Financial Accounting: Disclosure, Reporting, and Owners' Equity

Financial Accounting 1
Corporate and Financial Accounting
Student Name
Class & Course
Professor
University
City & State
Date

Financial Accounting 2
Executive Summary
This report focusses based on the concept of financial accounting disclosure and reporting.
The study addresses different aspect of financial accounting disclosure and reporting such as
methods of disclosure, adoption, and application of IASB by member states, and how owners'
equity is affected by respective items. First, the available literature and different opinions,
regulated disclosure and reporting should be supported because it promotes sustainability and
transparency in the financial accounting disclosure and reporting. Second, IASB was formed
to ensure that there is universally accepted accounting standards that promote comparability
and transparency. To achieve this objective IASB cooperates with nationally based
accounting standards such as AASB for converging accounting standards. Third, IASB
allows AASB and other member states to amend the international standards to converge with
their national states. Fourth, changes in owners' equity are impacted by the decrease and
increase of respective items such as issued capital, Treasury stock, Reserves, Retained
earnings, and Non-controlling interest as established in the analysis of four ASX listed
companies.
Table of Contents

Financial Accounting 3
Executive Summary.................................................................................................................2
Introduction..............................................................................................................................4
Corporate and Financial Accounting.....................................................................................4
Section One: Corporate Regulation...................................................................................4
Regulated versus Voluntary financial accounting disclosure and reporting......................4
Section Two: Accounting Standard Setting.......................................................................6
Contribution of AASB to IASB.........................................................................................6
Non-Compulsory adoption of IASB by members..............................................................6
Section Three: Owners’ Equity...........................................................................................7
i) Changes in each item of equity...................................................................................7
a) Beach Energy Limited.............................................................................................8
b) Caltex Australia.......................................................................................................9
c) Santos Limited.......................................................................................................10
d) Woodside Petroleum..............................................................................................11
ii) Comparative analysis of the debt and equity position of the four selected...............11
Conclusion...............................................................................................................................12
References list.........................................................................................................................14

Financial Accounting 4
Introduction
This report is based on the concept of financial accounting disclosure and reporting. The
report is divided into three sections with respective sub-sections. Section One addresses
corporate regulation by choosing the most appropriate accounting reporting and disclosure
method between voluntary and regulated. Section two address the relationship and
cooperation between the IASB and the AASB and why IASB cannot compel member states
to adopt its accounting standards without amendments fully. Section three discusses a
comparative analysis of Owner's equity of four ASX companies namely Beach Energy
Limited, Caltex Australia, Santos Limited and Woodside Petroleum. The section is divided
into two sub-sections: a) analysis of changes in owner's equity between 2014 and 2017 for
each of the company; and b) Comparative analysis of the debt to equity ratio of the four
companies.
Corporate and Financial Accounting
Section One: Corporate Regulation
Regulated versus Voluntary financial accounting disclosure and reporting
The new trend in the accounting practices require companies to focus their disclosure and
reporting on factors such as corporate governance, social and environmental. Different
stakeholders have interest in understanding the key core business and operation activities of a
company. In other word, stakeholders are interested in the material definitions of an
organization’s activities through financial statements and annual reports (Dagwell, et al.,
2015, p. 69). While some stakeholders support regulated financial accounting reporting and
disclosure others are for a voluntary financial reporting and disclosure option. Therefore,
there is a question on which is the best financial disclosure and reporting option for corporate
managers (Henderson, et al., 2015, p. 312).