Accounting Research Report: Analysis of Financial Accounting Issues

This report provides an analysis of financial accounting information and corporate social responsibility (CSR) practices of five ASX-listed companies. It examines the application of accounting information systems (AIS) and the use of ERP software within these companies. The research delves into the analysis of annual reports to identify accounting-related issues, such as lease liability recognition, financial statement accuracy, inventory valuation problems, and the application of accounting policies. The study employs a secondary data research methodology, drawing on annual reports, media reports, and journal articles to interpret qualitative data. The findings highlight the use of AIS, non-adherence to specific accounting policies, inventory valuation misstatements, and the implementation of CSR policies. The report concludes by emphasizing the importance of financial accounting for accountability and the role of AIS in decision-making, along with the identification of accounting issues through financial statement analysis.

Running head: ACCOUNTING RESEARCH REPORT
Accounting research report
Name of the student:
Name of the university:
Author’s note:

1
ACCOUNTING RESEARCH REPORT
Table of Contents
Introduction.................................................................................................................................................3
Analyzing on accounting information and corporate social responsibility theories.....................................3
Analyzing of 5 listed company’s annual reports for accounting related issues............................................5
Identification of research methodology.......................................................................................................6
Qualitative data interpretation.....................................................................................................................6
Findings.......................................................................................................................................................6
Conclusion...................................................................................................................................................7
Reference.....................................................................................................................................................8

2
ACCOUNTING RESEARCH REPORT
Executive summary
The purpose of this paper is to analyze the 5 listed company’s accounting information and corporate
social responsibility. The paper also aims for analyzing accounting issues that took take place for the 5
companies taking into account those annual reports. Further, the report includes secondary data as
research methodology and collects the data on the basis of it and well interprets those. Finally the report
aims to discuss about findings as a part of observations from the discussions.

3
ACCOUNTING RESEARCH REPORT
Introduction
Financial accounting is very important for financial accountability (Maskell, Baggaley and
Grasso 2017). There are several examples in this context of the way improvements can be brought about
to financial accounting with the support of research have brought about enhancement in financial
accountability. This kind of research is important for building strong relation between academics of
accounting as well as practice. The report would include about 5 ASX listed companies and their
accounting information. It would also include analyzing of accounting issues with respect to annual
reports of 5 companies. Further the report emphasizes to have discussion on research methodologies that
how the secondary data has helped to collect information. Further, the report discusses about qualitative
data and its interpretation that can help to have idea as well as identify the observations and hence the
paper focuses on the findings from the discussions.
Analyzing on accounting information and corporate social responsibility theories
Accounting Information System is used as computer based method for activities related to accounting
with the help to resources of information technology. As per research it can be said that it becomes the
responsibility of Accounting Information System to collect, store as well as process financial and
accounting data for decision making of internal management.
Wesfarmers
Wesfarmers use ERP software for management of its operations. It uses the acquisition of ERP
software for managerial operation as well as for accounting system of its own. ERP software help it to
collect and process it accounting data. ERP system works with its efficiency as accounting software of
Wesfarmers with best analytics as well as simple regulatory compliance.
A2milk
A2milk uses GAAP practice of accounting information. This system is implemented by the
company to collect and store financial data useful for creating of financial statements. It uses such
practice that gives the way out to true as well as fair picture of accounting information being relevant for
business.
Bega cheese

4
ACCOUNTING RESEARCH REPORT
The company Bega cheese makes use of ERP software for its operations. It provides information
related to accounting to its management system. For making of financial reports ERP software is
beneficial to the company. Proper integrated business plan and for data collection as well as for improved
reporting this software is used.
BHP Billiton
BHP Billiton makes use of system acquisition method for its business operations. It also makes
use of ERP as accounting software for retrieving financial data as accounting information for business
practices to process financial data as information.
Dexus
The company makes use of accounting information software for corporate accounting purpose. It
becomes useful for management to take decisions related to accounting and becomes also useful for
planning and analysis purpose based on technology.
Corporate social responsibility is the responsibility taken by the company for promoting public interest
for the growth of community as well as for its development (Grayson and Hodges 2017). As per journal
articles companies makes proper implementation of corporate social responsibility to maximize
shareholders wealth as well as for the profit of its own. Moreover CSR is implementation of balance
between responsibilities to stakeholders as well as shareholders.
Wesfarmers
Wesfarmers have been contributing with community for approx. 4147.5 million inclusion of
$86.6 million as of direct contributions towards community companies. Further, Wesfarmers focused on
product responsibility for more than 4000 factories as group’s supply chain in audit program. It serves the
community with its profit for long term value creation in terms of its positive role.
A2milk
A2milk looks forwards for creation of society’s welfare by serving its profits for its own as well
as shareholder’s benefits. Company engages itself in social actions to serve the social need of community.
Certain programs are implemented for enhancement of the sustainability of its own business operations.
Bega cheese

