Evaluation of Compliances by BHP Limited and Quanta’s Airways Limited with General Purpose Financial Reporting Standards

Accounting
Assignment
201
9

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By student name
Professor
Date: 17thSeptember, 2019.
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Executive Summary
This report is primarily intended for the senior level management of Moody Corporation which
has assigned the responsibility to the members of its mid-level management team so that to
present an evaluation of the Compliances made by the two ASX listed companies naming, BHP
Limited and Quanta’s airways limited in relation to the General purpose financial reporting
standards, particularly leasing, liabilities, earning per share, intangibles and tax effect accounting
etc. It further discusses the concept of physical capital maintenance. It also provides an analytical
review of the disclosure requirements complied with by both companies in relation to provisions,
contingent liabilities and contingent assets as per AASB 137.At the end of the after making the
detailed evaluation of the above, the major recommendations have been made to bring or ensure
more transparency in the financial statements prepared by the entity.
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Contents
Characteristics of a reporting entity...........................................................................5
Application of the concept of reporting entity for the Government organization.......6
Physical Capital maintenance..................................................................................... 7
Compliances to AASB 137.......................................................................................... 8
Suggestions for the improvement............................................................................ 10
Conclusion................................................................................................................ 10
References............................................................................................................... 11
Characteristics of a reporting entity
As per SAC 1 an entity shall be considered as reporting entity only if it has users who are going
to be dependent on its General-purpose financial report to gain the understanding of the financial
position and financial performance of the entity based on which they are going to make the
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