University Accounting Principles: ACCT5001 Group Assignment Report

This ACCT5001 group assignment report provides a critical discussion of key accounting concepts and policies, using the annual report of Wesframers company. The report analyzes the company's adherence to fundamental accounting principles such as going concern, historical cost, and accrual accounting. It also examines the accounting policies followed by the company, including those related to depreciation, financial instruments, impairment losses, and leases, highlighting compliance with AASB standards and IFRS. Furthermore, the report outlines the contributions of each group member and discusses the group's organization and processes. The analysis includes references to relevant accounting literature and standards, offering a comprehensive overview of financial reporting practices. This assignment demonstrates a strong understanding of accounting principles and their practical application in financial reporting, and is available on Desklib for students seeking similar resources.

ACCT5001 Accounting Principles Group Assignment
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SECTION 1: CRITICAL DISCUSSION OF KEY ACCOUNTING CONCEPTS
In the given case, the annual report of the Wesframers company is downloaded and key accounting
concepts are analysed. The annual reports of the company have been prepared following the key
accoutning concepts that has been developed by compotent authroity. The baisc accounting
concepts that are followed are-
The annual statemnts of the company are prepared on a going concern basis, which is the prime
concept in accounting. It states that the bsuiness of the company will continue irrespective of any
circumstances or situations. The company has no plans of shutting down the operations in the times
to come (Kew & Stredwick, 2017)..
It is stated in the annual reports that the books of the company are prepared on the basis of the
historical cost method,except for the investments that are held by the subsidiaries and few more
assets that are valued on the basis of fair value.The historical basis of accounting is followed in
both the parent and the subsidiary company. However in case of investments the fair value is taken
for making the calculation.
The statemnts are prepared on the basis of accrual accounting, where items that are related to the
reporting period are only taken into consideration. It is important to show the true affairs of the
bsuiness and its operations. The total items of revenue and expenses are recorded as and when they
are accrued and not when cash is paid in repsect of the same.
In case of preperation of the accounts of the parent company and the subsidiary company,
consistency is followed that means same accounting methods are followed in both the
companies.This helps in making easy compariosn between the companies and their peers. It also
complies with the fact that once any method is chosen the same is followed accordingly and is
taken care of. This is an important concept of accounting (Belton,2017).
The annual reports of the company having proper disclosure with all the notes to accounts given in
brife. This is also an important aspect of accounting and all the companies must comply with the
same. Other concepts that includes maintaining the accoutning equation where the total assets are
equal to the total liabilities and shareholders equity. It can be seen in the balance sheet of the
company in which values are given. The books of the company are prepared for a specific period
and are related to that period only.
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ACCT5001 Accounting Principles Group Assignment
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ACCT5001 Accounting Principles Group Assignment
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SECTION 2: CRITICAL DISCUSSION OF ACCOUNTING POLICIES
The financial statements of the company are prepared following certain accounting policies and
standards that have been issued by the AASB and the statements comply with the IFRS. These are
the standards that have been followed by the company in preparation of their reports. The books of
the company have been prepared to give a true and fair view of the accounting policies and the
company has complied with the Corporations Act 2001. On analysing the annual report of the
company, the few key accounting policy that have been followed by the company are-
For determination and measurements of the key items of the accounting statements, specific
accounting standard and policies are followed. Like for the determination of the total amount of
depreciation and calculation of the same and the valuation of the property the AASB 118 is
followed. This is related to the valuation of the property plant and equipment. A part from those
other items like valuation of the financial instruments, fair value assumption is taken that is based
on the relevant accounting standard.
The impairment losses that are related to the assets are reversed in case the situation that caused the
loss is improved. However losses related to goodwill is not reversed and the same is followed by
the company. It can also be seen that the valuation of the impairment losses that is related to the
goodwill of the company is done by allocating the same to the cash generating units and then
making the necessary calculation. The company has also given disclosures in regard to the
same(Bromwich & Scapens,2016).
The company has also treated leases in the same manner, the financial and the operating leases are
divided accordingly and their overall valuation is done on the basis of the same. The company has
complied with all the relevant disclosure requirements of the standards that he has followed and has
taken the necessary steps accordingly. It can also be seen that in case of payment of the dividend
and taking other decision that is related to the income of the shareholders the company has taken
the same in compliance with the various provisions of the accounting standards and the corporation
act. It can thus be seen that the company has abided with all the necessary accounting policies that
are important to make sure that the books of the company are showing a true and fair view.
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ACCT5001 Accounting Principles Group Assignment
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SECTION 3A: KEY CONTRIBUTION OF GROUP MEMBERS
SID List of key contributions
SID 1 Key contributions student 1.
SID 2 Key contributions student 2.
SID 3 Key contributions student 3.
SECTION 3B: GROUP ORGANISATION AND PROCESSES
The group has worked together to brig in areport in which the key accounting polices and
standards are highlighted. Each member of the group has made effective contribution to the
work and has given their own inputs in the work.The work was effectively divided between
all the members who have given their own inputs. the specific contributions of the group
members is stated above clealry. While working in group it is important that veery member
must communicate effectively with each other(Alexander, 2016). Effective flow of ideas
must be there so that there will be no confusion and each member should give their inputs
accordingly. The overall project was very effective and has helped in development of
knowldge that is needed for making analysis of the overall accoutning statemnts and
reading the annual reports. To decipher proper information from the annual report of the
company is also an important art and that skills have been developed through this group
work. The grouo was led by one of the members who had good leadership skills and he
gave proper guidance to the members in doing their work effectively. Having good team
member is important while working on any project (Abbott & Kantor, 2017).
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ACCT5001 Accounting Principles Group Assignment
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REFERENCES
Abbott, M. & Kantor, A., 2017. Fair Value Measurement and Mandated Accounting Changes: The
Case of the Victorian Rail Track Corporation. Australian accounting Review.
Alexander, F., 2016. The Changing Face of Accountability. The Journal of Higher Education,
71(4), pp. 411-431.
Belton, P., 2017. Competitive Strategy: Creating and Sustaining Superior Performance. London:
Macat International ltd.
Bromwich, M. & Scapens, R., 2016. Management Accounting Research: 25 years on. Management
Accounting Research, Volume 31, pp. 1-9
.
Dichev, I., 2017. On the conceptual foundations of financial reporting. Accounting and Business
Research, 47(6), pp. 617-632.
Kew, J. & Stredwick, J., 2017. Business Environment: Managing in a Strategic Context. second ed.
London: Chartered Institute of Personnel and Development.
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