AASB Accounting :: essays research papers

Apply AASB 1001 to ReportThe pecuniary Report 2004 of Coles Myer Ltd has proven that the company has obliged the Standard of AASB 1001 Accounting Policies. The paper has satisfied relevance by Relevant financial information assisting users in making and evaluating decisions ab fall out the allocation of scarce resources(Statement of Financial Position- make or loss). It assists them in making predictions about future situations and in forming expectations, or it plays a substantiative role in respect of their past evaluations Financial information whitethorn be relevant because of its nature, itsnature and magnitude, or because of its magnitude in relation to its nature. special guidance on relevance is provided in SAC 3.The financial explanation has reliable financial information which faithfully conveys to users theunderlying transactions and other events that nominate occurred. For financial information to be reliable, it needs to be free from bias. true(p) financial infor mation does not lead users to conclusions that serve particular needs, desires or preconceptions of the preparers of financial reports.This is see on the last page of the report where it has been write by accountants and the AASB representatives.This financial report is able to compare aspects of an entity over metre and compare aspects between entities at one season and over time. This implies that the recognition, meter and presentation of transactions or other events need to be carried out in a consistent manner throughout an entity and over time for that entity, and that there needs to be trunk between entities in these regards. However, consistency should not impede the introduction of improved financial reporting. It is not satisfactory for an entity to retain its accounting policies to the detriment of the concepts of relevance and reliability. Additional guidance on comparability is provided in SAC 3.The financial report of Coles Myer shows that it is on a going concern basis due to the Statement if Financial achievement by viewing the Revenues inflow and Expenses outflow and coming to a profit at the end of the financial year.The accrual basis recognises the financial effect of transactions or other events in the financial years in which they occur, to the extent that those financial effects can be recognised, irrespective of whether exchange has been received or paid. Accrual accounting provides information about assets, liabilities, equity, revenues and expenses, and changes in them, that cannot be obtained by accounting only for cash receipts and payments.