Importance of ‘True and Fair View of Financial Statements

Importance of ‘True and Fair View of Financial Statements Introduction This essay focuses on the definition of the ‘true and fair view’ and how to use in accounting practically. In my opinion, ‘true and fair view’ is essential in the real world of accounting because the company has to provide reliable and relevant information to demonstrate its actual financial situation in financial report. However, from December 2013, the ‘true and fair view’ is not defined in Corporations Act s. 295(4)(d) and other regulations or legislations. This is because it has been a controversial debate towards whether the exact nature of ‘true and fair view’. Therefore, the following essay will explain the importance of the ‘true and fair view’ in terms of the appropriate disclosure of material matters in financial statement and the frustration in terms of the definition as well. What is True and Fair? The ‘true and fair view’ concept is one of two competing but not mutually exclusive legal standards for financial reporting quality that have been subject to debate on their meaning, use and importance. The other is ‘present fairly in conformity with generally accepted accounting principles’ (GAAP). The mainly prescriptive literature suggests that each regime that requires compliance with ‘true and fair view’ tends to address and interpret the concept according to specific historical, social, cultural, political and economic roots and environments (Deegan Michael 2012). The nature of truth, whether absolute or relative, it is the existence of a reality, an unquestionable thing, or as an abstract concept, either dependent or independent of believers. The interpretation equated with the truth and fairness to the relevance together with adequate disclosure in financial report. In accounting concept, ‘True and fair view’ indicates that the financial statement must not contain material misstatement and actually reflect the financial performance and position on the company(Deegan Michael 2012). To be specific, ‘True’ means the financial statement accord with the reality and formal reporting framework such as conceptual framework and free from any unreal information which could mislead the users. ‘Fair’ means the information in financial statement do not include any personal prejudice or bias thus it could reflect the economic substance or transaction. The Importance of True and Fair in Accounting The Corporations Act requires the accountants to provide true and fair information so that the accounts of the company can convey a true and fair view explicitly. Under s. 297, it is required that the financial statements and notes should to give a true and fair value of the entity’s financial position in the financial year. Moreover, s. 308 requires auditors to give a true and fair view in the annual financial statements and comply with accounting standards. Beside to the Corporations Act, Chastney (1975) suggests that fairness means that, in order to achieve a true and fair view financial reports should present information both impartially and in a manner that a reader can understand clearly. The concepts of truth and fairness are of great significance to ensure the accounting information to be reliable. The information reflected in the financial repot includes the measurements of assets and liabilities, the calculation of profit and capital, as well as the actual quantities involved in business activities (Ryan 1988). The information disclosed in financial statements should be fair to shareholders, public and other related stakeholders. Thus, directors and auditors in a company have an obligation to comply with the ‘true and fair value’ in all accounting activities. For example, four particular information should be disclosed in the financial statement. These information are required to be true and fair to reflect the financial performance and position of the company. The four information needs are:capital maintenance, stewardship. Liquidity and net realizable value. From the perspective of true and fair, these four information are required as follows: Capital maintenance need to satisfy the needs of shareholders for disclosing the annual profit legally available for dividend, retained profit and the amount and form of paid-up capital. Stewardship need to satisfy the needs for disclosing the results achieved by directors from the use of funds and whether the investment are following the objective of the company (Power 2010). Liquidity are quired to serve as an indication to the solvency. The information should clarify the abilities of companies to met liabilities in short term, the amount of bank overdraft and the amount of any securities to secured company’s debts (Chastney 1975). Net realizable value disclosure are needed to make sure shareholders do not sell their shares which are parts of net realizable value but was available to the company. Under these interpretations, the measurement of periodic profit based on detail monetary model, which elaborate the demand and actual application of how fairness reflected in the financial statement (Gaffikin, Dagwell Wines 2004). Moreover, all the measurements should be internally consistent and comply with the applying of the accounting System.The value of the true and fair view also reflect the compliance of the transactions with relevant regulations, statutory provision and other accounting standard. For example, the accounting policies applied in the organization should be appropriate to a accompany’s business, and the acquirements and recommendations in accounting standards can be practical in the use of achieving company’s actual financial