Annual assertion of the company Seven Group Holdings Limited
Added on 2021-06-18
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Running head: FINANCIAL ACCOUNTING AND REPORTINGFinancial Accounting and ReportingUniversity NameStudent NameAuthors’ Note
2FINANCIAL ACCOUNTING AND REPORTINGAddressee: Board of Directors Sender: XYZ Date: 11-05-2018Subject: Highlighted from analysis of financial statementsEvaluation of the annual assertion of the firm helps in presenting overall composition of thegroup. The company Seven Group Holdings Limited has joint ventures in which the parentcompany has the potential to control overall timing of particularly reversal of temporaryvariances (Weygandt et al., 2015). Again, it is also likely that the variances shall not reversein the predictable future. Investment of the group in particularly Coates Hire can becategorised as specifically a joint venture even though the voting right of the group in CoatesHire 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 SquarePty Ltd (with 50% ownership interest). Total investment of the company in particularlyassociates as well as joint ventures stands at $1136.5 in 2017. Analysis of the composition of the group reveals that there are subsidiaries that areparticularly controlled by the group. This segment of segment intends to put forward the factthat the Group essentially controls a specific business entity at the time when the same isexposed to or has definite right to specific variable returns from this association (Harrison etal., 2015). Essentially, financial declarations of different subsidiaries of the firm are alsocounted in the consolidated pecuniary declarations of the firm. The group has associates withvarying percentage of ownership interest that include Beach Energy Limited, Energy PowerSystems Australia Pty Ltd, Impulse Screen Media Pty Ltd, iSeekplant Pty Ltd, Mo’s Mobiles
3FINANCIAL ACCOUNTING AND REPORTINGPty 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 subsidiarycorporation is an entirely separate entityIt can be hereby brought to your notice that yearly financial statements of the firm presentsconsolidated financial assertion. This helps in covering actions of the parent corporation aswell as its subsidiaries in a single statement (Hunton et al., 2015). In essence, thisconsolidated financial assertions shows as if they are essentially a single firm functioningunder 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 theoutcomes of particularly subsidiaries are reflected unconnectedly in group’s consolidatedassertions of profit/loss along with other comprehensive earnings, consolidatedpronouncement of group’s financial position along with consolidated assertion for alterationsin equity (Tilt et al., 2014). As mentioned in the statement of Profit/Loss, non-controllinginterests stand at $1.5 million. Goodwill on acquisition/Gain on bargain purchase/Impairments to assetsIt can be hereby mentioned that the Group under consideration has modified the accountingpolicy and in view of that identified an enhancement in goodwill to $85 million. Also, it canbe mentioned in this context that management judgement is necessary for approximation ofinfluence of different facets on earnings in the upcoming period upholding subsistinggoodwill as well as intangible assets (Lin, 2017). The investments of the group also counts in
4FINANCIAL ACCOUNTING AND REPORTINGgoodwill recognized on acquirement, net of any kind of accumulated losses of impairment.Particularly, goodwill reflects excess of acquisition costs over particularly fair value of theshare of the group of net identifiable assets of particularly acquired subsidiaries or else equityaccounted investee at particularly acquirement date. As such, goodwill of particularlyacquirements of subsidiaries is counted as intangible asset. Also, it can be hereby informedthat goodwill on acquisitions of chiefly equity accounted investee is counted in investmentsaccounted for utilizing method of equity (Millo et al., 2016). It is also important to take noteof the fact that goodwill is not necessarily amortised and in place of that examined for thepurpose of impairment yearly otherwise more regularly. In this regard, it is important to putfirth the fact that goodwill is appropriately monitored for the purpose of internal reporting. Analysis of the whether the firm has a foreign subsidiary firmDifferent group entities essentially foreign group entities that do not have the currency of thehyperinflationary nation and functional currency for operation other than the Australia dollarare existent (Suryanto, 2016). In this regard, it can be hereby mentioned that there existsforeign currency variances for particularly foreign operations and that stands at ($48.6million). Also, the group is particularly conditional on income taxes in the nation Australia aswell as jurisdictions particularly in places where the company has foreign operations. Company’s policy on sustainability, corporate governance, committee of audit, solvencyAnalysis of firm’s annual statement replicates the fact that in a bid to uphold economicsustainability of the firm, the company maintains a register for strategic risk analysis. Thisregister can help in identification, assessment, ranking along with upgrading importantstrategic risks (Brusca et al., 2016). Yearly assertion of the firm reflects that this reportcontains a separate segment on corporate social responsibility that replicates the fact that thecompany is concentrated on sustainability during long term period. As such, this company
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