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

 

Introduction

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In the next day, it has been read that webinar as part of consultation has been replaced by the reporting concept.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

Conclusion

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
ParticularDebit ParticularCredit
Marketing expense6,23,000Sales of goods1,22,30,000
Salaries and wages27,40,000Interest income7,000
Administration expenses1,43,000Bank loan4,00,000
Annual leave expense2,10,000Trade creditors6,15,000
Doubtful debts expense62,000Provision for annual leave2,00,000
Depreciation expense285000Current tax liability1013700
Interest expense64,000Share capital50,00,000
Other borrowing expenses6,000Provision for warranty55,000
Other expenses95,000Allowance for doubtful debts2,19,000
Warranty expense64,000
Income tax expense871500
Cost of sales46,85,000
Deferred tax asset142200
Cash on hand41,000
Cash management account1,93,000
Trade debtors32,76,000
Raw material inventory6,24,000
Finished goods inventory12,50,000
Land5,00,000
Buildings 8,70,000
Accumulated depreciation – buildings (30000)30000
Plant and equipment23,45,000
Accumulated depreciation – plant and equipment (255000)255000
Patents1,50,000
Dividends paid5,00,000
 1,97,39,700 1,97,39,700

 

Journal entry

 

 

Journal Entry
Particular Debit Credit
Depreciation ac285000
Building ac30000
Plant and Equipment255000
(Depreciation is charged)
Profit and Loss account ac285000
Depreciation ac285000
(Depreciation is transferred in P&L)
Income Tax Account871500
To bank account871500
(Income tax paid)

 

Profit and loss account

 

Profit and Loss account
ParticularAmount ParticularAmount
Cost of sales46,85,000Sales of goods1,22,30,000
Gross profit75,45,000
Marketing expense6,23,000Gross profit transferred7545000
Salaries and wages27,40,000Interest income7,000
Administration expenses1,43,000
Annual leave expense2,10,000
Interest expense64,000
Other borrowing expenses6,000
Other expenses95,000
Warranty expense64,000
Depreciation expense285000
Allowance for doubtful debts62,000
Bank Loan payment1,00,000
Provision for warranty55,000
Provision for annual leave2,00,000
46,47,0007552000
Profit before tax29,05,000
Tax expense871500
Net Profit20,33,500

 

 

Balance sheet

 

 

Balance sheet

Liabilities AmountAssetsAmount
Trade creditors6,15,000Cash on hand41,000
Current tax liability1013700Cash management account1,93,000
Bank loan4,00,000Deferred tax asset142200
Share capital50,00,000Trade debtors32,76,000
Provision for warranty55,000Raw material inventory6,24,000
Allowance for doubtful debts2,19,000Finished goods inventory12,50,000
Provision for annual leave2,00,000Land5,00,000
Buildings8,70,000
Plant and equipment23,45,000
Patents1,50,000

 

Statement of equity

 

Particular tAmount
Balance as at 1-Jul-13
Issue of bonus shares2916500
Issue of new shares
Net income2033500
Transfer to capital reserve
Dividends50000
Share buyback
Reversal of revaluation
Balance as at 30-Jun-145000000

 

 

References

 

Australian government (2018). Australian Accounting Standard Board, Retrieved from   http://www.aasb.gov.au/News.aspx

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.

 

 

Leave a Comment