Concept of Corporate Accounting

Questions: 1. Describe what you understand by the accounting concepts mentioned and provide examples from your selected annual report. 2. Discuss the problems of tax effect accounting addressed in the above statement in the context of the present AASB / IASB standards and the conceptual framework using your selected annual report to provide examples. 3. Comment on the issues of tax effect accounting in the above statement as they relate to the provision of decision useful information. Use your selected annual report toprovide examples. Answers: Introduction The main purpose of the assignment is to bring out matters relating with corporate accounting. In this particular assignment, Harvey Norman is taken under study that is an Australian-listed firm (Taylor, 2011). Harvey Norman is large Australia-based as well as multi-national retailer that deals in furniture, bedding as well as communication and consumer electric products. It operates in form of franchise in and around Australia. It uses conventional accounting system for bringing relevant issues into consideration. It ensures explanation of accounting concepts with examples from Harvey Norman. As far as next section is concerned, it deals with tax effect accounting standards in accordance with IAS and FASB Standards. These standards relates in accordance with conceptual framework for future analysis purpose (Spiceland, Thomas, Herrmann, 2011). At the last section, it ensures commenting on the tax effect accounting for taking future decisions into practical course of action. Explanation on accounting concepts with adequate examples in accordance with annual report of Harvey Norman It is important to consider the fact that conventional management accounting reveals accounting system that helps in providing information by the managers in business organization. It includes business owners for viewing at debts and credit items in the financial accounting reporting for the same. As far as management tools are concerned, it deals with undertaking useful decisions on behalf of Harvey Norman (Solomon Solomon, 2012). It indulges in undertaking some characteristics in case of management accounting. It ensures leveraging those useful techniques for managing business firms in desired form. In case of Harvey Norman, it indulges in Target income around $ 3.3 million at the end of financial year. Allocated funds involves around rebate terns in dealing with international suppliers for boosting target earnings in an overall manner. It ensures accumulating issues on matters relating employees on an adverse manner. Harvey Norman involves in earnings management for resulting outcomes in probing for scandal issues (Rajasekaran Lalitha, 2011). Harvey Norman declares that earnings earned by group come with 2% in the near future. It aims at targeting working with suppliers in unwinding various earnings arrangements for future analysis purpose. It is essential for indulging in clear direction and expectation of Harvey Norman as per the code of conduct for the same. It includes support from detailed group policies as per accounting policies in regular staff training for future analysis purpose (Libby, Libby, Short, 2011). It influences ways and puts up strong culture adherence in managing with long-term sustainable growth as far as possible. As far as management accounting is concerned, it deals with drawing attention on information sharing by the managers in decision-making process. It indulges in gaining financial accounting information especially by the external decision-makers in the most appropriate way. Business owners aim at undertaking managerial accounting information as per the business plans in the most appropriate way (Krivogorsky, 2011). It helps in controlling over business operations in case of evaluation in form of making complex business choices in an effective way. Management accounting is the process of c ontrolling over internal accounting system in accordance with specified facts and situations. Harvey Norman enjoys profit after tax amounting to $ 3340 million in accordance with increased 7.3 percentages. It indulges in discounted operations and non-trading items for future analysis purpose. It solves various accounting issues as well as accepting shared responsibility at the same time. As far as supplier rebate arrangements are concerned, it deals with agreed profits in between $ 10 million in case of money flow at the end of financial year (Kieso, Weygandt, Warfield, 2012). Harvey Norman aims at appointing supplier arrangement in solving probing issues from past financial activities. It indulges in comprehensive investigation in case of accounting purpose in form of commercial income for final purpose. It ensures carrying out Stuart demand in case of substantial contribution in turnaround cases. It indulges in bringing great effort and target market for future analysis purpose. Harvey Norman involves in managing with the inventory as far as possible. It is one of the nati onal retailer in bedding goods as well as furniture for the same. Harvey Norman needs to pay amount of $440 million in investment planning in the near future. In case of financial accounting, it aims at focusing on recording of past transactions as far as possible. Management accounting reveals ways in undertaking future decisions by management accountants. It is important to understand the facts relating management accounting reports for managing the budget and profit plan in an effective way. Harvey Norman needs to create budget in order to finalize business plan for the next financial years (Jones, 2011). It ensures evaluating with the accounting information in case of selecting attributes like time factor and accuracy at the same time. As far as financial accounting is concerned, it deals with focusing on accuracy matters as evaluated by decision makers. Management accountants believe in helping in creating estimates in order to render best information for making assumptions. Explanation on problems of tax effect accounting as per AASB and IASB Standards In accordance with Income taxes IAS 12, it indulges in implementation of comprehensive balance sheet in resolving accounting issues faced by Harvey Norman. It mainly includes income taxes in form of current tax recognition in viewing at the future consequences as per transactions in the most appropriate way (Jeffrey, 2011). IAS 12 includes income taxes in case of recovering for future settlement in carrying amount for future analysis purpose. It indulges in relying on business entity for assets and liabilities in an overall manner. It helps in viewing at the differences from carrying amount and tax bases for asset recognition and liabilities. It ensures carrying efficient ways for forward taxes in case of credit transactions for future analysis purpose. It helps in limiting ways in carrying out exceptional items in case of deferred tax liabilities and deferred tax assets for the same. The main aim of IAS 12 includes prescribing important terms in accounting treatment as far as income taxes is concerned. It ensures meeting objectives in relation with IAS 12 in case of inherent recognition of