The paper “ Zetech Accounting Company LTD - Helping with the Australian Accounting and Taxation Needs” is a pathetic example of a case study on finance & accounting. This is to express our gratitude for asking us to help you with the Australian accounting and taxation needs. I have enclosed the following: Essential guides accepting a new client. Guidelines for giving engagement letters. Retention and ownership of documents. The tax code and the accounting code of conduct. It is important to note that for one to succeed you may need to consider the following key elements. Asmemberitimportantthatyoubehaveandtheandstandardsimposedmemberswellcomplianceanylawsandregulationspipe For a business individual public practice in Australia, such laws includes the Tax Agent Services Act (2009).
Every member practicing in Australia is required to comply with the requirements of the Accounting Professional and Ethical Standards APESs). Members practicing away from Australia are needed to comply with APESs to the level that they are not from doing so by local laws or regulations. Itimportantnotethatpubliccomprisebookkeepinginsuranceandassuranceservicestaxationinsolvencyandreconstructionmanagementforensicfinancialplanningandfinancialreporting It, however, does not entail business valuations, information technology, management consultancy and company secretarial services, unless such services are in conjunction with the activities listed above. Financial statements.
The essential requirement for meaningful financial statements is that they are comparable to those for other firms, especially the same industry. Accordingly, in order to this element, statements are prepared in accordance with accepted principals. These include the conventions, rules, and procedures, paramount define, accepted accounting practice at a particular time. The principles cover such things as recognition of revenue, balance sheet item classification, and outstanding measurements of shares. Every Company is required to follow GAAP rules when providing their financial data via financial statements. Disclosure. this is one of the most technical elements in accounting standards that are of immense importance.
In any document, where you put information (in a screaming headline, or the 23rd footnote in Appendix j -has a significant issue has to do with which those who read to view its relative significance. Financial statements are not exceptions. Pert from actual numbers on the balance sheet, P and G and statement of cash flow, and a great deal of information are in the notes to the financial statements. Key financial data is put into the financial statements in parentheses.
Notes have information that should receive this favorable attention. However, because the information may be considerable and include tables, it is included as a footnote instead. The alert to readers that the accompanying notes are an integral part of these statements draws them to the significance of the note. However, since notes at the bottom and because they are often numerous, lengthy, and, at times, impenetrable many users ignore them. The records contain information on held, inventories, debts, pension plans, and other essential elements in determining the company's financial position (Warren, 29).
In addition, the notes will pass data about the company's accounting acts and policies. Under GAAP, firms always have the discretion to use different methods for counting assets and determining costs and revenue. The Summary of Significant Accounting Policies appears as the first note to the statement or in a separate section. Management discussion analysis (MD& A). Otherrequireddisclosuresexternalthefinancialstatementsandnotesincludethemanagementdiscussionanalysisrequiredtheanda nutshell the list needed for disclosures long detailed and complicated some extent although this exhaustive release of company information increases transparency, and it does mean that financial statements become unwieldy. International Financial Reporting Standards (IFRS).
These have gained increasing widespread publicity and are taking over national GAAPs of many countries such as Australia, Canada, and Japan, IFRS has been needed for countries in the European Union since 2006. Over100 nations have now changed to IFRS. However, and some continue to have elements of their own national GAAP in reporting standards. IFRS by accounting (IASB) which is a standard set of the International Accounting Standards Committee Foundation (IASC Foundation). Like FASB of standards-settings, IFRSentails International Accounting Standards (IAS). These were provided by the International Accounting Standards Committee (IASC) from 1973 to 2000 (Burman and Joel 33). Principles-Based and rules-based accounting.
Much has been on the debate on the accounting profession of principles-based against the rules-based accounting. Principles-based systems provide wider guidelines in accounting treatment, within which accountants exercise their best judgment. On the other hand, the rules-based systems are more prescriptive and specific. Accordingly, IFRS is considered principles-based than GAAP, although there are ultimately many specific policies that contained IFRS as well. However, some observers think they are trending in the rules-based direction that is not the case. The Quality Controls.
The quality controls play a key role in aiding to detect and prevent auditor independence problems (Halla, 7). The final rule identifies this act by offering companies limited distinction being considered not independent for specific independence challenges experienced, punctually after discovery, provided that the company's certain quality controls as there is a likelihood for more detailed audit every year from the date of assessment notice, it is important to accurately keep records of any income, expenses debtors and creditor supplied to any firm for the preparation of your financial accounts and income tax return. Protection of quality and integrity of audited financial statements.
There exist a requirement to protect the quality and integrity of audited financial statements. This is geared toward the ultimate merit of investors and other users of those statements. To attain this goal, there are varieties of factors, in determining the right method to solve the risks to auditor independence brought about by situations where companies' professionals join audit clients. Such include an open discussion of the client's employment of audit firm professionals with the audit committee and ensuring the effectiveness of safeguards (Halla, 7). Lastly, we would like to pass our vote of thanks to you for your support and the opportunity of service to one.
It is our hope and believes that the information provided will help you to sail through in the business world. If you would like to discuss any of the above matters, or the accounts and documents enclosed, Please feel free to contact us on 02 9860 6991. Yours sincerely Maryanne Shallot Maryanne Senior Tax Accountant
Mike Pipe. Accounting Made Simple. New York, Simple subjects, 2013
Thomas Ittelson. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports. Franklin Lakes, carrier press 2009
Warren, Carl James Reeve. Accounting. New Jersey Cengage Learning 2013
James Halla. Accounting Information Systems. New York, NY: South-Western College Publishers 2012.
Leonard Burman and Joel Slemrod. Taxes in America. Oxford, Oxford University Press, 2012.