Advance Financial Accounting TABLE OF CONTENTS INTRODUCTION 1 MAIN BODY1 Coca Cola Amatil
Added on 2021-02-20
10 Pages2996 Words386 Views
|
|
|
AdvanceFinancialAccounting1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1The accounting concepts used by Coca Cola Amatil according to the company's annual report.......................................................................................................................................................1Changes adopted in the new accounting standard for lease AASB 16 with examples................3Summarising the key disclosures the company has made on its accounting for leases includingon the transitional provision and effect of the transition to AASB 16 from AASB 117.............4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................12
INTRODUCTIONAccounting concepts are the basic rules and principles that serves as a guideline forrecording business transaction and in preparation of final accounts. The Coca-Cola Amatil wasestablished in 1904 and is owned by Coca-Cola group, HSBC and National nominees. It operatesin major countries like Australia, New Zealand, Indonesia and Fiji and has more than 14700employees worldwide. It produces alcoholic, non-alcoholic drinks, sparkling water and energydrinks. AASB 16 is basically concerned with leasing and the contract made between lessee andlessor. Also, it emphasises the determination of lease arrangements and their treatment in thefinancial statements. The current study will highlight the accounting concepts used by Coca-ColaAmatil, new changes incorporated in the accounting standard for lease and the effect of changeto AASB 16 from AASB 17.MAIN BODYThe accounting concepts used by Coca Cola Amatil according to the company's annual report.It is imperative for every company to follow the accounting concepts in order to ensuresmooth preparation of financial statements and to easily record business transactions. Theaccounting principles and concepts of Australian companies are governed by AASB (Australianaccounting standards board) and their main objective is to ensure uniform standard foraccounting and also to protect the interest of shareholders, creditors as well as investors. TheAASB became applicable from 1st January 2019 and for companies whose financial year ends on30th June the new law became applicable on 1st July 2019.The main objective behind AASB 16 is to clearly reflect every company's liabilities byproviding transparency about leasing activities, capital employed and financial leverage. Thiswill further help the shareholders, investors and creditors to compare the financial position of acompany that borrows funds to purchase financial assets and another company that leases thefinancial assets. The major transitions a business needs to do is to is top identify whether theyleased any assets from another party and secondly they must also identify the value of affectedassets and liabilities (Varsamis, et.al.,2017).Coca Cola Amatil follows all the accounting concepts framed by AASB in order toprovide fair business information to the stakeholders. Some of the concepts followed by theorganization are as follows1
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
This company is composed of the parent companieslg...
|10
|1842
|24
Financial Statements of Coca Cola Assignmentlg...
|12
|3117
|105
Accounting Theorieslg...
|14
|4032
|206
Contemporary Issues in Accountinglg...
|19
|2417
|346
CCA's Financial Statement and Stakeholder Relationshiplg...
|17
|4212
|285
Bottom Line of AASB 16/ IFRS 16lg...
|6
|2024
|86