assets and liabilities in proper ways. It helps in recovering ways in settling for tax consequences for further recognition at the same time (Horngren, 2013). It takes into account for tax bases in case of assets and liabilities in tax attribution in an effective way. It includes various ways for carrying amount of assets and liabilities for retaining the financial position of Harvey Norman. It ensures viewing at the temporary differences for taxable amount in determining tax profits and loss for given time. Conceptual Framework of Harvey Norman Harvey Norman aims at committing towards attaining sustainability in the near future. It accounts for economic, environmental and social impact of operations for future analysis purpose. It focuses on delivering best results that will benefit society and brings positive business in an effective way. It ensures building on social reputation and places as good corporate citizen in the upcoming years (Fields, 2011). As far as conceptual framework is concerned, it deals with describing objectives in development of general purpose of financial reporting as far as possible. It is one of the practical tools that ensures as well as assists Board for development of IFRS standards for the same. It focuses mainly on financial accounting preparation for developing various accounting policies at the same time. There is no actual IFRS standard for assisting ways in preparation of financial statements in any form. It helps in enabling ways for understanding and interpretation of financial statement as a whole (Feldmann Rupert, 2012). Conceptual framework helps in improving ways in financial reporting system. It indulges in bringing proper concepts on matters relating to accounting standard implementation in proper ways. It achieves objectives regarding existing conceptual framework as and by Board Members. It aims at updating and improving in the conceptual framework in revised form. As far as conceptual framework is concerned, it ensures defining nature and purpose of accounting principles at the same time. It ensures addressing theoretical and conceptual issues in accordance with business activities. It should ensure financial reporting system for bringing coherent and consistent information in the most appropriate way. It aims at underpinning accounting standards development in an overall manner (Edgerton, 2012). Explanation on tax effect accounting in relation with provision for making final decisions It is important to understand the fact that income tax accounting proves complexity in real life business scenario like Harvey Norman. It requires adequate knowledge as in case of income tax accounting models. It includes tax laws and regulations for future analysis purpose (Dyckman, Magee, Pfeiffer, 2011). Harvey Norman is a company that indulges in viewing at comprehensive reviews. It helps in reducing level of complexity in case of income tax accounting for the same. It helps in improving ways for bringing relevance of information for quality improvement and reporting for future analysis purpose. It helps in bringing ways for evolution in case of economic, regulatory and tax legislative actions in an overall manner. It includes addressing accounting standard setting environment in the most appropriate way. It carries out existing accounting for gaining information from magnitude of shortcomings from past financial records of Harvey Norman (Devi Hooper, 2011). As far as Financial Accounting Standard Board is concerned, it deals with original convergence agenda in case of solving future issues in convenient form. International Accounting Standard Board believes in planning out ways for reducing modest differences between respective standards in case of income tax accounting at the same time. It aims at planning out ultimate abandons in indicating ways for consulting comprehensive future in the most appropriate way (Davis, 2012). It indulges in conceptual merits in case of current models in tax measurement in form of discounted taxes and cash flow basis in an effective way. It is important to consider the fact that investors revolves around increased interest in paying attention in final decision-making process. It reported ways for viewing at income tax amount and financial disclosures as a whole. It includes committees in viewing at the pending new standards in case of revenue, leasing and related financial instruments in proper ways. It ensures improving reporting standards in reducing level of complexity and making final decisions for gaining information from potential investors (Dagwell et al. 2012). It undertakes operational challenges in association with discounts for considering matters relating to tax-effect accounting as far as possible. It helps in bringing improving tools and experience as per challenges in income tax accounting in an overall manner. It ensures focusing on discounting of deferred tax accounting at the same time. It includes net income analysis in recording one-time adjustment as far as possible. It indulges in possible refor ms in case of income tax building for Harvey Norman for redefining current models in the most appropriate way (Albrecht, Stice, Stice, 2011). It requires personnel with deep knowledge in income tax laws and financial reporting standards in proper ways. It revolves around processing with reliance exposure by using spreadsheets in general ledger system for future analysis purpose. Harvey Norman should manage outside services and increased cost at the time of financial statement preparation. As far as investors are concerned, it deals with placing at historical performance for matters relating to effective tax accounting rates in current accounting standard in the near future (Blowfield Murray, 2011). It revolves around addressing tax-related cash flows and expectations as far as possible. Conclusion At the end of the study, it is interesting in gathering facts about the company named as Harvey Norman. Harvey Norman believes in attainment of revenue generation in future and retaining the global marketplace for the same. It includes explanation on concepts relating to tax effect accounting policies of Harvey Norman. It engages in taking economic measures as per income tax costs and benefits at the same time. It indulges in viewing at the deferred tax payments and balance sheet transactions for smooth functioning of Harvey Norman. In this assignment, it reveals consolidated financial statement and separate statement for taking correction actions in the near future. It ensures necessitating initial public offering in case of business combination in the most appropriate way. Reference List Albrecht, W., Stice, E., Stice, J. (2011).Financial accounting. Mason, OH: Thomson/South-Western. Blowfield, M. Murray, A. (2011).Corporate responsibility. Oxford: Oxford University Press. Dagwell, R., Wines, G., Lambert, C., Psaros, J. (2012).Corporate accounting in Australia. Frenchs Forest, N.S.W.: Pearson. Davis, M. (2012).Accounting for real estate transactions. Hoboken, N.J.: Wiley. Devi, S. Hooper, K. (2011).Accounting in Asia. Bingley: Emerald. Dyckman, T., Magee, R., Pfeiffer, G. 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