Analysis of Financial Performance (Doc)

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ANALYSIS OF FINANCIALPERFORMANCE OF ILUKARESOURCES
Executive SummaryThe financial performance can be analysed from financial statements prepared bycompany. With reference to analyse financials in effective manner, firm is required to followaccounting standards so that transparency may be gained in a better manner.Iluka ResourcesLtd which is engaged in mining will be analysed and accounting issue will be carried out byapplying accounting theory. Moreover, overall performance will be assessed.
Table of ContentsIntroduction to the company.......................................................................................................1Share value of Iluka Resources Ltd...........................................................................................2Analysing Company’s financial performance.............................................................................2Business Summary......................................................................................................................3Adherence to Conceptual Framework.........................................................................................4Critique's....................................................................................................................................5Summary.....................................................................................................................................6Conclusion and Recommendations.............................................................................................6REFERENCES................................................................................................................................8
Introduction to the companyIluka resources is an Australian based company and it is the largest producer of zirconand titanium dioxide derived rutile, and synthetic rutile. It is operating in various states ofAustralia. This organisation is involved in mining industry and providing various resources.Illuka resources is having employees equals to 1100 and it generated revenue equals to $726million in 2016. Illuka resources was involved in the bribe case after the company added one ofthe world's largest Rutile mines to its portfolio and takeover the London listed Sierra Rutile Ltdfor $375 million. The corruption includes about the bribe payment to the senior governmentofficials to secure mining license of iluka. This issue of bribe payment affected the performanceof iluka resources to the great extent. There are various accounting standards that organisationhave to follow which are set by AASB ( Australian accounting standards board).The accounting standards consist of AASB 1023 that deals with general insurancecontracts. AASB 1031 deals with materiality, AASB 1038 provide standards relating to lifeinsurance contacts. AASB 101 provide guidelines for presentation of financial statements etc.The organisation have to apply the concepts as per the conceptual framework of AASB forreporting the financial information. This assignment will include the “ accounting structuretheory” which will helps in understanding of various task of this study. This study will help inidentifying the performance of illuka resources. Accounting theories is a set of assumptions,frameworks and methodologies used in the study and application of financial reportingprinciples. The accounting theory that will be included in this assignment will be accountingstructure theory that is as follows.Accounting structure theory :This theory is also known by other names that includesclassical theory, traditional theory, descriptive theory etc. This theory provide understanding about the accounting practices and the methods to report specific events. This theory helps inunderstanding the structure of data collection process in accounting and financial reporting.Thus, this theory is directly connected to accounting practices. This theory focusses onmechanical tasks that were performed by accountants traditionally (Nandwa, 2018). This theoryprovides that the objective of financial statements is concerned with stewardship concept of themanagement role. The theory including the traditional practices helps the organisation in gettinggreater insight into current accounting practices. According to this theory, traditional accountingpractices must be followed by organisation to have proper understanding of the information1
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