...Disclosure and transparency According to McGee (2009), the corporate governance framework should ensure timely and accurate disclosure is made of all material matters regarding the corporation, including the financial situation, performance, ownership and governance of the company. According to IOSCO (2010), disclosure and transparency are critical elements of a robust corporate governance framework as they provide the basis for informed decision-making by stakeholders. High quality disclosure and transparency helps the public understand the company’s activities, policies and performance with regard to environmental and ethical standards as well as the relationship of the company with the stakeholders. The Global Financial Crisis has demonstrated how poor quality disclosure and lack of transparency can mask excessive risk-taking and leveraging by global financial institutions. Hence, high quality disclosure and transparency not only serves to protect investors but helps regulators in maintaining market confidence and systemic stability. The strengthening of disclosures and transparency involves actions by a range of market participants as it covers processes from verification, the determination of information for the publication and communication. Quantitative and qualitative corporate information is then disseminated through various periodic reports such as the annual and quarterly reports, other disclosures and through various media or other stakeholder engagement sessions...
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...Executive Summary In this assignment Introduction The main purpose of this assignment is critical analysis the determinants and consequences of management approach to segment reporting. Entities are typically involved in different activities and operate across dispersed locations. The current accounting standard AASB 8, adopts a management approach to segment reporting. Operating Segments is primarily a disclosure standard and is particularly relevant for large organisations that operate in different geographic locations and in diverse business. Paragraph 1 of AASB 8 sets out the core principle: “An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.” (Australian Accounting Standards Board 2010) 1. Differences between AASB 8 and the old accounting standards on segment reporting AASB 8 ‘Operating Segments’ was required to be adhered to for the reporting period starting on or after 1 January 2009. This standard is typically shown as a management approach to segment reporting, replacing the old accounting standard AASB 114 which was more of an industry standard (Harmer, 2007). The source of the statistics used in compliance with AASB 8 are gathered for the purpose for internal management decisions, hence the reason why it is viewed as a management approach. The old approach differs in a sense that it was purely...
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...COVER SHEET for SUBMISSION of INDIVIDUAL/ GROUP ASSIGNMENTS Course Code | Course Name | Dept. Date Stamp | ACCT2159 | Corporate Accounting | | Assignment Title | Assignment No: | Date Due | | Corporate Accounting Assignment 2012 semester 3 | 1 | Friday, 7th December 2012 | | Academic’s Name: | | | Ms. Sue | | (For Office use only) | STUDENT(S) Family name | Given Names | Student Number | 1) Vu Ly Bao | Ngoc | s3357828 | 2) Bui Mai | Phuong | s3372823 | 3) Nguyen Thi Phuong | Mai | s3345216 | 4) Lee | So Huyn | s3357820 | Declaration and Statement of Authorship: 1. I/we hold a photocopy of this assignment which can be produced if the original is lost/damaged. 2. This assignment is my/our original work and no part of it has been copied from any other student’s work or from any other source except where due acknowledgement is made. 3. No part of this assignment has been written for me/us by any other person except where such collaboration has been authorised by the academic/teacher concerned and as detailed in the assignment. 4. I/we have not previously submitted this work for any other course/unit. 5. I give permission for my assignment to be scanned for electronic checking of plagiarism. 6. I give permission for a copy of my/our marked work to be retained by the Department for review by external examiners. I/we understand that: Plagiarism is the presentation of the work, idea or creation of another...
