Care4Kidz Ltd 2017 Financial Statement Report

Read the Care4Kidz Ltd 2017 Financial Statement Report presented by Fin Accounting. Get insights on the Consolidated Statement of Income and Financial Statement of the company as on 31 December 2017 after the company’s takeover of the Assets and Liabilities of Kempton Kindy Pty Ltd. The report includes earnings, expenses, health, safety and environment, discussion, conclusion, recommendations and references.

CARE4KIDZ LIMITED
2017 FINANCIAL
STATEMENT REPORT
PRELIMINARY BOARD REPORT WITH NOTES
CARE4KIDZ LIMITED
18 FEBRUARY 2018
COMPLETED BY
STUDENT
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EXECUTIVE SUMMARY
This report is being presented by Fin Accounting, an independent accounting firm,
under authorisation of the Board of Care4Kidz Ltd. Based on the data in the Unadjusted
Trial Balance, the purpose of this report is to present the Consolidated Statement of
Income and Financial Statement of the company as on 31 December 2017 after the
company’s takeover of the Assets and Liabilities of Kempton Kindy Pty Ltd which was
acquired on 16 August 2017.
Care4Kidz Ltd, incorporated on 1 July 2015 got itself registered on ASX on 1 July
2016. The company is engaged in the business of providing childcare services through
15 centres which the company manages in Southern Tasmania. The company has
recently acquired a private kindergarten. The company also provides childcare services
to 5 primary schools on contract basis.
For making a fair Income Statement and Statement of Accounts, I have assumed the
following –
 Expenses related to services offered to Tranmere Primary School.
 Estimated amount of the First and Final Dividend.
 Bad Debts at 8% of the total debts provided in the Unadjusted Trial Balance.
While going through Unadjusted Trial Balance, I noticed that –
 Expenses related to providing services to Tranmere Primary School have not
been fully accounted and need to be explained.
 The amount of the first and final dividend for this year has not been finalised as
yet and needs to be prioritised.
 The results of the impairment test conducted by the management need to be
finalised.
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Table of Contents
EXECUTIVE SUMMARY..........................................................................................................2
1. INTRODUCTION................................................................................................................4
1.1. Authorisation and Purpose............................................................................................4
1.2. Scope............................................................................................................................4
1.3. Method.........................................................................................................................4
1.4. Limitations...................................................................................................................4
1.5. Assumptions.................................................................................................................4
1.6. Background..................................................................................................................4
1.7. Summary of Findings...................................................................................................5
2. RESULTS............................................................................................................................5
2.1. Earnings........................................................................................................................5
2.2. Expenses.......................................................................................................................5
2.3. Health, Safety and Environment...................................................................................5
3. DISCUSSION......................................................................................................................6
4. CONCLUSION....................................................................................................................6
5. RECOMMENDATIONS.....................................................................................................7
6. REFERENCES.....................................................................................................................7
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1. INTRODUCTION
1.1. Authorisation and Purpose
This report is being presented with the purpose of providing information about the
company’s performance for the year ended 31 December 2017 to the Board. The report
is being presented by Fin Accounting, an independent accounting firm, under
authorisation of the Board, as per (Baker & Riddick, 2013).
1.2. Scope
This report will present the Consolidated Statement of Income and Financial Statement
of the company as on 31 December 2017 after merging the Assets and Liabilities of the
subsidiary Kempton Kindy Pty Ltd which was acquired on 16 August 2017.
1.3. Method
Information and accounting data was gathered by me from the accounting department of
Care4Kidz Ltd in the form of a Trial Balance for the period 01-01-2017 to 31-12-2017.
The final Income Statement and Financial Statement of Care4Kidz was prepared after
merging the acquisition entries of the subsidiary Kempton Kindy Pty Ltd, assert
(Greuning, Scott & Terblanche, 2011).
1.4. Limitations
In my findings while going through the Unadjusted Trial Balance, I noticed that –
 Expenses related to providing services to Tranmere Primary School have not
been fully accounted and need to be explained.
 The amount of the first and final dividend for this year has not been finalised as
yet and needs to be prioritised.
 The results of the impairment test conducted by the management need to be
finalised, as per (Mudra, 2014).
1.5. Assumptions
In order to arrive at a fair Income Statement and Statement of Accounts for this year, I
have assumed the following –
 Expenses related to services offered to Tranmere Primary School.
 Estimated amount of the First and Final Dividend.
 Bad Debts at 8% of the total debts provided in the Unadjusted Trial Balance.
