Discussion

In the year 1837 at Sydney, New South Wales AGL Company was formed. In year 1837, company provided town gas to provide lighting for the street lamp. It was second in number to list in stock exchange. In the coming time company expanded in number of different locations. The new listed company was restructured on 6^thof October 2006 and was named as AGL Energy Ltd. and Alinta Ltd. AGL Energy has set up some of the upcoming stream gas project. Recently in November 2016 started the project of decommissioning as well as rehabilitation of wells in Camden place.

AGL Energy Ltd follows different theories of accounting along with set of assumption. The analysis of accounting theory involves realization along with full disclosure. The business functioning of AGL Energy key concepts are based on the theories of Australian Accounting Standard Board.  The theories and principle of accounting of AGL Energy delivers that all the data regarding accounting along with fiscal terms information shall be reliable, comparable, consistent and relevant with the AASB and rules regarding accounting.

The polices of accounting and the theories that are related to methods that is being applied to the joint ventures are on a fundamental basis depended upon the way of recording position of finance along with the outcome of operations. In order to maintain stability and continue the smooth running of business operations the company makes certain assumptions. The accounting of AGL Energy Ltd. follows going concern concept. This mean the company deemed that the operations of the business would continue for an indeterminate time or up to extent to full fill the present plans along with contracts. The company to prepare financial statements is following ASIC regulatory Guide 230, and rules and regulation in IFRS. The company follows ASIC-191 for rounding off to nearest million dollar where needed.

AGL Energy Ltd. framework of accounting gives a clear supervision along with sets of direction that is to be followed as per the principles of finance with the concepts of accounting to prepare financial statement. There is a conceptual framework that is part if AASB that establishes the vital reason of reporting the financial by corporate. The consolidated financial statements of the company is prepared on the base of IFRS rules and regulations along with accounting principles.

This statement is constructed for the investors and creditors so that they are able to take decision regarding monetary. The company frames the statement based on the principles of IFRS along with Australian Accounting Standard of Board. The company has abided the rule and regulations of the accounting framework to prepare the components of financial statement.

The accounting standard followed by the company are as bellow:

AASB	Description
101	Presentation of Financial Statement and the disclosure of necessary items have been noted according to the standard.
136	Impairment of Assets The natural gas is no longer part of asset and it will be disposed off.
8	Operating Segments The segment information are as below: Wholesale markets Group Operations Customer market Investments
118	Revenue The company has abided the accounting standard to study the revenue earning. $12816 million revenue has been earned from major product and services.
112	Income Tax  The income statement is prepared according to the standard.
111	Constructions Contract

(Simshauser, 2014).

  The fiscal report does not comprise completely the proceedings that happened subsequently the creation of the Assessor’s report. Around $39171 million income of the auctions of the electricity among the era of last beat interpretation and reportage date will be getting  unbilled.  Therefore, key regulator organization had been under taken in order to access the valuing along with additional expectations for the trade.

Conceptual Framework of Accounting

The significant examination of the Property, plant, tangible assets and equipment and together with were commenced to know the quantity of the same possessions and to justice the quantity contemporary in the fiscal reports. (Klettner, Clarke and Boersma, 2014).

Through critical analysis of the annual report of 2018 it is clear that the company has prepared the components of the financial statement in accordance to the AASB along with presenting full disclosures. The amounts presented in the report are at Australian Dollars. There are certain areas that needs attention along with proper framework of accounting. (Simshauser, 2014).

No contingency has been prepared in case of cancellation of contract in middle as per the terms of Counterparties. The contract with electricity to provide energy resources till 2036 was cancelled. The cancellation of contract might lead to losses in upcoming time. this indicates proper contingency to protect losses. ((Simshauser, 2014).

There was problem in the billing system of the company that reflected in wrong presumptions of earnings. The removal of the 100 % attention from the Macarthur Wind Farm Pty Ltd along with MWF Finance Pty Ltd delivers an incorrect influence in the marketplace concerning the standing and liquidness location of the Group. This illustrate the absence of fluidity in the Business’s hand. The Section has been alienated based on the method of the auction of the products along with the services, that is a similar way of delivery of incomes, viz.

Energy Markets comprises sellng of power, natural gas along with  other energy-associated products for the purpose of the consumer.

Group operations: It comprises of the generation of power, as well as all sorts of generation  power that is wind, solar and hydro. This too comprises natural gas removal along with gas storing processes New Energy: these section stresses on the original foundations of vigor in the Australian market.

This part comprises equity venture in several concerns like Actew AGL Retail corporation, Solar Analytics Pty Ltd.

