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Assignment on (FA) Financial Accounting

   

Added on  2020-05-28

7 Pages1487 Words26 Views
Running head: FINANCIAL ACCOUNTINGFinancial AccountingName of the student:Name of the university:Author note

1FINANCIAL ACCOUNTING718 Geelong StreetMelbourne, VIC 3000Telephone +61 7894 679094www.magentaandassociates.com.au17th January 2018Mr. Christopher SampsonThe Managing DirectorBeachlife Ltd.Level 7, 927 William Street,Brisbane QLD 4000Dear Christopher,We are extremely happy to see that you have remembered us and that is why we would like toshow our gratefulness in response to the mail that you have sent to us. We cannot express our joyto see that that you have written to us and we assure you to provide you with the best solutionthat is available. With those possibly the best solutions it will become easy for you to make theright choice and that also in an appropriate way. As always we will help you in solving theproblems related to accounting in addition to all those critical problems that you have mentioned

2FINANCIAL ACCOUNTINGin the mail. Moreover we will also help you with the recommendation that will be provided toyou as per the Corporation Act 2001, AASB and its representations will adhere to the problemsof accounting that will be reflected by IFRS (Macve 2015). You should be acquainted with the fact that there is a term known as contingent liabilities whichrefer to the fact that there are potential losses that can take place in the future days either due tothe occurrence or non- occurrence of a particular event or at the most due to the after effect of aspecific event as well. There are many examples which can be considered in this case ofcontingent liabilities such as the information about failure in organization which is not yet doneand claims for its legit characteristic and the warranty present in every product that are procuredby the customers. The liabilities which are considered as contingent liabilities need to bedisplayed in the financial statements of the company and the estimated amount also for keeping arecord in the annual balance sheet (Pratt 2016). This is the particular amount that can save thecompany from any kind of crisis situation that can come up in the near future because an amountof money is already kept aside for the future. As per Para 29, it can be observed that in combination and in plenty the list of liabilities of thecompany need to be treated under the broad heading of contingent liability (Barth 2015). Theseare the liabilities which need to be taken care of in the primary stage because there is hardly anychance that they will take place in the financial year. That is why the scrutiny of these liabilitieshas to be in a continuous form so that the output can be easily recognized and that will help thecompany to be beneficial. Again it can be contradicted that the benefit that the company will getneeds to be determined. In determining those, it will be helpful for the current constructive andthe legit responsibilities that had a chance to evolve from the past events can be calculatedproperly and an exact amount of money can be kept aside for it. The primary intention behind

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