5
ACCOUNTING RESEARCH REPORT
CSR in the form of supply chain for Bega cheese has been involved in the process of movement
of product from company to its customers. Large retailers and food processors are with large number of
responsibilities involved for this process. Moreover it serves the purposes of the community as a part of
profit from company towards the benefits of social needs.
BHP Billiton
BHP Billiton has implemented the CSR policy of need of addressing risks as zero tolerance in
case of misconduct of child labor, employee treatment, living wages, health and safety of workplace as
well as association freedom.
Analyzing of 5 listed company’s annual reports for accounting related issues
Wesfarmers
There is the recognition of lease liability as per balance sheet which does overlooks leasing
property’s economic reality by treating of leasing property to be as financial alternative. As per lease of
appreciation of real estate assets given as per residual value are very complex for leasing of depreciation
of plant as well as equipment assets. It can also be seen that there is no valid decision by the company to
treat lease property as financial alternative compared to other lease decisions with plant and equipment.
A2milk
It can be analyzed that financial statements are not fully prepared as per taking into account of all
accounting policies (Carnegie and O’Connell 2014). There is no accurate relevancy in some cases of
financial reports as per accounting standards followed. Accounting records came to have not fully
accurate due to this and it was complex to determine financial position. There were no proper internal
control measures for assurance to make the financial statements fully reliable.
Bega cheese
The company is found to be facing issue with respect to valuation of inventory. It is facing
inventory losses. The financial statements faces difficulty in showing progress balances .In fact,
Misstatement is affecting the balances of inventory as per profits in reports. Inventory identification in
financial statement becomes complex and it is not possible to identify it from stock. Also, there has been
an issue in establishment of quantities of inventory held to be not shown.
BHP Billiton

6
ACCOUNTING RESEARCH REPORT
It can be found that in case accounts receivables in the year 2018-19 no provision in terms of
increment has been included for doubtful debt that shows that company is realistic with respect to bad
debt report. It can also be found as an issue that inventory has been valued involving lower valuation for
cost as well as realizable valuation.
Identification of research methodology
Data collection is done through secondary data (Johnston 2017). This is in the form of different
media reports as well as annual reports of the company. Several journal articles are referred in the context
to analyze and have an idea over accounting information system and in practical implementation of those
annual reports have been taken help for as a reference. For analyzing of accounting related issues income
statement as well as balance sheet has been used and data has been collected to analyze the contemporary
issues related to accounting for the specific year end. On the other hand company’s sustainability
statement has been taken into account for analyzing of corporate social responsibility theory for 5 ASX
listed companies. Moreover, audit report was also used as collection of data to analyze the accounting
related issues of the above companies.
Qualitative data interpretation
Using the above mentioned data source in the form of secondary data several observations can be
made (Anney 2014). Through the data collected it has also been possible to do new research for
identifying AASB practices and for even for analyzing accounting related issues. From the research it
could be observed that there were several issues related to financial reporting of the companies. It could
also be possible to observe that company did not make use of relevant accounting policies for accuracy of
financial statements annually. Again, there can be observation that there could be misstatement due to
inventory valuation. Data collected showed that valuation of lease assets were very complex even to
charge deprecation on. Moreover, research analysis could be made related to corporate social and
environmental sustainability of the companies and how positivity it brought into the company was
analyzed.
Findings
From the above discussion the following findings can be observed with:
 It could be found from the discussion that several Accounting Information System in the form of
software package has been used for collection of accounting data for preparation of financial
statements of the company(Cao, Chychyla and Stewart 2015)

7
ACCOUNTING RESEARCH REPORT
 From the above discussion it becomes clear that some companies did not follow certain
accounting policies relevant to financial reporting (Feng, McVay. and Skaife 2014). So
financial position of the company could not be analyzed.
 Inventory valuation is showing misstatements in inventory balances due to which inventory
identification became difficult from the financial statements.
 It can also be found based on observations that companies have been implementing CSR policies
to serve the purpose of social communities as well as to maximize its shareholder’s wealth.
Conclusion
It can be concluded from the above discussion that financial accounting plays an important role in
terms of financial accountability. From the above discussion it becomes clear that accounting information
system is the best way to collect and process financial data for the purpose of decision making of the
company. It also becomes clear that how 5 listed companies are making use of AIS for improving its
efficiency in terms of operating of accounting. Further the discussion it becomes prompt with respect to
identification of research method as secondary data that how the accounting issues are identified with the
help of financial statements of the companies. Data interpretation helps to analyze the types of issues in
the financial statements and observations relating to the accounting practices of all companies.

8
ACCOUNTING RESEARCH REPORT
Reference
Anney, V.N., 2014. Ensuring the quality of the findings of qualitative research: Looking at
trustworthiness criteria. Journal of Emerging Trends in Educational Research and Policy Studies
(JETERAPS), 5(2), pp.272-281.
Cao, M., Chychyla, R. and Stewart, T., 2015. Big Data analytics in financial statement audits.
Accounting Horizons, 29(2), pp.423-429.
Carnegie, G.D. and O’Connell, B.T., 2014. A longitudinal study of the interplay of corporate
collapse, accounting failure and governance change in Australia: Early 1890s to early 2000s.
Critical Perspectives on Accounting, 25(6), pp.446-468.
Feng, M., Li, C., McVay, S.E. and Skaife, H., 2014. Does ineffective internal control over
financial reporting affect a firm's operations? Evidence from firms' inventory management. The
Accounting Review, 90(2), pp.529-557.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Johnston, M.P., 2017. Secondary data analysis: A method of which the time has come.
Qualitative and quantitative methods in libraries, 3(3), pp.619-626.
Maskell, B.H., Baggaley, B. and Grasso, L., 2017. Practical lean accounting: a proven system
for measuring and managing the lean enterprise. Productivity Press.