This report provides a comparative analysis of the accounting approaches of fair value accounting vs historical cost. It includes a case study of Wesfarmers Limited, an ASX listed public company in Australia. The report discusses the recognition, measurement and disclosure criteria used in these two approaches and provides recommendations for accounting managers.

Essay

Consolidate and extend understanding of important issues in financial reporting in Australia.

Compare fair value and historical cost accounting approaches using Wesfarmers as a case study, with recommendations for accounting managers.

Comparison of Fair Value and Historical Cost Accounting: A Case Study of Wesfarmers

This article provides a literature review on fair value measurement and discusses the contextual issues of implementing this method. It covers the benefits of fair value measurement, its drawbacks, and the challenges faced in emerging economies. The article also suggests ways to overcome these challenges.

Fair Value Measurement: Literature Review and Contextual Issues

Finance

The Historical Cost | Accounting Theory - Assignment

Dissertation

This report analyzes the accounting concepts relevant to business corporations in developing and presenting their financial reports. It focuses on the case study of Australian Pharmaceutical Industries Limited (API) and evaluates its compliance with the general purpose financial reporting. The report examines the measurement criteria adopted by API, the fundamental characteristics of the conceptual framework applied by the company, and the enhancing qualitative characteristics. It also discusses the decision-making relevance of the financial report and the knowledge required by end-users. Finally, it explores the general requirements of financial reporting followed by the company.

Contemporary Issues In Accounting

This essay analyzes the concept of Fair Value (FV) accounting and its pros and cons in financial reporting. It discusses the three-tier process of the use of fair value accounting and the qualitative characteristics of financial information to be considered using FV method.

Pros and Cons of Fair Value Accounting in Financial Reporting

The Harmonisation of Accounting Standards

This presentation discusses the guiding principles of constructing financial statements, including the principles of true and fair view, direct and indirect controls, and historical cost or current value measurement. It also applies these principles to the financial statements of Pet at Home, which are prepared according to IFRS and the Companies Act, 2006. The presentation concludes with the auditor's opinion that the financial statements provide a true and fair view of the company's affairs.

Comparison of Fair Value and Historical Cost Accounting: A Case Study of Wesfarmers

Fair Value Measurement: Literature Review and Contextual Issueslg...

The Historical Cost | Accounting Theory - Assignmentlg...

Contemporary Issues In Accountinglg...

Pros and Cons of Fair Value Accounting in Financial Reportinglg...

The Harmonisation of Accounting Standardslg...

Guiding Principles of Constructing Financial Statementslg...

Fair Value Measurement: Literature Review and Contextual Issues

The Historical Cost | Accounting Theory - Assignment

Contemporary Issues In Accounting

Pros and Cons of Fair Value Accounting in Financial Reporting

The Harmonisation of Accounting Standards

Guiding Principles of Constructing Financial Statements