Current Issues in Australian Accounting in AGL Energy Limited

Running head: CURRENT ISSUES IN AUSTRALIAN ACCOUNTING
Current issues in Australian accounting in AGL Energy Limited
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1CURRENT ISSUES IN AUSTRALIAN ACCOUNTING
Executive Summary
In analyzing such concerns faced by AGL Energy Limited, the report will also analyze the
disclosure made by the organization through following AASB standards along with evaluating
certain implementation of the flexibility within the accounting framework. It was gathered from
the report that the major issues faced within the financial report of AGL Energy Limited
indicated vital sustainability concerns in the company’s performance which needs more
disclosures. The company is dealing with political pressure on the accounting standard-setting
environment. In addition, through following prudence the management of AGL Energy Limited
is recommended to apply the judgment wisely for the reason that the numerical figures are
reflected within the financial statement that is based on certain estimations.

2CURRENT ISSUES IN AUSTRALIAN ACCOUNTING
Table of Contents
1. Introduction......................................................................................................................3
2. Accounting Issues Faced by AGL Energy Limited.........................................................3
3. Findings and Recommendations......................................................................................9
4. Conclusion.....................................................................................................................10
References..........................................................................................................................11

3CURRENT ISSUES IN AUSTRALIAN ACCOUNTING
1. Introduction
The accounting quality of an ASX listed company is is evaluated by means of analyzing
the accountingpolicies as well as processes. Moreover, the analyses of the accounting quality of
the financial report of the selected company are carried out by revealing the best adopted policies
and procedures by the selected organization (Abdel-Maksoud, Cheffi and Ghoudi 2016). The
objective of the report is to analyses the accounting concerns faced by AGL Energy Limited
along with evaluating the current models and theories that is applicable in the current situation
faced by the company. In analyzing such concerns faced by the company, the report will also
analyze the disclosure made by the organization through following AASB standards along with
evaluating certain implementation of the flexibility within the accounting framework
(Agl.com.au. 2019). AGL Energy Limited is an Australian public listed company that is also
associated with developing along with retailing electricity along with gas for commercial and
residential purposes.
2. Accounting Issues Faced by AGL Energy Limited
Accounting issues faced by AGL Energy Limited is analyzed through analyzing certain
accounting theories applicable with the situation of the company such as normative and positive
accounting theories (Alsharari, Dixon and Youssef 2015). This is for the reason that the
accounting policies followed in the company has a vital role in attaining corporate goals and
objectives through promoting he company’s long term development and growth. The financial
reports of the company are prepared based on the accounting policies that offer disclosure
regarding the financial condition of a company to its stakeholders. For this reason, it is deemed
essentialfor AGL Energy Limited to offer vital information to all its end users and by means of