logo

Accounting Policies and Estimates Used by Firm

   

Added on  2020-04-07

20 Pages4104 Words83 Views
RUNNING HEAD: Accounting policies and estimates used by firm1Name of the Student-Title- Accounting and reporting frameworks University Name-

Accounting policies and estimates used by firm2Table of ContentsIntroduction.................................................................................................................................................3Accounting policies and GAAP rules followed by Atlassian Software company...........................................4Estimates used by Atlassian Software Company.....................................................................................5Estimates used by rivals...........................................................................................................................6Comparison of accounting policies and estimates used by Atlassian Software Company and Morrison plc............................................................................................................................................................7Assesse accounting flexibility..................................................................................................................9Evaluation of accounting strategies and policies.........................................................................................9Changes in accounting estimates by the Atlassian Software Company.................................................10Suggestion for accounting policies and estimates prepared by Atlassian Software Company..............11Red flag in accounting report of Atlassian Software Company..................................................................12Conclusion.................................................................................................................................................15References.................................................................................................................................................16Appendix...................................................................................................................................................19

Accounting policies and estimates used by firm3Introduction With the increasing ramification of economic changes and complex business structure,each and every company in Australia has to report their financial statement by following properlevel of GAAP rules, regulations and international financial accounting standard. There areseveral normative and positive theories of financial accounting which could be undertaken bycompany to prepare their financial statements in determined approach. In this report, accountingstandards and policies followed by Australian listed company has been followed in determinedapproach. There are several Australian companies which have been following IFRS standardsand GAAP rules while reporting their financial statements with reporting authorities oninternational level. However, due to increasing complexity and different legal compliance, thesecompanies have been facing problem in establishment of harmonization in their accounting andreporting frameworks. In this report, estimation of the financial data has been reflected. Afterthat, red flags and problems have been identified which reflects company’s reporting formats.Ideally, in case of conflict between IFRS standards and GAAP rules, company override GAAPrules with IFRS standards while following accounting and reporting frameworks. Accountingpolicies could be defined as set of rules, accounting standards and policies which are used byorganization to prepare accounting and reporting frameworks. It is evaluated that accountingpolicies adopted by company depends upon the management and accounts discretion. In thisreport, Atlassian Software Company has been taken into consideration and after evaluating theaccounting and financial frameworks, various red flags and estimation has been found.

Accounting policies and estimates used by firm4Present description of organizationIn this report, Atlassian Software company has been taken into consideration to identifythe estimates in accounting reporting and red flags which company has faced in its reportingframeworks. It is an Australian supermarket company trading as supermarket chain and sellinggoods and service to clients through its off line and online supermarket channel. The CEO ofcompany is John Durkan and having more than 1, 17,000 employees. This company hasfollowed proper IFRS standards and GAAP rules to establish harmonization in GAAP rules andInternational accounting standards in its reporting frameworks (Kieso, Weygandt and Warfield,2010) Accounting policies and GAAP rules followed by Atlassian Software companyWith the increasing international business of Atlassian Software company, it has followedvarious accounting policies and GAAP rules in its accounting and reporting frameworks(Irvineand Moerman, 2017).Atlassian Software company, in its depreciation charging method has followed straightline method to identify present value of assets. However, this method has showninefficiency in showing the true value of assets and will result charging less amount ofdepreciation as compared to overall assets value. (Hussey and Ong, 2017).Company has recorded all of its lease transactions as per AASB16 rules and standards.Atlassian Software Company has implemented provision of right of use assets inreporting of its underlying leased assets. However, the leased expenses charged bycompany have been treated as capital expenditure.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment on Accounting and Reporting Frameworks
|19
|4041
|41

Report On Accounting Policies Wesfarmers Plc
|18
|3454
|240

Accounting Policies and Estimates Used by BHP Billiton
|10
|1514
|340

Accounting Polices and Approaches Report
|17
|4166
|64

Assignment on Accounting - Telstra
|17
|4247
|224

Accounting Theory and Issues.
|17
|3950
|58