This assignment covers the in-depth theoretical concepts with practical accounting task application based on the topics from the subject. Task Details: Students are required to prepare a comprehensive...

Analysis of accounting standards of Myer, Australia
Course Name
Course Date
Student’s Name
RUNNING HEAD: ANALYSIS OFACCOUNTING STANDARDS OF MYER, AUSTRALIA        2
Contents
Introduction    3
Conceptual framework    3
Objective    4
Recognition criteria    4
Assets    7
Liabilities    7
Sustainability    8
Reporting and the effect on the shareholders    8
Conclusion    11
References    12
Analysis of accounting standards of Myer, Australia
Introduction
Myer is an upmarket Australian departmental store which sells broad range of products for its target customers. The product range includes the clothing, footwear, accessories, cosmetics, homeware, toys and electrical products. It is considered as the synonymous with the style and fashion. The company recently has been facing downturn and decrease in sales because of the competition in the industry as well as economic conditions of the economy. With the change in the economic conditions and the deteriorating position of the company, the CEO of the company has resigned and the position of the company has decreased further.
Conceptual framework
The conceptual framework of the accounting is an important part as it is considered as the baseline for the accounting reporting. The major objective of the financial reporting is to provide all the adequate financial information about the reporting company, which can be useful for the current and the future investors, creditors, lenders, stakeholders particularly in making the relevant decision for investment and other perspectives. The information is used in making different decisions in respect to the particular organisation.
“The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful in making decisions about providing resources to the entity through equity investments and loans or other forms of credit” (IASB 2010b, par OB2).
The framework primarily focuses on safeguarding the interest of the stakeholders and the investors and help them to know the true picture of the organization. The information about the financial statement of the company is provided by the income statements and the other facts of the company’s financial position.
Objective
The objective in this paper is to analyse aspect and the conceptual framework on Myers, Australia. With the challenging retail competition and the decrease in the profits, the company has focused on decreasing itself and becoming leaner. The sales has declined over 1.4% and has closed three stores and has handed over the space of two stores.
Recognition criteria
The revenue of company includes the revenue through different sales. All the sales and the total sales are reported in the income statement of the company. The total revenue presented in the income statement represents the sale from goods, sales from the deferral programs, concession sales and other operating sales.
The company follows the revenue recognition principle which states that the sales is recognised when the sales is actually incurred. The sales is recognised at the point of sale and is reported after deducting the taxes paid. The allowance on the sales is made for the expected sales returns which are based on the past experiences and expectation about the future. The interest revenue is recognized on the basis of the time proportion using the effective interest method whereas the dividend revenue is recognized when the right to the payment is established.
    
    2017
    2016
    Sales revenue
    
    
    Total sales value
    3201866
    3289568
    Concession sales
    (701678)
    (610553)
    Sales of goods
    2500188
    2679015
    Sales revenue deferred under customer loyalty program
    (34847)
    (38861)
    Revenue from sale of goods
    2465341
    2640154
    Other operating revenue
    
    
    Concession revenue
    158055
    140416
    Other
    18430
    21273
    
    176485
    161689
    Finance revenue
    
    
    Interest revenue
    436
    906
    Total revenue
    2642262
    2802749
So, the company reports and follow the conceptual framework as well as the accounting principles in reporting its sales. The group also has the loyalty...