Financial Accounting

Running head: Financial Accounting
Financial Accounting
Name of the Student
Name of the University
Author Note

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Financial Accounting
Executive Summary
The report include about the financial accounting and how it help the company to record the
transaction as per the accounting standard and principles. It also records how the company
should record the intangible asset as per the standard. It contains the detail analysis of the
accounting standard in related to the intangible asset. It also have an analysis of the case
study related to the company Technology Enterprise Ltd and how they should able to record
the expenses in related to the intangible asset and also how they should value the intangible
asset in the company financial statements.

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Financial Accounting
Table of Contents
Introduction................................................................................................................................2
Reduction of Comparability of Financial Statements................................................................5
Understanding of AASB 138/ IAS 38........................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Financial Accounting
Introduction
The record of the company of financial activities are been done with the help of
financial accounting process. It check that the company have recorded all the transaction in
the financial books as per required by the standard of accounting. It inspect whether all the
accounting are done in the prescribed manner or not. In the given case it can be seen that the
company want to do the treatment of its intangible asset as it have done the research related
to the same so they should check the related accounting standard before doing any change
related to the company intangible asset (Aasb.gov.au 2019.). It should do all the related
transaction in the company account as per the accounting standard so that it will be able to
show a fair and value treatment of the company. It can be seen that the company have spend
an amount over the research and development of the intangible asset so that should also take
these into consideration while doing the accounting treatment of the intangible asset. It can
be see that the company belongs to the Australia so they should follow Australian accounting
standard and for related to intangible asset the accounting standard is AASB 138 (Arrighetti,
Landini and Lasagni 2015). The standard also includes the expenses which are been done in
related to the intangible asset as cost spend upon the research and development of the
company. It can be seen from the case study that Technology Enterprise Ltd have done an
research upon the intangible asset as they wanted to increase the useful life of the battery so
they have done modification in to with the help of the research. So the report is been based
upon the case study and show how the company have treated the intangible asset in the books
of accounts and also it should take into consideration the treatment regarding the expenses
which are been incurred related to the intangible asset (Bianchi 2017).
Accounting for the Project