Corporate Accounting: Financial Reporting, AASB & IASB, Debt-Equity Comparison

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Corporate Accounting

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Executive Summary
Today, the pace and impact of globalization have created a stronger connectivity among the
financial markets at international level. As a result, it has become necessary for the companies to
strictly comply with the international accounting standards while preparing their financial
statements. The IFRS has established a series of regulations and codes which are applicable to
the framework of corporate reporting for every country to disclose their material information.
From the report, it has been found that a sound corporate reporting system facilitates economic
development of a country by reinforcing shareholders' confidence and enhancing transparency,
comparability as well as financial stability. Moreover, it was observed that an effective reporting
structure also enables worldwide sharing of financial resources along with economy integration.
AASB also supports this for minimizing mis-utilization of resources, and corruption. In addition,
the AASB has also been found to promote compliance and that that management should not be
provided absolute freedom to decide what accounting information should be incorporated in the
financial statements in order to control information irregularity.

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Table of Contents
Introduction......................................................................................................................................3
Financial Reporting and Voluntary Disclosure...............................................................................4
AASB & IASB................................................................................................................................5
Participation of AASB in setting IFRS........................................................................................5
Non-compulsion of IFRS for IASB members..............................................................................6
Discussion on items of equity..........................................................................................................8
Comparison of debt and equity for the four companies................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The following report is designed to provide an understanding of corporate accounting concepts
and its relevance for companies in the preparation and disclosure of their financial statements.
The report discusses the relevance of disclosing financial information by the managers as per
IFRS or voluntarily. Along with this, emphasize has been made on the role of AASB in the
setting process of IFRS on global level, and the reasons why the associate countries of IASB are
not required to follow the IFRS framework. In this context, the report also analyses the financial
statements, and debt-equity position of four companies listed on Australian Securities Exchange:
Ransay healthcare limited, Capitil health limited, SDI limited and Vtrus Health Limited.