Financial Reporting and Accounting

Running head: FINANCIAL REPORTING AND ACCOUNTING
Financial Reporting and Accounting
Name of the Student:
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FINANCIAL REPORTING AND ACCOUNTING1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Changes in Accounting Policies..................................................................................................2
Accounting Policies and Estimation for Measuring the PPE......................................................3
Evaluation of Professional Judgements.......................................................................................4
Improvements in Accounting Estimates and Policies.................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

FINANCIAL REPORTING AND ACCOUNTING2
Introduction
The financial analysis has been done for the Wesfarmers Company for the period 2018,
where relevant accounting analysis has been done for the company in comparison with the
applicable accounting standards such as AASB 108 that are specifically mentioned from
Paragraph 7 – Paragraph 14 of the Accounting Policies mentioned. The changes in the
accounting policies and the application of the same based on the relevant accounting standard
will be taken into consideration (Senaratne 2016).
Discussion
Summary and Criteria for Selecting and Changing in Accounting Policies
The accounting policies followed must be well consistent and comparable so that the
same allows the investors and other stakeholders of the company, in well comparison of the
financial statements of the company (Lugovskу and Kuter 2019). In the case of application of an
accounting standard, when specially applied to a transaction or condition, the impact of
applicable accounting policy can be well judged with the help of the changes observed in the
values of that specific asset. The key criteria that are mentioned in Paragraph 10, under the
AASB 108 is that applies to a transaction, event or condition should be based on the given
criteria:
 The Accounting policy should be relevant and material enough for the purpose of
economic decision making that is applied by the stakeholders of the company (Healy
2019).