Assignment:
Important: The assignment is based on the application of materials covered in topics 1 to 4 of the unit. This assignment requires students to demonstrate an understanding of the conceptual framework of accounting. You are required to explain some theoretical concepts.
ASSIGNMENT QUESTION: Please read carefully
Write a report answering the questions below, based on annual reports of AGL Energy Limited(800 to 1000 words). You need to do some extended personal research and self-directed learning in order to complete this assignment.
1. Conceptual framework defines a number of qualitative characteristics of financial information with regard to general purpose financial reporting by reporting entities within Australia. Why or why not would you believe that the AGL energy ltd companies reporting of financial statements information address those qualitative characteristics? (Do NOT give answers in Yes/no only. Explain various points that inform you that these companies financial information given in the financial statement meet those characteristics).
2. Identify and explain measurement and recognition criteria of various elements of financial statements of sample companies (e.g., assets, liabilities, revenues, expenses, equity). Compare and comment upon the methods of valuing and allocating cost of non-current assets over the useful life (say, Equipment or intangible assets) (refer to AASB 116 and AASB138). Do you believe that the selected companies included any liability in the footnotes of statement of financial position? If so, why? Explain the case clearly by referring to relevant rules/criteria mentioned in the framework.
3. Identify and explain in details different sources of financial accounting regulations in Australia. Also identify relevant accounting standards (AASB, IASB, GAAPs or any other standards) the sample companies have used to report their financial accounting information. Do you believe that harmonisation of accounting standards is necessary in the world? If so, why? What benefits do you expect that sample companies will enjoy if global harmonisation of accounting standards are achieved? Do you believe that IASB efforts to harmonise accounting standards would experience some challenges in future?