Corporate Accounting: Financial Reporting and Regulations in Australia

Running head: CORPORATE ACCOUNTING
Corporate Accounting
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CORPORATE ACCOUNTING
Executive summary:
Corporates in Australia are under obligation to issue periodic financial statements to the
stakeholders of the company. The financial reporting and accounting of entities in the country
should be in accordance with the Corporations Act, 2001. Section 1.5.10 of the act provides the
requirements for companies to comply with annual financial reporting and auditing requirements
for entities in Australia. Especially entities listed in Australian Securities Exchange (ASX) must
in addition to the requirements of Corporations Act, 2001 shall also abide by the corporate
regulations for financial reporting as recommended by Australian Securities and Investments
Commission. A detailed discussion on financial reporting and various elements of financial
reporting in the document shall be helpful to the readers of the document.

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CORPORATE ACCOUNTING
Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Corporate regulations:.....................................................................................................................3
Australian Accounting Standards Board’s Role in global accounting standards setting process:. .5
Owners’ equity:...............................................................................................................................7
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

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CORPORATE ACCOUNTING
Introduction:
Corporate regulations are formulated to ensure that accounting and financial reporting in the
country are properly governed. Only a suitable accounting and financial reporting environment
in a country will ensure that the corporates in the country are following proper guidelines and
regulations to ensure correct reporting of its financial results and position. Four entities from
Telecommunication industry in Australia have been selected to complete the exercise given in
this document, these entities are Vodafone PLC, Queste Communication, TPG Telecom and
Singtel Optus Limited. All these four entities are listed in ASX.
Corporate regulations:
(i) Corporate regulations:
Corporate regulations are combined rules and regulations that the premier legislation of a
country recommends the companies to follow compulsorily in reporting accounting and financial
matters. In Australia Corporations Act, 2001 and rules mentioned by Australian Securities and
Investments Commission (ASIC) must be followed strictly by entities listed in ASX for
accounting and financial reporting. The reason the premier corporate legislation and corporate
regulator make corporate regulations to govern the financial reporting and accounting should be
evaluated to understand the needs to have such regulations in place (Schaltegger and Burritt,
2017).
Managing the diverse accounting principles and policies:
Accounting provides number of alternative accounting principles and policies that can be used to
maintain accounts of an entity. It is due to the inherent limitations of the subject that it is not
possible to have a single set of principles and policies to maintain accounts of an entity.