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...Introduction 1 1.1 Economics of F&N Holdings Berhad 1 2.0 The Users of Financial Statements and Their Information Needs 4 3.0 Discussion of Standards Related to Consolidation and its Actual Presentation 6 4.0 Conclusion 14 Reference 16 List of Diagrams Exhibit 1 Group Structure & Summary of Ownership Interests in Subsidiary Exhibit 2(a) Disclosure of Ownership Interest in Subsidiaries Exhibit 2(b) Disclosure of Ownership Interest in Subsidiaries Exhibit 3 Consolidated and Separate SOPL Exhibit 4 Consolidated and Separate Statements of Comprehensive Income Exhibit 5(a) Consolidated SOFP Exhibit 5(b) Separate SOFP Exhibit 6 Consolidated SOCIE Exhibit 7 Separate SOCIE Exhibit 8 Consolidated and Separate SOCF Exhibit 9 Disclosure about Reporting Date Exhibit 10 Acquisition Method of Business Combinations Exhibit 11 Comparisons of Investment in Subsidiaries of 2 years Exhibit 12 Goodwill as Intangible Assets and Computations Exhibit 13(a) Goodwill Recognized on Acquisition Date Exhibit 14 Goodwill shown in Intangible Assets Exhibit 15 Investment in A Joint Venture Exhibit 16 Equity Method of Joint Venture Exhibit 17 Adjustments to CSOFP for MFRS 11 Adoption Exhibit 18 Adjustments to CSOCIE & CSOCF for MFRS 11 Adoption Exhibit 19 Adjustments to SOFP, and SOCF for MFRS 11 Adoption Exhibit 20 Summary of Financial Information...
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... The primary purpose of this essay is to comparatively analyze information disclosure of intellectual capital in the UK and China, using the content analysis method on company annual reports. In contemporary society, the importance of intellectual capital (IC) and the popularity of using IC to value a company’s competitiveness have been increasing. The definition offered by the Chartered Institute of Management Accountants (2001) is probably one of the most comprehensive definitions: “…the possession of knowledge and experience, professional knowledge and skill, good relationships and technological capacities, which when applied will give organizations competitive advantage.” Predicting a company’s future market performance is one of the key functions of IC information disclosure (Roslender and Fincham, 2004). Consequently, IC will have a significant role in the future value creation process. This study has some limitations, such as the small sample number, which has implications for how representative the data are. Ten companies in the respective stock markets were selected in the UK and China (total twenty) and content analysis was performed. A larger sample would have made the calculations too complex for the time available. The following paper reports the results of empirical research indicating that the trend of IC information disclosure is steadily increasing in both China and the UK, indicating that British companies had a better...
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...disclose how the Annual report of Woolworths for 2012 apply the accounting standard related to estimation uncertainty and accounting policy judgments. Furthermore, the potential gap between Woolworths’ current practice and the accounting standard requirements will also be discussed. Paragraphs 122- 124 of AASB101 has explained the requirements of significant accounting policy judgments and paragraphs 125-133 has detailed what need to be done for estimation uncertainty. According to these standards, Woolworths disclosed how the company determined the carrying amounts of assets and liabilities and explained the company’s policies to response the uncertainty due to foreign currency in their notes to the consolidated financial statement. Judgments about leases assets and liabilities and judgments about subsidiaries were also can be found in the notes. However, it can be indicated that some potential gaps still exist between Woolworth’s report and the accounting standard. For example, there is no assumption for how to revalue the fair value of some tangible assets in specified circumstance. What’s more, the company did not mention the sensitivities of carrying amounts of inventories and how to face these sensitivities. Therefore, further improvements need to be done in the next year’s annual report of Woolworths. Introduction: This report is an evaluation of Woolworths’ Annual Report in 2012, it will judge whether notes to Woolworth’s financial statements satisfy...
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...FINS3626 Group Assignment Evaluation of BBG, DJS, TEN, EWC Executive Summary Phenomenal growth of interest in corporate governance has emerged in recent years. The body of literature on the subject has grown markedly in response to successive waves of large corporate failures. Furthermore, there have been numerous attempts to define what constitutes ‘good corporate governance’ and to provide guidelines in order to enhance the quality of corporate governance. It must, however, be acknowledged that while everyone advocates and wants corporations to maintain ‘good corporate governance’, measuring the quality of corporate governance structures of the Australian companies has been, at best, very difficult. The major contribution of this report is to develop a simple and effective measurement model to rate the corporate governance structures of four companies. In effect, this report hopes to shed light on factors that should be taken into account in order to make sound investment decisions. The report concludes that David Jones would be the best investment decision amongst the four companies. The rest of the report is structured as follows. Section 1 details our ‘Corporate Governance Assessment Model’, comprising of six governance-related factors and associated measures. Section 2 outlines our assessment of the corporate governance quality of each of the four companies, as well a brief description of the company. Section 3 shows our firm’s conducted comparison of the four...
