ACCT6003 Financial Accounting Processes: Assignment 1

ACCT6003 Financial Accounting Processes
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Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................5
References........................................................................................................................................7
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Question 1:
Financial reporting council:
Institutions Particulars
FRC Objectives:
The main objective of the council is to
formulate such accounting policies and
frameworks which lead are useful for
organisation development and formulation.
Strategic plan:
Financial reporting council is a major
organisation which looks after the financial
framework in Australia. Its major objective is
to set accounting and auditing standards. This
council was set up in the part 12 of ASIC act
(Australian securities and investments
commission) (Australian government, 2018).
Standard setting functions:
Its main core business is to develop standards
and auditing standards. It also monitors the
standards and tries to formulate such
accounting standards and auditing standards
for international companies. It appoints
members in AASB and AUASB and monitors
its plan, budgets and organisation structure.
Committees:
FRC Nomination committee is formed to
provide advice to AASB and AUASB
(Australian government, 2018).
The international accounting standards
board
Mission statement: its major mission is to
bring transparency and effectiveness.
Work plan as at May 2016: it reviewed
trustee’s strategy, with the reaffirmation of
Indonesia, issuance of IFRS 16 leases etc.
Interpretation committee’s activities: This
committee asks for queries and submit answers
(IFRS, 2018).
Standard setting process: the standard setting
process includes agenda consultation and
research programme, standard setting
programme and maintenance programme
(Australian government, 2018).
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The Australian Accounting Standard Board Its functions, vision and mission: The main
functions are to formulate standards, and
formulate a platform which provides
transparent accounting standards.
Standard setting process: the setting process
includes identification of technical issue,
further making research and consideration of
issue, formulates consultation document, and
makes submissions, final standard, then
making awareness and lastly, post
implementation review (ASIC, 2018).
Name five projects in the AASB standard
setting work program as at April 2016:
AASB 13 for public sector entities
Australian financial reporting framework
AASB guidance to tax transparency code
Cooperatives and mutual entities
Long term discount rates (ASIC, 2018).
Name five projects in the AASB research
centre work program as at April 2016:
IASB conceptual framework
Building on measurement aspects of IASB
conceptual framework (ASIC, 2018).
The Australian securities and investment
commission
ASIC’s roles: its role is to regulate corporate
market and consumer credit regulator
Consultation papers issued:
CP 145 Australian equity market structure
CP 142 Related party transactions
CP 143 Export reports and independence of
experts: updates to RG 111 and RG 112
CP 127 schemes of arrangement: statements
under s411 (1) (b) (ASIC, 2018).
10 ASIC inquiries:
Business name-renewal
Company account payment
Business name: change of ownership
Business name: browser compatibility
Business name: request ASIC key
Company address changes
Company: how to close
Company fee waivers
Company: role of office holders (ASIC, 2018).
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Question 2:
1)
A small business can be set up through ABN number and with a separate business name. A
business needs an owner and he is solely responsible for business liabilities. For conducting the
business activities, a separate bank account must also be opened. These are mandated options
which are used for setting up a small business (Business.gov.au, 2018).
2)
Rights of a director:
 To present true and fair view about organisation internal affair and also act in the best
interest of the company.
 To take care with due diligence.
Obligations of a director:
 It is obliged to build positive relationship between directors and shareholders.
 During liquidation, report things to liquidator.
3)
Funding options for company:
Loans and borrowings: In this segment, loans and borrowings through banks and financial
institutions. These banking companies easily provide loans for companies (Australia
government, 2018).
Private equity: Individuals’ with high net worth interestingly invest their amount to innovative
ventures and explore such opportunities. These opportunities provide large amount of investment
funds and companies can easily take up such ventures.
Angel investment: Angel investors are the investors who interestingly take up new projects and
opportunities for making investment (Australia government, 2018).
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4)
Financial reports and requirements:
Since Xiaojing's is establishing itself as a proprietary company; it would need to publish its
annual reports every year, it’s also need to publish its director’s report and independent report. It
financial requirements are to about disclose director’s details, it also maintains shares and shares
register, accounting books and ledgers and other books as required. These must be maintained
for specific period of time (Business.gov.au, 2018).
5)
Management of financial difficulties:
There is large number of financial difficulties which comes across in an organisation and faces
various challenges such as appointment of directors, auditors, financial burden, and obligations
etc. (Business.gov.au, 2018).
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References:
 AASB, 2018. AASB work program. [Online] aasb.gov.au. Available at:
http://www.aasb.gov.au/Work-In-Progress/AASB-Work-Program.aspx. (Accessed as on:
16th March, 2018).
 ASIC, 2018. Director’s key responsibilities. [Online] asic.gov.au. Available at:
http://asic.gov.au/for-business/your-business/tools-and-resources-for-business-names-
and-companies/asic-guide-for-small-business-directors/directors-key-responsibilities/.
(Accessed as on: 16th March, 2018).
 ASIC, 2018. Small business. [Online] aasb.gov.au. Available at:
http://sitesearch.asic.gov.au/s/search.html?
query=small+business&collection=asic&profile=asic. (Accessed as on: 16th March,
2018).
 Australia government, 2018. Federal register of legislation. [Online] legislation.gov.au.
Available at: https://www.legislation.gov.au/. (Accessed as on: 16th March, 2018).
 Australian government, 2018. About the FRC. [Online] gov.au. Available at:
http://www.frc.gov.au/. (Accessed as on: 16th march, 2018).
 Australian government, 2018. Committees. [Online] gov.au. Available at:
http://www.frc.gov.au/committees/. (Accessed as on: 16th march, 2018).
 Australian government, 2018. Home. [Online] aasb.gov.au. Available at:
http://www.aasb.gov.au/Home.aspx . (Accessed as on: 16th march, 2018).
 Australian government, 2018. Research centre. [Online] aasb.gov.au. Available at:
http://www.aasb.gov.au/Research-Centre.aspx. (Accessed as on: 16th March, 2018).
 Business.gov.au, 2018. Director’s obligations. [Online] businessaasb.gov.au. Available
at: https://www.business.gov.au/search?q=directors+obligation. (Accessed as on: 16th
March, 2018).
 IFRS, 2018. About us. [Online] gov.au. Available at: http://www.ifrs.org/about-us/who-
we-are/#about-us. (Accessed as on: 16th march, 2018).
 IFRS, 2018. How we set IFRS standards. [Online] ifrs.org. Available at:
http://www.ifrs.org/about-us/how-we-set-standards/. (Accessed as on: 16th march, 2018).
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