Annual assertion of the company Seven Group Holdings Limited

FINANCIAL ACCOUNTING AND REPORTING 15 FINANCIAL ACCOUNTING AND REPORTING Financial Accounting and Reporting University Name Student Name Authors’ Note Addressee: Board of Directors Sender: XYZ Date: 11-05-2018 Subject: Highlighted from analysis of financial statements Evaluation of the annual assertion of the firm helps in presenting overall composition of the group. The company Seven Group Holdings Limited has joint ventures in which the parent company has the potential to control overall timing of particularly reversal of temporary variances (Weygandt et al

Running head: FINANCIAL ACCOUNTING AND REPORTING
Financial Accounting and Reporting
University Name
Student Name
Authors’ Note

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FINANCIAL ACCOUNTING AND REPORTING
Addressee: Board of Directors
Sender: XYZ
Date: 11-05-2018
Subject: Highlighted from analysis of financial statements
Evaluation of the annual assertion of the firm helps in presenting overall composition of the
group. The company Seven Group Holdings Limited has joint ventures in which the parent
company has the potential to control overall timing of particularly reversal of temporary
variances (Weygandt et al., 2015). Again, it is also likely that the variances shall not reverse
in the predictable future. Investment of the group in particularly Coates Hire can be
categorised as specifically a joint venture even though the voting right of the group in Coates
Hire is 50%. Other joint ventures include Flagship Property Holdings Pty Ltd with 47.3%
ownership interest, Kings Square Pty Limited (with 50% ownership interest), Kings Square
Pty Ltd (with 50% ownership interest). Total investment of the company in particularly
associates as well as joint ventures stands at $1136.5 in 2017.
Analysis of the composition of the group reveals that there are subsidiaries that are
particularly controlled by the group. This segment of segment intends to put forward the fact
that the Group essentially controls a specific business entity at the time when the same is
exposed to or has definite right to specific variable returns from this association (Harrison et
al., 2015). Essentially, financial declarations of different subsidiaries of the firm are also
counted in the consolidated pecuniary declarations of the firm. The group has associates with
varying percentage of ownership interest that include Beach Energy Limited, Energy Power
Systems Australia Pty Ltd, Impulse Screen Media Pty Ltd, iSeekplant Pty Ltd, Mo’s Mobiles

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Pty Limited, Premier Capital Developments Pty Limited, Revy Investments Pty Limited,
Revy Investment Trust and Seven West Media Limited.
Reason behind preparation of the consolidated financial statements when the subsidiary
corporation is an entirely separate entity
It can be hereby brought to your notice that yearly financial statements of the firm presents
consolidated financial assertion. This helps in covering actions of the parent corporation as
well as its subsidiaries in a single statement (Hunton et al., 2015). In essence, this
consolidated financial assertions shows as if they are essentially a single firm functioning
under one roof.
Non-Controlling Interest (Direct as well as Indirect Non-controlling Interest)
In particular, analysis of financial statements of the firm replicates the fact that is non-
controlling interests. The non-controlling interests are particularly in equity as well as the
outcomes of particularly subsidiaries are reflected unconnectedly in group’s consolidated
assertions of profit/loss along with other comprehensive earnings, consolidated
pronouncement of group’s financial position along with consolidated assertion for alterations
in equity (Tilt et al., 2014). As mentioned in the statement of Profit/Loss, non-controlling
interests stand at $1.5 million.
Goodwill on acquisition/Gain on bargain purchase/Impairments to assets
It can be hereby mentioned that the Group under consideration has modified the accounting
policy and in view of that identified an enhancement in goodwill to $85 million. Also, it can
be mentioned in this context that management judgement is necessary for approximation of
influence of different facets on earnings in the upcoming period upholding subsisting
goodwill as well as intangible assets (Lin, 2017). The investments of the group also counts in

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FINANCIAL ACCOUNTING AND REPORTING
goodwill recognized on acquirement, net of any kind of accumulated losses of impairment.
Particularly, goodwill reflects excess of acquisition costs over particularly fair value of the
share of the group of net identifiable assets of particularly acquired subsidiaries or else equity
accounted investee at particularly acquirement date. As such, goodwill of particularly
acquirements of subsidiaries is counted as intangible asset. Also, it can be hereby informed
that goodwill on acquisitions of chiefly equity accounted investee is counted in investments
accounted for utilizing method of equity (Millo et al., 2016). It is also important to take note
of the fact that goodwill is not necessarily amortised and in place of that examined for the
purpose of impairment yearly otherwise more regularly. In this regard, it is important to put
firth the fact that goodwill is appropriately monitored for the purpose of internal reporting.
Analysis of the whether the firm has a foreign subsidiary firm
Different group entities essentially foreign group entities that do not have the currency of the
hyperinflationary nation and functional currency for operation other than the Australia dollar
are existent (Suryanto, 2016). In this regard, it can be hereby mentioned that there exists
foreign currency variances for particularly foreign operations and that stands at ($48.6
million). Also, the group is particularly conditional on income taxes in the nation Australia as
well as jurisdictions particularly in places where the company has foreign operations.
Company’s policy on sustainability, corporate governance, committee of audit, solvency
Analysis of firm’s annual statement replicates the fact that in a bid to uphold economic
sustainability of the firm, the company maintains a register for strategic risk analysis. This
register can help in identification, assessment, ranking along with upgrading important
strategic risks (Brusca et al., 2016). Yearly assertion of the firm reflects that this report
contains a separate segment on corporate social responsibility that replicates the fact that the
company is concentrated on sustainability during long term period. As such, this company

