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impact of accounting Assignment

   

Added on  2021-06-18

7 Pages1900 Words55 Views
Name : ________________________________________________Student ID : ____________________________________________Proposed Research Title:To analyze the impact of accounting: in context of Woolworths Supermarket, AustraliaClient Organisation (if applicable)Woolworths Supermarket, AustraliaLiterature Review A review of necessary literature sources is critical to arrive at an understandingn related to a particular topic. In the curent research proposal, it is being evaluated ways that accomodating of accounting concepts regulations of Australia can impact their organizational performance. The Asutralian Accounting Standards Board (AASB), an Australian Government agency that is repsonsible for maintaining of financial reporting of public as well as private organizations has developed certain standards (Agoglia, Doupnik & Tsakumis, 2011). The scope of this literature review encompasses concepts from AASB that has helped Woolsworth achieve high levels of organizational performance. Articles, books and journals have provided relevant insights into ways that application of accounting standards can help trigger organizational performance. Schaltegger and Burritt (2017) proposes that environmental accounting standards forms an integral part of reporting for organizations to create sustainability. Woolsworth and 1 | Page

any other companies public or private that are operating in the Australian market or have their securities listed in the ASX needs to apply AASB principles of accounting regulations. The AASB provides appropriate treatment for all items across trading, profita and loss account, cash flow statements as well as the balance sheet. Following such treatment has been deemed as essential as well as mandatory by the Accounting Boards. It allows transparency and reliability of accounting strcutral framework. Moreover, reports that are prepared in connection to such given standards are easily readible by investors from across the globe (Brown, 2011). Meaning using of Accounting Standards enhances prospects of an organization to raise capital from various other countries as well. AASB is developed in conjuction and consultation of recently published norms of the IFRS. Meaning that investors from across the world caneasily access balance sheet and other information of the Company. Bryce, Ali and Mather (2015) in their report highlighted that an accounting statement of an organization not only encompasses reflection of the financial health of an organization rather it provides external satekholders with vision and mission of the organization. An effective accounting statement is able to provide details of an organization’s activities and future directions. Preparation of such effective accounting statement is only possible in case the organization has an operational accounting regulations applied. Therefore, such maintaining of accounting statements is possible only in case an organization has the motive to do so (Peloza, 2009). Prevalence of suchaccounting regulations within an organization allows providing company related information to various stakeholder groups. Investors and shareholders have use of suchinformation as they want to understand where their valuable money is invested in. Withusing such information, investors can either decide or invests more money or withdrawtheir investments already done. But in absence of such information, investors will be confussed and might take a decision that might affect long-term prospects of the Company (Tarca, 2012). Therefore, accounting regulations within an organziation 2 | Page

enable its investors and shareholders to remain commited to their investments. Employees and staffs can have access to such information to understand whether their company is o n right track. This allows enhancing commitment levels of employees and staffs as they can clearly see company’s direction throughits vision and mission statement. Benson, Clarkson, Smith and Tutticci (2015) evaluated accounting standards and regulations being an integral factor of Corporate Governance in Australia. Companies in Australia need to comply with Corporate Governance norms and standards. It is a requirement of Corporate Governance that organizations within Australia apply standards of accounting and regulations as has been proposed by AASB. Therefore, it becomes necessary for organizations to apply norms related to accounting. In every organizations, especially retail ones recording of transactions is necessary and their subsequent treatment in books of accounts. In-depth and details recording of such transactions is deemed to be critical such that they can be reflected across books of accounts and balance sheet. Therefore, companies as a part of their compliance procedures need to apply accounting regulations and processes so as to prepapre books of accounts in an appropriate manner. Preiato, Brown and Tarca (2015) provides necessities in legal framework requiring application of accounting principles and regulations. In order to create sustainability amongst organizational processes, there needs to be application of appropriate accounting frameworks with regulations. It allows depicting treatment of various accounts and their profitability as well (Unerman, Bebbington & O’Dwyer, 2010). Accounting functions is one of the basic needs and requirement for any organization hence has to be applied across all its departments. An organization need to have accounting software and packages that can allow recording and proper treatment of various heads of accounting. Complying with old standards of accounting and not upgrading to recent standards might deter possibilities of the organization to report its 3 | Page

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