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Financial Reporting - PDF

Added on - 22 Nov 2020

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CompanyAndFinancial Reporting
Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1PART B............................................................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONFinancial reporting reflects the performance to the public and the management. Financialreports of company has been provided financial information about how they are performing inany quarter of the year (Noronha and et.al, 2013). Most of the reports of the company has beenprepared on a quarterly and annual basis. Through these reports management can take effectivedecision as well as prepare strategy for company to present data in the report. The objective ofthe report to explain the regulatory requirements and standard setting of financial reporting in theAustralian context. To understand the concept national Australian bank limited which is listedinto ASX limited as public bank. In the report consist of revenue recognition and measurementaccording to AASB 15. Apart from discuss about potential impact to follow AASB 15 inNational Australian bank limited.PART A1) The new revenue standard (AASB 15 Revenues from contracts with customers)follows by each industry and every business from 1 January 2018. The new standard has beendesigned to trading with customer contracts and involve business models, involve contracts thatbundle goods and services, contingency pricing arrangements, goods or services that aredelivered on time, licensing agreements and other complex arrangements. The particularstandards has been affected to individual companies in big way because changes can beaddressed. There are required to AASB 15 to disclose objectives, an entity must disclosesufficient information to modify users of financial statement to understand the nature, amount,uncertainty and timing of revenues and cash flows origin from contracts with customers.The new standard has been introduced because Financial accounting standards board(FASB) received many feedbacks regarding to revenue recognition guidance was fragmented atbest and confusing at worst. So as responses of feedback they were issued AASB 15 for revenueswith customers. To recognise revenues firstly identify of contract then combination of contract aswell as modify contract in appropriate manner. It further identify performance obligation inreference to promise in contract with customers and different between goods or services. Theobjective to disclose requirements due to sufficient information to alter users of financialstatements in order to understand cash flow, uncertainty, nature, amount and timing(Zeff, 2013). There are identified revenue recognition as per AASB 15 -1
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