The paper “ Financial Instruments and Consolidations” is an informative example of an assignment on finance & accounting. AASB 139 sets out the following requirements. That the financial liabilities and assets should be recognized in the prepared balance sheet statementFinancial liabilities should be classified in one of the two set categoriesFinancial assets classification should be undertaken in the four categories setThat the initial measurement of both financial assets and liabilities be recorded at fair value. Subsequent measurement of financial assets and liabilities should be done at the fair value or amortized cost.
This will depend on the recognition class. The increase or decrease in the financial assets and liabilities value is recognized in the profit or loss or equity depending on the class. That the financial assets to be impaired where there exists objective evidence. The assets and items of property, plant, and equipment have been recorded at costRecognition of the assets and liabilities in the balance sheetThe financial assets of Telstra corporation have been classified into fixed assets and current assetsRecognizing the financial assets into their categoriesThe financial liabilities of the corporation have been categorized into long term liabilities and short term liabilities. Recognizing the financial liabilities into their categoriesThe stated cost of the property plant and equipment is originally in its costStating the initial measurements of financial assets and liabilities at their fair valueThe stated figure in the financial statements is cost less the amortized amount. Subsequent recognition of financial assets and financial liabilities at the amortized cost. The additional plant, property, and equipment purchased and acquired have been included in the financial statements. The increase or decrease in the financial assets and liabilities value has been recognized in the profit and loss and equity accordingly depending on the class
International Accounting Standards Board, 2003, Financial instruments, London, International Accounting Standards Board
International Accounting Standards Board, 2002, an Exposure draft of proposed amendments to IAS 32, financial instruments, disclosure and presentation [and] IAS 39, Financial instruments, recognition, and measurement: comments to be received by 14 October 2002. London, International Accounting Standards Board.
Telstra Corporation Limited, 2012. 20102 annual financial statement, http://www.telstra.com.au/abouttelstra/investor/calendar/annual-results-announcement-5.xml