Why Are We Best for Assignment Help in Australia?

300k+ Satisfied

Star ratings

Based on 6989
Reviews of our
happy customers.

Order Now

Amazing Features We Offer

24*7 Help Service

100% Satisfaction
No Privacy Infringement
Super-fast Services
Subject Experts
Professional Documents

Get Lowest Price

Get A+ Within Your Budget!

    Total Price

    USD 7.33

    APC311 International Financial Rporting


    Financial reporting basically associated with disclosing financial information and data  to stakeholders and the financial performance of organisation. Financial reporting is a method to define the policies and standards which remain related to financial reporting and analysis. Organisations have to follow rules and regulations subject to presenting financial information and data. There is a financial representation done in respect of presenting financial reporting and information related to managers, stakeholders, public, government, banks and financial institutions (Loughran and McDonald, 2016). International standards related to accounting for intangible assets are defined in this report. International financial standards are defined with critical analysis and reporting. IAS 2 which is related to inventory management and valuation.

    Q.1 Income statement of Able Plc for the year 2017

    IAS 1 contains the rules and policies related to presenting financial statements. There are some guidelines are made in order to determine the structure and frame the financial information of organisation in well organised manner. This standard required all the essential aspects in terms  of making financial accounts on annual basis. Complete primed subject to financial statements are comprised as follows:

    • Presenting the financial statement at the end of the period and year.
    • Profit and loss account and other comprehensive income for the period. Comprehensive income contains the elements which remain associated with income and expenses which are not recognised in profit or loss as per IFRS rules and standards (Lamberton and Lapeyre, 2011).
    • IAS allows organisation to present a consolidated statement of profit and loss and other comprehensive income in separate two statements.
    • There are some essential aspects considered in respect of determining the change in equity. A statement of change in equity for the period is formed which helps to determine change in equity.
    • This also assist managers and accountants to prepare cash flow statement which contains the all the relevant details related to cash inflows and outflows for the particular duration.
    • Notes to accounts are also presented in respect of comprising of significant financial and accounting policies and other explanatory information
    • A statement which contains the details related to predicting comprehensive information and accounting reports to functions and management are presented in this context (Kumar, 2012).
    • A financial statement is presented by the organisation to present the financial position and capital structure of the organisation. This is one of the essential aspect which is considered important for defining the financial position in systematic format. This statement contains the details related to all current, non current assets, current and non current liabilities.  

    There is an income statement presented below of Able plc.

    Income statement of Able Plc for the year ended 31st December 2017.







    Return inwards






    Less: cost of goods sold



    Gross profit






    Motor expenses



    Warehouse Salaries



    Hire of values



    Directors salary



    Finance costs



    Rent and rates



    Insurance paid



    Bed debts






    on fixtures



    on motor vans



    Loss of closing branch



    Net profit/Loss



    Working notes:

    1. Cost of goods sold is calculated as below;

    COGS = (Purchase + Opening stock + direct expenses – return outwards – Closing stock)

    = (130000-1000+1000+20000-26000)

    = 124000

    1. Adjustment of outstanding salary

    Outstanding salary = Salary paid during the year + salary to be paid during the year or outstanding salary 

    = 10000 + 1000 = 11000

    1. Calculation of depreciation

    Depreciation on Fixtures (20000*10%)


    Depreciation on Motor van (10000*10% )


    Total depreciation


    IAS 1 fulfil the complete information and detail in respect of presenting financial statements helps to set out overall requirements and needs for financial statements and the requirements such as information related to profit and loss, revenues and expenditures generated for the particular period (Kealy, 2014). Concept of going concern, accrual assumption, current and non current distinction are considered essential in terms of making and comprising financial statements of organisation. These standards remain essential in respect of comprehensive income, contingent events and transactions, statements of change in equity, financial position statement and cash flow statement. Assets and liabilities are classified in categorised form which is bifurcated in various forms and helps to consolidate all the information in single format additional and brief information are presented in the form of schedules.

    Get Help in Any Subject

    Our intention is to help numerous students worldwide through effective and accurate work.

