Advanced Financial Accounting: An Analysis of Ansell Ltd

ADVANCED FINANCIAL ACCOUNTING

Ansell Ltd
Executive Summary
Accounting information plays a pivotal part in shaping the destiny of the organization.
Hence, it is important that the accounting concepts be carefully analyzed by the end users so
that a complete understanding be done. To conduct this report, Ansell Ltd has been selected
and the same is studied in the light of various parameters such as accounting concept,
measurement, and relevance.
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Ansell Ltd
Contents
Introduction........................................................................................................... 3
1. Accounting concepts that were used..............................................................4
2. Measurement issue with an example...............................................................6
3. Relevance and representational faithfulness.....................................................7
Conclusion............................................................................................................. 9
References........................................................................................................... 10
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Ansell Ltd
Introduction
Ansell Limited earlier operated in the name of Pacific Dunlop Limited. In the year 2002, the
company changed its name from the former name to the current name. It deals with the
production and sales of various healthcare products and services. It is an MNC that operates
in the production and distribution of healthcare goods and safety protection solutions used by
namely all the sectors. The products and services manufactured and distributed by the
company are household gloves, surgical gloves, examination gloves, consumers and
industrial hand protection gloves. The company discontinued a lot of businesses that were not
into manufacturing and distribution of healthcare goods and services and hence, it is why the
same gained a lot of popularity during the last years of the 20th century. Ansell Limited
offers a complete range of safety protection solutions concerning overall body protection
solutions. The company focuses on the production, distribution, and marketing of healthcare
products for the industrial, personal and medical industries. The company operates in namely
4 segments. These are Single Use GBU, Medical GBU, Industrial Global Business Unit
(GBU), and Sexual Wellness GBU. The Single Use GBU deals in the manufacture and
selling of products that cannot be used again and again. Such products are just one-time use
after which the same needs to be discarded. The examples of such healthcare solutions are
gloves that are used in OT and the examination of patients. The Industrial GBU segment
deals in the development and distribution of products that can be used on multiple bases.
Such products are not required to be discarded after one time use as they can be used again
and again. The examples of such healthcare solutions are gloves that are used in industries.
The desirability of a company is decided by the readers of financial statements. A company
that represents its actual state of being in its financials and offers full disclosure concerning
all the necessary information garners the attention of the investors. Such companies are more
likable and desirable in the eyes of the users of the financial statements. Readers always look
for relevance and faithful representation of information in the financials of an organization.
An organization must neither dump irrelevant information in its financials nor should
propagate the representation of wrong information in the same. A lot of transactions take
place in an organization but not all are relevant enough to find a place in the financial
statements of an organization. Take for instance a monetary transaction takes place between
an employee and a CEO of the same company and it is all personal as it has nothing to do
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