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Report | Financial Accounting

   

Added on  2020-05-16

9 Pages1734 Words34 Views
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Running head: FINANCIAL ACCOUNTINGFinancial AccountingName of the StudentName of the UniversityAuthor’s Note
Report | Financial Accounting_1

1FINANCIAL ACCOUNTINGTable of ContentsPart 2................................................................................................................................................2Task 1...........................................................................................................................................2Requirement (a).......................................................................................................................2Requirement (b).......................................................................................................................3Task 2...........................................................................................................................................3Task 3...........................................................................................................................................5References........................................................................................................................................7
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2FINANCIAL ACCOUNTINGPart 2Task 1Requirement (a)The main aim of this part is the determination of the classification of the expenses ofCoca-Cola Amatil based on nature or function. For this purpose, the 2016 annual report of thecompany is considered. For the answering of this present question, it is required to obtainnecessary knowledge related to the classification of the expense of the companies based onnature and faction. In the income statement developed based on the nature method, the disclosureof the expenses is done as per their nature like depreciation, transportation cost, rent relatedexpenses, salaries, wages and others. Thus, it implies that the companies do not don anyreallocation of these expenses based on their functions. This method provides simplicity in thefinancial statements (Scott, 2015). On the other hand, in the income statements based on function method, the disclosure ofthe expenses is done based on their functions like cost of goods sold, selling expenses,administrative expenses, other expenses and others. Under the function method, the expenses arestill required to be disclosed by nature (Weil, Schipper & Francis, 2013). From the 2016 Consolidated Income Statement of Coca-Cola Amatil, it can be observedthat the reported expenses by the company are cost of goods sold, selling expenses, warehousingand distributing expresses and support services and other expenses. From this, it can be observedthat Coca-Cola Amatil has just provided the headings of the expenses. The detailed name of theexpenses have not been discussed. Thus, based on the above discussion, it can be concluded that
Report | Financial Accounting_3

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