) Accounting Cost Concept:.............................................................................................4
6) Dual Aspect Concept:....................................................................................................4
7) Realisation Concept:......................................................................................................4
8) Accrual Concept:............................................................................................................5
9) Matching Concept:.........................................................................................................5
Understanding of Financial Reporting Issues...............................................................5
Conceptual Frame work and their influence.................................................................6
Australian Accounting Regulatory Framework.............................................................6
Understanding of Assets, Non Current Assets and Liabilities......................................7
1) Assets:............................................................................................................................7
2) Non Current Assets:.......................................................................................................7
3) Liabilities:......................................................................................................................7
Revaluation and Impairment of Non current Assets.....................................................7
Conclusion....................................................................................................................8

Introduction
In all over the world there are some general rules, concepts and fundamental which
are followed by the accountant to prepare the book of accounts. These general rules and
concepts make the foundation of more detailed, legal and complicated accounting principles
and accounting standards. The GAAP otherwise known as Generally Accepted Accounting
Principles follows three set of rule. Firstly, Basic set of accounting principles and guidelines.
Secondly, FASB issued detailed set of rules and standards. Thirdly, industry practices which
are generally accepted. Whenever company wants the public to have their financial details,
they have to follow the guidelines prescribed by the GAAP to prepare these financial
statements. GAAP is providing companies with a standardized format which let the
consistency to be maintained in accounts of company year after year and between different
companies. Even when some variations exist between financial statements of different
companies and even within same company, the end user can make reasonably confident
conclusions out of it by comparing. Over the years due to complexity in the financial world,
the complexities in the accounting world and therefore in GAAP has increased. In the
following report, the study of these accounting principles will be done in detail in context of
the company named Domain Holding (Haier, Molchanov, and Schmutz, 016).
Domain Holdings also known as Domain Group is Australia’s second largest real
estate company. It is famously known for its real estate portal domain namely
domain.com.au. it has 90% market penetration in Australia and competes with Australia’s
largest News Corp Australia. It is mainly a digital property portal and also deal in associated
real estate industry. Company was founded in 1999 and listed on ASX in 2017. The company
was valued A$ 1.3 billion in February 2015. The company’s shares were suspended on 21st
February 2017 until announcement of half yearly results and intention of turning it in public
entity was announced. In November 2017, shares open at AUD $ 3.80 and valuation of
company listed was A$ 2.2 billion. The company consists of portfolio which includes home
listing portals, commercial property portals, My Desktop CRM and APM price Finder
(Domain Company, 2018).

Descriptions of Accounting Concepts
Accounting concepts are the basic assumption which forms the basis of recording and
maintaining all the business transactions. These concepts are very important to maintain the
consistency and transparency in the accounting system. Throughout the world, following of
these standards have been beneficial in way that financials of each and every company can be
studied and understood in right context. The accounting concept sets standard prescribed by
IASB and should be followed by each and every company. These concepts make sure that the
annual reports are made in prescribed format and give all the related, reliable and trustworthy
information to its end users. This information than become the basis of more important and
complex decisions of financial world. Comparing the results of one company year after year
and with its competitors shows the standing of company in present and where it is going in
near future and also what are the company’s long term goals. These accounting concepts also
become guideline to solve the accounting disputes within the organization or with other
competitors (Domain Company, 2018).
There are total nine accounting concepts which are famous worldwide and needed to be
followed. Domain Group are following these concepts in preparing of their financial (Grossi,
and Pepe,2009).
1) Business Entity Concept:
This concept is the fundamental for making the financial reports of the company and states
that the business and the owner are separate identity and are independent of each other.
Whatever money owner would invest in business would be treated as liability by the
company and not its own money. Similarly whatever transactions done by the owner are his/
her own and would not be recorded in company’s expense (Domain Company, 2018).
2) Money Measurement Concept:
This concept used by the Domain group states that all the transaction should be in monetary
form while recording. That is the raw materials if bought by the company would be recorded
by their prices and not by the physical values like KG or litres. Also the assets owned by the
company would also be recorded in monetary terms and the things like sincerity and honesty
of people which cannot be valued in monetary terms are not recorded in financials of
company. This helps in easy comparison and understating of financial accounts (Haqq, 2008).