It is quite astonishing and upsetting to find out that there is little conversation or debate of the total asset figure in the secretarial text (Weil, Schipper & Francis, 2013). In order to prove the above statement, this study explains the fact that total assets is one of the vital perception of accounting where one would suppose to find a good deal of clarification as well as understanding at the same time. In this project, appropriate highlighting has been given on understanding the significance of total assets in the accounting literature (Originenergy.com.au, 2017). The study highlights the important accounting concepts by citing examples from the annual report of Origin Energy Australia. The next part highlights the problems of measurement in the context by referring to AASB or IASB Standards where the financial information is taken from the annual report of Origin Energy Australia. In the final part, there is proper comment on certain qualitative characteristics such as relevance and faithful representation that is used or measuring actual estimation of assets in Origin Energy Australia (Originenergy.com.au, 2017).
Accounting concepts are explained in this particular question that is the principle system of secretarial that needs to be pursuing by the listed financial records that are presented in the monetary announcement in any company (Wagenhofer, 2015). To explain each of the concepts, below is the list with proper justification:
The first type of accounting concept is the accruals concept that includes all the revenues and expenses that are presented at the time of occurrence on cases when cash are received or not.
The second type of accounting concept is the consistency concept that if selected are used unless there is any specific reason associated to it (Schipper, Francis & Weil, 2017).
The third type of accounting concept is the going concern concept that includes business where there is preparation of accounts in better condition and it is an ongoing process (Originenergy.com.au, 2017).
The forth type of accounting concept is the Prudence concept that is also termed as conservation thought where revenues are mentioned in the balance sheet if there is a sensible confidence for understanding them within a stipulated time frame (Saunders & Cornett, 2014).
For example, Origin Energy Australia Board had been involved in integrated approach that is mostly consistent and ongoing process where there is a need for integrated thinking altogether (Robson, Young & Power, 2017). The company needs to consider both financial as well as non-financial aspects that are recorded so as to drive balanced and integrated approach in an effective way. Board of Origin Energy Australia had remained extremely committed towards engaging in maintaining transparency and accountability where it safeguards the total assets of Origin Energy Australia as it aims at protecting the values of the stakeholders (Originenergy.com.au, 2017). The energy company engages in active communication with the investment communication that renders updated information on matters relating to development and strategy implementation at the same time. The Directors of Origin Energy Australia have carefully examined the carrying value of all the assets that results in non-cash impairment charges that amounts to $705 million (Originenergy.com.au, 2017).
Discussing the issue of dimension in the background of current AASB or IASB standards and theoretical structure by citing instances from the annual report of Origin Energy Australia
From the information taken from the IASB Conceptual Framework for financial reporting, several difficulties are noted in the measurement bases for the elements. There are certain issues that arise as there is difficult to measure assets as well as liabilities at cost or value as mentioned in the conceptual framework (Reimers, 2014). It is essential to first judge the reliability of the costs where the financial users value the information that is past oriented. Addition to that, relevant users need to use valuation method within the stipulated date where the cited value should not have any drawbacks as it is not always reliable by nature. Therefore, conflicts takes place that mainly creates dilemma and fails to give satisfactory results as the framework is not decisive in nature as well as need to determine on the usage on the several measurement bases (Originenergy.com.au, 2017).
On critical analysis, it is understood that total assets are assessable from the statement of financial position of Origin Energy Australia that are again divided into current assets and noncurrent assets. Intangible assets are those assets that have no physical presence and cannot be touched or felt (Pratt, 2013). For example, goodwill of Origin Energy Australia is the intangible assets. PPE of Origin Energy Australia, financial assets of Origin Energy Australia and inventory of Origin Energy Australia are the total assets of the company. It is noted that most of the assets of Origin Energy Australia can be termed as either prescribed or officially owned by the unit it should be illustrious that legalized possession is not a requirement for acknowledgment; somewhat it is systematize the major problem that prevails in Origin Energy Australia.
On illustration, it has been observed in the IAS 717 that mentions about leases where the lessee with a finance lease in Origin Energy Australia, is consistent with the structure connotation of an asset of Woolworths Origin Energy Australia (Originenergy.com.au, 2017). As mentioned in IAS 17, it clearly explains the fact that there are considerably all types of risks and rewards of Origin Energy Australia by possession have passed to the lessee it is treated as a finance lease and the lessee should discern an asset on the declaration of financial position of Origin Energy Australia in admiration of the settlement that it determines within Origin Energy Australia, even though the asset subject to the lease is not the legitimately owned by the lessee in an effective way. As a result this reveals that the monetary actuality of a finance lease that is treated as loan when it is bought by the company as an asset by Origin Energy Australia, where the secretarial accounting is a realistic arrangement in the most appropriate way (Hoskin, Fizzell & Cherry, 2014).
