Telecommunications and Media Related Services | Telstra

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By student name ProfessorUniversityDate: 14 September , 2017.
1ContentsPART A..............................................................................2PART B..............................................................................8PART C..............................................................................10Refrences........................................................................131 | P a g e
2Part ATelstra is one of the leading companies in Australia that provides telecommunications and mediarelated services to its consumers. There are various types of business areas that the company hasventured into lately. It has the highest market share in Australia in relation to the telecommunicationsector. The business is now foraying in other countries also[ CITATION Min17 \l 1033 ]. The annualreport of the company has been downloaded and analyzed to comment on certain points related toaccounting and its treatment. Extracts from the same are attached hereunder-1)In case of accounting the weekly or the yearly data that is provided by the company, ismeasured in terms of its monetary validity. It is stated that the accounting measurements areoften derived from hypothetical assumptions and not from proper observation and real timemeasurement[ CITATION Lau16 \l 1033 ]. However, it is not true, a and it does matter in case ofaccountancy that all the data that is provided must have certain documents in their supports. Allthe figures that we see on the financial statements are backed off with proper disclosures anddetails and are not based on any hypothetical assumptions. Like in the extract attached below,each of the items that are there in the income statement of the company have been properlymeasured and then stated and there are proper disclosures that have been provided for each ofthe same. Even depreciation of the assets has been calculated on monetary terms based on thespecific accounting standards[ CITATION Giv16 \l 1033 ]. 2 | P a g e
32)In Accounting, it does not matter whether the standard rules of mathematics are violated or not.The Accounting rules contain basic mathematical function that is addition and subtraction andthere are no proper rules that the accountants need to follow in respect of the same. Theaccounting language has its own rules and regulations , that are based on the specific accountingstandards that have been developed and thus whether the basic accounting assumption that isrelated to mathematical standard rules are followed or not does not matter[ CITATION Bur161 \l1033 ]. As per the rule of mathematics, addition should be done before subtraction but no suchrule is followed in Accountancy. It depends on the nature of the expense or income and thanthey are, accordingly added or subtracted. Like in the given extract, we see that the net financecost expenses are first deducted and then the profit from discontinued operations is added.Hence, we see that accounting has its own language that it follows[ CITATION Gur17 \l 1033 ].3)Depreciation refers to a fall in the value of the assets that is used by the company by itscontinues wear or tear. There are specific methods by which depreciations can be calculatedand is then written off over the life of asset. Depreciation is not a tangible change that can beseen, it is just an estimation of the fact that because the asset is being used there will be adeduction in the carrying amount of the same and the same is reflected in the financialstatements[ CITATION Gur17 \l 1033 ]. The companies to show the true state of the financialassets and to calculate the correct amount of profit or loss when the company sells the asset doit. In the given extract, the depreciation policy of the company is stated below, and the variousassumptions that is made by the same[ CITATION Han17 \l 1033 ]. 3 | P a g e

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