Organizations and Accounting Process

Running head: ACCOUNTING PROCESS
Accounting Process
Name of the Student
Name of the University
Author note

1
ACCOUNTING PROCESS
Table of Contents
Topic 1.......................................................................................................................................2
Topic 2.......................................................................................................................................4
Reference....................................................................................................................................7

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ACCOUNTING PROCESS
Topic 1
Organisations and accounting process
The accounting process of both the private and public organisations in Australia is
governed by the Australian accounting standard board. The AASB also sets the guidelines of
the global financial reporting standards which are followed by the Australian organisations in
setting global standards.
The accounting process prescribed by the AASB is mandatory for the following organisations
The entities required by the corporation act 2001 to prepare financial statements
government sectors that are required to prepare financial statements.
Both the public and private sectors for profit or not for profit that are reporting entities
or the entities that are required to make financial statement (Domingues et al 2017).
As per the AASB 1053 there are two tiers of Australian accounting standards which
clearly provides the accounting process that is to be followed by different organisations and
the requirements that are essential for the preparation of accounting standards.
Tier 1 Australian accounting standards
Tier 2 Australian accounting standards – reduced disclosure requirements
The tier 1 requirement is mandatory for profit making private sector that are publicly
accountable. The other profit-making private sector organisations which are not publicly
accountable should also comply with the requirements specified under the tier 1 of the AASB
(Artiach et al 2016).