Business Accounting Practices of Angel Seafood Holding Ltd

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BUSINESS ACCOUNTING
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Contents
Essay................................................................................................................................................3
References........................................................................................................................................6
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Essay
In any of the organization business accounting is considered as one of the basic requirement as it
helps in understanding the conceptual as well as the financial framework of business practices.
The business accounting is defined as the accounting system which helps in interpretating,
recording and analyzing the financial transactions. Angel seafood holding ltd. is the organization
which works with the aim to becoming one of the largest organizations in production of green
and clean sustainable oysters.
Measurement of inventory is determined as the valuation of inventory that allows the
organization to establish its monetary value of the items which helps in making up of profits. It
includes various items such as cost of purchase, cost of conversion and other costs. In case of
Angel seafood holding ltd. AASB 102 is used in order to analyze the inventories (Angel seafood
holding ltd., 2018). In AASB 102, AASB 114 Agriculture is being used which includes the
agricultural produces which the organization has harvested from the biological assets so as to
estimate the fair value. Based on the life cycle model there are various assumptions which are
being used by the Group such as: seasonal growth rates, less cost to sell oyster prices and
mortality rates. In order to measure inventories in Angel seafood holding ltd. the standard cost
method is being used. This method is being used as it takes into consideration the actual level of
materials, labor, efficiency and utilization of capacity (Angel seafood holding ltd., 2018). The
inventory cost is determined by deducting the volume of sales from the inventory so that the
percentage of gross margin can be determined (Tough Nickel, 2016).
The inventory systems are the control systems which are used in organization so that the
solutions related to technology of all inventory tasks can be provided. The Angel seafood
holding ltd. is using perpetual inventory system for managing its level of inventory within
organization. The perpetual inventory is much useful system as it updates the level of inventory
according to the sales and purchase on timely basis (Angel seafood holding ltd., 2018). There are
various merits which are being received by Angel seafood holding ltd. by using this method such
as:
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 It helps in delivering the up to date information regarding inventory and with this also enables to
minimize the physical counts of inventory.
 It is also favored for tracking the level of inventory as it helps in delivering the accurate results
on the basis of continuity which in turn also helps in managing the overall stock of organization
(Martinez-Sanchez, et. al., 2016).
 These are used in locations which are updated and reviewed on real time basis by the barcode
scanners so that the movement of stock can easily be traced.
 It gives business owners the more understanding regarding the preferences of customers within
organization.
 It also helps in preventing the stock outs (Angel seafood holding ltd., 2018).
Angel seafood holding ltd. as organization is being working at every level so it is important to
find out expense of activities did at various dimensions. At the point when tasks are done and
furthermore exercises are attempted everywhere level it is important to guarantee cost found out
at each dimension of action. There are diverse sorts of costing strategy accessible for reason for
ascertainment of expense and costs (Buescher, et. al., 2014). Marginal costing, batch costing,
group costing, standard costing and task costing, etc are techniques for ascertainment of expense.
In Angel seafood holding ltd. it is accepted that organization is following technique for marginal
costing in doing its tasks (Angel seafood holding ltd., 2018). The organization has chosen that is
Angel seafood holding ltd. to operate through the following costing method due to the following
reasons:
 Marginal costing makes it easier for the organizations to determine the ways through which the
cost of production can be controlled (Buescher, et. al., 2014).
 This costing method is also one of the simplest methods to understand and function in the
competitive market when integrated with other costing systems in enterprise.
 It also helps in short term financial planning related to profitability and can also easily be
presented in front of management for taking the financial decisions within organization
(Martinez-Sanchez, et. al., 2016).
 With the help of marginal costing, the returns of the organization can be maximized as the
affects of policies related to production are easily accessed and reviewed.
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In Angel seafood holding ltd. there are commonly different kinds of costing strategies that are
utilized broadly and this techniques have their own favorable circumstances and disservices that
may have affect on money related statements (Martinez-Sanchez, et. al., 2016).In instance of
minor costing which is embraced by big business heavenly attendant fish they are explicitly
rejected from budget reports in light of the fact that in their count variable expense are excluded
and they are likewise founded on verifiable raw numbers to such an extent that they can't be
utilized in Financial explanations , there effect might be negative (Angel seafood holding ltd.,
2018). They must be utilized for reason for transient choices. In the event of employment costing
when costs are apportioned to explicitly one item or bunch of occupation they are appeared in
articulations however they can have affect because of when items are exceptional and some cost
like work and material couldn't be assigned (Buescher, et. al., 2014). The basic impact which is
being seen is due to the factor that the organization pays different prices for different types of
goods and services. If the goods will be sold on the constant price the occurrence of this variation
will reduce or get eliminated (Buescher, et. al., 2014).
Therefore, it can be said that the business accounting is not only limited to the management of
inventory but with this it also takes into consideration the costing methods so that the relevancy
of each can be determined. In Angel seafood holding ltd. all the information in financial
statements has been provided in accordance with that of the Australian Accounting Standard
Board which has enabled the organization to retain its position in the competitive market. The
marginal costing method used has allowed the organization to control the cost so that the
revenues of firm can be maximized and the overall profitability of the firm can be increased.
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References
 Angel seafood holding ltd., 2018. Annual Report. [Online]. Angel seafood holding ltd. Available
at: https://angelseafood.com.au/wp-content/uploads/2018/10/Angel-Seafood_2018-Annual-
Report.pdf. [Accessed On 1-02-2019]
 Buescher, A.V., Cidav, Z., Knapp, M. and Mandell, D.S., 2014. Costs of autism spectrum
disorders in the United Kingdom and the United States. JAMA pediatrics, 168(8), pp.721-728.
 Martinez-Sanchez, V., Tonini, D., Møller, F. and Astrup, T.F., 2016. Life-cycle costing of food
waste management in Denmark: importance of indirect effects. Environmental science &
technology, 50(8), pp.4513-4523.
 Mörtl, M. and Schmied, C., 2016. Design for Cost—A Review of Methods, Tools and Research
Directions. Journal of the Indian Institute of Science, 95(4), pp.379-404.
 Tough Nickel, 2016. Advantages and Disadvantages of Marginal Costing. [Online]. Tough
Nickel. Available at: https://toughnickel.com/business/Advantages-and-Disadvantages-of-
Marginal-Costing. [Accessed On 1-02-2019]
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