Accounting Theory - Assignment

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Added on 2021-05-31

Accounting Theory - Assignment

Added on 2021-05-31

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Running head: ACCOUNTING THEORYAccounting TheoryUniversity NameStudent NameAuthors’ Note

2ACCOUNTING THEORYMeasurement and Disclosure Components Policy for Plant, Property and EquipmentAs per annual report of the firm National Australia Bank, plant, property as well asequipment policy of the firm is registered to be $1315 million in 2017 in comparison to$1423 million. With the exclusion of freehold land, different items of plant, property as wellas equipment are necessarily depreciated using the straight line method of depreciation atspecific rates that is appropriate to the estimated economic life of the entire group. However,as mentioned in the annual report of the firm, for major categories of PPE, diverse annualrates of depreciation are as mentioned below:The other related party disclosures indicate towards the fact that other transactions withvaried controlled entities might perhaps engage property leases of different plant as well asequipment, provision of processing of data as well as intangible assets. The basis ofpreparation in the financial statements of the firm reflects standards of accounting along withinterpretations that are issued by particularly the Australian Accounting Standards Board(Gaffikin & Aitken, 2014). Also, the financial report of the corporation as well as the Groupconforms to the Australian Accounting Standards Board replicated by AASB as well as IFRSas pronounced by the International Accounting Standards Board. In case of the company Evolution Mining, plant, property as well as equipment aredepreciated using the formula of straight line method. This can be used to allocate costs andthis is net of residual values and this is over the approximated useful lives. In essence, therates necessarily vary between particularly 10% as well as 33% per year. Analysis of plant,property as well as equipment reveals accounting estimates along with judgements.

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