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Questions: Answer: Introduction The three widely used accounting theories discussed here are agency theory, stewardship theory and stakeholder theory. The accounting theories are based on practices and methods. The agency theory describes the link between principal and agent. Principal is the shareholders and agent is the managers. In agency theory the principal delegates the task to the agent to perform...
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Questions: Answer: Causing Of Adopting Corporate Governance: The fundamental aim of corporate governance is to align the long term goal of all the valuable stakeholders, which is the key of attaining long term success from business. There are multiple reasons for which the companies are putting stress on implementing corporate governance. According to Tricker and Tricker (2015) increasing transparency&nb...
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Questions: Answers: Introduction Question 1 Issue The issue in the given case is whether Motorbikes Pty Ltd would be bound by the contract made by Tim and Michelle for the purchase of the motorbike of John under the Corporations Act 2001. Law Under the provisions of section 124 of the Corporations Act 2001 a company can be seen as having both the powers and legal capacities as any natural indivi...
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Questions: Answer: Answer To Question 1 As per paragraph 9 of AASB 138, it is suggested that the some of the frequent methods in which an entity incurs its expenditure is the acquisition of brand titles and trademarks among others. As stated in Paragraph 63 of the Standard, subsequent expenditure on aspects like brands, publishing titles and customer heads is required to be expensed. It is because of the...
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Questions: Answer: Introduction The research project report has been prepared on the basis of the appraisal and evaluation of the contemporary accounting issues that were identified. It includes the discussions relating to the relevant theories, research methodology and literature review that were previously done (Beattie 2014). This report focuses on the empirical research using the selected issues on t...
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Questions: Answer: Introduction The major objective of preparing this individual report is to analyse and interpret the financial statements of Tesco Plc, a British multinational corporation. The analysis consists of two parts, namely the ration analysis and the trend analysis. For these analysis, the annual reports of the entity for a period ranging five years have been downloaded from the website (Tesc...
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Questions: Answer: Requirement 1 The financial data for the company has been presented in the period of three years ending September 2016, September 2017 and September 2018. The budgeted figures have also been presented in the report in order to find out the variance between the actual and budgeted data. Since the deliveries are subcontracted to one of the major parcel companies it can be observed that t...
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Questions: Answer: Introduction Infrastructure assets are the long lasting capital assets that adds value to the land like roads, bridges, railways, tunnels, electricity, airports, energy, lighthouses, public housing, telecommunication, water supply, canals and many more. It is very important to manage and account these assets. Therefore, information is needed for efficient management of these assets. Ma...
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Questions: Answer: Introduction The assignment presents a critical analysis in reference to the advancement of Accounting Conceptual Framework. In the first part, the report focuses on the background of Accounting Conceptual Framework. The changes that have been done from Accounting Conceptual Framework issued in 2010 to Accounting Conceptual Framework issued in March 2018 by the International Accounting...
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Questions: Answer: Introduction: Management accounting is the process of ascertaining meaningful accounting reports and analysis for assisting in managerial decision making process. Management accounting can be successfully applied in complex business situations to come up to an optimal managerial decision (Zayed and Liu 2014). In the given case study, a new café business has been proposed along w...
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Questions: Answers: Introduction This Memorandum is prepared to discuss and outline the accounting requirements and accounting treatments for the investment in debt instruments in the books of accounts. Raising finance through issue of debt instruments and investing funds in the long term debts requires some specific compliance in the books of accounts in accordance with the respective accounting and rep...
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Questions: Answers: Introduction Answer to Question 1 Integrated reporting presents a better platform for corporate disclosures for users of Financial Reports. In the case of National Australia bank using the integrated accounting reports are used to provide the complete details of the financial statement of a particular company. Lenders or creditors use the financial report to know the company's financ...
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Questions: Answer: Introduction This report is based on managerial accounting concepts that help in measuring, analyzing, identifying, communicating the financial information of the company so that the goals of the company can be achieved. Managerial accounting assists the internal information of the company which helps in taking effective decisions. To improve the quality of information, managerial acco...
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Questions: Answer: Introduction Financial analysis is the process of evaluating businesses, projects, budgets and the other financing activities in order to determine the financial position of the company. It is required for the company to evaluate the financial position in order to take any financial decision. There are several ways which are used to analyze the financial position such as ratio analysis...
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Questions: Answer: Introduction Earning management is the strategy that is used by the management of any entity for manipulating the earnings of the entity deliberately. It is done with the objective of matching the figures with the pre-determined target and smoothing the income. Hence, instead of having years of exceptionally bad or good earnings, entities try to maintain the figures at stable level thr...
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