Company and Financial Reporting: A Study of Australian Companies under AASB Framework

Running head: COMPANY AND FINANCIAL REPORTING
Company and financial reporting
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1COMPANY AND FINANCIAL REPORTING
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
The Corporate regulation and mangement..................................................................................3
Accounting standard setting of AASB and IFRS........................................................................4
Owner’s equity.............................................................................................................................6
Comparative analysis of debt and equity of the chosen companies:..............................................8
Conclusion:......................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

2COMPANY AND FINANCIAL REPORTING
Executive Summary
The following topic has three sections that consist of the need corporate regulation by business
management in the process of accounting, the evaluation of the adaptation of IFRS by the AASB
framework and analysis and importance of the owner’s equity in the four ASX listed company.
In addition to that the report would also analyze the change in the debt equity ratio for the last
four years. The primary motive of the discussion is to know the nature and purpose of the
financial reporting of the Australian companies under the guidance of the AASB framework.
Introduction
The primary objective is to provide a base for the analysis of the implications of in the
financial reporting for the organizations. With the help of the regulators the profession of
accountancy is powerful in the achievement a major rise in the comparability of financial
statements. It provides a usual boundary for what is to be accounted for in the financial reports,
along with the rules about how transactions and items must be accounted for. Moreover the
discussion deals with the adaptation of IFRS in the AASB framework (Acharya and Ryan 2016).
The participation of Australian accounting standard board in the setting process of global
accounting standard outlines the power and function of the contribution and working to the
worldwide process standard setting.

3COMPANY AND FINANCIAL REPORTING
Discussion
The Corporate regulation and management
The importance for the regulation in the financial reporting is vital for the organizations
since there are various vital user of financial reporting that includes equity investors, employee,
analyst adviser, public the government and stakeholders. The various stakeholders however,
required to able to understand and interpret the monetary information in a organized process for
make the needed monetary decisions. In case the various accounting users made the financial
reports, it shall be made in varied ways that would comply with their suitable requirements. In
the case, the varied groups will understand the various financial reports their own ways thus may
create a global differences in the practice of accounting (Capkun, Collins and Jeanjean 2016).
The Accounting practices differ from country to country as well as their frame work of
regulation. Therefore in order to maintain a balance between the various accounting frameworks
the regulations are important. This also sets a boundary for the users of accounting so that there
is a systematic interpretation of the financial data. The requirements disclosure resolves some of
the issues that are associated with of information between the user groups of accounting. It also
enables the user to compare the inducements level with the received by the other users (Leuz,
and Wysocki 2016). The regulations therefore, addresses the various issues of financial
information by requiring the setting a boundary for the of certain key items of interest to the user
groups. With the help of the regulators the profession of accountancy is more powerful in
achieving a major increase in the financial statements comparability (Hoskin, Fizzell, and Cherry
2014). It provides a general framework for what is to be accounted for in the financial reports,
along with the rules about how items and transactions should be accounted for (Christensen, Lee,
Walker and Zeng 2015).