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Intangibles and Economic Reality in Accounting

   

Added on  2020-03-13

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Running Head: Accounting 1Accounting conceptual framework
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Accounting 2ContentsIntroduction.......................................................................................................................3Company Overview..........................................................................................................3Conceptual framework and AASB standards...................................................................3Interpretation.....................................................................................................................4Remuneration report.....................................................................................................4Income statement..........................................................................................................5Balance sheet................................................................................................................6Cash flow statement:.....................................................................................................7Techniques adopted by the company............................................................................8Notes from financial reports.........................................................................................9Auditors report............................................................................................................10Director’s report..........................................................................................................11Recommendation and conclusion...................................................................................12References.......................................................................................................................13
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Accounting 3Introduction:This report has been presented to analyze the financial statement of the company. In this report, it has been depicted that how an accounting student interpret the financial statement from annual report of a company according to the GPFR (general purpose financialreporting) and on the basis of AASB. It has been analyzed that there are various factors which could be analyzed through the final financial statement of the company and on the basis of that a best idea could be made over the performance, profitability, strategies, future changes etc. For conducting this report, Wesfarmers has been taken into consideration, this company’s annual report has been analyzed and many financial and non financial factors of this company has been found and interrupted those facts and figures according to the understanding of an accounting student. For conducting this report, auditor’s statement, director’s statement, balance sheet, income statement, cash flow statement, statement of changes in equity, remuneration report, financial notes etc have been investigated. This report would help the user to understand the meaning of every factor and aspect written in the annual report of the company. Company Overview:Wesfarmers Limited is the Australian company which falls in the category of ASX 100. This company operates its business in retail industry, coal mining industry and production industry, gas processing and distribution industry, safety product distribution, chemicals industry and fertilizers manufacturing industry, and investment businesses in Australia, the United Kingdom, new Zealand and globally. Currently, 787 Coles supermarkets are operated by the company as well as this company also offers credit cards, insurance products; liquor stores, Vintage Cellars; 690 fuel and convenience stores; 89 hotels;and an online superstore. This company has also diversified its market into various industries to enhance the revenue of the company as well as enjoy the high growth and market share in the industry. This company came into existence in 1914 and currently, the head office of the company is in Perth, Australia (Allen & Carletti, 2008).Conceptual framework and AASB standards:Conceptual framework is a technique which is used by the accounting professionals tomanage, prepare and present the final financial statement of the company. Basically, it is theoretical framework which depicts the user about the some regulations, norms,
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Accounting 4assumptions, rules, guidelines, principles etc to understand the concept of accounting and prepare and present the final financial statement of the company accordingly. This is not the set of rules which is required to be executed but these guidelines make it easy for the accountant to prepare and present the final financial statement of the company and it also help the users to understand the final financial statement of the company (Hák et al, 2012).Interpretation:The annual report of Wesfarmers has been analyzed to understand the annual report factors and the hidden data in the annual report of a company. Annual reports are the primary source for the analyst and investors to analyze the performance of the company. Following are some of the points in an annual report which must be analyzed according to the understanding and requirement according to the annual report:Remuneration report:Remuneration report of Wesfarmers has been analyzed from its annual report (2016) to understand the policy of the company about paying the remuneration to its directors, executive members and other top level management. Through the reports, it has been analyzed that a fixed remuneration is always given by the company to the members and further remunerations depends over the performances of the directors and executive members. Company offers annual incentive as well as long term incentive to the managing directors and other senior executives according to the performance of the company. it has been analyzed through performing a study over this that the company is not involving into any unethical practices while offering the remuneration to its members as the remuneration has been given to them according to their performance and the performance of the company (Glasson, Therivel, & Chadwick, 2013). The final statement of the company depict that the revenue of the company has been enhanced and thus the remuneration and annual incentive of the directors and managing partners have been enhanced.
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