Impact of AASB 140 on Retail Industry

Financial Accounting and Reporting

Executive summary
The investment in the retail industry is considered as one of the most profit oriented business in
the world. The companies while doing the investment in the retail industry must adhere to the
accounting policies that are related to investment property. It is seen that retail industry in the
Australia are highly affected due to the economic changes in the consequences of the policies of
the retail industry die to which they are facing loss. AASB 140 provides the policies and the
regulations that helps in deciding about the changes that are required to be made in the
accounting practice of the firm so that true and fair value of the information can be given. The
Shopping centres Australia property group is one of the biggest group working in Australia and
various steps has been taken so as to achieve the objective of compliance with the standard.

Introduction
Accounting policies are considered as the set of the specific principles and the procedures which
are used by the managers of the entities to achieve objective of preparing of the financial
statement of the company. This is seen that in every organisation it is important to follow the
policies that are framed by the government of the country or the managers. In changing
environment the consumers are moving away from the retail industry due to which various
business organisation gets hampered and it becomes difficult for the organisation to survive in
the market (Abbott & Tan‐Kantor, 2018). This is seen that various industries has collapsed due
to the move of the customers from the retail sector to the other sector due to which the economy
of the country is facing problem of increase in GDP. SCP is considered as the one of the largest
real estate investment trust in Australia. The company is based in Australia and is working in the
industry of real estate development and the shopping centre management. As an employee of the
financial reporting unit in shopping centres Australia property group the report has been
provided so as to provide objective of impacting the changes in the sales industry in the
company.