Ask a question from expert

Ask now

ACC2CRE Corporate Reporting

12 Pages2340 Words218 Views
   

Added on  2019-11-20

About This Document

Corporate Reporting (ACC2CRE) Contents Solution 1: 3 Introduction 3 Discussion 3 Stand-alone reports relevant to social and environmental activities are non-integrated 3 Role of integrated reporting by identifying the problems associated with tradition financial reporting 4 Company listed on the ASX and identifying whether the company prepare integrated reporting or not 4 Conclusion 5 Solution 2: 6 Notes to accounts 11 References 13 Solution 1: Introduction The business entities having subsidiaries often face complications in preparation of financial statements. The company has disclosed the scope of integrated reporting and

ACC2CRE Corporate Reporting

   Added on 2019-11-20

BookmarkShareRelated Documents
Corporate Reporting (ACC2CRE)Page 1 of 12
ACC2CRE Corporate Reporting_1
ContentsSolution 1:..................................................................................................................................3Introduction............................................................................................................................3Discussion...............................................................................................................................3Stand-alone reports relevant to social and environmental activities are non-integrated....3Role of integrated reporting by identifying the problems associated with traditionfinancial reporting...............................................................................................................4Company listed on the ASX and identifying whether the company prepare integratedreporting or not...................................................................................................................4Conclusion..............................................................................................................................5Solution 2:..................................................................................................................................6Notes to accounts.....................................................................................................................11References................................................................................................................................13Page 2 of 12
ACC2CRE Corporate Reporting_2
Solution 1:IntroductionThe business entities having subsidiaries often face complications in preparation offinancial statements. This is because of the fact that parent company and its subsidiaries aredistinct legal entities and thus have the responsibility of maintaining their individualbookkeeping. In this context, the stand-alone statements developed by a parent company treateach business entity separately and thus provide two ways of analyzing the financialperformance of an entity. However, the stand-alone reports are not able to evaluate theintegrated financial performance, strategy and potential value creation for stakeholders andthus faced criticism. In this context, the present report critically discusses the role ofintegrated reporting by identifying the issues faced in traditional financial reporting. Also, thereports analyses the compliance of integrated reporting by the ASX listed entities throughselection of a business entity for the purpose. DiscussionStand-alone reports relevant to social and environmental activities are non-integratedThe IAS 27 standard of IFRS has outlined the accounting policies and productsregarding the development of separate financial statements. The stand-alone financial reportsare the financial statements developed by a parent company with joint control of its associatesor subsidiaries as per the IFRS standards (IAS 27 — Separate Financial Statements, 2011).However, the stand-alone reports have faced the criticism of not adequately meeting thequality of non-financial reporting of business entities. The business entities have theobligations of not only meeting the shareholders needs but also of its overall community. Themajor drawback of stand-alone reports in this regard is that provide non-integratedinformation related to the social and environmental performance of a business entity and thusnot capable of disclosing all the relevant non-financial information to its stakeholders. Assuch, the stand-alone reports are not able to adequately depict the business performance,strategy and potential for value creation to all of its stakeholders. The sustainability reportsdeveloped through the use of stand-alone methods lacks the qualitative aspects ofcompleteness, accuracy, reliability, relevancy and transparency. Page 3 of 12
ACC2CRE Corporate Reporting_3
This is due to the fact that social and environment reporting done by the businessentities through the use of stand-alone method does not follow the internationally acceptedguidelines for non-financial reporting. The stand-alone method of financial reportingdiscloses the non-financial information in discrete sections thus making it difficult to beunderstood by the end-users. Thus, it can be said that stand-alone reporting method haslargely failed in its purpose of providing useful non-financial information to its stakeholders.In the light of above deficiencies present in the stand-alone reporting system, there exist ahigh need for the firms to improve their quality of sustainability reporting through adoptingan improved method of non-financial reporting (Wild and van Staden, 2013). Role of integrated reporting by identifying the problems associated with traditionfinancial reportingThe business entities have adopted the method of integrated reporting for disclosingthe non-financial information to its different type of stakeholders in the recent years. Thiswas done mainly to overcome from the problem associated with traditional method of stand-alone reporting. As per the International Integrated Reporting Council (IIRC), the mainobjective of integrated reporting is to provide complete and reliable information about thestrategy, governance and performance of a business entity. The adoption of integratedreporting framework within the business enterprises was largely emphasizes after theoccurrence of global financial crisis for meeting the varied needs and demands of all itsstakeholders. The method of integrated reporting overcomes the problems associated withstand-alone reports prepared by businesses for disclosing their non-financial information bymaking compliance to the social and environmental performance of different business unitsof a parent company. The integrated reporting has enhanced the quality of non-financialreporting of business entities by disclosing their initiatives and performance in relation toenvironment and social activities (Bernardi, 2015). The scope of integrated reporting extends beyond the non-financial reporting and islargely sued by businesses during preparation of their financial reports. The integratedmethod of reporting has stated the principle of consolidation for preparation of financialstatements of a business entity having different business units. The consolidated financialstatements developed through the use of integrated reporting framework presents the overallbusiness activities of a company under a single report. Thus, the integrated reportingframework system helps in overcoming the potential problem of traditional method ofPage 4 of 12
ACC2CRE Corporate Reporting_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
International Financial Reporting Standard: Recent Developments and Impact
|4
|699
|60

Issues in Consolidated Financial Statements of Engineering & Construction PLC
|12
|810
|95

Company Accounting Analysis 2022
|9
|1734
|19

Technical Aspect of Consolidation
|9
|1533
|92

Corporate and Financial Accounting: Financial Reporting Regulation and Analysis of ASX Listed Retail Companies
|20
|3154
|343

Conceptual Framework and Integrated Reporting
|19
|5298
|97