Accounting Theory for AGL Energy Ltd: Analysis of Auditor and Annual Reports

Running head: ACCOUNTING THEORY
Accounting Theory
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1ACCOUNTING THEORY
Executive Summary
This delivers gives a vibrant idea approximately how accounting theories concepts is being used
in the corporate group in command to alleviate interior along with external risks. The report on
Australian Accounting Theory and Issues has been equipped rotating about the office system of
AGL Energy Ltd. There are subsequent notions such as accrual concepts, monetary
measurement, realization concepts, and periodicity along with business entity. This report
provides the critical analysis of auditor report along with the annual report. The report is being
concluded by recommendations based on the analysis that a listed company shall follow.

2ACCOUNTING THEORY
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conceptual Framework of Accounting........................................................................................4
General purpose financial statement............................................................................................4
Critical Review of the Auditor Report.........................................................................................5
Critical Review of Annual Report...............................................................................................6
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

3ACCOUNTING THEORY
Introduction
In the year 1837 at Sydney, New South Wales AGL Company was formed. In year 1837,
company provided town gas to provide lighting for the street lamp. It was second in number to
list in stock exchange. In the coming time company expanded in number of different locations.
The new listed company was restructured on 6thof October 2006 and was named as AGL Energy
Ltd. and Alinta Ltd. AGL Energy has set up some of the upcoming stream gas project. Recently
in November 2016 started the project of decommissioning as well as rehabilitation of wells in
Camden place.
Discussion
AGL Energy Ltd follows different theories of accounting along with set of assumption.
The analysis of accounting theory involves realization along with full disclosure. The business
functioning of AGL Energy key concepts are based on the theories of Australian Accounting
Standard Board. The theories and principle of accounting of AGL Energy delivers that all the
data regarding accounting along with fiscal terms information shall be reliable, comparable,
consistent and relevant with the AASB and rules regarding accounting.
The polices of accounting and the theories that are related to methods that is being
applied to the joint ventures are on a fundamental basis depended upon the way of recording
position of finance along with the outcome of operations. In order to maintain stability and
continue the smooth running of business operations the company makes certain assumptions.
The accounting of AGL Energy Ltd. follows going concern concept. This mean the company
deemed that the operations of the business would continue for an indeterminate time or up to
extent to full fill the present plans along with contracts. The company to prepare financial