objectives (Aisbitt Nobes 2001). Specially, AASB 1001 requires the accounting policies should to ensure the substance of the underlying transactions or other events , satisfying the concepts of relevance and reliability (AASB). This demands the actual economic nature and effect of the events to be reported. At last, the truth and fairness also make contributions to the company’s decision making. This is because the relevance and reliability has b een ensured and the managers can predict the future perspective according to the useful information reported in the financial statement (Ijiri Jaedicke 2004). How to define True and Fair? However, True and fair concept is not yet defined by authority, also some way to define that in view of its relationship to the various components of a true and fair. (Lee, 1982) There is also no legal concept prescribe the notion of true and fair. Sometimes the application of ‘true and fair valve’ go far beyond of technical rules of accounting (Aisbitt Nobes 2001). For example, stemming from the meaning of ‘compliance with the facts’, ‘truth’ refers to ‘empirical correspondence’ in accounting terminology. But in practical accounting, the value of truth is not limited to its literal definition. It also expand to deductive validity in audit process. Further more, the application of fair also involved in the appropriate general accounting model for measurement of periodic profit and capital. That is to say, there is no fixed standard to rule what is exactly the meaning of ‘true and fair value’ in practical accounting. On the other hand, although true and fair view is really essential in accounting framework, however, in real life sometimes it is quite hard for the accountant to make absolute right decision in terms of following absolute truth and fairness. For example, in the process of determining the depreciation, several methods are available such as declining balance method, maximum amount method, multi-level method and the basic method (Ryan 1988). In most cases, several options are accessible and reasonable, but different methods could lead to different calculation answers, affecting the estimation of company’s financial performance. When the accountant put the formula into the reality, they have to take into account the company’s position and financial performance target, then making the optimal decision (Lee 1982). In this situation, the concept of ‘true and fair view’ do not have fixed rules and the accountant may use the professional judgment to make the final decision. Conclusion To conclude, true and fair value are of great concern in accounting, especially in financial statements. The idea that true and fair value measurement is part of professional identification in terms of the releasability and relevance of the information disclosed in the financial report. However, in most cases, the technical standard setting of true and fair value are not obvious and uniform, which address impediment to real practicability of the interpretations. This is because the notions of relevance and reliability cannot be defined independently of the whole accounting system and are always subject to changes (Power 2010). Reference list Aisbitt, S Nobes, C 2001, ‘The true and fair view requirement in recent national implementations’, Accounting and Business Research, vol. 31, no. 2, pp. 83-90 Australian Accounting Standard Board 2010, Complied AASB Standard AASB 117, Australian Government Australian Accounting Standards Board, Australia. Chastney, JG 1975, True and fair view: a study of the history and meaning of true and fair and a consideration of the impact of the fourth directive, Institute of Chartered Accountants in England and Wales, London Deegan C., 2012 Australian Financial Accounting, 7th ed, McGraw-Hill, Nth Ryde Gaffikinà ¯Ã‚ ¼Ã…’ Mà ¯Ã‚ ¼Ã…’ Dagwellà ¯Ã‚ ¼Ã…’ R Winesà ¯Ã‚ ¼Ã…’ G 2004à ¯Ã‚ ¼Ã…’ Corporate accounting in Australiaà ¯Ã‚ ¼Ã…’ 3rd editionà ¯Ã‚ ¼Ã…’ University of New South Wales Press Ltdà ¯Ã‚ ¼Ã…’ NSW Ijiri, Y Jaedicke, R 2004, ‘Reliability and objectivity of accounting measurements’, The Accounting Review, vol. 41, no. 3, pp. 471–483. Lee, TA 1982, ‘The will-o-the-wisp of true and fair’, The Accountant, vol. 187, no. 5601, pp. 16-18. Power, M 2010, ‘Fair value accountin: financial economics and the transformation of reliability’, Accounting and Business Research, vol. 40, no. 3, pp. 197-210. Ryan, JB 1988, A True and Fair View: A Revised Accounting Interpretation, University of Wollongong, Wollongong

Matrix the Movie and The Lathe of Heaven Essay -- Film Compare Contras

Matrix the Movie and The Lathe of Heaven The world is not always what you think it is. Things change or can appear to be different than what you originally thought them to be. So are the worlds in the Matrix and the novel The Lathe of Heaven. What you thought you knew about your life just went out the window. There are several similarities between the novel and the movie, and there are many trends in the movies and novels societies that are portrayed in our society as well. Also, each proves LeGuins theory on science fiction. The Lathe of Heaven and The Matrix have many similarities. Both utilize the number three by providing main characters in sets of three. Also, The Matrix brings an even more blatant example of this by naming one of the main characters Trinity. In addition, they both portray our world as something that is artificial; made up by others who do not have the best intentions. The Matrix is simply a constantly changing computer program only one of the hundreds we are unaware of. The matrices, which, while maintained by the Agents, run on their own, are designed to create a utopia. In the