Details

Rule verses principle based accounting.

TWO companies are Coca cola amital and Commonwealth bank australia.

All work to be done according to Australia accounting standards. and Accountant standard should be included in the answer (eg AASB 136 impairment loss).

Rule and principle should be depreciation, impairment or property plant equipment.

Instructions

• Access the annual reports of two (2) publicly listed companies from different industries, and:
• Identify and explain one rules-based standard that the companies have adopted and
• Identify and explain one principles-based standard that the companies have adopted. (Hint: choose a rules and principles-based standard from the corporate accounting topics covered in lectures during weeks 1-8. Depreciation, impairment of assets, property plant and equipment)
• Evaluate the financial consequences of using the rules-based compared with the principles-based standards on the financial statements of each company.