Advanced Financial Accounting - Sample Assignment

Added on - 21 Feb 2021

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Advanced financialaccounting
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Explain the Concepts of accounting........................................................................................12. Conceptual framework and measurement in accounting.........................................................33. Fundamental qualitative characteristic for the understanding of financial statement..............5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONAdvance financial accounting is the method which include the various functions such asaccounting operations, merger & acquisition of public holding company, currency operations andbuild financial statement for the use of future decision making process(Rufino, 2015). With thehelp of advanced financial accounting, organization can identify the internal & externalperformance and provide these information to the stakeholders. It will help the business toincrease their potential investors as well as customer base. Elders Limited company choose forthe better understanding of this concepts. It is Australian based Agribusiness organizationfounded in 1839, it provide various products which help the farmer to increase their productivitysuch as livestock, farm supplier, grain and other financial services. This report include theaccounting concepts of the selected company and the understanding of relevancy & Faithfulnessof financial statements.MAIN BODY1. Explain the Concepts of accountingIn the organization, management apply various type of accounting concepts which isessentially required due to producing different financial statements. These financial statementshelp the business to represent their performance to their stakeholders which attract the consumersin order to increase their demand in the market. Elders limited apply accounting concepts at thetime of building financial statement which further help the stakeholders to identify and analysetheir decision weather they have to invest or not. Their are various accounting concepts which isdiscussed below:Accrual concepts:It is the fundamental principle of the accounting concepts whereaccountant have to record the revenue when it earned not when they actually receive the amountin cash (Accrual Concept,2019). Along with this, they also record the expenses when theyincurred not when they are paid in cash. According to the Generally Accepted AccountingPrinciple (GAAP), companies have to prepare their financial statements on accrual basis only.By following this concepts, company required to record all the expenses or revenue in the sameperiod when they occur not when they are received or paid. As per annual report of the Elderslimited it has been observed that, company apply accrual concept to record their transactionwhich help the business to accurately record and prepare financial statement in well manner. It1
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