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ACCTING 3500 - Accounting Theory & Contemporary Issues Report

   

Added on  2020-03-01

16 Pages2251 Words223 Views
Running head: ACCOUNTING THEORY & CONTEMPORARY ISSUESAccounting Theory & Contemporary IssuesName of Student:Name of University:Author’s Note:

1ACCOUNTING THEORY & CONTEMPORARY ISSUESExecutive SummaryThe study is intended to important concept which has been seen to be related to the show theaccounting methods adopted by Virgin Australia Airlines and Qantas Airways and various typesof the other notes from the Auditors Report, Remuneration Report and Financial reports. Thefinal section of the section of the study has been taken into account to discuss on the rationale forthe shareholders to invest. The main accounting standard has been identified with AASB andCorporations Act 2001. The chief aspect of prudence has been discerned with the delay in therecognition of the “AASB 15 Revenue from Contracts with Customers (AASB 15)” and“AASB 16 Leases (AASB 16)”.In terms of Qantas Airways Ltd, the assets is categorised as perthe assets held for sale and measured in terms of the fair value less cost of selling. The financialstatements preparation for Virgin Australia Airlines with the assets which are not held for theassessment based on leases to be categorised at fair value. The important aspect of Qantas Grouphas been seen with the decreased recognition as per straight line basis for PPE except forfreehold land. The depreciation and amortisation of the Virgin Airlines is taken intoconsideration as per the date they have been classified as being held for sale. The reduction onthe PPE is stated as per cost less “accumulated depreciation and impairment losses”.

2ACCOUNTING THEORY & CONTEMPORARY ISSUESTable of ContentsIntroduction......................................................................................................................................3Conceptual framework of Accounting for both the companies.......................................................3Prudence theory applied in both the companies..............................................................................4Criteria followed for financial data..................................................................................................5Rationale for the shareholders investing in the companies.............................................................6Conclusion.......................................................................................................................................7List of Appendix..............................................................................................................................8Reference List................................................................................................................................14

3ACCOUNTING THEORY & CONTEMPORARY ISSUESIntroductionQantas Airways owns Jetstar is considered as one of the discount priced airline operatorin Australia. JetStar carries more than 8.5% passenger from Australia itself. It has been furtherseen to operate as per the home and the international network from Melbourne Airport. Theprimary fleet of the airline operator has been seen to be acknowledged with the A320 and Boeing787 Dreamliner. Virgin Australia Airlines is discerned as the second principal airline carrier after QantasAirways. The airline company is seen to be based in Bowen Hills in Brisbane. It has been furtherseen to be considered in 1999 and operated in one route. The airline carrier is considered toexpand itself in 29 cities in areas such as Brisbane, Adelaide, Melbourne and Sydney. The objective has been seen to be based on the important concept which has been seen tobe related to the show the methods adopted by both the companies and various types of the othernotes from the Auditors Report, Remuneration Report and Financial reports. The final section ofthe segment of the lessons has been further able to discuss on the rational for the shareholders toinvest.Conceptual framework of Accounting for both the companiesIt has been observed that both the companies have been seen with “AASB andCorporations Act 2001”. It has been seen that financial report of both the companies has beenprepared as the IFRS. This standard is further seen to be issued by the international accountingboard. The important consideration for this has been based on the various types of theconsideration taken from the financial statements of both Jetstar Airways and Virgin Australia

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