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...Chapter 8 Segment and Interim Reporting Chapter Outline I. FASB Accounting Standards Codification Topic 280, Segment Reporting (FASB ASC 280), provides current guidance on segment reporting. A. ASC 280 follows a management approach in which segments are based on the way that management disaggregates the enterprise for making operating decisions; these are referred to as operating segments. B. Operating segments are components of an enterprise which meet three criteria. 1. Engage in business activities and earn revenues and incur expenses. 2. Operating results are regularly reviewed by the chief operating decision-maker to assess performance and make resource allocation decisions. 3. Discrete financial information is available from the internal reporting system. C. Once operating segments have been identified, three quantitative threshold tests are then applied to identify segments of sufficient size to warrant separate disclosure. Any segment meeting even one of these tests is separately reportable. 1. Revenue test—segment revenues, both external and intersegment, are 10 percent or more of the combined revenue, external and intersegment, of all reported operating segments. 2. Profit or loss test—segment profit or loss is 10 percent or more of the greater (in absolute terms) of the combined reported profit of all profitable segments or the combined reported loss of all segments incurring a loss. 3. Asset test—segment...
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...risk related information formally disclosed in the company’s financial statements in contrast with evaluation of risk present considering bias of company risk measurement as well as assessment of risk applicable as determined from informal and third party sources. This report will specifically analyze risk in this way in regards to market risk, supply chain risk, country risk and environmental risk applicable to and disclosed by PPC. MARKET RISK PPC experiences significant to market risk in its operations. The following analyzes this risk in regards to its three main components: competitive rivalry, segments and seasonality. Competitive Rivalry PPC recognizes competition as a significant risk to its operations in its 2012 10-K. The company notes that the market remains fairly concentrated, with the four main chicken producers accounting for over 50% of the US industry’s market share. The company also discloses that it operates as the second largest in the US with a market share of 17.4%.1 As a result PPC discloses this market concentration and competitive rivalry as significant risk factors to the company. PPC does not disclose any additional data for the analysis of this risk in its 10-K. This is not uncommon, however given a company’s financials focus primarily on that company. According to informal company disclosures in PPC’s 2012 fiscal year-end earnings the company has seen significant improvement recently in its competitive positioning. According to Bill Lovette...
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...IAS 1 — Presentation of Financial Statements Page 1 of 14 IAS 1 — Presentation of Financial Statements Quick Article Links Overview IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. IAS 1 was reissued in September 2007 and applies to annual periods beginning on or after 1 January 2009. History of IAS 1 Date March 1974 January 1975 Development Exposure Draft E1 Disclosure of Accounting Policies IAS 1 Disclosure of Accounting Policies issued Comments Operative for periods beginning on or after 1 January 1975 June 1975 Exposure Draft E5 Information to Be Disclosed in Financial Statements published October 1976 IAS 5 Information to Be Disclosed in Financial Operative for periods beginning on Statements issued or after 1 January 1975 July 1978 Exposure Draft E14 Current Assets and Current Liabilities published November 1979 IAS 13 Presentation of Current Assets and Current Operative for periods beginning on Liabilities issued or after 1 January 1981 ...
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...PRINCIPLES FOR PERIODIC DISCLOSURE BY LISTED ENTITIES Final Report TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS FEBRUARY 2010 CONTENTS Chapter 1 Introduction Uses of Annual Reports Scope Presentation Glossary of Defined Terms Principles for Periodic Disclosure by Listed Entities A. Periodic reports should contain relevant information B. For those periodic reports in which financial statements are included, and should state that the financial information provided in the report is fairly presented. C. The issuer’s internal control over financial reporting should be assessed or reviewed. D. Information should be available to the public on a timely basis E. Periodic reports should be filed with the relevant regulator. F. The information should be stored to facilitate public access to the information. G. Disclosure criteria. H. Equal access to disclosure. I. Equivalence of disclosure. Page 3 4 5 5 6 7 7 20 2 3 21 22 23 24 25 26 27 Appendix 1 – Feedback Statement on the Public Comments on the 28 Consultation Report – Principles for Periodic Disclosure by Listed Entities Appendix 2 – Comment Letters on Consultation Report – Principles 36 for Periodic Disclosure by Listed Entities. 2 Chapter 1. Introduction In the increasingly globalized securities markets, widely accepted international disclosure standards play an important role in facilitating cross-border capital raising. International agreement on disclosure standards...
