HA3011 Advanced Financial Accounting Report: Beach Energy's Analysis

This report provides a comprehensive analysis of Beach Energy Limited's (BPT) financial accounting practices, focusing on its 2018 annual report. It begins by identifying and describing the accounting concepts applied by the company, such as the accrual concept, conservatism, economic entity, going concern, cost concept, accounting year concept, and materiality. The report then details the changes introduced by the new accounting standard for leases, AASB 16, contrasting it with the previous standard, AASB 117. It explains how AASB 16 eliminates the distinction between operating and finance leases and requires the recognition of right-of-use assets and lease liabilities. Furthermore, the report summarizes the key disclosures made by Beach Energy regarding its accounting for leases, including the transition from AASB 117 to AASB 16, highlighting the impact of the new standard on its financial reporting, including the capitalization of leases and the recognition of depreciation and interest expenses. The analysis emphasizes the practical implications of these changes for Beach Energy and its stakeholders.