Financial Accounting Management

Running head: FINANCIAL ACCOUNTING MANAGEMENT
Financial accounting management
Name of the student
Name of the university
Student ID
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1FINANCIAL ACCOUNTING MANAGEMENT
Table of Contents
Task 1.........................................................................................................................................2
Research topic 1.........................................................................................................................2
A. Financial information of investment entity.....................................................................2
B. Application of concept of recognition in conceptual framework....................................2
Research topic 2.........................................................................................................................3
A. Addressing problem in accordance with AASB 136 / IAS 1..........................................3
B. Fair value changes...........................................................................................................4
Research topic 3.........................................................................................................................4
A. Advise for disclosure required for changes in the accounting policy.............................4
B. Summary of accounting estimates..................................................................................5
Reference....................................................................................................................................6

2FINANCIAL ACCOUNTING MANAGEMENT
Task 1
 Name of the company – BHP Billiton
 Link to down loan annual report -
https://www.bhp.com/-/media/documents/investors/annual-reports/2018/
bhpannualreport2018.pdf
 Current share price of the company – 52.02 (Finance.yahoo.com 2019)
Research topic 1
A. Financial information of investment entity
Performance of the investment company is resulted from the income earned by it on
the investment made by it that is in form of interests and dividends and the changes in fair
value of the investment during the holding period. Further information required are –
 Portfolio’s turnover and associated cost of transaction like commission
 Information regarding the portfolio risk
 Dividend and interest earned
 How the changes in fair value takes place for the investment that is managed by
investment entity as compared to the changes in the similar type of investment in the
market as a whole.
 Fair value of securities hold by the investment entity (Aasb.gov.au 2019).
B. Application of concept of recognition in conceptual framework
In accordance with the framework, any item which satisfies the definition criteria of
liability, asset, expenses and income shall be recognised if –
 The said item has value or cost and the cost or value can be reliably measured