ASSIGNMENT ON ACCOUNTING THEORY.

Running head: ACCOUNTING THEORY
Accounting Theory
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING THEORY
Table of Contents
Section 3. Part A: Presentation of Statement of Financial Position........................2
Introduction........................................................................................................ 3
i) Format of Presentation.................................................................................... 3
ii) Current Assets................................................................................................ 3
iii) Interest Bearing Liability as Non-current Liability..........................................4
iv) Provision........................................................................................................ 4
v) Deferred Tax Assets and Liabilities................................................................4
Conclusion.......................................................................................................... 5
Section 4. Part B: Accounting Policies and Sustainability Reporting......................6
Introduction........................................................................................................ 7
(i) Recognition and Measurement Components for Property, Plant and
Equipment.......................................................................................................... 7
(ii) Comparison of Accounting Policies for Property, Plant and Equipment.........8
(iii) Governance Mechanism...............................................................................9
(iv) Risk Management System............................................................................9
(v) Guidance for Implementing Environmental and Social Performance...........10
(vi) Reasons for Varying CSR Voluntary Disclosure..........................................10
Conclusion........................................................................................................ 11
References........................................................................................................... 12

2ACCOUNTING THEORY
Section 3. Part A: Presentation of Statement of Financial Position
Executive Summary
It is one of the major responsibility of the firms to prepare and present all
financial statements in accordance with prescribed formats, rules and
regulations; and it includes the statement of financial position. As per the
analysis of the report, the correct format of presentation as well as the required
standards and principles have been followed by Coles Group in order to prepare
and present this statement. Moreover, appropriate rules, regulations, principles
and standards have been followed by the company in order to account for the
substances of this statement.

3ACCOUNTING THEORY
Introduction
Investors of the companies put major significance in the information in the
statement of financial position in which the managements of the companies
disclose the information associated with the business assets, liabilities and
equity; and therefore, investors can acquired crucial knowledge on the present
financial position of those companies. Since this particular statement of major
importance, the companies are required to be careful in the preparation and
presentation of it that means all the required laws and rules need to be followed
in the process to prepare and present it (Świderska, Borowski & Kariozen, 2014).
The objective of this report is the analysis of different crucial substances in this
particular financial report of Coles Group (Coles).
i) Format of Presentation
Current or Non-Current Presentation and Liquidity Presentation are the two
formats to present the statement of financial position as prescribed in AASB 101Presentation of Financial Statements (aasb.gov.au, 2019). There is no
segmentation of assets and liabilities in liquidity presentation format whereas
assets are segmented into current and non-current assets and liabilities are
segmented into current and non-current liabilities in the current or non-current
presentation format (aasb.gov.au, 2019). Since assets and liabilities presented
by Coles are further segregated into current and non-current assets and
liabilities, the format of current or non-current presentation has been adopted by
Coles (colesgroup.com.au, 2019).
ii) Current Assets
For criteria need to be satisfied for the classification of the current assets
by a firm as per Para 66 of AASB 101. The first condition is the realisation of the
asset by the firm in the normal business cycle for selling it. The second condition
is the possession of the asset by the firm in order to interchange. The third
condition is the realisation of the asset by the firm within one year after the date
of it reporting. The fourth condition is the restriction by the firm on the asset to
be used or exchanged in order to settle liability at least one year after reporting
period (aasb.gov.au, 2019).
Trade and other receivables and inventories are two types of current
assets in Coles. As per Coles, trade and other receivables are of short-term
nature that are expected to be realized within one year of reporting date.
Inventories are expected to be realized or sold within one year in the normal