Harmonization And Statement Comparability -Myassignmenthelp.Com

Question: Discuss About The Harmonization And Statement Comparability? Answer: Introducation The audit fees included in the operating expenses comprises of service charges for tax compliance services, advisory services linked with accounting standards and crisis management training and cyber security training as these are the additional services provided by the auditors. The wages and salary that is included in the operating expenses of the company includes the salaries drawn by the Chief Executive Officer, General Manager (Sales and Marketing), General Manager (Technical) and Chief Financial Officer which are $255000, $223000, $185000 and $181000 respectively. The members of the staff draw salary in between the range of $121000 to $110000 (as per NZ IAS 27). The income tax that is deducted from the profit before tax leads to the final net profit that is further deducted from the retained earnings (as per NZ IFRS 10). The net profit is added to the retained earnings of the year of 2016 and then the amount of total is arrived at. This is done because this gives the amount of profit that is incurred in a particular financial year including the dividend that has to be paid to different stakeholders of business (as per NZ IFRS 10). The interim dividend and final dividend paid is subtracted from the retained earnings in order to get the final amount of revenue that is really incurred by a company in the financial year (as per NZ IFRS 10). In the statement of changes in equity the share capital in the year of 2017 increases by the amount of $17000. This is because in the year of 2017 new share capital was issued by the company. This also indicates the fact that the company is doing enough profit and its reputation among the investors is increasing which is why more shares are purchased by them. Thus the new increased share capital becomes $157000. Again the net profit is added in the same way as in the year of 2016 for the same reason and the total amount is arrived at (as per NZ IFRS 10). In the balance sheet of the company the total current asset of the company is recorded, that is the assets that are used by the firm in the daily operations of business. In note 10 the accounts receivable is recorded. It is generally a current asset . In note 11 the provision for impairment of trade receivables is recorded as a current asset, as this is a provision that offsets the accounts receivables in the financial the non-current assets are recorded. These assets are non-current in nature that is they are not used in the course of day to day operations of business. The accumulated amortization is recorded under the head of non-current assets and it is always a negative figure, hence subtracted (as per NZ SIC 32). The same goes for accumulated impairment goodwill and it is also a negative figure hence subtracted (as per NZ SIC 32). The inventory or stock in hand has been recorded under non-current assets. The inventory is evaluated either on the base of lower cost or on the basis of net realizable value. At the end of the financial year of 2017, finished goods became 30% and raw material became 25% and the remainder became work in progress (as per NZ SIC 32). The investment at cost is recorded under non-current assets and essentially represents the cost incurred while making investments. At the date of balance the investment at cost of the company was valued at an amount of $8820000. This was done in accordance with the IFRS 9 standards (as per NZ SIC 32). The PP and E represents the property and equipment. In regarding to this it was decided by the directors that land and building with a developed historic cost should be subjected to revaluation as at 30th June, 2017. The Land and Building was revalued separately at $1550000. The current liabilities are incurred or generated in the day to day course of a business thus is current in nature (as per NZ IFRS 10). The GST Liability refers to the liability that is kept aside by the company for the purpose of paying the goods and services tax (as per NZ FRS - 43). The Income Tax payable or the income tax expenses come down to $11260000 which is payable by the company and therefore is recorded under current liabilities (as per NZ FRS - 43) There are two borrowings done by the company. Firstly the company has arranged for a mortgage loan on the basis of land and buildings. Secondly a bank loan has been obtained by the company from the Westpac Bank. The company also can avail the facility of bank overdraft of $100000 (as per NZ FRS - 43).the mortgage is included in the borrowings as mentioned above. The asset revaluation reserve is the reserve that is kept aside for the purpose of reserving the revalued amounts of assets. It is also included in the statement of equity (as per NZ FRS - 43). He issued and paid up capital is the total amount of share capital that is required to distribute among the shareholders. It was decided by the company that a final dividend of 25 cents per share would be paid (as per NZ FRS - 43). The retained earnings in the provided in the trial appears twice. Once in the Equity section ofthe balance sheet and another time in the statement of equity (as per NZ FRS - 43). References Biondi, Y. (2014). Harmonising European public sector accounting standards (EPSAS): issues and perspectives for Europes economy and society. Accounting, Economics and Law, 4(3), 165-178. Brown, P., Preiato, J., Tarca, A. (2014). Measuring country differences in enforcement of accounting standards: An audit and enforcement proxy. Journal of Business Finance Accounting, 41(1-2), 1-52. Cordery, C. J., Simpkins, K. (2016). Financial reporting standards for the public sector: New Zealand's 21st-century experience. Public Money Management, 36(3), 209-218. De Silva, T. A., Stratford, M., Clark, M. (2014). Intellectual capital reporting: a longitudinal study of New Zealand companies. Journal of Intellectual Capital, 15(1), 157-172. Ellwood, S., Newberry, S. (2016). New development: The conceptual underpinnings of international public sector accounting. Public Money Management, 36(3), 231-234. Habib, A. (2015). The new Chinese accounting standards and audit report lag. International Journal of Auditing, 19(1), 1-14. Jones, R., Caruana, J. (2014). A perspective on the proposal for European public sector accounting standards, in the context of accruals in UK government accounting. Accounting, Economics and Law, 4(3), 265-282. Newberry, S. (2014). The use of accrual accounting in New Zealands central government: Second thoughts. Accounting, Economics and Law, 4(3), 283-297. Stent, W., Bradbury, M. E., Hooks, J. (2017). Insights into accounting choice from the adoption timing of International Financial Reporting Standards. Accounting Finance, 57(S1), 255-276. Wang, C. (2014). Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research, 52(4), 955-992.