ACC00145: Australian Stock Exchange- Aforementioned Statement- Report Writing Assignment

Internal Code: 1HFHJ

Report Writing Assignment:

Task: This task requires you to prepare a report in relation to conservatism. You should evaluate and comment on information regarding conservatism provided in the annual report of a company listed on the Australian Stock Exchange (ASX). Your comments or evaluation should comply  with the requirements of relevant Australian accounting standards (AASBs). “When a standard restricts the number of accounting methods to be used to account for a particular accounting issue, it is promoting the qualitative characteristic of conservatism.” Do you agree with this statement? In this report, you should address the points outlined below: 1) Provide your comments regarding the aforementioned statement. Explain why. 2) Using your own words to describe the definition of conservatism. Identify what are the advantages or disadvantages of applying conservatism in financial accounting and reporting practices. 3) Provide two (2) examples of conservatism applied in the annual report of your chosen company, and explain why the company prefers the chosen accounting treatments. 4) From the perspective of the investors, discuss the potential implication of the adoption of conservatism on financial position and financial performance of the chosen company. You should incorporate the examples that you have identified in part 3) in your discussion.