Financial Accounting and Reporting

Running head: Financial Accounting and Reporting
Financial Accounting and Reporting
Name of the Student
Name of the University
Author Note

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Financial Accounting and Reporting
Executive Summary
The report includes about the financial account and reporting. Financial accounting is the
process of identifying and recording the accounting transaction of the company. It is done so
that the management can take necessary decision in regards with the financial statement of
the company. Financial reporting help the company to report all the necessary report such as
income statement, balance sheet and cash flow statement to the financial users of the
company. Lastly the report includes about professional judgement and how it affect the
business and financial user’s decision. It also include a detail explanation of impairment of
asset and how the company manages its impairment asset.

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Financial Accounting and Reporting
Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Overview of the Company.....................................................................................................4
Role of Professional Judgement in Accounting.....................................................................4
Implication of professional judgement upon the financial users...........................................5
Impairment written down of the company.............................................................................5
Analysis of the professional judgement related to impairment of asset.................................6
Recommendation regarding impairment of asset...................................................................6
Fundamental Characteristic of Financial Information...........................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10

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Financial Accounting and Reporting
Introduction
Financial accounting is the analysis, summary and reporting of transaction which are
done in the normal course of business. It includes the preparation of the financial statement
which served as a medium of decision for the financial user of the company (André,
Dionysiou and Tsalavoutas 2018). The financial accounts is been governed by local as well
as international accounting standard. It is done by considering the concept of GAAP. GAAP
stands General Accounting Acceptable Principles which allow the company to develop
framework related to the financial accounting system (Banker, Basu and Byzalov 2016).
Financial reporting is the process from which financial and management information are
carried in the annual report of the company. This details help the financial user to get a details
of the company, this help them to know the financial position, performance and the stability
of the company position. It includes the balance sheet, income statement, information related
to earning, cash flow statement and changes in equity statement (Caldecott and McDaniels
2014).
Discussion
Overview of the Company
The company which is taken in the assignment is Wesfarmers. Wesfarmers is a
conglomerate based company, it headquarter is in Perth, Western Australia, the company was
founded in 1914 as co-operative and it got listed at Australian Securities Exchange in 1914.
The products of the company are fertilizers, chemicals and coal mining industry products.
Role of Professional Judgement in Accounting
Professional Judgement is the process in which the management take assumption
which are there and it is related to the industry norms and the judgement are taken to make
decision regarding the business activities of the company(Henderson et al,. 2015). The