Rules on the Transfer of the Water Rights

Question: Discuss the accounting issues that may be raised by the transfer of the water rights? Answer: Context line: Water Accounting Standards Board rules on transfer of the water rights and maintenance of books of accounts Action Line: water rights can only be transferred. Content: the water policy and legislation is the one that has the various administrative powers and includes the other various aspects of the terrestrial water resource management. The plans of water sharing are the legal instruments that form the very basis of sharing of water between the environmental economic and the requirement of eths society. Water is a natural resource and cannot be said to have been owned by anyone. And therefore, water cannot be owned by anyone. Rather, the water rights can therefore, when the rights with regard to water are transferred, the following reports of general water purposes have to be prepared: A statement of water assets and the water liabilities A statement of changes in water assets and water liabilities A statement of physical water flows A contextual statements An accountability statement An assurance statement An entity of water is defined as the entity that reasonable expects the existence of the users that depends on the general purpose accounting of water in respect of the information about water and its rights to the claims to water. This piece of information is important when it comes to making and evaluating the decision about the allocation of the various water resources. GPWAR is something that provides a lot of useful information for the process of decision making. The information in this regard has to be diverse and useful. Therefore, the water reporting entities are the same as the water reporting authorities and there could be some other regions such as the organizations to the individuals that can be regarded as the reporting entities as in the case of the users that requires the information about the particular entity for the process of decision making. (Bom, 2015) The control of the rights with regard water remains with the state and they have a tight control over the same. The states use a very complex approach when it comes to taking the resolutions. The questions of the policies that are raised by the transfer of the water rights has a huge impact on the patterns of the use of water. All the reporting entities of water are required to follow the accrual basis of accounting. (BOM, 2015) References: www.bom.gov.au, (2014). Australian Water Accounting Standard 1 Preparation and Presentation of General Purpose Water Accounting Reports. [Online] Available at: https://www.bom.gov.au/water/standards/documents/awas1_v1.0.pdf [Accessed 23 Dec. 2014].