Business Accounting Practices of Silver Heritage Group Limited

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Desklib provides past papers and solved assignments for students. This essay analyzes Silver Heritage's accounting practices.
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BUSINESS ACCOUNTING - ACC00712
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Contents
Essay................................................................................................................................................3
References........................................................................................................................................6
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Essay
The main aim of this is to provide understanding about the various frameworks which are
involved in AASB and is related to the financial reporting and practices within organization. In
any business accounting standards plays very essential role as it helps in analyzing the ways
through which the presentation of financial statements can be done in effective and accurate
manner. The business accounting is the part of accounting through which the financial position
of organization in external and competitive market can be determined. Silver Heritage Group
Limited is an organization which was founded in 2003 and its headquarters are situated in Hong
Kong. It is regional gaming operator and has transformed most of the gaming market all over the
world.
In order to measure the inventories the AASB 102 is being used which determines all the
financial treatment of inventories in financial statements. There are various factors which are
being involved in the measurement of inventories such as the cost of inventories and other costs.
In Silver Heritage Group Limited AASB 101 with that of AASB 102 is being used this depicts
about the presentation of inventories in the financial statements of organization (Martinez-
Sanchez, et. al., 2015). During the measurement of inventories this standard provides one
guideline that the cost is determined and also the recognition of cost is done to the written down
net realized value. The formulae of cost are also used in respect to the cost assigned to
inventories. The measurement of inventories is done through the historic cost as this will help in
determining the actual financial performance (Silver Heritage Group Limited, 2018). In Silver
Heritage Group Limited the cost is being measured by setting up of standards so that the actual
results can be compared with the earlier one and immediate actions can be taken to improve that
performance (Martinez-Sanchez, et. al., 2015).
The management of inventories is done in business so that the availability of stock within
organization can easily be determined and the hindrance of stock availability can be reduced. In
order to manage inventory barcode inventory management system is being used as it will help
the management to meet the demands of right people on right time (Hansen, 2014). This will also
help in updating the level of inventory as soon as the scanning of barcode is done. The Silver
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Heritage Group Limited has chosen to use the barcode scanning in order to maintain inventory
due to following reason:
Through this system all the frauds and mistakes which are caused by the manual entry of data
sets has been eliminated. It also helps in reducing the training time of employees within
organization, Barcodes are inexpensive also to design and print. This system makes it possible so
as to track the level of inventory (Hansen, 2014). It also helps in promoting the decision making
as the data which is obtained is accurate and through this the informed decisions can be taken.
Therefore, the bar coding system results in the reduction of overhead. Last but not the least this
system also helps in automatically updating the level of inventory (Silver Heritage Group
Limited, 2018).
The Silver Heritage Group Limited is being working at each measurement so it is basic to find
cost of activities did at various estimations. Precisely when assignments are done and
additionally rehearse is tried wherever level it is basic to guarantee cost found at every part of
movement (Cinquini, et. al., 2015). There are distinctive sorts of costing method open for reason
behind ascertainment of expense and costs. The different kinds of costing strategies incorporate
the retention costing, negligible costing, and group costing just as the historic cost strategy. In
Silver Heritage Group Limited the historic costing strategy is being utilized so as to decide the
expense of items inside association. The historic costing decides the cost when they have just
been caused. Silver Heritage Group Limited has utilized this costing strategy as it is anything but
difficult to utilize and furthermore straightforward technique to apply since it doesn't considers
the market esteems (Silver Heritage Group Limited, 2018). Second value of this is that it is
straightforward which will empower the chiefs of association to assess money related records
effectively. The last legitimacy which it groups is that this idea is solid and evident. As the
noteworthy expense depends on the genuine sum which is paid for the item so it will help in
confirming the real expense of advantages through solicitations (Cinquini, et. al., 2015).
If various types of costing methods will be used in organization then it will provide with the
negative impact on the financial statements of organization (Bauer, et. al., 2012). In all the
organization one method of costing should be used so that the financial performance of
organization can easily be measured. In case of Silver Heritage Group Limited, there is the usage
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of historic cost which determines that it will create problem for the managers to evaluate the
financial performance as the expenses of the firm are brought down in accordance with that of
the historic cost but the revenues which are being earned is related with the current cost structure
(Bauer, et. al., 2012). Furthermore, it has also been seen that the different level of enterprises
pays distinct amount for products so this in turn will hamper the consistency of organization in
external world. The profits of the organization may also get impacted as there will be excess
amount of expenses during the current accounting financial year (Bauer, et. al., 2012).
Therefore, from all the systems it can be concluded that the inventory management systems as
well as the costing systems both plays key role so as to maintain effectiveness as well as
efficiency within the organization. The Silver Heritage Group Limited has achieved its growth
through various expansions of gaming facilities in other Asian markets. Both AASB 101 and 102
has been used so that the accuracy in presentation of financial transactions can be maintained.
The pertinence of stock administration frameworks just as the costing strategies has furnished
firm with heaps of advantages which thusly has additionally helped them to keep hang on the
monetary position in outside market.
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References
Bauer, D.G., Campero, R.J., Rasband, P.B. and Weel, M.D., Sensormatic Electronics
Corp, 2012. Inventory management system. U.S. Patent 8,321,302.
Cinquini, L., Collini, P., Marelli, A. and Tenucci, A., 2015. Change in the relevance of
cost information and costing systems: evidence from two Italian surveys. Journal of
Management & Governance, 19(3), pp.557-587.
Hansen, M., Intermec Technologies Corp, 2014. Inventory assistance device and
method. U.S. Patent Application 13/756,115.
Martinez-Sanchez, V., Kromann, M.A. and Astrup, T.F., 2015. Life cycle costing of
waste management systems: Overview, calculation principles and case studies. Waste
management, 36, pp.343-355.
Silver Heritage Group Limited, 2018. Annual Report. [Online]. Silver Heritage Group
Limited. Available at:
http://www.silverheritage.com.au/wp-content/uploads/2018/03/180329-Annual-Report-
2017.pdf. [Accessed On: 5-02-2019]
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