Master Budget Elements and Budgeting Approaches: Accounting Analysis of Argent Minerals Limited

Argent Minerals Limited
2019
Accounting

Accounting 1
Executive summary
The purpose of the report is to throw light on one of the major concepts of management
accounting which is budget and the process of the budget. The findings of the report reflect the
detailed explanation of the elements of the master budget. The elements of the master budget are
divided into the operational budget and financial budget. Further, the report includes a
comparison of the top-down and bottom-up approach which is used by the company. The
analysis helps in deciding the suitable approach for the selected ASX Company that is Argent
Minerals Limited whose operations are present in the market of Australia. Along with this, it has
been found that there are majorly two approaches that include top-down and bottom-up
budgeting approaches. The results of the paper show the estimation of the income statement of
the selected ASX organisation for the year 2019. Opinion on the differences between the actual
and budgeted are reflected in the report.

Accounting 2
Contents
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
An explanation of the elements of the Master Budget....................................................................4
Operational budget.......................................................................................................................4
Financial budget...........................................................................................................................6
Comparison of a top-down and bottom-up approach to the budget process...................................7
Top-down approach.....................................................................................................................7
Bottom-up approach....................................................................................................................7
Comparison of approaches..........................................................................................................8
Analyse which one is more suitable for Argent Minerals.........................................................10
The budgeted income statement for 2019......................................................................................10
Opinion on Changes..................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Accounting 3
Introduction
The aim of the report throws the light on the concept of the managerial accounting; the term
managerial accounting is a process of determining, measuring, interpreting and communicating
the information to the managers with the motive to pursue the organisational goals. One of the
major concepts of managerial accounting is a master budget. The report majorly begins with the
concept of the master budget and the components which are majorly used by the company while
preparing the master budget which are majorly segmented into the two segments. Moreover, the
companies make use of the different budgeting approaches which are top-down and bottom-up
approach. This has been found that every company in the competitive world plan for their
activities. In the end, a budgeted income statement for 2019 for the selected ASX Company,
Argent Minerals Limited. The comparison has been done between the actual and budgeted
income statement of the company has been done with this opinion on changes has been given.
Overview of the company
Argent Minerals Limited is an ASX listed Company which majorly focus on forming the wealth
of the shareholders with the discovery, extraction and marketing of the previous as well as the
base metal products from the Lachlan Orogen in New South Wales, Australia (Argent Mineral
Limited, 2018). This area is home to country's first discovery related to gold and total hosts
world-class deposits which majorly include largest underground copper-gold mines that are
present in the southern hemisphere. In the year 2014, the Argent Company announced its goal to
become a leading polymetallic manufacturer with the production of approx. 1.5 million tonnes
per annum with a mine life of the order of 20 years (Argent Mineral Limited, 2018). Argent’s