If you're looking for the perfect solution to ace your ACCY111 course, then look no further!
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Course
ACCY111
Institution
University Of Wollongong (UOW
)
If you're looking for the perfect solution to ace your ACCY111 course, then look no further! Our tutorial solutions provide you with the best, most comprehensive, and detailed answers to all of your coursework questions. With our help, you can easily understand the concepts and apply them to your c...
Accounting Fundamentals in Society
WEEK 1: chapter 1: DQ 1.1, 1.5. 1.8, 1.12; EX 1.1, 1.5, 1.10, 1.12
DISCUSSION QUESTIONS
1.1 You are considering buying an apartment. Outline the
information you would like to assist you to make this decision.
Identify how much of this information is accounting
information?
Considerations when buying an apartment include factors such as location, type
(studio, one bedroom, two or three bedrooms), size (bigger rooms, additional
bathroom, balcony), age of the apartment, and available funds.
Information to assist the purchase decision includes whether the apartment is for
residential or investment
purpose, personal taste (e.g. interior design, view), distance to workplace or train
stations, funds to meet
ongoing costs like repairs and maintenance required after purchase, body corporate
fees, council rates, and insurance. Initial purchase considerations include whether
the apartment is to be purchased outright or through a home loan taken with a
financial institution, stamp duty to be paid, and the eligibility of obtaining firsthome
buyer grant from the federal/state government. Purchase considerations and
ongoing costs represent accounting information relevant to the decision-making
process.
1.5 Describe how you would identify if a financial statement is a
special purpose financial
statement or a general purpose financial statement.
Suggested topics of discussion:
The difference between a general purpose financial statement and a special
purpose financial
statement lies in the ability of users of those reports to command the preparation of
reports
tailored to satisfy their needs for particular information.
General purpose financial statements are prepared by reporting entities for users
, who do not
have access to special purpose financial statements. General purpose financial
statements
contain information which, while general in nature, is relevant to many of the
individual
decisions made by the many different types of users, e.g. a shareholder will decide
to sell or
retain his/her shares based on the information in the general purpose financial
statements. Other
users such as lenders suppliers and employees will make individual decisions based
on these
general purpose financial statements.
Regulators attempt to prescribe the disclosure requirements in the general
purpose financial
statements to ensure that individual users have access to reliable information.
General purpose financial statements do not satisfy all of the needs of users for
information.
Users will also add their personal, social, political and environmental preferences to
any
decision. General purpose financial statements do not even provide all of the
financial
information that users may need. For example, budget information is not provided.
Special purpose financial statements are specifically tailored to provide the special
information
needs of users for decision-making purposes. Unlike general purpose financial
statement users,
special purpose financial statements users have the power to require/insist that the
information
generated is specifically suited to their needs. For example, a bank may require
special
information from an entity before it grants the entity a loan.
1.8 List some of the fields (other than financial reporting) that have
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