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...Fairfax Media Limited (FXJ) and News Corporation are two media companies, the former is an Australasia's leading media company while the latter one is an American company, which is on a larger scale than Fairfax Media. Good investors must have their own analysis and their own decision. In order to know which company is worth to invest in, we analyse the finance statements of these two companies throughout the three - year period, from 2007 to 2009 by comparing the financial ratios, evaluating the red flags, identifying non-financial information, analysing Notes to the financial statements. 1. Trend Analyses and Financial Ratio Analyses over Three - year Period, from 2007 to 2009. Company Financial ratio 2009 2008 2007 Profitability Return on investment (ROI) (%) N/A 7.8 5.3 Gross margin (%) 19.3 27.6 23.5 Liquidity Working capital (%) 79.4 127.9 171.5 Quick ratios (%) 73.2 119.2 161.4 Fairfax Leverage Leverage ratio (%) 38.1 50.6 47.3 Media Interest cover (times) N/A 3.8 4.0 Efficiency Asset Turnover (%) 34.2 35.0 26.4 Inventory turnover (times) 49.5 45.0 38.4 Shareholder Dividend per share (cents) 2.0 20.0 20.0 Return Earnings per share (cents) N/A 22.9 22.7 Profitability Return on investment (ROI) (%) N/A 18.8 10.4 Gross margin (%) 35.9 37.8 34.9 Liquidity Working capital (%) 148.8 156.4 212.2 Quick ratios...
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...monitoring carried out in the first months of 2013, ISS increased our Company’s Corporate Governance rating to 9.09 (90.94%) on a scale of 10. This high score earned yet again attests to the importance Vestel Group places on corporate governance and to its commitment to achieve further progress in this area. The efforts undertaken to further improve compliance with Corporate Governance Principles at Vestel Elektronik San. ve Tic. A.Ş. in 2012 are summarized below. • The Articles of Association were revised in parallel with the Capital Markets Board’s Corporate Governance Principles and submitted for the review of investors at the General Meeting for the year 2011. • Résumés of Board Members were included in the information document distributed prior to the General Meeting. The information document was shared with the general public four weeks before the General Meeting via the Public Disclosure Platform (PDP) and the Company’s website. • At the General Meeting for the year 2011, the independent Board Members whose terms of office expired were replaced with new members. The statements of independence of the new independent Board Members were collected. • Upon the selection of Selen Zorlu Melik as Board Member, the structure of the Board of Directors has come to comply with the CMB’s...
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...Hongtao Lu 41586561 Financial Statement Project of Corporate Accounting Individual report of Decmil Group Ltd Hongtao Lu (41586561) 16th April 2014 ACCT7104 Corporate Accounting Individual Financial Statement Project 1 Hongtao Lu 41586561 1. Introduction The purpose of this report is to identify the significant elements of changes of Australian accounting standards in the fields of Segment Reporting and Joint Arrangements/Ventures in last five year. The report will examine accounting methods used in Decmil Group Limited’s annual report in order to assess the compliance level of the financial statements. 2. For Segment reporting 2.1. Significant Elements of Changes in the Field of Segment Reporting From the old to the new consolidation suite, for segment reporting, significant changes of accounting standard were mainly from AASB 114 segment reporting to AASB 8 operating segment. The latest version AASB 114 was applied to reporting periods beginning on or after 1st July 2008 but before 1st January 2009 (AASB 2008, p.1). Its replacement AASB 8 started from 1st Jan 2009, and early adoption was acceptable (AASB 2010, p.1). Firstly, the most significant change is the identification method of operating segments. AASB 8 (AASB 2010, p.10) requires reporting entity to identify reporting segments whose performance is regularly examined by CODM for decision making purpose of allocating resources. In contrast, AASB 114 required that segments should be defined by...
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...Ministry of Finance, Japan, Public Policy Review, Vol.8, No.1, June 2012 45 Public Sector Accounting - An Interdisciplinary Field Involving Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between assets and liabilities in the balance...
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