Accounting Concepts and Measurement in Bravura Ltd

Advanced Financial Accounting

Bravura Ltd
Executive Summary
The annual report of any company is prepared with the aid of various accounting information.
The accounting information assumes a place of special importance as it helps in defining the
structure of the business. The current report revolves around the company name Bravura
Solution Limited, a company listed in the ASX and operating in the IT sector. The report
initiates with the introduction followed by the accounting concept used by the organization.
Secondly, the report discusses the measurement in accounting and is studied with the aid of
various examples. Finally, the discussion moves to relevance and representational faithfulness.
In the end, it can be concluded from the report that the relevant information is being provided by
the organization that will assist in the process of decision making.
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Bravura Ltd
Contents
Introduction................................................................................................................ 3
1. Identification and description of the accounting concepts used.........................3
2. Issue of measurement and provide examples.......................................................4
3. Relevance and representational faithfulness.........................................................6
Conclusion.................................................................................................................. 8
References................................................................................................................. 9
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Bravura Ltd
Introduction
Bravura Ltd is engaged in the production of software for the financial services industry. The
headquarters is in Sydney, New South Wales. The company earned revenue of more than $250 m
and comprises of 85 employees. The report is based on the accounting concept used by the
organization. Relevant information is always needed by the investors because it comprises of a
confirmatory value. This provides a general understanding that the users contain an expectation
that is justifiable. The accounting concept utilization such as matching concept, revenue
recognition has been aptly used by the organization at large. Secondly, the conceptual framework
has been discussed in the light of this company. The base or the foundation of accounting is
defined as the conceptual framework (IFRS Foundation, 2010). To ensure effectiveness in the
framework, the company needs to ensure the strengthening of the level of accounting. It enables
to describe the information in a rational manner (Donius, 2012). The last part of the report
describes the Relevance and representational faithfulness that is two major aspects in the annual
report of the company.
Bravura Solution Limited
1. Identification and description of the accounting
concepts used.
Accounting runs on a few concepts which form its backbone. The main concepts are Objectivity,
matching, revenue recognition, and consistency.
The principle of objectivity requires that the financial statements are a fair representation of the
transactions that have taken place and such transactions are backed by supporting documents. In
the case of Bravura Solutions Limited, the Management takes up the responsibility for the
preparation and presentation of the financial statements which is backed by the management
declarations and authority letters produced (Deggan, 2014). The Statutory Auditors verify the
true and fair nature of the financial information provided by the management and disclose any
material misstatements that are found out by making a qualification in their audit report.
The matching concept requires that the costs incurred by the company towards manufacturing,
selling and administration are supported by the revenues generated by the same. Bravura
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