For example, energy companies such as Origin Energy Australia believe operating cost that includes reduction, impairment of assets as well as procurement (Anderson et al., 2016). Addition to that, it directly comes with profits most operating cost are approved in the Income announcement section of the declaration of profit or loss of Origin Energy Australia as well as complete income Origin Energy Australia, but in specific circumstances expenses (losses) are essential by complete values to be prominent directly in fairness and realized in the Other complete Income Section of the statement of profit of Origin Energy Australia or loss as well as other complete income of Origin Energy Australia. A case that is taken from the yearly report of Origin Energy Australia is an impairment loss, on a previously revalued advantage, that does not exceed the balance of Origin Energy Australia in its Revaluation preserve (Henderson et al., 2015).
Commenting on the relevance and faithful representation by using the processes of measurement for achieving estimates of assets and liabilities by citing examples from the annual report of Origin Energy Australia
This question need accurate explanation or comment n the relevance as well as faithful representation by making use of process in measuring the estimation of assets and liabilities from getting the financial information from the annual report of Origin Energy Australia (Edwards, 2013). It is important to analyze the information and present it either in words or number according to feasibility of the options available in the particular study from getting the information from the diverse types of fiscal declaration such as income declaration, balance sheet and cash flow declaration of Origin Energy Australia for the year 2015 and 2016. In addition, illustration of assets or liability takes into consideration all the monetary facts on matters linking to particular asset or liability as presented in the financial statement of Origin Energy Australia for the year 2015 and 2016 (Originenergy.com.au, 2017). Consequently, measurement of an asset or liability for the company named as Origin Energy Australia for the year 2015 and 2016 essentially means to the quantity where the either asset or liability is represented in the declaration of fiscal place as well as incorporated in the footings as obtainable in the statement of Origin Energy Australia for the year 2015 and 2016. It requirements all other amounts to get released where these are not yet treated to as capacity for Origin Energy Australia for the year 2015 and 2016.
In case of qualitative characteristics, the information is taken from the revised conceptual framework where the responsibility of the auditors and financial users are mentions on how they should act to solve any issue or provide with an expert opinion (Barth, 2015). It takes into explanation all the decision-useful facts that are directly concerned with secretarial as well as financial measures for undertaking any particular decisions as and when required. It concern with assured decision-useful facts and financial information that comes under main criteria that needs to be considered at the time of influential appropriate measurements for fiscal declaration items for the company name as Origin Energy Australia for the year 2015 and 2016 (Originenergy.com.au, 2017). The next qualitative characteristics are relevance that can be stated as the first element that needs to be considered as far as possible. It mainly depends upon the bases of dimension where the issue relevance can be termed as a significant factor for submission reason. It is for this cause why it is essential to focus mainly on the element such as relevance. Though, the other qualitative characteristics and constraints are argued originally to the degree essential to explain their rationale to capacity and to present a broader condition for discussing on the consequence or value of relevance (Deegan, 2013).
The other significant qualitative characteristic that is stated in the theoretical structure is faithful representation of all the financial information or data as generated from the annual report of Origin Energy Australia for the year 2015 and 2016. It narrates with all the bases measurements that need to be authentically represented if they are accompanied by accurate and understandable descriptions, amplification as well as other revelation (Bevis, 2013). Adding to that, for a measurement to be a faithful depiction, it should be understandable whether that dimension is a price (or price estimate) or a agreed calculation. Furthermore, a faithful depiction of a price (or price approximation) should tell between between prices transacted by the unit, other experimental prices, and price estimate (Originenergy.com.au, 2017). Furthermore, it is the faithful representation of a price estimate or in that case prescribed computation that needs to be integrated within the factors and hypothesis use in the supposition or computation. There are even some of the unfeasible measurements that can in no way be authentically represented at any point of time. For illustration, if there are no evident transactions related to an item in Origin Energy Australia for the year 2015 and 2016, and then there is no measures that can be authentically represent a realistic cost in an effective way (Bradshaw et al., 2013).
Conclusion
By analyzing the study on the company, it is accomplished on the fact on the situation such as how total assets figures are significant and need appropriate awareness and indication in the secretarial text. In order to make the statement more clear, Origin Energy Australia company has been selected that is listed in Australian Stock Exchange and financial figures are extracted for financial year 2015 and 2016. Although, an approximation of a cost can be authentically symbolized if significant statement and technique are explained. Consequently, any of the dimensions that can be dependably represented can be established, be it directly or indirectly. In a given condition, when a measurement cannot be authentically represented for a demanding asset or liability for Origin Energy Australia, then the verifiability of that measurement should not be a concern, since a dimension should not be used if it cannot be authentically represented in the most appropriate way.
Reference List
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