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Accounting Standards in Woolworths

   

Added on  2021-05-31

11 Pages2338 Words162 Views
Running head: ACCOUNTING STANDARDS IN WOOLWORTHSStructured Literature Review on Accounting Standards in WoolworthsName of the University:Name of the Student:Authors Note:

ACCOUNTING STANDARDS IN WOOLWORTHS1Table of ContentsBrief Summary of the Theory..............................................................................................2The Common Themes and Finding from the Articles.........................................................2The Difference in Themes and Finding from the Articles...................................................4Managerial Implications of Four Articles............................................................................6Study Limitations and Future Research...............................................................................7References............................................................................................................................8

ACCOUNTING STANDARDS IN WOOLWORTHS2Brief Summary of the TheoryWoolworths Limited is considered amongst on the of the largest retailers in Australia andNew Zealand with various retail and wholesale stores in the aforementioned regions.Woolworths Limited has several businesses which includes food, liquor and petrol retail outlets,hotels as well as home improvement stores. It also deals in property dealings. AustralianAccounting Standards Board, (2016) elaborated that the organization, being an Australian firm,follows Australian Accounting Standard. These standards are issued by Australian AccountingStandard Board (AASB), an agency which is maintained and closely monitored by the Australiangovernment. the Australian Accounting Standard Board contributes significantly to the progressof global financial reporting standards and enables the participation of the Australian communityin order to comply with the global accounting standards. Howieson (2017) stated that theAustralian government has adopted the International Financial Reporting Standards (IFRS) whilewent on with some modifications which includes removal of a few options as well as addition ofsome of the disclosures. The Australian Accounting Standards also follows the compliance so asto comply with International Financial Reporting Standards (IFRS). The Australian Accountingstandard also provides an option to adopt the 'Reduced Disclosure Requirements' (RDR) with afew exceptions. The Common Themes and Finding from the ArticlesThe common themes and finding from the articles “An investigation into the roles,characteristics, expectations and evaluation practices of audit committees” and “Harmonizationof international accounting standards: Is it possible?” are mentioned and justifies below:

ACCOUNTING STANDARDS IN WOOLWORTHS3Theme 1: Woolworths Follows the Australian Accounting StandardThe article “Harmonization of international accounting standards: Is it possible?.Journalof Accounting Education” indicated that Woolworths Limited, which is a domiciled in Australiais considered under the category of ‘for-profit’ company. Hence, the figures present in theconsolidated financial report of the company is generally is Australian Dollar AUD and theamount is being stated as per the law, in accordance with ASIC Corporations LegislativeInstrument 2016/191. Martinov-Bennie, Soh and Tweedie (2015) stated that the historical costbasis is followed to prepare the Consolidated Financial Statement excluding the financial assetwhich is ascertained through fair value method. Moreover, the fair value method is also followedin calculating the income, derivatives as well as other financial liabilities as per the accountingpolicies. Furthermore, the consolidated Financial Statement of the company also follows therules set by ‘Corporations Act 2001’ as well as Australian Accounting Standards andInterpretations. As mentioned above, Sutton (2014) elaborated that the Australian AccountingStandards maintains close parity with the International Financial Reporting Standards (IFRS) andcomplying with AASB ensures the compliance with IFRS. Hence, the report which is preparedby Woolworths Limited is according to IFRS. The basis of consolidation is as per the standard set by the AASB, as the consolidatedFinancial Statement includes all the subsidiaries on which the company has control and mayaffect the same by accessing its powers but if its control ceases, then the particular subsidiarywill be deconsolidated. Moreover, the intra-group balances and transactions are eliminated fromany such consolidations. All the imperative component of the financial statement is inaccordance to the Australian Accounting Standard.

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