Financial Accounting Assignment
Purpose of the assignment-
The assignment provides the opportunity to develop an in-depth understanding of measurement and recognition issues related to financial accounting. As accountants, we are concerned about providing decision-useful information to the users of financial statements for their decision making. To provide decision-useful information to the users of financial statements, accountants often require applying guidance given in accounting standards by using their judgment.
Part I (Approximate word count: 1,200 words)
According to the AASB framework, measurement is the process of determining the monetary amounts at which elements of the financial statements are recognised in financial statements. There are four measurement bases identified and discussed in the AASB Framework including present value.
Required: Discuss the concept of measurement in accounting and examine the limitations of "present value" as a measurement base in providing decision-useful information by supporting your arguments with the help of research articles (Use at least two research articles from academic journals).
Part II (Approximate word count: 1.200 words)
Required: Compare historical cost accounting with fair value accounting (AASB 13) and evaluate bow the use of fair value accounting has either increased or decreased decision-useful information for the users of financial statements (Use at least two research article from academic journals).
Part III (Approximate word count: 1.400 words)
Required: You are required to select one of the following areas:
- Leasing
- Liabilities including provisions and contingent liabilities (excluding lease liabilities)
- Intangible assets
- Revenue
Discuss the measurement and recognition requirements of the relevant accounting standard.
Review the most recent financial statements of a listed Australian firm and provide discussions about the measurement and recognition disclosure provided by the company in compliance with the relevant accounting standard (You are not required to provide financial figures).
Australian Accounting Standards can be accessed using the following website: http://www.aasb.gov.au/Pronouncements/Current-standards.spx.