    Q.2 International accounting standards (IAS) related to financial reporting

    There are standards and regulations are defined in respect of determining the information and details which remain associated with analysing the performance and market position in effective manner. There is an assets are defined in this context subject to building the structure of  organisation are adopted with in the organisation. There are two type of main assets are found in organisational context. These assets are defined as follows;

    Current assets: These are the assets which do not remain consistent for more than one year. Life of these assets remain centralised around 1 year. There are type of currents are found in organisational context such as cash, debtors, lose and tools, foreign currency, investment, except investments which can not be easily liquidated and analysed in organisational context. Account receivable, investments, liquid assets, prepaid expenses, inventories and short term investments, market securities, shares of other companies and venture capital and structure are the main examples which are considered as current assets (Harrison, 2013). This are commonly helps to analyse the aspects in respect of listed above which also define various categorises.

    Non Current assets: These are the assets which are considered essential in terms of analysing the credibility and sustainability of organisation (Greenwood and Scharfstein, 2013). There is a structure of proper cash flow and unrestricted cash within the operations are considered in this context. Life cycle of this company basically remain for more than  one year. Non current assets basically helps to maintain an ethical manner.

    These are mainly classified in major two board categorises such as

    1. Limited life intangible assets: these are the type of intangible assets which contains the type of assets such as copyrights, patents, goodwill, intellectual and contingent rights. Duration of these type of assets remain associated for the limited duration. Life of these type of assets also can increased or renewed for subsiding years and period. For example the rights of patents and rights can be extended by fulfilling the legal and formal procedure for following consideration.
    2. Unlimited life of intangible assets: these are the assets which are considered essential in terms of analysing the knowledge that how it can be treated and organised in well planed and organised way. Trademarks, contrast to tangible assets, intangible assets, build back and managing the skills and knowledge in more comprised way are some main aspects considered in this context (Gotze, Northcott and Schuster, 2016).

    Goodwill is one of the important and essential aspect considered in organisational context. This is created by analysing and evaluating the base of structure. By providing quality goods and services organisation try to attain customer interest and faith. Effective and quality customer service plays vital role in respect of building brand value and goodwill in the market. More over the information not only remain associated with analysing and maintain the scope of good image but also helps to build the intellectual property. An approximation of the monetary values are considered essential in respect of building the strong infrastructure, raising loans and financial help and making the brand value at higher value.

    Difference between Tangible assets and goodwill

    Intangible assets


    These are the assets which are considered essential in terms analysing the structure of organisation. Non-physical and identifiable assets and property are considered in this context.

    Goodwill is considered as a miscellaneous category which helps to determine the value and measurement of brand value of organisation. This has also no any physical appearance and existence but contains huge role in organisational value.

    Computer software, advanced technology, copyrights, licensing agreements, websites domain name are some main examples of intangible assets.

    This is considered under miscellaneous category which not only helps to maintain the level of effective brand value but also measured tiredly with in the organisation.

    These can be sold independently and successfully outside the market. Value of intangible assets are considered in this context.

    These are evaluated on the basis of goodwill value in the market. This cannot exist independently of the business.

    This is one of the essential aspect which remain associated with analysing the value of intangible assets and properties. This helps to estimate the value to organisation.

    Goodwill can be sold and purchased or transferred separately and combine. Life of goodwill remain long term perspective. Customer's loyalty, brand equity, recognition and company worth are considered more than the book value of organisation and quantifiable assets are also counted as goodwill.

    IAS 38

    International Accounting standard Standard 38 contains the rules and standards related to adjustment and accounting of intangible assets (Gabaix, 2012). Purpose of this objective is to prescribe the accounting and goodwill in order to determine the tangibility and contingency of intangible assets. There are some specified criteria are considered in this context which elaborate the standards and polices related to  measuring and evaluation of value of intangible assets. There is a specified disclosures about intangible assets need to given and presented in systematic format.


    This standard is applied in accounting for intangible assets expect, intangible assets which are already associated with another standards, financial assets defined in IAS 32 financial instruments and presentation, recognition and measurement of exploration and evaluation assets and expenditure on the development and renovation of minerals, oil, natural gas and related non- regenerative resources (Coles Lemmon and Meschke, 2012).

