Corporate Accounting: Standards, Regulations, and Equity Analysis

Corporate Accounting
CORPORATE ACCOUNTING
1 | P a g e

Corporate Accounting
EXECUTIVE SUMMARY:
Financial accounting is the important task for every organization but it become critical when
it is used for the purpose of preparation of the financial statements because these are used by
the users and stakeholders of the company. These are used by then for the purpose of various
decision makings, investment plans by comparing them with others. As such, these financial
recording and reporting should be standardized rather than preparing it on the basis of
standards or policies developed in-house.
IFRS are the standards which are accepted by all the organizations worldwide. AASB is the
body, which develop the standards of accounting for the Australian organizations. These
standards are identical to the IFRS. Further, member countries if IASB not adopting the IFRS
as they reckon that it would be very typical or meaningless to adopt the IFRS.
In the equity analysis, reasons for the variation are considered i.e. there are many components
which affect the equity of the company.
2 | P a g e

Corporate Accounting
Contents
EXECUTIVE SUMMARY:..........................................................................................................................2
BRIEF:....................................................................................................................................................4
CORPORATE REGULATION:....................................................................................................................5
ACCOUNTING STANDARDS SETTINGS:...................................................................................................6
OWNER’S EQUITY:.................................................................................................................................7
CONCLUSION:......................................................................................................................................10
REFERENCE:.........................................................................................................................................11
3 | P a g e

Corporate Accounting
BRIEF:
As we all know that financial accounting and reporting are the important task for the
organization. But, in the globalization environment financial statements of all the
organization should be at such platform so that, it can be easy to understand the financial
position of all the enterprises. It is necessary to avoid the geographical limitation in the
preparation of financial statements. We will discuss that whether preparation and reporting of
the financial transactions should be regulated by standards or guidelines or it should be kept
free on the part of the management.
Further, we will also be discussing the AASB and its relationship with the IFRS. In addition
to that we will also discuss the causes as to why member countries of the IASB do not adopt
the IFRS.
We will be discussing the equity and dept analysis of four companies listed on ASX.
4 | P a g e