Corporations Law :: essays research papers

Corporations LawShort Anwersa)Any entity which is considered a reporting entity is required to work a report in treaty with the requirements of the Corporations Law.Briefly explain why you agree or disagree with the above statement.A reporting entity is define as an entity for which there be users who rely on the fiscal statements, generated from its pecuniary information, as their major source of financial information . These financial statements are used in the decision making process of both inhering and external users, and therefore this information must be both completed and of appropriate detail. In order for a general standard to be established across the bill industry, it is important for a set of standards to be upheld by all. Therefore I agree with the statement.Under sectionalization 298 of the Corporations Law, it is utter that all companies which are reporting entities must adhere to the accounting standards issued by the Australian Accounting Standards Board (AASB) . The generation of statements of financial position, financial deed and cash flow are all required under the section and they assist in giving an unbiased picture of the companys current position. With the use of the International Accounting Standards Boards conceptual framework, these reporting entities prepare reports using underlying principles in order to distinctly articulate relevant information to those with a vested interest in the business. The terminus will be a reduction in the amount of irregular information available to external users. Notable recent examples of falsifying financial reports include One.Tel and HIH.If precise and specific financial reports are not produced in relation to the guidelines set by Corporations Law, it is under the AASBs jurisdiction to do 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.The refore, 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 logical and comprehensible overview of the business could not be produced and analysed.b)On June 28 2004, an advertising agency paid $20,000 for a computing machine system. The accountant for the advertising agency included the $20,000 payment as an write off in the financial reports prepared for the year ending 30 June 2004.victimization relevant accounting concepts, briefly explain why you agree, or disagree, with the accounting treatment adopted by the accountant for the above transaction.