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1.6. Background
Care4Kidz Ltd, incorporated on 1 July 2015 got itself registered on ASX on 1 July
2016. The company is engaged in the business of providing childcare services through
15 centres which the company manages in Southern Tasmania. The company has
recently acquired a private kindergarten, says (Taylor, 2013). The company also
provides childcare services to 5 primary schools on contract basis. The company has
equipped itself with latest machines and equipment which are used for providing
efficient services through its childcare programs, explains (Keown et al, 2012).
1.7. Summary of Findings
I have summarised below the important features of my findings.
(a) The company has maintained proper records which provide complete particulars,
and include quantitative details and situation of the fixed assets.
(b) I have been informed that all the fixed assets owned by the company are being
physically verified at regular intervals by the management and the management has
not found any material discrepancies during such verification, state (Baker &
Riddick, 2013).
(c) According to the explanations and information provided to me and from the records
of the company which were examined by me and based on the details of ownership
of land and buildings which have been provided to me by the management, the title
deeds of all immovable assets are held in the name of the Company, asserts (Yona,
2011).
2. RESULTS
2.1. Earnings
The gross revenue from operations of the Company during the current year under
review was $2,267,814. Although there has been a marginal increase in the gross
revenue realization in the case of fee during the year, substantial increase in volumes
could not be achieved due to certain extraneous factors, as per (Yona, 2011).
2.2. Expenses
The company has been following the standard practice of booking expenses which have
been recognised in the current year’s accounts in accordance with accounting standards
prescribed by AASB (effective from 01.04.2016), assert (Keown et al, 2012).
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2.3. Health, Safety and Environment
Compliance has been met with the relevant regulations by the management concerning
the related issues as this is an integral part of the Company’s philosophy and the
management stands committed to continually improvise these objectives, says (Taylor,
2013).
3. DISCUSSION
The audit of the company was conducted in accordance with the standards prescribed by
the Australian Auditing Standards Board on Auditing, as specified under Standard 110
of AASB. We conducted the audit by also including evaluation of the appropriateness of
the company’s accounting policies used, explains (Mudra, 2014). We have also taken
into consideration the reasonableness of the accounting estimates which were made by
the Company’s Directors, and we also evaluated the overall presentation of the financial
statements presented by the board. We are of the belief that the audit evidence which
was obtained by us was sufficient and appropriate for providing us a basis for forming
our audit opinion on the standalone financial statements, as stated by (Greuning, Scott
& Terblanche, 2011).
The global education market is being currently driven by an increased demand for a
functional growth in student’s abilities, rising health awareness and growth in
developing countries, state (Baker & Riddick, 2013). Some of the prominent trends
being witnessed in the education sector include rising awareness towards childcare,
placing special emphasis on child’s healthcare, rising technological advancements in
methods of teaching and growth in investment opportunities in the sector. This is being
supported by an increase in health care spending together with a growing demand from
parents in the applications of child-friendly care drive, as explained by (Keown et al,
2012).
The financial results about the operations of your Company have been considered for
review and the details have been incorporated under the appropriate captions, as per
their performance, forming part of the Directors’ Report. During the current year
operations, the management has been continuing with its efforts of optimizing the
financial costs of the company through stricter control on cash flows, thereby allowing
for a substantial reduction in the financial costs of the company, says (Yona, 2011).
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4. CONCLUSION
The Management Discussion and Analysis Report which contains and highlights the
Company management’s objectives, estimates, projections and expectations may
contain certain statements, which may have a forward looking viewpoint for the
workers and within the meaning of all the applicable laws and regulations as stipulated
by the AASB. We may state that actual results might differ materially from those
implied or expressed through the statements presented. The Management believes that
the strategic direction offered by the management of your Company is considered to be
of sound nature and will fulfil the expectations of all stakeholder, both for the short term
as well as long term periods.
5. RECOMMENDATIONS
Your Company’s operations may get affected by the economic conditions of the region,
the input prices and any changes in the regulations of the Federal or Local
Governments, including the Tax Laws and other economic factors. The Company’s
management is not in a position to guarantee the accuracy of these assumptions and
about the perceived performance of the Company in the future.
6. REFERENCES
Baker, H.K. and Riddick, L.A. (2013) International Finance: A Survey. Oxford: OUP
USA.
Greuning, H., Scott, D. and Terblanche, S. (2011) International Financial Reporting
Standards: A Practical Guide. Washington DC: World Bank Publications.
Keown, A.J., Martin, J.D., Petty, J.W. and Scott, D.F. (2012) Financial Management:
Principles and Applications (10th ed). New Delhi: Pearson Education India.
Mudra, J. (2014) International Financial Management (12th ed). Stamford, CT:
Cengage Learning.
Taylor, M.P. (2013) Purchasing Power Parity and Real Exchange Rates. Oxon:
Routledge
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Yona, L. (2011) International Finance for Developing Countries. Keynes:
AuthorHouse.
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