Accounting Concepts and Framework: National Storage REIT

Running head: REPORT 0
ADVANCED FINANCIAL ACCOUNTING
MAY 28, 2019
STUDENT DETAILS:

REPORT 1
Contents
Introduction................................................................................................................................2
Company overview....................................................................................................................2
Description of accounting concepts...........................................................................................2
Conceptual framework and issue of measurement.....................................................................3
Fundamental Qualitative Characteristics...................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

REPORT 2
Introduction
The explanation of the accounting basics address certain fundamental concepts of accounting,
accounting principles, as well as the accounting terminologies. The accounting
concept means the fundamental rules, principles, and assumptions that work as a base of
recording the transactions related to business and making accounts. This concept assumes
that, for accounting, a business entity, and the owners are 2 distinct independent companies.
The conceptual framework of company may describe as a scheme of concepts and aims that
lead to a production of the reliable and constant set of the laws, rules, and regulations. The
agreed conceptual framework is very useful for setting the standards of accounting. The
conceptual framework of company is also useful in resolving the accounting issue (Schulze,
et. al, 2016). It also state the fundamental principles to be used. The major reason for
establishing the conceptual framework is that it provides basis for solving significant dispute,
and framework for describing the standards. In the following report the accounting concepts
followed by National Storage REIT, is discussed, and assessed. The report also state
corporation’s conceptual framework, issues of measurement, and fundamental qualitative
characteristics.
Company overview
National Storage REIT is real rstate investment trust. It is the administrated within and
incorporated the operators and owners of the Australian self-storage centres. This corporation
has about 105 self-storage centres in the administration as well as operations, rendering the
solution related to the storage to above thirty-five thousands clients in New Zealand and
Australia.

REPORT 3
Additionally, this company administers about 59,200 units for storage through above 542,000
square meters of net settable extent in New Zealand and Australia. National Storage Property
Trust (NSPT) owns about sixty self-storage centres. There are sixteen self-storage centres,
which are functioned as long-run leasehold centres. On the other hand, there are twenty six
thousand self-storage centres, which are administrated for the South Cross Storage Group and
over three third-people administrated the centres. The self-storage centres of corporations are
placed at the Gold Coast, Christchurch, Brisbane, North Queensland, Perth, Sunshine Coast,
Geelong, Canberra, Sydney, Hobart, Melbourne, Hamilton, Wellington, and Darwin
(Bloomberg, 2018).
Description of accounting concepts
There are various theoretical issues. It is required that one should understand the accounting
concepts to establish the entity foundation of how the accounting does work. The
fundamental accounting concepts are below:
1. The concept of matching - the expenditures related to revenues must be identified in
the similar time, where the revenues were identified. From conducting this, there are
no deferrals of expenditure identification in subsequent reporting period, with the
intention of someone viewing, the financial statements of company may be
guaranteed that all the features of the transactions have noted at the similar period.
2. The conservatism concept- Revenues are only identified while there are the proper
certainty that this would be realized, where the expenditures are identified earlier,
whenever there are the reasonable possibilities that they would be earned. The
conservatism concept inclines the outcome in conventional financial statement
(Kelley and Knowles, 2016).