    Intangible assets 

    These are the assets which don not contains the specific meaning and relevance and physical nature in organisational context, but they retain high organisational values which helps enhance the capability and enhance the value of organisation (Brooks, 2014). There are some essential aspects are considered in this context such are Reputation, goodwill, patents, intellectual property and assets, skilled and knowledge, professional skills and aspects. This not only enhance the value of organisation but also improve the capacity of managing asstes and liabilities.

    These are considered as long terms aspects which helps to maintain long term visibility and viability of organisation in terms of stakeholders, owners, directors, external parties, banks financial institutions and suppliers. These assets do not contains physical relevance and existence in real life. These drive as per the added value and increased infrastructure for better understanding and leading the organisation. Value of intellectual property and the legal existence not only present the right reflection of organisation but also build a strong base to run business operations effectively and smoothly. Patents, legal rights, value of subsidiary assets and property are the main aspects which are considered in this context (Brealey, Myers and Mohanty, 2012).

    Recognition and measurement  

    Intangible assets are  considered essential in respect of determining the item meets:

    1. a) The definition of an intangible assets
    2. b) The recognition contains specific criteria such as cost incurred to acquire internally generated. There are some intellectual properties and intangible assets are treated in various form which are defined as follows:  

    The nature of intangible assets are considered essential and no any replacement part is added with in the organisational. Some times it become to bifurcate and divide the cost of intangible assets and value of organisation in separate parts. More over these information remain associated with analysing performance and evaluating value of generated goodwill value of organisation (Baxter and et. al., 2014). Assets are replaced and in addition the replacement part directly impact upon subsequent expenditure and expenditure incurred in different operations and management.


    Price of entity and business paid to acquiree assets separately reflects expectations about probability in near future. Recognition of cost is considered essential in terms of assets ceases and the assets in the conditions for necessary. This basically associated with analysing with the help of management (Baños-Caballero, García-Teruel and Martínez-Solano, 2014). Some operations creates connections with the development and enhancement of value of intangible assets. It is necessary to consider the assets to situation for accepting and capable of operating in the manner intended by management.

    These incidental operations basically helps to determine the essential aspects which remain associated with expenses, operations and classification of income and expenses. Payment is made in terms of short term credit which remain associated with cost of operations and management in economic aspects. Inflows are considered essential in terms of managing. Recognising credibility and sustainability.  

    Q.3 IAS 2 inventory valuation and critical analysis of statement

    Inventories and stocks are considered as commodities in which organisation deals and run their business. Inventory valuation is one of the prime requirement for an organisation. Sales are held for sales are considered ordinary course of business. This is considered as process of production for sales (Anandarajan,Anandarajan and Srinivasan, 2012). Supplies and commodities are used by users and customers in terms of getting benefits. Inventories and stocks are found in various forms in an organisation such as raw material use for manufacturing products, stock work in progress (the stock which remain in inventories for manufacturing goods), finished goods (these are the goods which are considered as ready for sale). Products brought for resale of products and services which remain associated with stationary, retail business and internal use of business.

    Valuation of inventory

    IFRS rules and standards are made in respect of evaluate the value and price of products and services. It is required to measure the value of stock to analyse the cost of closing stock with in the process and inventories. IAS 2 provides guidelines and rules related to cost evaluation of inventories and stock with in process. This standard provides standards and aspects related to determining value of subsequent recognition of the cost of an expenses and including accurate cost and value of inventories and value which need to analyse the cost to inventories. Inventories  are measured in respect of determining  aspects related to cost evaluating.

    Cost is one of the crucial element which remain associated with acquiring goods and raw material for better production and functional operations (Agarwal, Taffler and Brown, 2011). Cost of inventory contains the cost of acquiring the goods to the presenting information in transmit. with the help of analysing the  aspetc  .There is a cost concept used in organisation subject to determining the cost of inventories cost of inventories is measured as follow;

    Cost of purchase = purchase cost + Import duties and other non recoverable taxes + transport and handling cost + other cost directly attributed to acquisition – trade discounts and rebates.

