Accounting Statement Analysis Report - Finance Module, Semester 1

This report presents an analysis of accounting statements, focusing on depreciation methods according to AASB 116 and the organizational procedures of Fast Print & Design regarding the disposal of fixed assets. The report details the different depreciation methods including diminishing balance, straight-line, and units of production methods, and explains how the chosen method reflects the economic benefits consumed by the organization. Furthermore, it outlines Fast Print & Design's policies for asset disposal, emphasizing the approval process based on the asset's written-down value and the required documentation. The report references relevant sources, including the AASB guidelines and research on asset management, to support its analysis. Excel files are also referenced for parts 1 and 2.

Running head: ACCOUNTING STATEMENT ANALYSIS
Accounting statement analysis
Name of the student
Name of the university
Student ID
Author note

1ACCOUNTING STATEMENT ANALYSIS
Table of Contents
Part 1........................................................................................................................................... 2
Part 2........................................................................................................................................... 2
Part 3........................................................................................................................................... 2
1. Depreciation method as per AASB 116.............................................................................2
2. Organizational procedures and policies of Fast Print & Design regarding disposal of fixed
asset........................................................................................................................................ 2
Reference and bibliography.........................................................................................................3

2ACCOUNTING STATEMENT ANALYSIS
Part 1
Refer to excel sheet
Part 2
Refer to excel sheet
Part 3
1. Depreciation method as per AASB 116
As per Para 60 of AASB 116, used method of depreciation shall represent pattern under
which economic value of the asset for future period are estimated to be consumed by the
organization. Different method of depreciation can be used for allocating depreciation amount of
asset on systematic basis over the useful life of the asset. These methods are diminishing
balance method, straight line method and the units of production method. Diminishing balance
method leads into reducing charge over the asset’s useful life, straight line approach leads into
constant charge over the asset’s useful life and if the residual value of the assets remains same
and units of production approach leads into charges on the basis of expected output or use
(Aasb.gov.au, 2019).
2. Organizational procedures and policies of Fast Print & Design regarding
disposal of fixed asset
Fast Print & Design only disposes its asset if it has been obsolete or unserviceable or
surplus to the requirements. Approval is required in writing before disposal and requirement of
approval level is determined on the basis of its written down value. Further the Asset Disposal
Form is needed for the purpose of audit and it shall be conformed to required authorization
before asset disposal. While the asset’s original cost price is below $ 90,000 the form shall be
approved by Head of department or the manager of budget centre. However, while the asset’s
original cost price is more than $ 90,000 the form shall be approved by delegated financial
officer.

3ACCOUNTING STATEMENT ANALYSIS
Reference and bibliography
Aasb.gov.au. (2019). Retrieved 29 August 2019, from
https://www.aasb.gov.au/admin/file/content105/c9/AASB116_08-15_COMPoct15_01-
18.pdf
Brown, K., Laue, M., Tafur, J., Mahmood, M. N., Scherrer, P., & Keast, R. (2014). An integrated
approach to strategic asset management. In Infranomics (pp. 57-74). Springer, Cham.
Davis, R. (2016). An introduction to asset management. Retrieved November, 20, 2016.
Hastings, N. A. J. (2015). Physical asset management: With an introduction to ISO55000.
Springer.