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has a risk management structure that in turn can help in the process of identification of
investment, different risks associated to financial along with operational risks (Kogan et al.,
2018). In particular, the company has policies to manage overall quality and Westrac intends
to maintain specific accreditation to the standard ISO 9001 for Quality Management System.
Also, there are strategies for control of contamination. As such, environmental risks relatable
to the usage otherwise storage of different hazardous materials are recognized and at the same
time handled by means of regular tracking of business premises, analysis of maintenance of
conformation and emergency processes and suggestions from various external consultants,
agencies of government on different environmental matters (Othman et al., 2018). Also,
management of the firm takes care of the environment and is considered as the central to the
way the group undertakes business and essentially forms an important part of vision of the
company.
Further, it can be hereby mentioned that the company has a policy of human capital
management that includes policy on safety, training policies and strategies for retention as
well as engagement. With regard to safety it can be said that the company has the policy of
proper identification, analysis along with control of different risks together with hazards in a
bid to avert injury (Zambon, 2017). Essentially, the company makes health as well as safety
crucial to different activities of the business. The company also inspires workforces of the
corporation to stop or delay work. The company also complies with pertinent regulations,
standards namely Life Saving Rules, establishing varied internal objectives as well as targets
that again drive to persistently enhance health along with safety performance (Amiram et al.,
2018). Additionally, the firm also engages different contractors along with suppliers who
necessarily share value and operating with them can satisfy both health as well as safety
anticipations. There are policies in place for emissions and the company currently engaged
with particularly Caterpillar worldwide analyse material scrapping of business and reuse

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FINANCIAL ACCOUNTING AND REPORTING
strategies. There are emission strategies for the business as well. A number of initiatives were
formulated to aid reduction of emissions counting establishment of standards indicating
towards Tier 4 Final/Stage IV. This standard calls for the need of reduction of 80% in
specifically NOx emissions from the prior Tier 4 that reflects towards Interim Standards. As
regards improvement of working conditions, it can hereby stated that the group endeavours to
exert a positive contribution to the societies in which the company functions. The company
imparts training along with analysis in the areas of pre-employment (Zeff et al., 2016).
Apprentice, machine operation, high risk for work licenses, technical aspects post trade,
technology and many others.
In this context, it can also be put forward that the company has a corporate governance
statement that sketches main corporate governance exercises along with conformation with
third edition of particularly ASX Corporate Governance Principles pronounced by Corporate
Governance Council. It can be hereby observed that business entity thrives to maintain
compliance with the 8 different principles laid down for corporate governance. The company
makes effort to adhere to the principles that include establishment of solid base for
particularly management as well as oversight, structure as well as framework of the board to
enhance value. acting ethically and accountably (sticking to regulations of ASX listing,
Corporation Act, Income Tax Assessment Act in addition to Code of Conduct for company’s
directors. Also, the corporate governance policy of the firm also includes safeguarding
overall integrity in the area of corporate reporting through an effective audit as well as risk
committee, effective external audit function and many others (Bertomeu & Magee, 2015). In
addition to this, the company also follows the principles of delivering timely as well as
balances disclosures and for that purpose the company also conforms to various obligations
of disclosure of mainly ASX listing regulations. Furthermore, the company has essentially
adopted and at the same time implemented specifically a continuous disclosure policy that

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FINANCIAL ACCOUNTING AND REPORTING
establishes processes for the recognition of material price sensitive information as well as
reporting of this kind of information to company secretary for assessment.
Essentially, the company also adheres to the corporate governance principle of respecting
authority as well as power of the shareholders of the firm (Taleb et al., 2015). As mentioned
in the communication policy for particularly shareholders of the business unit.
As per the policies, the company’s board has the authority to handle business with respect to
the Corporations Act of the year 2001 together with Constitution of the company. The
company also adheres to the principle of respecting authorities as per the communication
strategy of the company, ASX pronouncements and many others. Further, the company also
recognizes and at the same time handles risk of the business. The company has a audit as well
as risk committee that establishes risk management structure. The business entity has a
committee charter in the area of audit as well as risk (Elliott et al., 2016). There are important
risk functions in place that can help in monitoring, presenting suggestions as well as analysis
of the entire board in association to adequacy along with efficacies of the risk management
structure.
Any relevant matters that can be discussed herein include the financials of the firm. Analysis
of the financial statements of the firm reveals the fact that the revenue of the firm is recorded
to be 2.28 billion in 2017 whereas the same was recorded to be 2.84 billion. This reflects the
fact the fact that the revenue of the firm has declined during the current period 2017 in
comparison to the previous year period. Again, operating income of the firm is registered to
be 119.70 million during the year 2017 while it was observed to be 126.10 million during the
period 2016. Also, the operating income of the firm is also said to have declined considerably
during the period 2017 as compared to the figure registered a year ago. Further, it can be
hereby mentioned that net income of the firm is witnessed to be $20.90 million in the year

