According to the Australian Accounting Standards Board (AASB):
“The AASB is committed to developing, in the public interest, a single set of high quality, understandable accounting standards that require transparent and comparable information in general purpose financial statements.” (AASB 2020)
This view is also shared by both the IFRS Foundation and the FRC:
The IFRS Foundation, in its mission statement, states that “our mission is to develop International Financial Reporting Standards (IFRS) that bring transparency, accountability and efficiency to financial markets around the world. Our work serves the public interest by fostering trust, growth and long-term financial stability in the global economy.” (IFRS 2020)
The FRC (Financial Reporting Council) states that “the FRC monitors the development of international accounting and auditing standards, works to further the development of a single set of accounting and auditing standards for world-wide use and promotes the adoption of these standards.” The core objectives of FRC also state that “accounting standards should facilitate the Australian economy by reducing the cost of capital and enabling Australian entities to compete effectively overseas.” (FRC 2020)
Explore the relationship between the notions of public interest and decision usefulness of accounting information with the help of research articles. Based upon this reading, how, and to what extent, is the development of accounting standards in the public interest consistent with the decision usefulness of accounting information? (Use at least four research articles from academic journals)
Critically discuss, with the help of research literature, that AASB138/IAS38 “Intangible Assets” provides decision-useful information to the users of financial statements by capturing the recognition of all intangible assets in the statement of financial position.
THP Ltd is a company that was hurt by a major downturn in the economy. It previously obtained a significant loan from ZNA Bank, and when THP Ltd was unable to make its loan repayments, the bank made an agreement with THP Ltd to become involved in the management of the company. Under the agreement between the two entities, THP Ltd’s managers had to obtain authority from ZNA bank for acquisitions over $20,000 and were required to have bank approval for the company’s budgets.
Discuss whether a parent-subsidiary exists between ZNA Bank and THP using the guidance provided by AASB10/IFRS10 “Consolidated Financial Statements”.
Please provide a conclusion at the end of each part of your assignment
The following matters should be given particular attention:
Evidence of extensive research beyond the prescribed texts is required. Ensure these are referenced appropriately in your references using Harvard referencing.
Word limit is 3000 words.
Part A 25 Marks
Part B 25 marks
Part C 30 Marks
Citation and References 5 Marks
Grammar 5 marks
4. Due date - 8 June 2020. Monday 11.59 pm