Like many other theories, Accounting theories keep evolving gradually. Accounting practitioners keep refining the theories to incorporate new methods of accounting and to promote its usefulness. This ensures that the practice of accounting or bookkeeping becomes better and easier to use and follow. The end goal of studying accounting theories and current issues is to make the practice efficient and seamless. The application of accounting theories and current issues in real-world is huge. Every small scale, medium scale or large scale business has to use accounting theories in running the business sustainably. This is the reason why most universities put emphasis on a comprehensive study of accounting theories and current issues. However, when it comes to accounting assignments, the complex nature of the subject can make it difficult for the students to complete their assignments on time. To get high distinction in accounting theories and current issue, students often approach accounting professionals and subject matter experts. My Assignment Services is one of the leading providers of accounting theory and current issue assignment help. We have a team of accounting professionals with years of practical experience and a flair for writing error-free, plagiarism-free accounting assignments. Here are some of the challenges faced by students in completing their accounting theories assignments:
Student who have undertaken accounting as a subject can seek accounting theories and current issue assignment help online from our dedicated subject matter experts. Our customer relations team is available 24/7 including holidays and weekends to provide immediate support to students looking to get their accounting assignments done. In the below accounting theory and current issue assignment sample, the student was asked to evaluate accounting quality for a company of their choice. The assignment required the student to assess the accounting policies and estimates and prepare an investigative report on Manager’s accounting and reporting strategy choice. To address this assignment, our accounting subject matter expert researched and read various positive and normative financial accounting theories from different text books and other credible literature. After gaining an in-depth insight on accounting framework our expert proceeded to assess accounting policies and estimates of the selected company. Our expert then proceeded to critically evaluate accounting quality by assessing accounting policies and framework. The final investigative report on Manager’s accounting strategy and reporting strategy choice was prepared keeping the above assessment in mind.
Chase from Australia approached our customer relations team by sending a query via e-mail. Our 24/7 active customer relations team reached out to Chase in under an hour of receiving the query. Because it was a group assignment, Chase wasn’t able to figure out his contribution and how he should move forward with the assignment. We asked Chase if he was available for a one-on-one live session with our subject matter expert and readily agreed. Our subject matter expert understood the assignment requirements and explained the same to Chase. Chase wanted the assignment to be delivered with a day. Although, it was a challenge, our assignment expert was happy to take it head on. Our expert worked diligently for hours to complete the assignment well before the time of submission. Our team of quality analysts then checked the assignment for the minutest of typographical or grammatical error and ensured that the assignment was done following all the guidelines provided by the university. Chase got a distinction in the assignment and sent us a personal mail thanking our expert.
|AASB 2015-1 Amendments to Australian Accounting Standards||Annual Improvements to Australian Accounting Standards 2012-2014 Cycle|
|AASB 2015-2 Amendments to Australian Accounting Standards||Disclosure Initiative: Amendments to AASB 101|
|AASB 2015-3 Amendments to Australian Accounting Standards||Withdrawal of AASB 1031 Materiality|
|AASB 2015-4 Amendments to Australian Accounting Standards||Financial Reporting Requirements for Australian Groups with a Foreign Parent|
|AASB 2015-5 Investment Entities||Applying the Consolidation Exception|
|AASB 1057 Application of Australian Accounting Standards, AASB 2015-9 Amendments to Australian Accounting Standards||Scope and Application Paragraphs|
(Source: cimic.com.au, 2017)
However, these new standards have increased the disclosure requirement of the company without affecting the accounting policies of the group. Further, the management has explained that accounting estimates and judgements are based on historical experience of the management. This company has changed some of the accounting items with significant level of judgement such as determining the stage of completion, estimating contract revenue and expenses, probability of customers approval, expected date of completion and productivity of the project. Hence, the carrying value of construction and mining project is adjusted with the judgement of the management. The significant application of assumption and judgement are used in related party disclosure, trade and other receivables and trade payables. CIMIC group has also applied the joint arrangements under AASB 11 for its joint operations and joint ventures. This company has not applied the unrealised gains or losses of its joint ventures for ensuring consistency. The revenue recognition of CIMIC group has followed the same path as of Boral. However, CIMIC has some other business segments, which shows more revenue recognition through contract in construction and mining. Further, this company has recognised all the revenue on accrual basis. All the losses are recognised after realising the same in effect for the company. CIMIC Group has used the similar type of accounting treatment and judgements for recognising the income tax payment and deferred tax asset of the company. The company has disclosed that amount received for any contract debt after 12months of billing is discounted with suitable interest rate (cimic.com.au, 2017). Further, the management has indicated the doubtful debts after 60 days of billing when recoverability of such debtor becomes uncertain in practice. The management of CIMIC has used their judgement on measuring the amortisation of interest bearing liabilities, which presents the far value to recognise such liabilities in the accounting report. The change in the position of derivative instruments is recognised at fair value rather than at actual value. Asset held for sale item is recognised after deducting the cost to sell from the fair value and carrying amount of such assets. CIMIC Group has applied straight-line method of depreciation for freehold building for an useful life of 40 years (cimic.com.au, 2017). The leased buildings are also depreciated with same formula and the useful life of such buildings has