Corporations Law :: essays research papers

Corporations LawShort Anwersa) both entity which is considered a describe entity is required to prep be a report in accordance with the requirements of the Corporations Law.Briefly explain why you agree or protest with the above statement.A reporting entity is defined as an entity for which there argon users who rely on the financial statements, generated from its financial knowledge, as their major citation of financial learning . These financial statements are used in the determination making process of both internal and foreign users, and therefore this information must be both accurate and of appropriate detail. In night club for a global standard to be established across the account industry, it is important for a set of standards to be upheld by all. Therefore I agree with the statement.Under section 298 of the Corporations Law, it is stated that all companies which are reporting entities must adhere to the accounting standards issued by the Australian accounting sys tem Standards progress (AASB) . The generation of statements of financial position, financial performance and cash flow are all required under the section and they assist in big(p) an unbiased picture of the companys current position. With the use of the supranational Accounting Standards Boards conceptual framework, these reporting entities construct reports use underlying principles in order to clearly articulate relevant information to those with a vested interest in the business. The outcome will be a reduction in the amount of asymmetric information available to external users. Notable recent examples of falsifying financial reports include One.Tel and HIH.If precise and limited financial reports are not produced in relation to the guidelines set by Corporations Law, it is under the AASBs jurisdiction to enforce compliance. This compliance allows for a general standard to be upheld on a country-wide basis, and with the introduction of International Accounting Standards in 2005, on a world-wide basis.Therefore, an entity which is considered a reporting entity is required to prepare a report in accordance with the requirements of the Corporations Law. Without the generation of these reports, a arranged and comprehensible overview of the business could not be produced and analysed.b)On June 28 2004, an denote procedure paid $20,000 for a computer system. The accountant for the advertising agency included the $20,000 payment as an expense in the financial reports inclined(p) for the year ending 30 June 2004.Using relevant accounting concepts, before long explain why you agree, or disagree, with the accounting treatment adopted by the accountant for the above transaction.