Assignment On Accounting Concepts

Added on - 25 Sep 2019

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ADVANCE FINANCIAL ACCOUNTINGREGIS RESOURCES1
Table of ContentsIntroduction........................................................................................................................3Conceptual framework along with measurement issues...................................................5Fundamental qualitative characteristics (understanding of relevance as well asrepresentational faithfulness)............................................................................................6Conclusion.........................................................................................................................8Reference List....................................................................................................................92
IntroductionThe current study is conducted with the aim of shedding light on different accountingconcepts, conceptual framework, issue of measurement and the fundamental qualitativecharacteristics associated with financial reporting practices. In order to meet thepurpose of the current study, an Australian company named Regis Resources Limited isselected and its latest annual report is reviewed. This study also includes a conclusionby stating the significance of accounting concepts, and compliance with the conceptualframework as well as the fundamental qualitative characteristics of financial reporting toensure the truthfulness and reliability of the annual financial statements to thestakeholders or users of such statements.Regis Resources Limited is an Australian gold exploration and production company. Itwas established in the year 1986 and since its incorporation, it is operating successfully.It uses to operate its business with a highly effective and a team of proven managementwhich has a successful track record associated with the development of mid-sized goldoperations in Australia and Africa. Regis Resources Limited is a pure gold miner ofAustralia involved in two gold projects such as McPhillamys Gold Project and DuketonGold Project in the Central Western region and in North Eastern Goldfields of WA(Western Australia) of NSW (New South Wales) respectively.This both these twoprojects Regis Resources have own hundred percent interests (bloomberg.com, 2019).In the financial year 2018, the company becomes able to increase its net profit frombusiness than the previous financial year and have generated $174,231,000 net profit inthis year (regisresources.com.au, 2019).Description of the accounting conceptAccounting concepts means a set of accounting rules that are required to be applied aswell as followed in an appropriate manner while preparing annual or periodic accountsand financial statements.In accordance with business and operational structure,different types of accounting concepts are used by different business organisations(Horngrenet al.2012). As per the annual report ofRegis Resources Limited, thiscompany follows going concern concept for accounting purpose and the purpose ofpreparing periodic financial statements. According to the going concern accountingconcept,Regis Resources Limitedprepares its periodic financial statements byassuming that it will remain in the market and will continue its business operations in thecoming financial years. Under this assumption,Regis Resources uses torecognise itsrevenue and expenses that could be deferred to the future financial period as it iscontinuing its business operations. Otherwise, the expenses that are recognised wouldbe accelerated into the current period. According to the going concern concept ofaccounting, a company (here,Regis Resources)prepares its accounts by consideringits business operations in a growing and well-maintained way and its ability to continueits business operations in the coming future. Furthermore, going concern concept of3
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