Accounting Theory and Issues - AMP Limited
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Added on 2020-10-22
Accounting Theory and Issues - AMP Limited
Added on 2020-10-22
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Accounting theory andissues
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31. Providing the critical analysis of the annual report of the AMP Limited, consideringAASB..........................................................................................................................................3Background.................................................................................................................................32. Provide a comparison with other corporations listed on the ASX and how well you thinkyour corporation has performed..................................................................................................63. Providing the recommendation for the company to invest with the 10000 dollars. ............10CONCLUSION ............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONAccounting plays an important role to identify the financial position of the business. Thepresent report will provide the analysis of the annual report of the AMP limited. In this report thebrief synopsis of the Australian Accounting Standards Board and its framework with corporationlaw will be discuss. The report will also provide the deep insight of the comparison of AMPLimited with other organization listed in the Australian stock exchange in which the twofinancial data has been drawn for the best comparison. Later it will provide the recommendationon the basis of annual report that whether company should invest or should not invest. 1. Providing the critical analysis of the annual report of the AMP Limited, considering AASB.BackgroundAMP limited is the organization which provides the financial services in Australia. Itdeals with the superannuation and investment products, financial advice, banking products andinsurance including the home loans and saving accounts. Its shares are included in the Australiansecurities exchange board and it is headquartered in Sydney. AMP Limited is deal with the four main business Advice and banking:The organization gives the advice for the financial planning,superannuation services, and the banking products. Insurance and superannuation:It also provides the personal risk insurance productsand self managed super fund administration, support and design (Schaltegger and Burritt, 2017).Customer solution: the AMP limited also deals with the solution of the customers i.e.the company focuses on the needs and wants of the customers needs, takes sales offers to themarket and handles the market efforts. AMP Capital: is one of Asia Pacific's largest investment managers. Through a team ofinvestment professionals across the world, it invests in equities, fixed interest, infrastructure,property, diversified funds and multi-manager funds.Australia's accounting standards were initially developed by the master accounting bodiesand were enforceable under the code of ethics (Yong Lim and Tan,2016). In the starting of 1984the ministerial council for the companies and securities establish the accounting standards reviewboard to oversee the standards made by the profession and furnish them the force of companylaw, where approved by the ASRB.
AASB Policies and processes outlines the AASB's function and how goes about its work.The Australian accounting standards boards is a government agency of an Australia thatdevelops and maintains financial reporting standards appropriate to the organization in the publicand private sectors of the Indian economy. It facilitates the participation of the Australiancommunity in global standard setting and also provides the huge contribution to the developmentof the global financial. The functions and powers of AASB, s are set out in the Australianssecurities and investment commission act 2001. Conceptual framework of the AASB Reporting standardsFollowing are the Australian accounting standards that AASB has made, including theinterpretations, to be applied by. Firms need by the corporation act 2001 to make the financial reports (Ryan and et.al. ,2014). Preparation of the financial statements including the whole government and the generalgovernment sector. The differentials reporting framework consisting of two tiers of reporting for the purposeof preparation of the financial statements of AMP limited is being establish by the Australianaccounting standards. Tier 1: Australian's accounting standards Tier 2 : Australian's accounting standards – Reduced Disclosure Requirements. The requirements of tier 1 is IFRS i.e. international financial reporting system whichincludes all the interpretation, issued by the IASB ( international accounting standard boards).According to 1035 organization needs to adopt the tier 1 requirement as a framework ofthe organization (Otley, 2016). Tier 2 requirements consist the acknowledgement, measurement and demonstrationrequirements of Tier 1 but considerably weakened disclosure requirements in comparison withTier 1. Adopted standards Since 2002, the AASB enforced the wide plan of action from the Australian FinancialReporting Council (FRC) to adopt international accounting standard boards to overwrite thefinancial reporting period which was from I January 2005.
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