Lathe of Heaven, Dr. Haber controls Georges dreams, and therefore, the future, by using the augmenter and the power of suggestion. Both worlds are created and altered with everyone being oblivious, except the three main characters. In each story there is a group that is trying to save the real world that we live in, while there are people trying to create the world that they see fit. Ursula LeGuin proposed a theory that shows what science fiction is and how it works. She believes that science fiction is what we can not see. Science fiction is made up of ... ...eat stories. I was intrigued by the Lathe of Heaven and its psychological story. The Matrix is and will go down as one of the greatest movies of all time. Not just for its special effects, but for the philosophical meaning behind it. To question what we know and to wonder, is what we have real? Really makes you want to take that red pill and find out for your self. The Lathe of Heaven really touches base on the idea that dreams can be a preview of reality. I know I have had dreams were I can not tell the difference between a dream and reality. Both were well written and are going to continue to have an impact on their respected genres of art. Works Cited The Matrix. Dir. The Wachoswki Brothers. With Keanu Reeves, and Laurence Fishburn. Warner Bros, 2001 LeGuin, Ursula. The Lathe of Heaven. HarperCollins Publishers, 2000 Matrix the Movie and The Lathe of Heaven Essay -- Film Compare Contras Matrix the Movie and The Lathe of Heaven The world is not always what you think it is. Things change or can appear to be different than what you originally thought them to be. So are the worlds in the Matrix and the novel The Lathe of Heaven. What you thought you knew about your life just went out the window. There are several similarities between the novel and the movie, and there are many trends in the movies and novels societies that are portrayed in our society as well. Also, each proves LeGuins theory on science fiction. The Lathe of Heaven and The Matrix have many similarities. Both utilize the number three by providing main characters in sets of three. Also, The Matrix brings an even more blatant example of this by naming one of the main characters Trinity. In addition, they both portray our world as something that is artificial; made up by others who do not have the best intentions. The Matrix is simply a constantly changing computer program only one of the hundreds we are unaware of. The matrices, which, while maintained by the Agents, run on their own, are designed to create a utopia. In the Lathe of Heaven, Dr. Haber controls Georges dreams, and therefore, the future, by using the augmenter and the power of suggestion. Both worlds are created and altered with everyone being oblivious, except the three main characters. In each story there is a group that is trying to save the real world that we live in, while there are people trying to create the world that they see fit. Ursula LeGuin proposed a theory that shows what science fiction is and how it works. She believes that science fiction is what we can not see. Science fiction is made up of ... ...eat stories. I was intrigued by the Lathe of Heaven and its psychological story. The Matrix is and will go down as one of the greatest movies of all time. Not just for its special effects, but for the philosophical meaning behind it. To question what we know and to wonder, is what we have real? Really makes you want to take that red pill and find out for your self. The Lathe of Heaven really touches base on the idea that dreams can be a preview of reality. I know I have had dreams were I can not tell the difference between a dream and reality. Both were well written and are going to continue to have an impact on their respected genres of art. Works Cited The Matrix. Dir. The Wachoswki Brothers. With Keanu Reeves, and Laurence Fishburn. Warner Bros, 2001 LeGuin, Ursula. The Lathe of Heaven. HarperCollins Publishers, 2000

Understanding Work Related Injuries

Have you ever thought what would happen if you got hurt on the job or while traveling between offices or worse yet if you get sick because of the type of work that you are employed to do? If you sometimes think about this there is no need to worry. The reason that I say this because every company out there Federal and State alike are required to have workers compensation benefits. There are rules and regulation that are put into place to keep you safe while on the job or on the company’s property. The organization that oversees this would be the Occupational Safety and Health Administration (OSHA) that was developed in 1970 to protect workers from health and safety risks. Although all employers are overseen by OSHA there are a select few that are not these would be independent contractors, churches, domestic workers in private home settings, and federal employees (Valerius?Bayes?Newby?Seggern, 2008). Federal employers have their own compensation plans that are covered under the Federal Employees’ Compensation ACT (FECA). The first of four plans would be the long shore and Harbor workers’ compensation plans. This covers employees of in the maritime field. The second federal program would be the Black Lung Program. This covers employees that are employed or previously employed in coal mines. The third and final program is the energy employees occupational illness compensation program act. This covers employees or previous employees that have developed cancer and other serious illness from energy exposure. State worker’s compensation covers all others except federal employees, inmates employed by the prison; self- employed, for hire domestic, drivers under lease