Financial Reporting Assignment 2022

Running head: FINANCIAL REPORTING
Financial Reporting
Name of the Student
Name of the University
Author’s Note

FINANCIAL REPORTING1
Table of Contents
Introduction................................................................................................................................2
1. Reasons for the Significance of Measurement of Assets and Liabilities...............................2
2. Essential Measurement of Two Assets and Two Liabilities in JB Hi-Fi...............................3
2.1 Assets...............................................................................................................................3
2.2 Liabilities..........................................................................................................................3
3. Assessment of the Relevancy of Measurement of Assets and Liabilities..............................4
4. Conclusion..............................................................................................................................6
References..................................................................................................................................7

FINANCIAL REPORTING2
Introduction
Conceptual framework for financial reporting is a crucial aspects that provide
assistance to develop and revise the required accounting standards and principles for the
purpose of accurate financial reporting. Measurement of financial assets and liabilities is
regarded as a crucial portion of the conceptual framework for financial reporting. The key
aim of this study is to discuss about different aspects related to the measurement of assets and
liabilities in an ASX listed corporation. JB Hi-Fi Limited (JB Hi-Fi) is considered for this
purpose.
1. Reasons for the Significance of Measurement of Assets and Liabilities
According to Framework for the Preparation and Presentation of Financial
Statements, Paragraph 99, measurement is the procedure to ascertain the financial amount at
which the companies are required to recognize the financial statements’ elements in both
income statement and balance sheet. This puts the obligation on JB Hi-Fi to involve in the
measurement of the assets and liabilities of the business. In JB Hi-Fi, application of the
measurement idea provides guidance to the decision of JB Hi-Fi on the procedures for
determining the monetary amount that it will report for the assets and liabilities. The main
focus of the measurement model in JB Hi-Fi is to ascertain the assets’ and liabilities’ amounts
because the amounts that JB Hi-Fi will report for other elements of financial statements are
based on the determined values of the assets and liabilities (ifac.org 2019).
In JB Hi-Fi, the measurement concepts used by the company for the determination of
the suitable amounts for assets and liabilities give the company a basis for depicting the
financial standing and health of the company at a particular time along with financial activity
at a particular period. Apart from that, application of correct measurement concept in JB Hi-
Fi will assists in establishing standards that need the similar transactions and treatments. This