BA302 - Accounting Theory Report

BA302 - ACCOUNTING THEORY
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Executive summary:
The increase and development of the activities and the interests of the lenders, investors and the
companies becoming more and more globalized there is a need to develop and maintain the
globally accepted principles and policies of accounting which will ensure comparability and high
quality financial reporting framework to be adopted by the companies I the global scenario. The
acceptability of various policies identical with each other will allow for more transparency and
comparability in financial records while assisting in better economic decision of the investors.
The same will help in boosting the economic development of the particular industry and the
country. The type of quality financial reporting will ensure that the entities are domestically
comparable and proper standards have been followed in order to present the true and fair view of
the financial position of the enterprise in the current market scenario. The significance of the
accounting theory shall be realised by the companies while working on the accounting records of
company.
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Contents
Executive summary:........................................................................................................................2
Introduction:....................................................................................................................................4
a. Describe the measurement and disclosure components of policy for accounting for each
class of property, plant and equipment........................................................................................5
b. Compare the accounting policies for accounting for each class of property, plant and
equipment used by your selected/approved companies...............................................................8
c. Explain whether all companies should be required to use identical accounting policies?.....10
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13
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Introduction:
The comparability of financial statement has been a major research topic in the literature review
related with the accounting theory and issues of the corporate world. The report is prepared to
understand the various concepts of acceptance of accounting policies and comparability of the
policies in the accounting framework of the country. For the same purpose the accounting
policies related with property, plant and equipment will be compared for two companies named
Telstra and TPG Group. Telstra and TPG have been operating in the telecommunication sector of
Australia. The description about each component of the asset will be given and the acceptability
of the fact that identical policies should be adopted in different companies will be given in this
report.
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