Accounting and Financial Reporting

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and financial reporting
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1ACCOUNTING AND FINANCIAL REPORTING
Executive summary
Primary purpose of the report is to evaluate the approach used by SCP for valuing its property. It
will focus on the flexibility available to the management in using the approach that will be
applied for investment property valuation. In the next section the report will focus on the impact
on financial performance owing to change in retail industry. In the last part the report will
highlight the economic effect of change in the retail industry.

2ACCOUNTING AND FINANCIAL REPORTING
Introduction
SCP that is the Shopping Centres Australia Property Group that is listed under ASX is
engaged in the operation of investment trust for real estate. It is managed internally and owns
quality neighbourhood portfolio that also includes sub regional shopping centres along with
freestanding retails focusing on the convenience retailing throughout Australia. As most of the
retail outlets those have physical presence are facing the issues regarding experience of modern
shopping, management committee for risk of the entity are increasingly concerned regarding
changes in retail industry (Scaproperty.com.au, 2019). The same can be evidenced through the
information delivered by the Australian Beureu of Statistics and its adverse impact on big
retailers like David Jones, Oroton, Specially Fashion Group and Myer.
Answer (a)
From the annual statement of the company for the period closed in 2018 it is identified
that the financial reports are prepared in compliance with the prerequisite of presenting as the
general purpose financial reporting and the financial reports are complied with the requirement of
AAS (Australian accounting standards), Australian interpretations, Corporations Act 2001 and
different other authoritative pronouncements issued by AASB. Annual statements of the
company further meet the terms of the Australian accounting standards released by AASB as well
as international financial reporting standards released by the IASB (Scaproperty.com.au, 2019).
The entity has 2 registered and managed scheme for investment those includes (i) Shopping
Centres Australasia Property Management Trust and (ii) Shopping Centres Australasia Property
Retail Trust and. Investment interest for the land and building that includes the plant and
equipment’s integral part held for generating rental income is included under investment
properties. The property is measured at cost at initial and the cost here inclusive of transactional
cost. After initial recognition the same property is measured at fair values subsequently
(Scaproperty.com.au, 2019).
Fair value for investment property is the expected priced estimated to be received from
sales of asset or to be paid for settlement of the liability as per normal business transactions taken
place between the market participants on the date when measurement is done. At each date of