Financial Accounting: Importance of Accounting Standards and Recommendations

Running head: FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
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FINANCIAL ACCOUNTING1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
AASB Standards....................................................................................................................3
Benefits and significance of following the accounting standards..........................................4
Recommendations..................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
The aim of the assignment actually deals with chosen company which is West Ltd and
further to provide the assistance regarding generating the financial reports of the concern. The
marketing strategy of the West Ltd is effective and the company actually deals with the sales
of the frozen and canned fish produced. The products of the company are actually sold based
on the two brand names where the fish are caught in the southern Australia which are rather
used by the company for the marketing purpose. It is actually needed by the company to get
significant assistance regarding the preparation of the financial statement of the firm.
Discussion
In order to provide assistance to the chosen company which is West Ltd further
significant strategies are adopted by the company. The accounting standard which must be
implemented by the company is based on the concept of the International Accounting
Standards or rather the Generally Accepted Accounting Principle. This are the significant
changes which must be adopted by the company at the time of preparation of the financial
statement of the firm (Kieso, Weygandt and Warfield 2019).
If the goodwill of the company increases then it will definitely create a positive
impact on the financial statement of the company. The net asset position of the company in
that case will definitely increase, as there is an increase in the intangible assets of the firm.
Basically, there are actually some of the significant facts which the upper level management
of the company must take care of the certain situation along with the significant impact on the
business along with it (Libby 2017).
The members of the board are effective in adopting the selling strategies which are
involved in the business but they are not confident with the financial strategies and further in

FINANCIAL ACCOUNTING3
that case some of the significant steps must be adopted by the upper level management. The
board of members have developed and effective financial management team for the purpose
of the providing the assistance regarding the preparation of the financial reports of the firm.
For getting huge success it is important for the company to adopt the potential financial
strategies by analyzing the past performance of the company. Based on that the forecast of
the business is done accordingly along with the significant business prospects which is
actually the long run objective of the firm (Lara, Osma and Penalva 2016).
The income statement and balance sheet of the company must be audited on an
interval basis so that the financial statement of the company is prepared accordingly. The
current marketing strategy which is adopted by the company is regarding the advertisements
made and other marketing strategy which is adopted by the company based on the long run
objectives (McKinney 2015). The business objectives of the company is certainly based on
the parameters which is actually based on the financial objective of the firm.
AASB Standards
The chosen company in this case is the West ltd which actually needs to follow a
specific accounting standard. The appropriate accounting standard which must be followed
by the company is the rules and regulation enlisted in the Australian Accounting Standard
Board. The financial management team of the company actually prepares the financial
statement of the company based on certain rules and regulation (Newberry 2015).
The actual purpose to follow the specific rules and regulation due to the fact that the
financial statement of the company will be free from the material misstatement of the firm.
The glitches of the firm will be comparatively less if the management system of the company
actually follows the norms laid in the AASB. The financial reports must be prepared based on
the rules and regulation of the AASB. Both the private and the public sectors entities of the