Advanced Financial Accounting

Running Head: ADVANCED FINANCIAL ACCOUNTING
ADVANCED FINANCIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Accounting Concept...............................................................................................................2
Conceptual Framework and Issues in Measurement..............................................................5
Fundamental Qualitative Characteristics...............................................................................8
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

2ADVANCED FINANCIAL ACCOUNTING
Introduction
The aim of this report is to do the analysis on the advanced financial accounting.The
analysis will be done with the reference of Ardent leisure Group Limited. It is the Australian
based company, which operates and invests in the leisure as well as entertainment businesses.
Hence,this report includes the discussion on identification and description of the accounting
concepts with the reference of the company. In addition, with the reference of the conceptual
framework as well as measurement in the accounting, discussion will be done on the issue of
measurement of the company. Lastly, fundamental qualitative characteristics such as
relevance as well as representational faithfulness in the relation to the useful information of
the financial statements will be discussed with the reference to the company (Asx.com.au.
2019).
Discussion
Accounting Concept
Accounting is described as the basic assumptions as well as the principles and rules
that works based on recording the transactions of business and preparation of the financial
accounts. For maintaining, the consistency and the uniformity in the preparation as well as
maintaining of the books of accounts there are certain principles and rules thathave been
evolved. These principles and rules are classified as the concepts and the conventions. These
lay the foundations of the maintaining and preparations of the accounting records. Hence,
accounting concepts makes the assumptions that business owners and the business
organization are two different independent bodies for accounting purposes (Franzen and
Weißenberger 2015). Following are the description of some of the accounting concepts:
 Accrual Concept

3ADVANCED FINANCIAL ACCOUNTING
This concepts of accounting helps in recognizing the revenues when it became
receivables. It is fundamental accounting principles, which has the requirement of recording
the revenues and expenses that is being recorded in the period of their occurrences apart from
the fact that whether the cash has been received or not (Kieso, Weygandt and Warfield 2016).
 Going Concern Concept
This conceptassumes thatthe organization continues to carry their activities for the
indefinite time-period. Every business organizations have the continuity of life that is not
dissolved in near future. It is the most important accounting assumption as it helps in
providing the basis in order to show assets value in the balance sheet of the company. This
concept enhances for charging the depreciation on fixed assets. It helps the investors by
assuring that the organization will continue for getting the income on its investments (Dixon
and Gaffikin 2014).
 Cost Concept
This concept is the basic underlying guidelines require that the asset to be recorded in the
cash amount at the time of acquiring the asset. It is the principles that requires that the assets,
liabilities as well as the equity investments has to be recorded at the original cost such as the
record of the machine, plants or the building are recorded at the actual prices paid (Perera
2016).
 Conservatism Concept
This is the principle that is general concept for the recognition of the liabilities and the
expenses at the time when there is the uncertainty of the outcome. However, it recognizes
assets and the revenues when there is assurance of it to be received. Therefore, it provides
clear guidance for recording of the estimates and uncertainty cases (Edgley 2014).