Corporate and Financial Accounting: Accounting Standard Setting, Business Combination Analysis

Corporate and Financial
Accounting

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part A: Accounting Standard Setting, Regulation and Disclosure.........................................3
Accounting Standard Setting:.................................................................................................3
Reporting Entity:....................................................................................................................5
Part B: Business Combination / Acquisition analysis:...........................................................6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Financial Accounting is accounting system that interacts with preparation of the financial
statements by combining the financial statements and transactions that have occurred. The main
purpose of financial accounting process is to maintain accurate records of fiscal details and
discover potential ways of seeking profitable finance means. Corporate accounting is accounting
framework used by the corporation to control the sales and spending of the company. Corporate
accounting often tends to monitor and forecast company activities on the basis of financial
position of the corporation. Financial accounting involves competent auditing in order to
determine the reports. Conversely, corporate accounting doesn't require auditing or reporting for
internal usage. Financial accounting practices are important for all organisations, but, corporate
accounting completely voluntary and is solely based on estimating or projecting the financial
performance of the organisation (Kabir and Rahman, 2016).
The study discusses multiple aspects of financial and corporate accounting. The first part
of study discusses about accounting standards settings and types of reporting entities in Australia
as well as other related topics. While second part of study focuses on thorough analysis of
business combination in context of two ASX listed corporations named : PPK Group and
AuMake International to explore various significant facts about business combination like
purchase consideration paid, disclosure of business combination etc.
MAIN BODY
Part A: Accounting Standard Setting, Regulation and Disclosure
Accounting Standard Setting:
According to studies, Australian Accounting Standards Board or AASB) contributes in
determining international accounting standards in variety of ways. Because AASB principally
aims to establish and sustain higher-quality financial-reporting standards over all industries of
Australian economy, this operates collaboratively in numerous ways that allow this to contribute
in setting of IFRSs. For illustration, AASB is involved in issuing documents that aim to integrate
IASB 's discussion articles and exposure draughts with view to encouraging stakeholders in
the Australia to partake in the procedure by supplying the panel with valuable information that
could be suggested to the IASB for establishing IFRS (Sivathaasan, 2016). The AASB
is Australian government agency, regulated by Australian Security and Investment Commission

Act 2001. The key goal of AASB is to add to performance of stakeholder in order to improve the
trust that can supplement the Australian economic system in respect of the financial markets
and foreign monitoring process. The method is to identify the topic of interest and to enforce
Australian accounting including foreign company reporting practises in order to provide
guidelines that will satisfy consumer expectations and requirements (Garg, Peach and Simnett,
2020).
AASB further assists in establishing IFRS by ensuring that the multiple amendments
introduced to IFRS through IASB are properly evaluated and whether all stakeholders in
the Australia are sufficiently communicated to this. The panel is also interested in
introducing new reporting system as implemented by IFRS produced by IASB. In addition,
AASB aims to engage actively in ongoing IASB procedure of establishing global accounting
standards, and to ensure that the performance of standards is properly supported and
strengthened.
There are numerous reasons as to why IFRS set up by the IASB is not regarded
as mandatory for all of its members states or nations. For example, companies that have
international branches in different nations and places around the world will find implementing
the IFRS developed by IASB really quite complicated. That's because different accounting
principles and legislation differ and are implemented in different jurisdictions. Consequently,
IASB doesn't give its member nations a mandatory mandate to follow IFRSs. Besides that,
various Member states have separate regulatory authorities and thus rendering a mandatory
obligation for IASB members nations to implement IFRS could be quite disruptive to
introduction of state legislation. IFRS is developed by International Accounting Standards Board
to evaluate the implementation of business standards. For all nations, the required judicial
accounting processes are same (Garg, Peach and Simnett, 2020). However, each nation has its
own collection of rules to manage accounting practises, such as auditing, reviewing financial
reporting and improving the expertise of accounting learning. Reason that the modification of the
IFRS mechanism is not enforced by authority because the procedure is not a straightforward
conditional judgement. Jurisdictions in the accounting principles are different in various
jurisdictions, so to enforce a variety in regulations, to determine the auditing process in order to
conform with national requirements (Potter, Pinnuck Tanewski and Wright, 2019).