ADVANCE MANAGEMENT ACCOUNTING.

Running Head: ADVANCE MANAGEMENT ACCOUNTING
ADVANCE MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

1ADVANCE MANAGEMENT ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Accounting Concepts.............................................................................................................2
Conceptual Framework and Issues of Measurements............................................................5
Fundamental Qualitative Characteristics- Relevance and Representational Faithfulness.....8
Conclusions..............................................................................................................................10
Reference..................................................................................................................................11

2ADVANCE MANAGEMENT ACCOUNTING
Introduction
The aim of this assignment is to discuss on the advance financial accounting. For this,
analysis will be done based on CSL Limited. This company is based in Australia, which is the
manufacturer of the global biotechnology engaged in research, developing as well as
marketing of the products for treating and preventing the serious human disease that is rare
and serious. Hence, under this study, discussion will be based on identification of the
accounting concept of the company. Further, discussion will be based on conceptual
framework and measurement in the accounting of the company. Lastly, discussion will be on
qualitative characteristics that includes relevance and representational faithfulness in relation
to the useful information of the financial statements (Anon 2019).
Discussion
Accounting Concepts
Accounting concept is defined as rules, principles as well as basic assumptions that works as
the way of recording the transactions of business as well as preparations of the accounts.
These concepts are used as the base of accounting purposes. It assumes that the owners of
business and the business organizations are two different independent entities (Schaltegger
and Burritt 2017).
The main accounting concepts are as follows:
Accruals Concept
It defines that the revenues as well as expenses are recorded in case of their
occurrence and not at the time of receiving or paying out the cash.
Consistency Concepts

3ADVANCE MANAGEMENT ACCOUNTING
The accounting method once chosen, then that method should be used consistently
until and unless there is any sound reason for the change.
Going Concern Concepts
The business organization, for which accounts are prepared, should be in good
condition and it should continue its business even in foreseeable future.
Prudence Concepts
This concept is also known as conservation concept. The revenues as well as profits
are included in balance sheet only at the time when it is realized or if there is certainty of
realizing it, however, the liabilities are included in case if there is reasonable possibility of its
occurrence (Kaplan and Atkinson 2015).
Accounting Concepts used by the Company
In case of CSL limited, the preparation of general purpose accounting is used is on the
basis of accounting standard of Australia, Corporation Acts 2001, and International Financial
Reporting Standards. The company presents their information on the basis of historical cost
that is except for some financial instruments that is measured at the fair value (Anon 2019).
The company recognizes as well as measures the revenue at the fair value of that
consideration that has been received or wills be received. The revenue of the company is
recognized when the amount of the revenue can be measured reliably and if there probability
that there will be flow of future economic benefits to the company. It is the example of
accrual concept used by the company (Ganda, Ngwakwe and Ambe 2014). The company
uses the concept of the of concern concept, it is because in the calculation of depreciation of
the plant, property, land, buildings and the buildings are calculated on the basis of straight-
line that is over the assets estimated useful life. The company’s consolidated financial