Accounting Standards and Practice

Running head: ACCOUNTING STANDARDS AND PRACTICE
Accounting Standards and Practice
Name of the Student:
Name of the University:
Authors Note:
0 | P a g e

ACCOUNTING STANDARDS AND PRACTICE
Table of Contents
Executive Summary:..................................................................................................................2
a) Discussing how professional judgement is applied to the accounting policies and the uses
to measure Property, Plant and Equipment (PPE) for FY2019:.................................................2
b) Critically evaluating and discussing whether the professional judgment applied in
accounting estimates and policies of PPE:.................................................................................4
c) Critically evaluating and discussing whether the policies of PPE reflects the qualitative
characteristics of Conceptual Framework:.................................................................................5
References and Bibliography:....................................................................................................8
Appendix:...................................................................................................................................9
1 | P a g e

ACCOUNTING STANDARDS AND PRACTICE
Executive Summary:
The overall assessment aims in evaluating the accounting policies of CSR Limited for
the financial period of 2019. The relevant information of Property, Plant and Equipment
(PPE) for FY2019 has been evaluated for determining the accounting policies that have been
used for finalising the financial report of the organisation. The further analysis has been
conducted for detecting the level fairness in the judgement that has been deployed by the
professional of CSR Limited, while applying the relevant accounting policies for their PPE.
Lastly, critical evaluation has been conducted for determining whether the accounting
policies are in lieu with the Conceptual Framework that is used by the organisation, while
preparing their financial report.
a) Discussing how professional judgement is applied to the accounting policies and the
uses to measure Property, Plant and Equipment (PPE) for FY2019:
The financial report of CSR Limited during 2019 has been prepared in accordance
with the relevant accounting policies that has been estimated for measuring its Property, Plant
and Equipment. In addition, the organisation has depicted in the annual report the relevant
information regarding the Recognition and measurement of Property, Plant and Equipment.
Figure 1: Recognition and measurement used by CSR Limited
(Source: Csr.com.au 2019)
The above figure provides information regarding the recognition and measurement of
Property, Plant and Equipment, which has been evaluated for understanding fair value of the
asset. In addition, the evaluation would essentially help in determining the judgment of the
expert made for the organisation, while supporting all the accounting policies. Schaltegger
and Burritt (2017) indicated that with the help of accounting polices companies are able to
determine the fair value of their assets, which can be depicted in their financial report.
2 | P a g e

ACCOUNTING STANDARDS AND PRACTICE
The professional judgments applied by the organisation directly helps in formulating
the Property, Plant and Equipment, which formulate the measures that has been conducted for
detecting the actual fixed assets of the organisation. The professional judgment that is
associated with Property, Plant and Equipment is the detection of depreciation, impairment,
and type of assets used in the PPE. The analysis of the annual report of CSR Ltd has mainly
indicated that the organisation has used the professional judgement, where adequate discloser
is conduct on accounting amortization/depreciation, accounting measurement and
depreciation used for their PPE.
The relevant Judgment/Estimation has been conducted regarding the asset impairment
of CSR ltd, which helps in determining the overall impairment cost. The judgement mainly
allows the group to test the property, plant and equipment for detecting the levels of
impairments, as it ensures that it is not carried above the recoverable amounts. The judgment
followed by the organisation is limited to the following conditions
 at least annually for goodwill and trade names with indefinite lives; and
 where there is an indication that the assets may be impaired (which is assessed at least
each reporting date).
Therefore, the organisation is using AASB 136 Impairment of Assets to determine the
correct value of Building Products and Glass segment. Moreover, the deprecation years of 10
to 40 years have been used for plant and equipment conditions, as it helps in portraying the
correct financial strength of their assets in the annual report. Thus, CSR does not depreciate
Land, goodwill and trade names, as their values tends to change over the period of time.
Therefore, the depreciation levels between 10 to 40 years would ensure that the cost of
depreciation is smoothly spread out to reduce the impact on their profitability conditions.
3 | P a g e