Understand the Accounting Rules!

All the people who are aspiring to become an accountant or wanting to know all about accounting, well this post might turn out to be just the right thing for you today. Here I have explained the rules of accounting in Australia in simple words. “Accounting” is a basic method of recording all the financial data which means there will be storing, streamlining, retrieving, and summarizing of the financial transactions. An accountant is a professional who takes care of such tasks and lifts the burden of accounting off of your shoulders to ease down things for you. There are six types of terms that you should be aware of when in the business of accounting and those are…

  1. Tax Year: Alternative tax year begins on the 1st of July and ends by 30th of June and are approved by the Australian Tax Organization.
  2. Accounting Standards: These standards are all established by the Australian Accounting Standards Board which is an independent government organization. These accounting standards all are all about being compared to the requirement and needs of IFRS.
  3. Accounting Regulation Bodies: Well this thing is all about and is imposed by the Australian Accounting Standard Boards.
  4. Accounting Reports: It is important for one to have certification of accounts that are concerned about the following reports:
    1. Statements regarding financial performance and position
    2. Balance sheets
    3. A firm’s bank account statements
    4. Profit as well as loss statements
  5. Publication Requirement: You need to understand that reporting is carried out on a yearly basis. ‘Non-Reporting Entities’ also holds the power to create Special Purpose Financial Statement that is compatible with the accounting standards that are considerate of the necessary things that are capable of enabling financial reports in order to meet the special needs of a user.
  6. Accountancy Body: You might be wondering about the bodies that make a professional accountancy, well here they are…
  • Certified Public Accountant
  • Institute of Chartered Accountants in Australia
  • Institute of Public Accountants
  • Australian Securities & Investment Commission
  • Financial Reporting Council

For more informative posts stay tuned with Joe Madrajat blogs…

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