Advanced Financial Accounting Report: AASB Updates and Analysis

This report, created for an Advanced Financial Accounting course, examines amendments made by the Australian Accounting Standards Board (AASB) between May and August 2017. It details changes to standards like AAS 25 and AASB 1056, as well as the AASB's strategy for 2017-2021. The report also explores updates related to tax declarations, transparent annual reports, and the implementation of tax transparency. Furthermore, it analyzes the impact of insurance contracts and ED 280 on property, plant, and equipment. The second part of the report presents a detailed balance sheet for Winter Limited as of June 30, 2017, including assets, liabilities, and shareholders' equity. Finally, the report includes a bibliography of the sources used. This assignment provides a comprehensive overview of accounting standards and financial statement analysis.

Running Head: ADVANCED FINANCIAL ACCOUNTING
Advanced Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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ADVANCED FINANCIAL ACCOUNTING
NEWSLETTER
CHANGES MADE BY AASB FROM MAY 2017 TO AUGUST 2017
AUSTRALIAN
THE ERA END (29-
07-17)
Relevant amendments is
been conducted, where
AAS 25 is been changed
by the AASB. He overall
changes is been
conducted on the overall
AASB 1056, which is
been deemed outdated.
This mainly depicted that
relevant development in
superannuation plans
needs to be conducted
only within the fiscal
year.
AASB STRATEGY FOR
2017-2021 (28-07-16)
Relevant amendments is
been conducted by the
overall strategy for 2017
to 2021, which is been
conducted by the AASB.
Moreover, certain people
could conduct relevant
strategy finalisation and
comment on the overall
strategy developed by
AASB.
TAX DECLARATION
BY ORGANISATION
(04-07-2017)
AASB has mainly
conducted different types
of amendments on the
overall tax provisions,
which is been taken into
account relevant
knowledge provided by
the tax authority.
Moreover, relevant
anticipated amount of
settlement is been
conducted, which does
not need to be depicted in
the balance sheet. The
declaration is mainly
conducted for
organisation for
effectively stating the tax
liabilities.
TRANSPARENT
ANNUAL REPORT (20-
07-2017)
Relevant assets and
liabilities needs to be
reported by the
organisation in their
annual report. This
disclosure is mainly
conducted by AASB,
where adequate
declaration needs to be
conducted by the
organisation for
increasing reliability and
accountability of the
annual report.
AASB
IMPLEMENTATION
ON TAX
TRANSPARENCY
(16-05-17)
According to the AASB
relevant Tax transparency
mainly needs to be
conducted by the
organisation, which could
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ADVANCED FINANCIAL ACCOUNTING
mainly allow the
stakeholders for
understanding the overall
tax position of an
organisation. This move
conducted by AASB
mainly depicted the
relevant international
disclosure, which needs
to be conducted by the
organisation for
international investors.
Moreover, this disclosure
is mainly depicted in for
ASIC consideration of
GAAP. Therefore,
relevant declaration of
ETR needs to be
conducted by the
organisation. There are
relevant disclosures
associated with difference
in ETR with the
accounting ETR
conducting in the
accounting standards.
INSURANCE
CONTRACTS
IMPACT (18-05-
2017)
The insurance contact
mainly states the benefits
provided from IFRS 27,
where the company is not
able to employee
historical costs in its
annual report.
Furthermore, the contract,
opportunity are mainly
decreased in the annual
report. This could directly
allow the organisation for
portraying the overall
unprofitable business in
early stage. This
recognition in the overall
losses incurred by the
company could directly
allow the stakeholders to
increase relevant
problems of the
organisation. This could
directly help in strengthen
the impact of the financial
report disclosed by the
organization.
ED 280-
EQUIPMENT,
PROPERTY AND
PLANT (18-05-2017)
AASB has mainly
proposed relevant
amendments in the AASB
116, where proceeds from
the relevant plant,
property and equipments
need to be accounted in
the financial report.
According to AASB the
overall proceeds from the
testing phase of the
manufacturing process
can be considered under
the financial accounts and
need not be deducted
from asset cost.
Previously the overall
testing phase of the
manufacturing process
were mainly considered
under the asset costs,
which is been changed by
AASB.
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ADVANCED FINANCIAL ACCOUNTING
Question 2: Balance Sheet
Winter Limited Balance Sheet for the year ended 30th June 2017
Particulars Amount (in $) Amount (in $)
Assets:
Current assets:
Interest receivable $ 6,700.00
Prepaid rent $ 13,600.00
Inventories $ 212,400.00
Raw materials $ 100,500.00 $ 312,900.00
Cash at bank $ 18,200.00
Cash management account $ 150,000.00 $ 168,200.00
Accounts receivable $ 123,900.00
Less: Allowance for doubtful debts $ 14,600.00 $ 109,300.00
Loan receivable $ 60,000.00
Non-current investments:
Investment property $ 614,000.00
Non-current assets:
Plant and equipment $ 652,200.00
Less: Accumulated depreciation $ 104,300.00 $ 547,900.00
Goodwill $ 68,300.00
Land $ 1,100,000.00
Total $ 3,000,900.00
Equity and liabilities:
Current liabilities and provisions:
Current tax liability $ 33,500.00
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ADVANCED FINANCIAL ACCOUNTING
Accrued wages payable $ 8,200.00
Interest payable $ 8,300.00
Dividends payable $ 45,000.00
Accounts payable $ 75,800.00
Add: Provisions repayable $ 32,000.00 $ 107,800.00
Non-current liabilities:
Debentures $ 600,000.00
Bank loan $ 500,000.00
Less: Repayable in a year $ 19,000.00 $ 17,000.00
Provision for warranty $ 17,000.00
Provision for long service leave $ 27,000.00
Less: Repayable in a year $ 8,000.00 $ 19,000.00
Provision for annual leave $ 36,000.00
Less: Repayable in a year $ 5,000.00 $ 12,000.00
Shareholders' funds:
General reserve $ 276,800.00
Retained earnings $ 873,300.00
Share capital $ 500,000.00
Total $ 3,000,900.00
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ADVANCED FINANCIAL ACCOUNTING
BIBLIOGRAPHIES:
News. (2017). Aasb.gov.au. Retrieved 27 August 2017, from
http://www.aasb.gov.au/News.aspx
Robson, K., Young, J., & Power, M. (2017). Themed Section on Financial Accounting as
Social and Organizational Practice: Exploring the work of financial
reporting. Accounting, Organizations and Society, 56, 35-37.
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