Newsletter and financial statements

Newsletter and financial statements assignment 2020

Assignment 1: Newsletter and financial statement

Answer 1: Newsletter


Changes, developments and news in the financial reporting environment



It is newsletter that has aimed to update the employees on the changes, development and news related to financial reporting system.

It will be helpful for the companies and accountant to prepare the financial statement in the accurate manner.

The main aim of this newsletter is to update the employees of the account departments over the time period 1 May 2018 to 31 July 2018.

This newsletter will also be helpful for the employees of accounting firm to overcome the various technical, regulation and monitoring issues.

Changes, development and news of financial reporting

In the context of this, it is found that AASB updated its policies for public sectors companies in the context of the more transparency.

Newsletter and financial statements

This news has been seen 2 may 2018 and in this, it is found that AASB standard updated for the public companies. The new standards depict public companies required to more transplant and accountable in concerning the disclosing the financial statement.

They should clearly communicate budget and provision for expenses with the stakeholders (Stadler & Nobes, 2018). In the same concern of this, on 17 may, on the website of AASB, it is found that a new compilations for reporting periods is update for beginning on or after 1-1-2018 (Australian government, 2018).

In the same way, on 30 may, AASB also updated with news as open for registration: webinar – options for replacing SPF S. in this, it is found that this webninar forms is the part of the AASB’s consultation on how to introduce in Australia.

In the next month, 4 June, the chairman Kris Peach organized a meeting in which it discussed on the issues in the reporting system and provided solution for this.

In this meeting it was also communicated for the upcoming accounting standards on financial accounting (Keshk et al 2018).

Furthermore, on 21 June, action has been seen in the meeting of 14 June. AASB shown the progress on project as the Implementation Guidance for NFP Public Sector Licensors, Reduced Disclosure.

In the next day, it has been read that webinar as part of consultation has been replaced by the reporting concept.

After this, a big news has been seen in the Australian Accounting standard board that the chair man of board has appointed the IASB management commentary consultative group.

The purpose of this action of the Board is to provide the strength to the ability of the AASB.

At the same time, IASB management commentary consultative group will also support and provide the suggestion to AASB to development and update the accounting standard in the financial accounting. In the news field of the AASB, it has also seen that AASB updated the full commitment goal of a single and high quality for the international accounting standard.

The main purpose of this update is to raise the fairness and improve the accounting policies of the international firms that are working in Australia (Carter & Warren, 2018).


On the basis of the above discussion, it can be concluded that the main purpose AASB to bring the continues improvement in the accounting policies of the country.

Hence, it can be said that AASB is involved in the bringing changes and improvement in the accounting standard that applied of the public and private companies. It is important to enhance the transparency and accountability.

At the same time, it is also significant to accountant of the companies to get the updated with the new standard in the accounting standard.

Answer 2

Trial balance


Trial Balance
Particular Debit Particular Credit
Marketing expense 6,23,000 Sales of goods 1,22,30,000
Salaries and wages 27,40,000 Interest income 7,000
Administration expenses 1,43,000 Bank loan 4,00,000
Annual leave expense 2,10,000 Trade creditors 6,15,000
Doubtful debts expense 62,000 Provision for annual leave 2,00,000
Depreciation expense 285000 Current tax liability 1013700
Interest expense 64,000 Share capital 50,00,000
Other borrowing expenses 6,000 Provision for warranty 55,000
Other expenses 95,000 Allowance for doubtful debts 2,19,000
Warranty expense 64,000
Income tax expense 871500
Cost of sales 46,85,000
Deferred tax asset 142200
Cash on hand 41,000
Cash management account 1,93,000
Trade debtors 32,76,000
Raw material inventory 6,24,000
Finished goods inventory 12,50,000
Land 5,00,000
Buildings 8,70,000
Accumulated depreciation – buildings (30000) 30000
Plant and equipment 23,45,000
Accumulated depreciation – plant and equipment (255000) 255000
Patents 1,50,000
Dividends paid 5,00,000
  1,97,39,700   1,97,39,700


Journal entry



Journal Entry
Particular Debit Credit
Depreciation ac 285000
Building ac 30000
Plant and Equipment 255000
(Depreciation is charged)
Profit and Loss account ac 285000
Depreciation ac 285000
(Depreciation is transferred in P&L)
Income Tax Account 871500
To bank account 871500
(Income tax paid)


Profit and loss account


Profit and Loss account
Particular Amount Particular Amount
Cost of sales 46,85,000 Sales of goods 1,22,30,000
Gross profit 75,45,000
Marketing expense 6,23,000 Gross profit transferred 7545000
Salaries and wages 27,40,000 Interest income 7,000
Administration expenses 1,43,000
Annual leave expense 2,10,000
Interest expense 64,000
Other borrowing expenses 6,000
Other expenses 95,000
Warranty expense 64,000
Depreciation expense 285000
Allowance for doubtful debts 62,000
Bank Loan payment 1,00,000
Provision for warranty 55,000
Provision for annual leave 2,00,000
46,47,000 7552000
Profit before tax 29,05,000
Tax expense 871500
Net Profit 20,33,500



Balance sheet



Balance sheet

Liabilities Amount Assets Amount
Trade creditors 6,15,000 Cash on hand 41,000
Current tax liability 1013700 Cash management account 1,93,000
Bank loan 4,00,000 Deferred tax asset 142200
Share capital 50,00,000 Trade debtors 32,76,000
Provision for warranty 55,000 Raw material inventory 6,24,000
Allowance for doubtful debts 2,19,000 Finished goods inventory 12,50,000
Provision for annual leave 2,00,000 Land 5,00,000
Buildings 8,70,000
Plant and equipment 23,45,000
Patents 1,50,000


Statement of equity


Particular t Amount
Balance as at 1-Jul-13
Issue of bonus shares 2916500
Issue of new shares
Net income 2033500
Transfer to capital reserve
Dividends 50000
Share buyback
Reversal of revaluation
Balance as at 30-Jun-14 5000000





Australian government (2018). Australian Accounting Standard Board, Retrieved from

Carter, D., & Warren, R. (2018). Metonyms and metaphor: the rhetorical redescription of public interest for the international accounting standards board. Critical Policy Studies, 1-26.

Keshk, W., Lu, H. Y., & Mande, V. (2018). How have US banks adopted the Financial Accounting Standards Board’s Level 3 fair value disclosure rules?. Accounting & Finance.

Noreen, E. W., Brewer, P. C., & Garrison, R. H. (2014). Managerial accounting for managers. New York: McGraw-Hill/Irwin.


Stadler, C., & Nobes, C. W. (2018). Accounting for government grants: Standard-setting and accounting choice. Journal of Accounting and Public Policy37(2), 113-129.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting. USA: John Wiley & Sons.



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