agreement, volunteers, independent, clergy and church members, and lastly agricultural laborers. No matter if you are a state or federal employee there are two different workers compensation programs that you will be covered under. The first one covers the medical costs that are incurred due to the injury; the second covers the lost wages that has come from the injury. When a person is injured on the job, on the company’s property, or performing a work related task they will be covered under workers compensation. If an employee is injured they need to inform their employer promptly so that proper medical treatment can commence. The employee usually needs to put the injury in writing also known as the first report of injury, the physician depending on the insurance may need to be the one to fill this form in. Once this is done the employer also has to file their own claim with the state workers compensation office as well as the insurance company (Workers Compensation- the Workers' Comp Service Center, 2009). Depending on the severity and urgency of the injury the insurance company may require a form to be filled out by the physician of record. The physician of record is the physician who first treats the employee. This physician is also responsible for determining the amount of disability and if and when the employee may return to work. The Physicians of Record must according to insurance company or state regulation must file a progress report at certain intervals of the treatment or when there is a change that will affect the disability status. Once the insurance company gets the claims that may be filed electronically depending on the carrier has to now issue a claim number and identify if the injury will or will not be covered by workers compensation. Once this is determined than the insurance company needs to notify the employer on the determination. If the claim is accepted than monies that the employee loses from not being able to work are sent right the employee with no income tax being withheld and all medical bills are paid. If the claim is denied by workers compensation than the employee is responsible for the medical bills and may submit the medical bills to their own medical insurance carrier to be paid, but the employee does not receive lost wages. No matter what the outcome is of the claim HIPPA rules and regulations are not strictly enforced to keep the privacy of the injured employee. However, most states allow claims adjusters and employers unrestricted access to the workers compensation files. Patient Health Information may be disclosed without the patient’s authorization. The employee cannot even ask that their information be withheld from the employer. References: Valerius?Bayes?Newby?Seggern. (2008). Medical Insurance: An. The McGraw?Hill. WokersCompensation- The Workers' Comp Service Center. (2009). Retrieved May 15, 2011, from WorkersCompensation.com: http://www.workerscompensation.com/ Valerius, Bayes, Newby, Seggern. (2008). Medical Insurance. In An Intergrates Claims Processing Approach, Third Edition (pp. 292 – 298). New york: McGraw Hill. WokersCompensation- The Workers' Comp Service Center. (2009). Retrieved May 15, 2011, from WorkersCompensation.com: http://www.workerscompensation.com/ Understanding Work Related Injuries Have you ever thought what would happen if you got hurt on the job or while traveling between offices or worse yet if you get sick because of the type of work that you are employed to do? If you sometimes think about this there is no need to worry. The reason that I say this because every company out there Federal and State alike are required to have workers compensation benefits. There are rules and regulation that are put into place to keep you safe while on the job or on the company’s property. The organization that oversees this would be the Occupational Safety and Health Administration (OSHA) that was developed in 1970 to protect workers from health and safety risks. Although all employers are overseen by OSHA there are a select few that are not these would be independent contractors, churches, domestic workers in private home settings, and federal employees (Valerius?Bayes?Newby?Seggern, 2008). Federal employers have their own compensation plans that are covered under the Federal Employees’ Compensation ACT (FECA). The first of four plans would be the long shore and Harbor workers’ compensation plans. This covers employees of in the maritime field. The second federal program would be the Black Lung Program. This covers employees that are employed or previously employed in coal mines. The third and final program is the energy employees occupational illness compensation program act. This covers employees or previous employees that have developed cancer and other serious illness from energy exposure. State worker’s compensation covers all others except federal employees, inmates employed by the prison; self- employed, for hire domestic, drivers under lease agreement, volunteers, independent, clergy and church members, and lastly agricultural laborers. No matter if you are a state or federal employee there are two different workers compensation programs that you will be covered under. The first one covers the medical costs that are incurred due to the injury; the second covers the lost wages that has come from the injury. When a person is injured on the job, on the company’s property, or performing a work related task they will be covered under workers compensation. If an employee is injured they need to inform their employer promptly so that proper medical treatment can commence. The employee usually needs to put the injury in writing also known as the first report of