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Financial Accounting Assignment Solved - Doc

   

Added on  2020-10-23

9 Pages2005 Words249 Views
FinancePolitical Science
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FINANCIAL ACCOUNTING FORREPORTING ENTITIES
Financial Accounting Assignment Solved - Doc_1

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Part A..........................................................................................................................................1Part B...........................................................................................................................................2CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Financial Accounting Assignment Solved - Doc_2

INTRODUCTIONFinancial accounting is a special branch of accounting that tracks an organisation'sfinancial transactions. Reporting based upon standardized guidelines for record and summarizedthe transactions while preparing financial report. This reports covers that major limitations of astatement of financial position and calculated financial trial balance with adjustments. profit orloss and comprehensive income for international manufactures, statement of changes in equityand statement of financial position for international manufactures Ltd. are presented in this reportaccordance with AASB 101. MAIN BODYPart AStatements of financial position are reports prepared by an organization's management topresent the financial position and performance at a point in time. It states the liabilities, assetsand owner's equity on particular time (Limitations of financial statements 2018). Thesestatements are prepared to spring users outside of an organisation, like creditors and investors,more than information about company's financial positions. Financial statements have somelimitations, they are as follows -1.Do not give exact position The financial statements are verbalised in monetary values, so they come out to give final andaccurate position. In the balance sheet, amount of fixed assets neither represents the amount ofwhich fixed assets can be sold nor the value which will be required to replace these assets. Forthe preparation of balance sheet using assumption of going concern. According to this concernbusiness will continue in future (Adams and Simnett, 2011). So, on fixed cost are shown costless accumulated depreciation. There are definite assets in the financial statement like as discounton issue of shares, preliminary expenses, goodwill which will recognise nothing at the time ofsettlement though are shown in the balance sheet. Intangible assets are not recorded as assets inbalance sheet. Alternatively, any expenditure made to move on intangible assets are instantlycharged to expenses. This policy can drastically estimation the amount of an enterprise,especially one that has exhausted a large value to develop a brand picture or to create newproducts (Brown, Beekes and Verhoeven 2011). It is a specific trouble for start up companiesthat have created rational property, but which have to create distant minimal sales.1
Financial Accounting Assignment Solved - Doc_3

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