The Accounting outline charity by the Corporation is the Australian Accounting Standards along with other Secretarial principles along with agreements recognized by the necessary Government officials-

According to Accounting Standard AASB 101 of Brief monetary news, the group wants to mark full revelations concerning the Divisions, revenue in attendance are convinced clothes which are not fully revealed by the Group, consequently indicates to inappropriate practice of the standard of accountig. (Simshauser, 2014).

According to Accounting Standard AASB 116 of equipment, Property, and pants. The appropriate estimate of the assets necessity be assumed bearing in mind all the expectations and important judgments concerning the upcoming financial assistances from the assets in instruction to make suitable monetary judgment. (Klettner, Clarke and Boersma, 2014).

According to Accounting Standard AASB 134 of temporary monetary journalism, the appropriate monetary intelligences must be equipped in the central of the reporting period in order to  make an eye finished the varying monetary location of the Crporation.

However the Business has shadowed all accounting standards along with guidelines in the groundwork of the Accounting reporting, motionless some disadvantages continue consequently few commendations are as below-

General purpose financial statement

It is needed for the company to follow to the Australian Accounting Standard 1039 of brief financial Reports besides requirements to brand the full disclosure concerning the management of accounting along with physical contacts of the Firm. (Simshauser, 2014).

The Group has consumed an enormous amount of $20 million in 2017 concerning the rearrangement cost and has deliberate for around $ 80 million in 2017, so the price should be sensibly performed and supreme advantage must be attained from the rearrangement (Simshauser, 2014).

Correct devotion of the framework of accounting in circumstance of Asset Impairment along with divestment of the Assets of the Organization.

The Assumptions and judgment of the Crucial assets concerning the upcoming economic welfares from the possessions need to be clearly analyzed for branding suitable upcoming choices.

The company wants to extremely emphasis on the plenty chances of the renewable bases of Energy and income the essential consents from the Government bureaucrats guiding decreasing the tendency of non-alterable sources of vigor along with cumulative the renewable sources of energy such as wind and  thermal. The firm wants to establish a Provision apart for any eventuality or removal of the Electricity prevarication agreement with other parties. As the agreement comprise terms of termination by the other gatherings consequently for the benign side the corporation requirements to generate running for the Contract. (Klettner, Clarke and Boersma, 2014).

Conclusion

As per the above discussion, it could be sated that  fiscal situation of  commercial marketing is quite  strong in nature and there will be  of upcoming chances in the Energy segment. The Divestment plans related to the Natural Gas Assets will decrease unpredictability. There is a need to put the focus on the Renewable Sources of Energy as it has plenty of chances in the upcoming. It has also willing of its 100 % curiosity from Macarthur Wind Farm Pty Ltd along MWF Finance Pty Ltd, as a part of its premeditated plan; this particular aspect has facilitated in receiving $ 660 million to the organization that can be additional consumed in the other premeditated strategies of the company. The business has also accomplished to issue Dividend to its stockholders, and received a decent market value along with goodwill complete this phase. The Company is placing of its speculation in the convinced companies and concentrating on the development of several Alterable causes of energy in directive to seizure the Market of the Australia. Complete it can be said, that Business is realizing best of its planned plans for its long-tenure development along with existence.

References

Boumediene, S.L., Boumediene, E. and Amara, I., 2017. The Impact of Fair Value on Audit Quality: Evidence from Tunisia.

Dodd, O. and Louca, C., 2015. International cross-listing and shareholders’ wealth.

Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145-165.

Kumarasiri, J., 2015. Use of management accounting practices in carbon emission management: Evidence from Australian companies. Journal of Contemporary Issues in Business and Government, The, 21(1), p.5.

Macuda, M., Matuszak, ?. and Ró?a?ska, E., 2015. The concept of CSR in accounting theory and practice in Poland: an empirical study. Zeszyty Teoretyczne Rachunkowosci, 84(140).

Miller, P. and Power, M., 2013. Accounting, organizing, and economizing: Connecting accounting research and organization theory. The Academy of Management Annals, 7(1), pp.557-605.

Pelger, C., 2016. Practices of standard-setting–An analysis of the IASB’s and FASB’s process of identifying the objective of financial reporting. Accounting, Organizations and Society, 50, pp.51-73.

Simshauser, P., 2014. From First Place to Last: The National Electricity Market’s Policy?Induced ‘Energy Market Death Spiral’. Australian Economic Review, 47(4), pp.540-562.

Taouab, O., 2016. Comparative Value Relevance among Domestic Accounting Standards and IFRS: A Moroccan Stock Market Perspective. Journal of Accounting and Auditing Research & Practice, 2016, pp.52-59.