Comparative Analysis of Corporate Reporting Quality

FINANCIAL REPORTING QUALITY

Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Comparative Analysis of Corporate Reporting.........................................................................4
2.1 Identification of Companies...................................................................................................4
2.2 Comparison on the Basis of Preparation of Financial Statements.........................................4
3.0 IFRS Convergence: Initiative towards Improved Quality of Financial Reporting....................7
4.0 Conclusion.................................................................................................................................9
References......................................................................................................................................10
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1.0 Introduction
Corporate reporting may be considered to be one of the most critical and success-critical aspects
of business studies as the same includes the consideration of lots of factors that are both internal
as well as external to the business. An effective corporate reporting ensures the brand value and
investor’ expectations amidst the external stakeholders of the business (Carmona, Salvador and
Trombetta. 2008). On the other hand, a falsified and erroneous financial reporting may
significantly hamper the corporate image and consequently equity holders' information need
about the financial health and results of the operations of the business. The given paper deals
with the importance of effective corporate reporting from the perspective of organizations. At the
very beginning of the study, the researcher, in the given case, attempts to analyse the case from
the reference of real-world examples of four companies followed by the justifications for
choosing the selected companies for the research. In the next part of the study, the researcher
explains the process of how the convergence of IFRS will lead towards the greater value
creation. Finally, the researcher wraps up the discussion by way of concluding note.
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2.0 Comparative Analysis of Corporate Reporting
For the purpose of analysis of the implication of corporate reporting in line with the
pronunciations made in the IFRS regime, the four different companies have been chosen in the
instant paper. The brief details of those companies are listed herein.
2.1 Identification of Companies
The researcher has considered of selecting four companies from two different countries; one is
the home country i.e. Sri Lanka and another in Australia. Two companies are being chosen from
each country. All the four companies belong to the same industry which is banking and
insurance. For better clarity, one banking corporation and one insurance company are being
chosen here.
The first company is Amana Bank Plc. This company is a banking corporation based in Sri
Lanka. The second company is AIA Insurance Lanka Plc which is a Sri Lanka based insurance
house. It is needless to mention that both the companies are listed in Colombo Stock Exchange
i.e. CSX (Cse.lk, 2018).
On the other hand, the researcher has identified Australia and New Zealand Banking Group
Limited (ANZ) which is a bank of Australia. Also, the banking and insurance company named
AMP Limited has been chosen. Both the companies are listed in the Australia Stock Exchange
i.e. ASX (Asx.com.au, 2018).
2.2 Comparison on the Basis of Preparation of Financial Statements
The analysis of annual reports of each of the four companies for the financial year 207 may
reveal the fact that all the financial statements have been prepared in a different manner. For
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