Accounting Concepts and Measurement in Southern Cross Media Group Company

Accounting Concepts
Module Number

Table of Contents
Introduction...........................................................................................................................................2
1. Identify and describe the accounting concepts used.......................................................................2
2. With reference to the conceptual framework, and the debate over measurement in accounting.
Using your allocated company discuss the issue of measurement and provide examples......................5
Conceptual framework and debate over measurement.......................................................................5
Measurement applied in Southern Cross Media group Company......................................................6
3. Fundamental qualitative characteristics and understanding of relevance and representational
faithfulness in relation to the useful information of the financial statements and if one are more
important than the other, in accounting for assets and liabilities...........................................................6
Which kind of qualitative characteristic is more important for valuation of assets and liabilities......7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

Introduction
In this report, fundamental accounting concepts and qualitative intents of the prepared
financial statement of the company has been discussed. It is considered that in order to
strengthen the transparency of the recorded items in the books of account, there is need to
comply with the applicable accounting standards and legal laws. However, harmonization in
the prepared financial statements on domestic and international level is based on the
compliance with the domestic and international accounting standards. In this report, Southern
Cross Media group Company has been selected. This report divulges the key understanding
on the accounting concepts, conceptual framework and fundamental qualitative characteristic
of the financial statement of the company.
1. Identify and describe the accounting concepts used
1. Identify and describe the accounting concepts used
The main concept of the accounting has been formulated from the accounting authorities
which can bring the consistency presentation and preparation in the field of financial data to
make the organization value different all over the country. The concept of accounting if very
much famous not only at national level but at international level also such as International
accounting Standards Board (IASB) which is completely based on the concept of accounting.
Also these globally accounting ideas go about as an umbrella structure which must be
embraced by associations all across the world. The accounting ideas embraced by Southern
Cross Media Group which are as per the following concepts (Eppler, and Mengis, 2014).
 Accounting Cost Concept: - This type of concept is completed based on the presentation of
the financial statement which has been using the historical cost that does not based on the
basis realisable value but its assets initially. The Usage of this type of concept shows the
reflection of the Southern Cross Media Group in terms of acquisition price. Utilization of the
bookkeeping cost idea has permitted impression of benefits in the books of Southern Cross
Media Group at the procurement cost less devaluation at the estimation of $181,654,000.
Also this idea was not in power each year the asset report would have reasonable esteem
which is reflected properly in the balance sheet.

 Accrual concept: The Accrual concept is based on the transaction record of the organization
so that when it comes to business, the business can easily transacted against the cash when it
is received. Also the record of each and every transaction is been recorded in the book after
every single transaction take place until it has not been settled.
Because of the implementation of the accrual notion, the income expense is registered in the
economic results declaration at the moment the operations were put by the company for
acquisition or any other sale-related activity. There is no relationship with the payment of
these money operations (Eppler, and Mengis, 2014).
 Matching Concept: The matching concept is used to match the income which is earned by
the business and it also calculated all the expenses which is paid in respect to the accounting
year. The deduction of the year’s expenses is only done from the expenses which has been
earned as an income from the accounting period itself. Also, the expenses of depreciation is
the $14,782,000 in the year 2008 for financial and the deduction has been shown which has
been generated form the income part in the year 2018 only.
 Realisation Concept: The notion of realization enables the company to recognize income in
the declaration of gain and loss only when the requirements linked to the right to obtain
income are achieved. If the right to obtain the income is certain, the real distribution of the
company's income is not needed.
Also this type of concept is always applied on the Southern Cross Media Group which give
correct direction to the business so that the revenue recorded can be increased and the
probability of the economic gain benefits (Eppler, and Mengis, 2014).
 Dual aspect Concept: The implementation of this idea enables the company to pursue the
billing equation in an ideal way. The implementation of this notion calls for the impact on
two sides of payments, i.e. the loan side and the debit side.
Southern Cross Media Group's economic statements were ready by using the Dual Aspect
Concept. By use of this concept, two parties of the accounts have influenced the company
operations. Software acquisition has influenced both the money account and the property
account. The assets have been increased by $70,541,000 and cash balance has declined by
$70,541,000.