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Financial Accounting

This assignment is Part A of the major assessment for the course ACCT6003. It involves analyzing a business case of Xiaojing Wu, who immigrated to Australia and is considering setting up a business in South Australia. The assignment focuses on the regulatory framework for financial reporting in Australia and the accounting principles and standards for non-current assets, revenue, and liabilities. The assignment also involves differentiating between shares and debentures and applying appropriate accounting procedures. The submission is due on Sunday of Week 4 by 11:55pm AEST/AEDT.

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Added on  2023-04-10

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This document provides information about financial accounting, including the differences between sole proprietorship and partnership business. It also discusses the process of setting up a business in Australia and the financing options available for small businesses. The document includes references to relevant sources for further reading.

Financial Accounting

This assignment is Part A of the major assessment for the course ACCT6003. It involves analyzing a business case of Xiaojing Wu, who immigrated to Australia and is considering setting up a business in South Australia. The assignment focuses on the regulatory framework for financial reporting in Australia and the accounting principles and standards for non-current assets, revenue, and liabilities. The assignment also involves differentiating between shares and debentures and applying appropriate accounting procedures. The submission is due on Sunday of Week 4 by 11:55pm AEST/AEDT.

   Added on 2023-04-10

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Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:
Financial Accounting_1
1FINANCIAL ACCOUNTING
Table of Contents
Part A...............................................................................................................................................2
Part B...............................................................................................................................................3
Reference.........................................................................................................................................5
Financial Accounting_2
2FINANCIAL ACCOUNTING
Part A
In case of a sole proprietorship the proprietor is solely responsible for all the activities
carried on in a business and the contrasting debt levels in a company. The debt
undertaken by the firm on behalf of the sole proprietor should be honoured by the
proprietor and would be liable for paying off the debt for fulfilling the obligations. The
financial risk associated with the firm is to be borne by an individual proprietor. On the
other hand partnership business is formed by two or three partner who mutually agree to
carry on a business activity thereby realizing the profit and loss arising from the same in
accordance with the partnership agreements. Distribution of profit and loss and efficient
management of resources are some of the key benefits of a partnership business.
However fast and quick decision are the key advantages of a sole proprietorship. Thus, it
is recommended that Xiaojing addresses the following matters while starting a business
in Australia (Smallbusiness.chron.com 2017).
It is essential that the firm is registered firstly using ASIC Form 201, Available on ASIC
Website and by paying the application fees. The company name must be selected by
Xiaojing or must be according to the Australian Accounting Number reflecting the legal
status whether the same is a proprietary or PTY limited company. The rules and policies
of the company should be in accordance with the “Corporations Act 2001” or
“Constitution of Australia”. Selecting the shareholders and the directors of the company
will be the next step and choosing the share structure of the company. Finally selecting
the principal place of business and relevant other paperwork will be the key process for
successfully setting up the proprietorship for Xiaojing (Sarina et al. 2015).
Financial Accounting_3

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