Financial Accounting

Task 2

While performing the research for task 1, I learnt the actual meaning of accounting and purpose of accounting in the practical day-to-day business. I understood the reason why an accounting system should indicate a clear picture to the management, as it helps them in proper planning, controlling and in deciding the next step even in complying with statutory regulations. I came to know that every business has different accounting system as per its nature of business. Further while going through the purposes of compliance regarding the statement. I learnt that financial report is prepared for the general purpose in accordance with the need of the Corporations Act 2001, Australian Accounting Standards and other commanding assertions of the Australian Accounting Standards Board. (Lee and Parker 2014). The financial report should complies with IFRS as delivered by the IASB.  I noticed that the financial report prepared for Chief.Ltd and its subsidiary has been equipped on a historical cost basis, all identifiable net assets of Sub.Ltd is measured at fair value. Consolidated financial statements is prepared as a purpose, that the company is a for profit entity. I learnt that the currency, at which statements should be presented, should be according to ASIC.   I learnt that the investment made by Chief.ltd in Sub.Ltd is according to the amendments in IAS that stated an option of equity method for investing in associates, joint venture and subsidiaries. The issues I noticed while preparing the consolidated financial statement is adjusting the assets and liabilities of the subsidiary company.

            I have been able to understand the guidelines of preparing the financial statements. The research helped me to enhance my accounting skills. Possessing a sound knowledge on the concept of principle of accounting it was easier for me to understand the entries and adjustments related to the consolidation. The problem faced while performing the research was about the sets of rules that the company has to opt for a particular item. (Schaltegger, Etxeberria and Ortas 2017). To improve and build my knowledge about the set of guidelines by AASB related to different matters occurring in the course of business. The list of action for improvement of my research skills are:

• I would cite my resources correctly and would refer the articles that are well cited with the material.
• As there are many articles present in the internet henceforth, I would bookmark the information I would find valuable for my research work.
• I would mainly focus to get the material information regarding my research that are based on current journals, business magazines and related books so that I can understand the latest leads, ideas and trends of the business. 

Reference:

Lee, T.A. and Parker, R.H., 2014. Company financial statements: an essay in business history 1830–1950. In Evolution of Corporate Financial Reporting (RLE Accounting)(pp. 27-51). Routledge.

Schaltegger, S., Etxeberria, I.Á. and Ortas, E., 2017. Innovating corporate accounting and reporting for sustainability–attributes and challenges. Sustainable Development, 25(2), pp.113-122.