Accounting For IWebGate Limited Business - myassignmenthelp.com

Question: Discuss about theAccounting For IWebGate Limited Business Combination. Answer: All firms in operation whether profit-making or not is seen to exist within outlines of the sole purpose of operations of that firm.Iwebgate Limited Company together with its segments operating outside Sydney is seen to engage itself in network service providers as well as the sale of accessories. The change of name from IWebGate to NetLinks is expected to boost and expand the market since it connects sites to define devices via use of software-defined area network plan Birt(2011.Pg 260). Iwebgate Limited can be conclusively said to be conducting operation network-based operations locally and internationally with the aim of generating revenue and fulfillment of customer satisfaction. This is witnessed more at the operating segmental levels whereby the sources of revenue per concept is disclosed with its roots made on the provision of network-based services and sale of the network accessories Leung(2015.Pg 300. The segments are seen classified for the purpose of revenue generation thus at the respective level they act on behalf of the parent company with the aim customer satisfaction and growth. Directors in their letter have outlined objectives and expectation of the firm to be that of cost saving and customer satisfaction per segmental concept and group. Relevant information regarding segments in question have been disclosed as per AASB 8 and IFRS 8 as depicted in note 3 of the internal annual report where we see the annex information of its applicability from revenue generation to expenses being disclosed per concept Crawford(2012.Pg 30). Iwebgate Ltd from the look of things it has five operating segments whose transaction has been clearly accounted for and disclosed in the 2016 June annual report. This segments are disclosed to be operational and geographically in nature and should be disclosed and reported separately. Attention is therefore brought to operating segments to involve the course of actions that are the business in nature and that which generates revenue and incur expenses within the same roof of the business with examples of Iwebgate operating segments operating in Australia, USA, Europe, and Corporate. For accounting purposes, the operating segments are supposed to be disclosed whether in notes or annexes. On the oth er reporting segments entirely involves items that are under the subjection of identification and measurability for purposes of reporting i.e the existence of geographical non- current asset for reporting purpose in the financial statements. Each the finance item disclosed under the qualitative threshold technique is seen not to match or rhyme the consolidated figures of the Iwebgate Ltd company due to the presence of applicability of different accounting policies such that used in segments is different from the approach in other areas Nobes(2008.Pg 24). Therefore at the reporting period, there always exists the reconciliation part to rhyme sort the differences emerged from the use of different accounting policies. References Birt, J. and Shailer, G., 2011. Forecasting confidence under segment reporting. Accounting Research Journal, 24(3), pp.245-267. Crawford, L., Crawford, L., Extance, H., Helliar, C. and Power, D., 2012. Operating segments: The usefulness of IFRS 8. ICAS. Leung, E. and Verriest, A., 2015. The impact of IFRS 8 on geographical segment information. Journal of Business Finance Accounting, 42(3-4), pp.273-309. Nobes, C. and Parker, R.H., 2008. Comparative international accounting. Pearson Education.