Generational Accounting Regulation Theory and Business Application

Question: Discuss about the Generational Accounting Regulation for Theory and Business Application. Answer: Introduction: It has been found that for every bank, ALM is considered as one of the most esoteric purposes. The firm Commonwealth bank also follows the ALM for esoteric principles. Moreover, it has been found that the particular organization Commonwealth bank follows the mathematical formula of assets is equal to the summation of the capital and the liabilities in order to maintain a stable financial condition. The particular bank has asset of an amount of total $ 873 billion and has liabilities of an amount of $ 821 billion and capital of a quantity of $ 52 billion (Deegan 2013). This implies that the specified organization Commonwealth bank follows the ideal formula of asset and liability. However, it has been found that the balance sheet of the CBA Group represents that the total quantity of assets of the firm is more than the summation of total liabilities and capital. The total assets of Commonwealth bank are comprised of home loans of $ 423, other lending assets of $ 202 and other assets of $ 150. On the contrary, the summation of the liabilities is comprised of deposits of $ 460 and other liabilities of $ 94 (Freeman et al. 2014). Therefore, it can be said that the balance sheet is not well structured and thus the firm Commonwealth bank might fail to operate. It has been found that 99 % of the balance sheet is generally prepared based on the accrual accounting (Commbank.com.au 2017). However, it has been noted that underneath the rules of IFRS, all the derivatives are accounted for utilizing the mark-to-market principles of accounting. Thus, the accountant of the firm should suggest various solutions to the problems in order to operate the business successfully. In the organization Commonwealth bank, the primary functions of an accountant include the management of the balance sheet of the bank. Moreover, based on detailed analysis, it can be said that the other role of an accountant in a bank is to stabilize the total interest margin. This particular role of the accountant is achieved through the designing of the product, by controlling and managing the pricing of the goods, using the derivatives and strategic controlling of the mix and the volume (Bonin 2013). In addition to these, the other most important role of an accountant that should be performed by him/ her is to look after the fact that whether the particular bank is running its accounting and financial operations as per the rules and regulations of the accounting standards or principles. Role of a New Graduate Employed in the Organization The role of a new graduate who has been employed in the particular organization Commonwealth bank is to understand the accounting principles that the particular corporation is following presently. In addition to these, the newly employed graduate should also determine the issues that the specified firm faces due to the implementation of a particular set of accounting principles (Van Mourik 2014). According to the issues faced by the firm, the newly employed graduate should suggest for the accurate one for the betterment of the firm. The attributes and the skills that are needed for operating the particular firm are work-content, transferable and self-management. The reason behind this is that the particular skills related to work-content are required for performing the specified occupation. On the other hand, the versatile skills are required as these can be transferred among the occupations. Lastly, the skills of self-management permit the manager to manage the people and their environment. It can be said that the alignment of the skills and the attributes with the requirement of the firms is an important factor. The accurate skills of a manger help him to manage and control the operations of a firm. Moreover, Miihkinen (2014) stated that the qualifications of an individual as well as the hard skills help in aligning the need of the company with the attributes of the manager. The improvement of the attributes as well as the skills of a newly graduated employee can be made by the help of the trainings provided by the human resource manager. Moreover, the practical knowledge of the firm will also help the newly employed employee to gain knowledge. References Bonin, H., 2013.Generational accounting: theory and application. Springer Science Business Media. Commbank.com.au. 2017.Personal banking including accounts, credit cards and home loans - CommBank. [online] Available at: https://www.commbank.com.au/ [Accessed 23 Mar. 2017]. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Freeman, R.J., Shoulders, C.D., Allison, G.S., Smith Jr, G.R. and Becker, C.J., 2014. Governmental and nonprofit accounting: Theory and practice.Jpaejournal of public affairs education volume 20 number 3, p.441. Miihkinen, A., 2014. The routledge companion to accounting, reporting and regulation. Van Mourik, C., 2014. Fundamental issues in financial accounting and reporting theory. Routledge.