Importance of Australian Accounting Standards for Financial Reporting: A Case Study of West Ltd Company

Running head: Financial Accounting
Financial Accounting
Name of the Student-
Name of the University-
Author’s note-

Strategic Project Management1
Executive Summary
The main objective of this report is to understand the various principles and standards as
mentioned by the Australian Accounting Standards that can help the boards of the West Ltd
Company for better financial reporting process and acquiring a better financial position. The
study is proceeded by the importance of the classification of financial tangible and non- tangible
assets. It is found that the company needs to focus more on the valuation of intangible assets like
goodwill of the company for adding an economic value to the company.

Strategic Project Management2
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Strategic Project Management3
Introduction
Accounting is the important process of recording the daily transactions of a business. It is the
methodical process of recording, organizing and summarizing the transactions of business entity
to understand the financial performance of an entity. It is very important to understand the
respective accounting standards as per mentioned in the Australian accounting standards, to
understand the various principles, rules and regulations for doing the correct accounting
procedure. Australian accounting standards has derived certain principles and procedure for
maintaining and developing the accounting process in the business entities. The paper has
discussed on the importance of classifications of the different types of assets that may be tangible
or intangible assets for the West Ltd Company. Further discussion is based on the reliability
related to cost accounting. It has discussed on the valuation of assets in terms of allocating the
cost for the assets in different operations of the West limited Company. The intense of this report
is to provide an advice to the board of West Ltd Company related to accounting system and
understanding the importance of Australian Accounting Standards and advising the board
member or the chairman of the West Ltd Company related to the reporting process.
Discussion
Implications according to Australian accounting standards
West Ltd is required to prepare financial statements as per Corporations Act. AASB 138
is applicable for the company in case of its intangible assets. West Ltd for its own business will