Analyzing Financial Performance and Accounting Treatment of Premier Investments Ltd

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
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Author’s Note:

2COMPANY ACCOUNTING
Executive Summary:
This report aims analyzing and understanding the financial performance and position of Premier
Investments Ltd. The company is a financial institution operating in Australia since a very long
time. There have been various difficulties in the journey of the company until now. In report,
various performance parameters of the company in different times have been analyzed and
discussed. Lastly, the paper concludes with some key factors behind their long-term success and
some recommendation for improving their accounting and reporting system.

3COMPANY ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................4
Background of the company:...........................................................................................................4
Accounting treatment of Brand name assets:..................................................................................5
Basis of accounting treatment adopted by Premier Investment Ltd for 2017:................................6
Response by Premier to the ASIC arguments in the 2018 Financial Statement:.............................7
Announcement from Premier Investment Ltd in July 2018:...........................................................8
Market reaction to the announcement of Premier Investment Ltd in July 2018:............................9
Recommendation and strategy to address pressures from ASIC:..................................................10
Conclusion:....................................................................................................................................10
References and bibliography:........................................................................................................12

4COMPANY ACCOUNTING
Introduction:
Various financial institutions are operating in Australia successfully following the rules,
regulations, accounting and reporting standards of the country. There are some pioneering
financial institutions, which are also operating prosperously and growing with the pace of overall
growth in the economy. In this report such a financial institution Premier Investments Ltd have
been selected for analysis of their financial performance, financial position and accounting and
reporting principles of the company. Accounting treatments of various key financial terms are
important for companies (Rahman 2013). Treatment of accounting transaction can change the
financial performance projection. It has some statutory as well non-statutory effects in the market
as a whole. If in any way the expenses are inflated, it will reduce the tax expense and the earning
for the shareholders. As ASIC is the prime authority to regulate the share market activities in
Australian Stock Exchange, they follow up all those activities of companies. In the case of
Premier Investment Ltd also, they have made certain propositions concerning impairment and
amortization of non-financial assets. Effects of such cased have been discussed briefly in the
following heads (premierinvestments.com.au 2019).
Background of the company:
Premier Investments Ltd is an ASX listed company operating in the financial instruments
and investment market. The company was listed with Australian stock exchange in 1987. The
company’s vision was to maximize the shareholders income and growth in the capital market
through strategic investment options. In achieving their objective, they do retail and distribute
various investment options and plans to the shareholders. They have been leading the Australian
Financial Instruments market since their registration, as a listed company is the Australian Stock