injury, the physician depending on the insurance may need to be the one to fill this form in. Once this is done the employer also has to file their own claim with the state workers compensation office as well as the insurance company (Workers Compensation- the Workers' Comp Service Center, 2009). Depending on the severity and urgency of the injury the insurance company may require a form to be filled out by the physician of record. The physician of record is the physician who first treats the employee. This physician is also responsible for determining the amount of disability and if and when the employee may return to work. The Physicians of Record must according to insurance company or state regulation must file a progress report at certain intervals of the treatment or when there is a change that will affect the disability status. Once the insurance company gets the claims that may be filed electronically depending on the carrier has to now issue a claim number and identify if the injury will or will not be covered by workers compensation. Once this is determined than the insurance company needs to notify the employer on the determination. If the claim is accepted than monies that the employee loses from not being able to work are sent right the employee with no income tax being withheld and all medical bills are paid. If the claim is denied by workers compensation than the employee is responsible for the medical bills and may submit the medical bills to their own medical insurance carrier to be paid, but the employee does not receive lost wages. No matter what the outcome is of the claim HIPPA rules and regulations are not strictly enforced to keep the privacy of the injured employee. However, most states allow claims adjusters and employers unrestricted access to the workers compensation files. Patient Health Information may be disclosed without the patient’s authorization. The employee cannot even ask that their information be withheld from the employer. References: Valerius?Bayes?Newby?Seggern. (2008). Medical Insurance: An. The McGraw?Hill. WokersCompensation- The Workers' Comp Service Center. (2009). Retrieved May 15, 2011, from WorkersCompensation.com: http://www.workerscompensation.com/ Valerius, Bayes, Newby, Seggern. (2008). Medical Insurance. In An Intergrates Claims Processing Approach, Third Edition (pp. 292 – 298). New york: McGraw Hill. WokersCompensation- The Workers' Comp Service Center. (2009). Retrieved May 15, 2011, from WorkersCompensation.com: http://www.workerscompensation.com/

How to Get Free Cat and Dog Food

If youre having trouble affording dog food and cat food, you may have a variety of solutions to check out before re-homing your companion animal. Animal shelters increasingly recognize they can avoid contributing to shelter overpopulation by thinking outside the box. Food programs are popping up in many different venues to help you keep your cat or dog right at home. Why Keeping a Pet Matters When personal finances tank, putting food on the table is challenging enough without adding a few furry faces to feed. But it’s when things are at their lowest point that when the true value and worth of animals become crystal clear. Writing for Webmd.com, Dr. Ian Cook, psychiatrist and director of the Depression  Research and Clinic Program at UCLA, says: Pets offer an unconditional love that can be very helpful to people with  depression†¦ Taking care of a pet can help give you a sense of your own value and importance. It will remind you that you are capable -- that you can do more than you might think. A little boost in attitude and outlook could mean a lot to someone who is feeling pretty hopeless. Looking for an alternative to giving up your companion animal will not only give you a mission, it will remind you of the kindness of other humans; something of which we all need to be reminded from time to time, but especially in cases of misfortune. Where to Find Free Pet Food If youre in search of sources of free pet food, youre not alone. In fact, many organizations are aware of the issue and have created resources to help. For example: Some animal shelters maintain a pet food bank. When a distraught companion animal guardians visit the shelter with the intent to surrender their animal, instead of signing a surrender form they are given an application for food subsistence.Meals on Wheels found that pets are the only family that some seniors have and that some of their clients were sharing their meals with their pets when they couldnt afford pet food. In 2006, Meals on Wheels started the We All Love Our Pets (WALOP) initiative. Not all local Meals on Wheels programs offer pet food, so check with your local program.The Humane Society of the United States maintains a  list of national and local organizations that offer free pet food, low-cost spay/neuter services, and temporary foster care if you need help. How to Request Or Provide Help with Finding Pet Food If youre not sure where to start looking for or providing free pet food, you may find these suggestions help to break the ice. Ask your local shelter if they have a pet food bank. If you are not in need of one at the moment, offer to start one.Use search engines to research â€Å"pet food banks and meals on wheels programs in (your city). You may be surprised at all the good things that are happening in your own community.Talk to your grocer about saving dented and newly out-of-date pet food items and donating them to a shelter where you may be able to avail yourself of same.Use social media to let everyone you know you are taking up a collection to build a food bank and ask for donated food items once intended for a now-deceased animal.