not exceeded 40 years. CIMIC has three different types of intangible assets – brand name, customer contract and IT systems. The management determines the useful lives of different brands by using their experiences. This judgement is made on basis of considering the finite useful lives of those brands. The customer contract is considered to have finite lives and management does not amortise. Hence, an impairment test is conducted over every year for these contracts over the useful lives as estimated through the judgement of the management. The IT system is estimated to have 7 years of useful lives, which is derived through the experience of the management (cimic.com.au, 2017). The share-based payment to the management is estimated at fair value of share options. This company has not disclosed any technique to determine the option price of share-based payments. Section 4: Evaluation of the quality of disclosure The disclosure of accounting items is considered as one of the most important activity of the management. Gaffikin (2014) has stated that the large companies disclose more objects for proving the materiality of the accounting information in practice. A listed company in ASX has to disclose the materiality of income, cash flows, economic information, basis of preparation of judgements for estimating some of the accounting data. In this context, Boral has provided ample numbers of disclosure such as revenue recognition as well as basis of income. Further, the management has provided all the mandatory disclosure such as preparing process and the accounting policies of the company for every year. It is also observed that the company has provided notes to the accounts so that creditors and investors might find the essential for analysing the financial position of the business (Cazier et al. 2015). The quantity of disclosure is considered as a level of transparency as well as quality of the notes (). Many researchers have believed as providing details information in notes to the accounts would display the financial condition of the business openly. However, the opposite doctrine also states that quality of information is not related with the quantity of notes provided with the financial statements (Barker and Penman, 2016). Hence, Cassell et al. (2015) have stated that providing the information within time is a measure of quality of disclosure in practice. There are three types of disclosure exist such as adequate disclosure, fair disclosure and full disclosure. However, Cazier et al. (2015) have categorised disclosure as mandatory and voluntary disclosure system. Both of the categories are important for the shareholders and creditors of the company to know the financial and business practice of a period. The full disclosure might enhance the confidence of the shareholders on a company’s operation whereas adequate level of disclosure might not make the creditors happy. Cassell et al. (2015) have observed that creditors and lenders might request for more information on credit condition of the company and the management has to provide more disclosure about the calculation method of fair value of various assets. In this context, Boral has provided adequate level of disclosure as it has provided all the mandated notes to the accounts in its final report. Further, the company has voluntarily disclosed various loans, business segments and test of impairment for intangible assets in the annual report. Such disclosures are part of the voluntary disclosures. The information from those disclosures has helped to know about the company’s position as well as income generated from the intangible assets. Further, the disclosure has indicated the movement of the carrying value of equity accounted investments, which shows the investment policy of the company. The management has provided other disclosures for complying with the accounting standards. It is observed that Boral has maintained the continuous disclosure policy for providing consistent information to the shareholders and creditors under the ASX listing rules (asx.com.au, 2017). The disclosure of the company is prepared on basis of three principles – for materiality checking of the financial condition, to understand the financial performance of the company and improving some of the presentations. Hence, it can be said that Boral has not provided full disclosures about its financial performance. However, it is observed that the company complied with ASX listing rules by providing the adequate and mandatory disclosure of accounts. Section 5: Identification of potential red flags The accounting information of Boral has indicated that the company has provided all the relevant information to current financial year. The management has explained the changes in accounting policies as well as the future mandatory change, which would happen in future. There was no significant change happen in 2016 for Boral’s accounting policy as stated in the annual report of the company (Boral.com, 2017). The annual earnings report does not show any unusual transaction or unexplainable profit margin of the business. The report shows that profit of the business and cash flow – both are in line with the performance of the business in the current year. The balance sheet of the company shows that there was no such unusual change happen in inventory or receivable position of the business in 2016, which can change the profit margin. The company has disclosed the related party transactions such as joint venture in notes to the accounts. However, Boral has not published any details about expenses for in-house R&D as well as partnership of such activity with third party. Hence, it can be considered as an issue with the financial statements of the company currently. Section 6: Compliant with the conceptual framework The conceptual framework of Boral’s accounting information has followed the standard throughout the report. The annual report has provided the business activities for explaining the business environment and strategy of the company for running the operation. The accounting system of the business is explained with discussing on accounting environment and strategy of the business (Macve, 2015). The accounting strategy has explained the policies considered to prepare the accounts with illustrating the mandatory accounting standards followed by the company. Financial statements of Boral follow the illustration of accounting system and business activities maintaining the standard accounting framework (Boral.com, 2017). Conclusion The report has provided with the information that the company has maintained all the accounting information as well as disclosure in practice. Further, the significant accounting policies adopted by the management are discussed in the annual report. In this context, it is also observed that Boral has maintained the standard accounting framework for presenting the financial statements in 2016.
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