Introductory financial accounting Report 2022

Running head: INTRODUCTORY FINANCIAL ACCOUNTING
Introductory financial accounting
Name of the Student
Name of the University
Author Note

INTRODUCTORY FINANCIAL ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Identification of the compliance issues in qualitative and quantitative terms:..........................2
Examining the impact of accounting standards on financial measures:....................................3
Recommendation on the issues identified:.................................................................................4
Conclusion:................................................................................................................................4
References list:...........................................................................................................................6

INTRODUCTORY FINANCIAL ACCOUNTING
Introduction:
The report is prepared to apply the analysis of the financial accounting of one of the
companies of Canada. The accounting issues in relation to the accounting standard has been
identified along with determining the implication of their assessment has been demonstrated.
Advantage Oil and Gas is the chosen company for the analysis purpose which is an oil and
gas company with a focus on the significant position development in liquid resource and
natural gas located in Glacier region of Alberta. Canadian companies translated to IFRS on
January 1, 2011 and the financial information of the company has been restated from GAAP
of Canada to IFRS (De et al., 2016). Regarding this, the objective of preparing the report is to
qualitatively and quantitatively analyse the issues related to the accounting standard of IFRS.
Discussion:
Identification of the compliance issues in qualitative and quantitative terms:
The consolidated financial statements of Advantage Oil and Gas is prepared
according to the requirements of IFRS and certain items of the previous years have been
reclassified so that it conforms to the standard presently adopted. GAAP is responsible for
leaving a room for creative accounting misleading which is the concern of shareholders,
equity and venture capital investors. Sometimes, the organization uses fraudulent financial
reporting for creative accounting which is perceived to be an industry wide problem. The
preparation of financial statements under GAAP by Advantage Oil and Gas did not facilitate
the comparison with the peers of US. The company has adopted IFRS which requires the
management to make estimates and judgement in preparing the financial statements as the
financial conditions is materially impacted by such judgement (Advantageog.com, 2020).
While rules and guidelines formed the basis of preparation of financial statements under
GAAP and guidelines are offered by IFRS to facilitate comparing the financial information.