Advanced Financial Accounting

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced Financial Accounting
Name of the Student:
Name of the University:
Author’s Note

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ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction........................................................................................................................2
Important Accounting Concepts Followed.........................................................................2
Conceptual Framework of Accounting..............................................................................3
Measurement of Assets and Liabilities of thee Business..................................................4
Issues faced in Measurement............................................................................................5
Fundamental Characteristic of Useful Information............................................................5
Conclusion.........................................................................................................................6
Reference..........................................................................................................................7

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ADVANCED FINANCIAL ACCOUNTING
Introduction
The main purpose of the assessment is to analyse the business of Santos ltd by
assessing the financial statements which is prepared by the management of the
company for the year 2018. The analysis is conducted in order to evaluate the use of
accounting concepts for the purpose of reporting key financial information of the
business. The analysis would further be conducting a detailed analysis of the
information which is presented in the financial statements and the conceptual
framework which is followed by the business for the purpose of reporting important
information relating to the business (Jung, Lee and Weber 2014). The assessment
would be identifying important accounting concepts which is followed by business. The
study also aims to identify the qualitative characteristic which are present in the annual
report which is prepared by the business.
In accounting the use of account concepts is important for the purpose of
preparing annual reports of the business and the same needs to be disclosed in the
financial reports which is prepared by the business. The accounting concepts which are
followed by a business helps the management of the company to preparing the financial
statements while following conceptual framework. The company which is considered is
engaged in the business of providing energy to the residents of Australia and the
company is known to be one of the leading businesses which is operating in the energy
sector (Santos.com. 2019).
Important Accounting Concepts Followed
The management of Santos ltd has prepared the financial statement following the
generally accepted reporting framework. Some of the important accounting concepts
which is followed by the management of the company are listed below:
 Going Concern Principle: The principle of going concern is considered to be
one of the fundamental concepts which is applied for the purpose of preparing
the financial statements of the business. The principle states that the business
would be operating for the foreseeable future without any intention of closing the
business. This is considered to be one of the fundamental concept as the
investors relies on this concept while making investments in a business and that
too for a long-term period (Iatridis and Dimitras 2013). The annual report of the
Santos ltd shows that the management of the company has followed this concept
while preparing the financial statements of the business as no disclosure is
provided regarding the going concern principle of the business. As per the
guidelines of accounting, if any situation, the going concern principle is affected,
the management of the company is expected to appropriately report the same in
the annual report of the business.
 Double entry Concept: This is also one of the fundamental concept which is
used for the purpose of preparing the financial statements of the business. It can
be said that this concept is the basis on which financial statement and even
accounting process is conducted. The concept states that every transaction
which a business undertakes would have a double effect. It can increase the