Advance Financial Accounting: A Study on AGL Energy Ltd's Annual Report for 2017-18

Running head: ADVANCE FINANCIAL ACCOUNTING
ADVANCE FINANCIAL ACCOUNTING
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ADVANCE FINANCIAL ACCOUNTING1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
In Response to Question 1......................................................................................................2
In Response to Question 2......................................................................................................4
In Response to Question 3......................................................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10

ADVANCE FINANCIAL ACCOUNTING2
Introduction
The assignment actually deals with the chosen company which is the AGL energy ltd
where the annual report of the company for the year 2017-18. The AGL energy ltd is
basically the Australian Gas Light company which was actually formed in the region of
Sydney situated in Australia. The company which is AGL is the Sydney Stock Exchange or
rather falls under the top 200 ASX listed companies. Based on the accounting standard which
is AASB 16 and AASB 117 the transition of the accounting leases have been depicted in the
performed study. Based on the rules in the accounting standard the significant decisions in
that case are taken by the board of directors of the company.
Discussion
In Response to Question 1
There are actually some of the significant accounting policies which are actually
involved while preparing the annual report in the financial statement of the company in the
year 2018. The shares limit the shares of the entity in the business since its incorporation in
the business of the company. There are certain accounting activities which are further
associated with the chosen company in this case which are the AGL energy ltd. The
accounting activities in this case statement of compliance, basis of preparation, interpretation
of the new accounting standard, basis of consolidation, segment reporting, investments in
equity related features, joint operation and foreign currency transaction which are associated
in that case.
The principles of accounting is simply applied in many segments which is further
listed in the financial statement which is prepared by the company1. Some of the items in that
case are given bellow which are the trade and receivables, inventories, financial assets, loan
and receivables and impairment of financial assets in the business. The impairment of assets
1 Jones, M, Accounting. in , Chichester, England, Wiley, 2018.

ADVANCE FINANCIAL ACCOUNTING3
plays significant role in the evaluation of the techniques used in the accounting principle. The
senior level management of the company must take the significant initiative at time of
evaluating the accounting principle which is involved in this case.
At the time of the financial review it is quite important for the business to compare the
figures based on the comparative figures by implementing the new standards which is
involved in this case. Following the financial standard in the business of the company will
take the performance of the business to the next level. The principle activities which is
actually related to the business of the investments and business energy. The significant
changes in the principle activities of the company in that case is needed for various purposes
which are the gas storage electricity generation, gas to residential and wholesale customers
approach in the business of the company.
The senior level management of the company actually follows the rules which are
related to the numerous accounting policies involved in that case. The main accounting
principle which is used in this case in the annual report of the company which is going
concern concept of the business. The generally accepted accounting principle is used in order
to make the transaction successful and it is also to follow the rules and regulation related in
that case. The accounting standards is basically complied in order to ensure that the financial
statement of the company is free from all sorts of material misstatement. The basics of the
management system of the company is further adjusted with the main tools and techniques
involved in that case. The principles, which is adjusted in that case, are further depended on
the certain norms associated with it.
The accounting policies actually creates impact on the operations in case of the equity
and accounting statement of the disclosure in the accounting policies in the statement of the
company. The investment, which is made in the business of the company, is further taken