Acc test 2

• Accounting standards


  Principles that guide and standardise accounting practices
• Accounting standards


  • Guide accountants on financial statements preparation
  • Assist in the preparation of financial statements
• Organisations that develop accounting standards

  • International Accounting Standards Board
  • Financial Accounting Standards Board
• IFRS is a single set of accounting standards developed and maintained by IASB
• Fiji adopted IFRS in 2007
• Fiji used to have Fiji Accounting Standards before adopting IFRS
• Purpose of accounting standards

  • To have free transparent reporting
  • To allow end users to compare and make useful decisions
• Regulatory bodies for accounting in Fiji

  • Fiji Institute of Accountants
  • Institute of Internal Auditors in Fiji
• Fiji Institute of Accountants


  • Regulates the accounting profession in Fiji
  • Registers, deregisters and trains accountants
• Institute of Internal Auditors in Fiji

  • Regulates the internal auditing profession and training
• Office of the Auditor General


  • Audits government departments in Fiji
• Major accounting firms in Fiji

  • PricewaterhouseCoopers (PwC)
  • Ernst & Young (EY)
  • KPMG
• Ethics


  Moral principles that guide the way an individual behaves
• Role of accounting profession

  • To act in the public's interest
  • Observe and comply with the ethical code of conduct
• Ethical code of conduct

  • To be honest and straightforward
  • Integrity
  • Objectivity
  • Professional competence
  • Confidentiality
  • Professional behaviour
• Accounting professionals must comply with laws and regulations, act in a professional manner, and not undermine the profession
• Fraud


  Intentional deception that causes victims to suffer an economic loss
• Types of fraud


  • Bribery
  • Skimming
  • Corruption
  • Forgery
  • Misuse of assets
  • Misappropriation
  • Cash larceny
  • Embezzlement
  • Tax evasion
• Whistleblower


  A person who exposes any kind of information that is deemed unethical
• Organisations that deal with fraudulent activities in Fiji

  • Fiji Independent Commission Against Corruption
• Functions of Fiji Independent Commission Against Corruption

  • Conduct investigations
  • Receive complaints
  • Combat corruption
• Partnership


  A business structure with two or more individuals sharing profits and losses
• Reasons for forming a partnership

  • Easy setup
  • Easy taxes
  • Hard choices and conflicting interests
• Advantages of partnership


  • More capital contributed
  • More specialised skills
  • Easy to manage
• Disadvantages of partnership


  • Limited life
  • Unlimited liability
  • Profits are shared
• Legal documents for a partnership

  • Partnership agreement
  • Partnership Act
• Clauses in a partnership agreement

  • Names of partners
  • Rights, duties and liabilities
  • Profit and losses (divided)
  • Partner salaries
  • Death/retirement
• Profits and losses are shared equally among partners
• Consent is required before introducing new partners
• Death of a partner dissolves the partnership
• Partners can act on behalf of the partnership
• Reasons for change in partnership ownership


  • Admission of a new partner
  • Retirement of a partner
• Retirement of a partner will be under the conditions given in the partnership agreement
• Company


  An association of persons formed for the purpose of some business, separate from its members
• The Companies Act 2015 governs Fijian companies
• Purpose of the Companies Act 2015


  • Introduces modern business practices
  • Improves corporate governance
  • Regulates Fijian companies
• Types of companies


  • Private company
  • Public company
• Private company


  • Formed by families or partnerships
  • Protection from limited liability
• Public company


  • Sells shares to the general public
  • Distinguished by "Limited" (Ltd)
  • Prohibits offering to the public
  • 1 shareholder to no limit
  • Restricts right to transfer
• Types of public companies

  • Companies limited by shares
  • Companies limited by guarantee