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Advanced Corporate Reporting : PDF

   

Added on  2021-02-20

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ADVANCE CORPORATE REPORTING

Table of ContentsINTRODUCTION...........................................................................................................................3Background..................................................................................................................................3Scope............................................................................................................................................3Preliminary analysis findings.......................................................................................................3Income statement.........................................................................................................................5Statement of equity:.....................................................................................................................5Statement of financial performance:............................................................................................5CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13

INTRODUCTIONCorporate reporting refers to providing information to stakeholders of the business suchas creditors, investors etc. It helps to provide details that helps to take decisions regardinginvestment and lending etc. The Report will outline purpose of preparing financial statements,accounting treatment for financial statements under AASB. It will also explain disclosure andmeasurement for business disclosure. It will also explain accounting for group structure, businessstrategies on the basis of evaluation and analysis of accounting information etc.The Report isbased on AGL Energy ltd.The Report will explain the comparison between flexible format offinancial statements with fixed format of financial statements. It will also describe the analysis ofinformation such as it helps to determine the value of the business. Further, report will explainAASB standards on financial reporting.MAIN BODYBackground.AGL Energy ltd. is a company based in Australia which is a public listed company. Thecompany provides services in thermal power, wind power as well as hydro power. The industryof the company is natural energy consumption. The organization was founded in the year 1837.Brett Redman is company's CEO as well as MD. The size of the firm is around 4000 employeesas of 2018. Headquarter of company is located at Sydney, Australia. It offers various productssuch as natural gas generation, hydroelectricity, coal seam gas, energy etc. Company also offersservices such as distribution of natural gas, generation of electricity, retailing of electricity etc. Itoperates in various countries like South Australia, New South Wales etc.Scope.Theme selected for the Report is Corporate reports and disclosures. The term disclosurerefers to the activity of providing all types of relevant information to the public related withcompany that helps stake holder's to make relevant decisions such as investment decision etc.Theme will help to evaluate objective for preparing financial statements of the company,accounting treatment etc. Preliminary analysis findings.The purpose of preparing financial statements.There are various objectives of an organization for preparing financial statements such ascomprehensive income statement, statement of changes in equity and other statements for

financial position. One of the major purpose of preparing comprehensive income statement is toassist users in determining financial performance of the business over an accounting period. Theintention of AGL energy Ltd. behind preparing statement of changes in equity is to allow users toanalyse the factors that have cause changes in amount of equity during accounting period(Handley, K., Evans and Wright, 2019). It explains change in share capital of firm, retainedearnings and accumulated reserves etc. Balance sheet of AGL energy Ltd. reflects financialposition of the business.Income statement :Income statement consists of profits and losses of company, it is also known as profit andloss statement. Statement is prepared to evaluate the past performance of company which statesabout the profits and loss. The statement also shows the growth of company and gives exactperformance which includes expenses and income of the company in past few years. Financialstatements are prepared for the shareholders and stake holders of AGL energy Ltd. because theywant to know the details and performance of the company. Statements are made on quarterlybasis and yearly basis also which are presented to the shareholders in the company meetings. Itincludes expenses which are incurred in the office and factory premises like bills, salaries andpetty expenses, and income like commission and interest received. Through these statementsshareholders evaluate the position of AGL energy Ltd. in market.Statement of equity :Statement of equity includes details of the equity in company like, company holds sharesin the equity market but income statement and balance sheet does not hold the details of theequity in the company, so company has to prepare equity statement. It consists about companyshare capital and the profits of companies from the date of commencement. This statementshows the money invested by shareholders in company, and details of dividends to be given tothe shareholders in past years as well in current year. Statement will help the share holders toknow the effective changes in the policies of AGL energy Ltd. like inventory cost and cost ofdebentures and various internal expenses and income have impact ion the statement. It showscompany position in share market. It has impact on company internally and externally. Statementalso shows share capital and value of shares of AGL energy Ltd. Statement has fair market valueand mortgage loan and also equity reserves for the company.

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