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FINANCIAL ACCOUNTING AND REPORTING
2017 while the same is recorded to be 172.20 million in the year 2016. All these figures
reflect undesirable financial condition of the firm and instability in the operations.
Additionally, accounting information on the flows of cash reveals the fact that capital
spending of the firm has increased from (49.20) million to (32.70) million. Again, key
financial information alo replicates the fact that the free flow of cash expressed in million has
also decreased during 2017 in comparison to the year 2016.
Based on the calculated figures on key financial ratios, the financial soundness of the
corporation can be appropriately analysed. As regards, operating performance, it can be
hereby stated that the return on assets of the firm expressed as percentage is recorded to be
3.25% in 2016 in comparison to 0.42 %. In essence, this replicates the fact that efficiency of
the firm to acquire earnings out of the invested assets has considerably decreased. In
particular, the return on equity has decreased to 0.99% in 2017 in comparison to 7.49% in
2016. This reflects the fact that efficiency of the firm in generating returns on equity has
considerably declined during the current period. In addition to this, according to the
calculated figures, it can be hereby stated that return on invested capital of the firm has also
declined sharply from the level 6.36% to around 2% in 2017. This reflects the fact that
company’s effectiveness and efficacies to generate return on capital invested has decreased
reflecting an unfavourable financial condition of the firm (Erb & Pelger, 2015).
Again, based on analysis of operations of the firm, it can also be hereby mentioned that the
company also faces several investment risks that can be considered as material business risk.
Essentially, it can be hereby stated that overall financial performance of SGH along with tghe
returns made available to shareholders might perhaps get affected by specifically both the
recognition plus availability of fitting opportunities of investment. In this connection, it can
be also slated that investment opportunities are in essence subject to particular market
conditions along with other facets that are to large extent outside of the control of the firm

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FINANCIAL ACCOUNTING AND REPORTING
(Kim & Zhang, 2014). Fundamentally, there also subsists minority investment risk as seven
group has minority interests in large number of listed corporations.
Minutes:
[Basic Meeting] MINUTES
MEETING CREATED
BY:
XYZ MINUTE
TAKER:
XYZ
TYPE OF MEETING: Board meeting TIME KEEPER: XYZ
FACILITATOR: XYZ XYZ
ATTENDEES PRESENT:
XYZ XYZ XYZ XYZ
XYZ XYZ XYZ XYZ
XYZ XYZ XYZ XYZ
AGENDA TOPICS
Development of oral and written communication strategies
TIME
ALLOCATED:
5 min PRESENTED
BY:
XYZ
Discussion: Communication are an important aspect of the business. When it comes to
development of oral and written communication, it expresses the views ideas of the business.
DATE: Friday, May 11, 2018
TIME: 10:30 AM
LOCATION: Conference Room B

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FINANCIAL ACCOUNTING AND REPORTING
It is the basis of knowledge and information that are communicated within the business. In
the meeting there has been information that has been communicated to the internal members
regarding the performance and the operations of the company. The loss in the revenue which
has led to a financial crisis in the company. In the meeting the mechanism for effective
communication to the stakeholders of the company has been discussed. Various actions
regarding the process of transferringknowledge to the shareholders are identified that
includes a true and fair representation of the annual report, memorandums and the prospectus.
It is to note that the company must have a common goal according to which the
communication, is to be taken place. The facts and the figures in the reports must be written
in proper manner so that the Stake holders are well infirmed.
Conclusion: communication is an important step where the information regarding the
company operations are exchanged. There must a proper technique for the communication
process and the reports must be true and fair.
ACTIONS ACTION TO BE
TAKEN BY
DATE TO BE ACTIONED BY
[common goal XYZ Friday, May 22, 2018; 1:00 PM
[well written] XYZ Friday, May 22, 2018; 1:00 PM
[Agenda Topic Here]

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FINANCIAL ACCOUNTING AND REPORTING
TIME
ALLOCATED:
5 min PRESENTED
BY:
XYZ
Discussion: Remarks
Conclusion: Remarks
ACTIONS ACTION TO BE
TAKEN BY
DATE TO BE ACTIONED BY
[Action Topic Here] XYZ Friday, May 22, 2018; 1:00 PM
[Action Topic Here] XYZ Friday, May 22, 2018; 1:00 PM
SECRETARY
APPROVAL:
Place where meeting was held
People present, absent, apologies
What was discussed and agreed on
The follow up action concerning to each member of the team
Any other pertinent matter, specific things that was agreed in other wise disagreed on

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FINANCIAL ACCOUNTING AND REPORTING

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