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ACC 303 - Accounting Conceptual Framework | Virgin & Qantas Airways

   

Added on  2020-03-13

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Running head: CONTEMPORARY ISSUES IN ACCOUNTINGContemporary Issues in AccountingName of Student:Name of University:Author’s Note:
ACC 303 - Accounting Conceptual Framework | Virgin & Qantas Airways_1
1CONTEMPORARY ISSUES IN ACCOUNTINGExecutive SummaryThe study deals with current accounting conceptual framework of Qantas Airways and VirginAirlines. It has been further able to examine whether the current accounting standards complywith the requirement prescribed by AASB. The report has also check whether for the company’sfinancial reporting shows the conceptualization of prudence. The final section of the report hasbeen further able to state the rational for investing in the companies. Both the airline operators’compliance with the conceptual framework has been identified with “AASB” and “CorporationsAct 2001”. The delay in the acceptability of the new accounting standards has further depictedcompliance with the prudence theory. Recognition of the depreciation of assets has beenconsidered based on straight-line method. The report has been further able to evaluate that theinvestors should be particularly looking forward to the increasing PBT of $ 975 m in 2015 to $1532 in 2016 for Qantas.
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2CONTEMPORARY ISSUES IN ACCOUNTINGTable of ContentsIntroduction......................................................................................................................................3Conceptual framework of Accounting for both the companies.......................................................4Prudence theory applied in both the companies..............................................................................4Criteria followed for financial data..................................................................................................5Rationale for the shareholders investing in the companies.............................................................6Conclusion.......................................................................................................................................8List of Appendix..............................................................................................................................9References......................................................................................................................................15
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3CONTEMPORARY ISSUES IN ACCOUNTINGIntroductionJetStar is considered as a brand of Qantas Airways, which is known to be supreme in thelow-cost airline operating division in Australia. It is responsible for carrying more than 8.5% ofpassengers alone in the country. The main operations are seen to extend from home tointernational network with its destined airport in Melbourne. The main tie-ups have beenidentified in terms of Airbus A320 and Boeing 787 Dreamliner (Qantas.com. 2017).Virgin Australia Airline established in 1999 is considered as the predecessor of Qantas Airways.The main operation of the airline company is based in Bowen Hills in Brisbane. The mainoperations of the aircraft are seen to be based on a single route. So far Virgin Australia has beenable to expand itself across 29 cities including some of the most noted one such as Brisbane,Adelaide, Melbourne and Sydney (Virginaustralia.com. 2017).The main intention of the study is to show the current accounting framework andexamine whether the current accounting standards comply with the requirement prescribed byAASB. The report has also check whether for the company’s financial reporting shows theconceptualization of prudence. The important source to consider the evaluation has been donebased on intangible assets, tangible assets, the precision method and various findings from theannual general meeting report. The latter part of the study has been able to highlight on thereason of shareholders investing in the companies.
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