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Assessment task
There are four main types of assessments outlines in the p8 of the Course Outline Booklet
Enterprises Stakeholders:
Shareholders
Banks
Suppliers
Employees
Governments (ATO & GST charged by the federal governments)
Consumers
Regulatory bodies (ASIC, RBA)
Community
Special interest groups
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ACCT1501_LEC01 3rd March 2017
Balance sheet
Assets (resources)
o Current assets cash, accounts receivable, inventory,
o Non-current assets (+property + plant and equipment accumulation
deprecation = net property plant equipment),
Liabilities
o Current liabilities taxes, interest, accounts payable, bank overdraft, factoring
o Non-current liabilities mortgages, debentures, unsecured notes, leasing
Equity (net assets)
o Ordinary shares, preference shares, retained earnings, private equity
Assets = Liabilities Equity
Income Statement
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ACCT1501_LEC01 3rd March 2017
Accrual basis: revenues and expenses are recognised at the time occurred, not when the cash
is paid or received.
Accounting entity assumption: activities entity(company) is separate from those of its
owners/members (shareholders)
Accounting entity assumption includes, but not limited to, legal entities (e.g. consolidated
entity); an economic entity (companies, partnerships, funds associations and public sector
bodies).
Accounting Period assumption: assumes that business divides into discrete time periods of
equal length (every half year 1st Jan to 30th Jun). So that, the production of regular,
comparable financial statements can be used to compare and determine the financial
performance and position of the company.
Monetary assumption: if the business is based in Australia then an accepted medium
exchange is in AUD.
Historical cost assumption: Transactions are initially recorded at their original cost; i.e. treat
assets regarding their use rather than resale.
Going concern: assumes the continued operation of the business with no intention to
liquidate and therefore produces the for financial information.
Materiality: the concept of materiality allows you to ignore figures that are so small that it
will not mislead the information user. Therefore immaterial stuff doesnt need to be included.
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