ACC201 Introduction to Financial Accounting

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As per the paragraph 99 of the AASB101, a business organisation shall present an overall detailed analysis of the general expenses forming part of profit and loss statement utilising a general classification based out on nature or function of expenses . According to AASB101 paragraph 102, the entity can use nature of expense method where it sums up to the general expense among the profit and loss as per the nature of expense not allocated between the functions of the organisation. Examples of utilizing the classification of the ‘Nature’ classification incorporates the purchase of material, depreciation cost, advertisement and employee benefit cost . Critical accounting judgments, Accounting Policies & estimates that are been applied in the overall preparation of the financial statements have been shifted to the segment of presentation of the accounting balance (Aristocrat 2017, pg 62). The notes are been segmented into the 6 headings –

Operating assets and liabilities

Group structure

Other disclosures

Capital and financial structure

Business Employee benefits

The notes to the financial statements are been segmented into logical groups in order to helps its intended users to find and evaluate the required information. Answer:

ACC201 Introduction to Financial Accounting

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