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Key Accounting Policies of Telstra Corporation

   

Added on  2023-03-30

14 Pages1620 Words333 Views
Running head: ACX3150
ACX3150
Name of the Student:
Name of the University:
Authors Note:

1
ACX3150
Contents
Introduction:....................................................................................................................................2
Key accounting policies:..................................................................................................................4
Accounting flexibility:.....................................................................................................................7
Accounting Strategy:.......................................................................................................................8
Comparative analysis:......................................................................................................................8
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

2
ACX3150
Introduction:
Telstra Corporation is an Australian telecommunication company and an important
constituent of Australian Stock Exchange. In fact it is the largest telecommunication company in
the country. Australian companies are required to comply with the Australian standards on
accounting, shortly denominated as AASBs to record financial transactions and compile financial
statements from such accounting records. A brief discussion on the accounting policies followed
by the company shall be discussed here in this document.
Extract of Balance sheet containing the values of different assets only to comment on the key
accounting policies used to value the assets of the company:
The extract below has been prepared from annual report of Telstra over the years to help the
readers to understand key accounting policies followed by the company.
Assets of TELSTRA CORP LTD
All amounts are in AUD million 2014-06 2015-06 2016-06 2017-06 2018-06
Assets
Current assets
Cash 5,527
.00
1,396
.00
3,550
.00
938
.00
629
.00
Accounts receivable 2,950
.00
3,438
.00
3,343
.00
3,635
.00
3,146
.00
Inventories 362 491 557 893 801

3
ACX3150
.00 .00 .00 .00 .00
Deferred income taxes
2.00 9.00 8.00
1
1.00 6.00
Prepaid expenses 329
.00
346
.00
426
.00
531
.00
548
.00
Other current assets 1,268
.00
1,290
.00
1,456
.00
1,854
.00
1,947
.00
Total current assets 10,438.
00
6,970
.00
9,340
.00
7,862
.00
7,077
.00
Non-current assets
Gross property, plant and
equipment
62,668.
00
65,329.
00
64,960.
00
64,312.
00
64,949.
00
Depreciation (accumulated) (42,826.
00)
(44,879.
00)
(44,379.
00)
(42,962.
00)
(42,841.
00)
Net property, plant and
equipment
19,842.
00
20,450.
00
20,581.
00
21,350.
00
22,108.
00
Equity and investments 323
.00
338
.00
565
.00
486
.00
1,273
.00
Goodwill 395 1,652 1,346 1,269 1,049

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