Importance of Voluntarily Disclosing Financial Accounting Information

RUNNING HEAD: CORPORATE ACCOUNTING
Corporate accounting

Corporate accounting 2
Executive summary
The report outlines the importance of voluntarily disclosing the financial accounting information
to the users. It recommended that managers must uncover all the data on their own so that true
position of the organization can be identified. Additionally it likewise gives bits of knowledge
about the regulation of corporate financial reporting which is important for avoiding the mistakes
and errors. In the later part, equity analysis of the four listed organizations of Australia is done in
which their debt and equity proportion are analysed for the past four years. The findings of the
report are provided in conclusion in a nutshell.

Corporate accounting 3
Contents
Introduction.................................................................................................................................................4
Corporate Regulation...................................................................................................................................5
Part 1.......................................................................................................................................................5
Accounting standard setting........................................................................................................................7
Part 2.......................................................................................................................................................7
Owners’ equity............................................................................................................................................9
Part 3.......................................................................................................................................................9
Part 4.....................................................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................14

Corporate accounting 4
Introduction
This report focuses on the execution of IFRS for the presentation of financial reports of the
organization. It also laid more emphasis on establishing equal alignment the debt and equity
component of the firm so as to have preferred capital structure which will automatically drop the
financial leverage and cost of capital of the organization. It set out the significance of
deliberately revealing the financial data and recommends that the same is especially vital for
reflecting the fair and true perspective of the organization's performance and position in
monetary angles. Further, it talks about the significance of managing and regulating corporate
financial reporting procedures so as to avoid problems like misstatements, manipulation of
figures, falsification of accounts and other voluntarily done misconducts on the part of
management.
In the later part, the report highlights the AASB’s role in setting accounting standards at global
level. It states that IASB has collaborated with various domestic standard setting bodies so as to
formulate relevant and appropriate global accounting benchmarks. The board identifies few
problems and asked IASB for feedback in order to get approval for building up bookkeeping
benchmarks. Also, it features the reasons why a few individuals from IASB has not yet move
towards the implementation of IFRS and the same isn't obligatory for them. The report
additionally gives bits of knowledge about the capital structure of four ASX recorded
organizations for the past four years. It looks at their debt and equity position and outlines all the
findings under the head conclusion at the end.