    Cost of inventories basically remain associated with cost of labour, direct expenses and production overheads and other costs there are some inventories are presented at various locations such as warehouse and production department. There are some essential elements such as cost of purchase, cost of conversion, cost incurred in beaning and the inventories are aligned in different stores position. There are types of inventory valuation methods are used in organisation which helps to determine the cost of inventories and valuation of closing stock. Value of stock is evaluated on the basis of net realisable value and cost of inventory in market at present time.

    The first-in, first-out or weighted average cost formula for items that are ordinarily interchangeable (generally large quantities of individually insignificant items). Specific identification of cost for items of inventory that are not ordinarily interchangeable.

    There are types of formulas used in organisational context to evaluate the cost of inventories such as

    FIFO: This is the method which is used to analyse the cost of value and stock with help of assumption and the inventory items. Purchase of produced goods and sold and used as first in terms of analysing the accounting period (Abdel-Kader, 2011). Valuation of stock remain related to first in first out. This method is basically considered essential in terms of analysing cost and determination of purchasing inventory. This method helps to align the requirement of inventories in well organised manner.

    Weighted Average: this is one of the essential method which is used by organisation to determine the effective value of stock within the organisation. This method basically helps to determine the average cost of inventory which remain in inventories. The cost of the items remaining at the end of an accounting period is then calculated by using the most recently-computed weighted average cost per item. This generally remain involved  in computing a new weighted average cost of capital and acquiring assets. It take place to acquire assets in respect of determining the cost by consolidating value of stock in synchronised way. This method also plays vital role in respect of decision making process.

    Last in first out (LIFO): this is the method which helps to analyse the cost of inventory on the basis of evaluation profitability and cost of inventory by considering inventories in end. This method is rarely used by managers and accountants because value of stock is based upon the last price which is introduced with effective used.

    Disclosure requirement

    Accounting policy basically helps to determine inventories cost and evaluation of cost by analysing the profitability. It is required by the mangers and accountants to disclose the policies, procedures and standards which are adopted by organisation. Classification of goods also depends upon appropriate strategies and plans which are carried out for smooth functioning and planing.


    This report explain the the importance of IAS standards and rules related to financial reporting and analysis of financial representation. IAS 1 presentation of financial statements, IAS  2 inventory valuation and capital structure of organisation in terms of building the effective structure of organisation is defined in this context. Regulatory discussion and international standards are also discussed in this context. Regulatory discussion and relevant international accounting standards are defined in this context and critical evaluation process is provided in various forms.

    You May Also Like to Read Sample on- Reflective portfolio


    • Anandarajan, M., Anandarajan, A. and Srinivasan, C.A. eds., 2012. Business intelligence techniques: a perspective from accounting and finance. Springer Science & Business Media.
    • Harrison, R., 2013. Crowdfunding and the revitalisation of the early stage risk capital market: catalyst or chimera?.
    • Brooks, C., 2014. Introductory econometrics for finance. Cambridge university press.
    • Gotze, U., Northcott, D. and Schuster, P., 2016. INVESTMENT APPRAISAL. SPRINGER-VERLAG BERLIN AN.
    • Baxter, S. and et. al., 2014. The relationship between return on investment and quality of study methodology in workplace health promotion programs. American Journal of Health Promotion. 28(6). pp.347-363.
    • Kealy, T., 2014. Financial Appraisal of a Small Scale Wind Turbine with a Case Study in Ireland. Journal of Energy and Power Engineering. 8(4).
    • Abdel-Kader, M. G. ed., 2011. Review of management accounting research. Springer.

    Amazing Discount

    UPTO50% OFF

    Subscribe now for More Exciting Offers + Freebies

    Download Full Sample

    Cite This Work

    To export references to this Sample, select the desired referencing style below:

    Students sometimes cannot express their inability to work on assignments and wonder, "Who will do my assignment?" To help them understand the complexities of writing, we are providing "samples" on various subjects. Also, we have experienced assignment writers who can provide the best and affordable assignment writing services, essay writing services, dissertation writing services, and so on. Thus, don't wait any longer! Place your order now to take advantage of discounted deals and offers.

    Limited Time Offer

    Exclusive Library Membership + FREE Wallet Balance