ACCG224: Intermediate Financial Accounting Case study (Myer Holdings Limited) Lecturer: Tas Nair Prepared by: ZENG FAN Student ID: 43140505 Contents 1. Contents 1 Executive Summary The purpose of this research report is to understand of two important concepts from the Conceptual Framework for Financial Reporting----the objective of general purpose financial reporting and qualitative characteristics of useful financial information. In this report, Myer Holdings Ltd is as an example to describe these two concepts. This report includes the analysis on whether the disclosure of PPE from Myer Holdings Ltd meets the requirements of AASB 116, especially the requirements of objective …show more content…
These characteristics can enhance relevant and faithfully represented financial information. Comparability can help users find similarities and differences among events and conditions. Verifiability implies a consensus among different measurers. Timeliness is very important, if information is timely, it can help users to make a decision as soon as possible. Understandability is used to measure whether the financial information is categorized and presented in a clarified and concise way for users to understand easily. (IASB 2010) Disclosures on PPE and AASB 116 The objective of AASB 116 is to stipulate the accounting treatment for property, plant and equipment, make user can understand information about an entity’s investment in its property, plant and equipment, and the changes in entity’s investment. The main issue for property, plant and equipment in accounting are the recognition of relationship between assets, the determination of their carrying amounts, the depreciation charges and impairment losses. AASB 116 required the entity disclose it’s information of gross carrying amount, depreciation method, depreciation rate, useful lives of PPE, accumulated depreciation and reconciliation of carrying amount at beginning of the reporting period and at end of the reporting period. Myer Holdings Ltd is one of the ASX 200 companies and it is fully comply with the AASB 116. Myer
To enhance a user’s ability to understand and compare an entity’s operating results, reporting entities are required to describe all significant accounting policies in their financial statements. As such to decide if an accounting principal is significant, is the management’s decision.
Christopher S. Armstrong University of Pennsylvania Mary E. Barth Alan D. Jagolinzer Stanford University Edward J. Riedl Harvard University
With reference to the measurement of tangible non-current assets, critically evaluate whether financial statements prepared using IFRS’s provide useful information. Use specific examples from the annual reports of FTSE 100 companies to illustrate your points.
States. Companies should report income, liability, equity, and assets. Many people (stockholders, investors, etc.) who have a stake in the company want to know this information before providing a service. In this paper, International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) will be compared for
This report is written as a response to the monograph in which the ICAEW published on how financial accounting disclosures can be improved. The aim of this report is to critically discuss and evaluate the worthwhileness of the recommendations made from a financial investor’s perspective. It is done by reviewing recommendations put forward by the ICAEW and analysing if each of the disclosure recommended is worth the effort while putting in perspective what effects these recommendations have on professional investors who are one of the primary users and consumers of financial statements. The report contains information mainly from the ICAEW report and the CFA institute report
This standard outlines the presentation of financial statements for general purpose financial statements, in order to ensure that there is compariablity between the entities reporting periods as well as between other industries reports. The standard discusses the minimum requirement for reporting content and guidelines for the structure in which it is to be set at. Paragraph 117-124 distiguishes the disclosure of accounting policies in relation to judgement. Management’s judgement made in applying accounting policies that may have effected significant amounts found in financial statements and the financial position. Seen in paragraph 125-133 ‘Sources Of Estimation Uncertainty’, it is vital that entities disclose the key assumptions made regarding future prospects and other uncertain estimates that are used in identifying carrying amounts of assets and liabilities. Along side this, the nature and carrying amount must be disclosed at the reporting date.
As the complexities of manufacturers and businesses develop globally, gathering and interpreting financial data becomes more intricate and complex. With a web of laws and regulations that are left to interpretation and are too complicated for even the most experienced
In addition, it is very important to owners, investors and creditors by presenting the financial position, cash flows and financial performance. AASB develops and maintain high quality financial reporting standards for all sectors of the Australian economy and contribute to the development of global financial reporting standards to be recognised. Moreover, this can identify technical issues (Brian, 2003). When AASB identify a technical issues, it will develop a project proposal. A project proposal may include an assessment of the potential benefits of undertaking the project and the costs of not undertaking it and then the project proposal will be reviewed and made a decision by the AASB. This has close relationship with FRC and IASB (Flikkers, 2008).
The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.
The information reflected in the financial statements actually is expected to be of high quality and useful to support the quality decision-making of market stakeholders due to the far-reaching and very costly consequences. It is important in this context to properly identify and discuss the user needs and thereby we refer to the actual requirements of all information users amongst them the management, which uses the financial information to steer, regulate and co-ordinate the business.
Indubitably, the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards (IFRS) create and are sets of, respectively, governing bodies in today’s business world. FASB and IFRS both are constantly updating to meet and accommodate the ever changing world presently. Changes are not easy, but necessary to keep up with reform and accommodate a setting of efficiency and meet the demand of prosperity. Such reforms are prudent in order to better harmonize the accounting world and create less conflicts in reporting issues. FASB main focus is to help create generally accepted accounting
This report has been compiled for the Chief Accountant of the Australian Securities and Investment Commission (ASIC). Its aim is to provide an analysis of how international financial reporting standards (IFRS) have improved reporting quality. This report found that there has been a recent move to using these standards as a blanket standard in most Western countries as the need for consistency in financial reporting is obvious in a more globalised world.
The main reason for this Mergers & Acquisitions(M&A) activity is the growing scale of Premier Investments Limited (Premier). The target for acquisition is Myer Holdings Limited(Myer). Myer is an important customer for Premier with significant common interest. And the competitor, Woolworths South Africa(Woolworths) has already achieved the David Jones acquisition. Therefore, Premier choose Myer as the target for acquisition.
I have been asked to advise Daily Grind Ltd regarding the contractual implications of their decision to discontinue paying commission of 6.5% of the sale price of Moondollar products in New Zealand to Fixit Ltd as per their contract, as a result of Messrs Waugh and Greene (the owners of Daily Grind Ltd) restructuring their business. Messrs Waugh and Greene incorporated a new company Coffee Importers Ltd to import and on sell Moondollar products in New Zealand. Of particular concern is whether Coffee Importers Ltd is an associated entity of Daily Grind Ltd, and if so, is Daily Grind Ltd or Coffee Importers Ltd liable to pay the commission. This opinion concludes that Coffee Importers Ltd is an associated entity, and that Daily Grind Ltd is still liable to pay the commission.
This IFRS Supplement provides expanded discussions of accounting guidance under International Financial Reporting Standards (IFRS) for the topics in Intermediate Accounting. The discussions are organized according to the chapters in Intermediate Accounting (13th or 14th Editions) and therefore can be used to supplement the U.S. GAAP requirements as presented in the textbook. Assignment material is provided for each supplement chapter, which can be used to assess and reinforce student understanding of IFRS.