Financial Reporting: A Study on Social Accountability and Compliance with AASB

Running head: FINANCIAL REPORTING
Financial Reporting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1
FINANCIAL REPORTING
Executive Summary
The discussions of the study have depicted the consideration for conceptual framework and
social accountability as specified by the GPFR. The analysis of the report as per the financial
regulatory authority of Australia have defined about the importance of AASB in defining the
practices pertaining to business. In addition to this, the report has also identified crucial
information of financial statements which have been published by Nick Scali. The findings
pertaining to the study have stated about social accountability concepts under AASB. The
important findings of Social Accountability under the conceptual Framework of AASB shows
the social benefits are focused on the individuals who have defaulted on specific eligibility
criteria or wish to alleviate any form of social risk which are pertaining to commonly accessible
service. In addition to this, the risk pertaining to social accountability such as event of adversary
has been also included under the conceptual framework of AASB. The main imperative for
AASB needs to be considered with the purposes and objectives for exercising various power
which was stated under Part 12 of the “Australian securities and investments commission act”.
The financial statement of Nick Scali Limited is also discerned to include the statement for
showing position of cash flow in the last two years. The significant information in the annual
report is to be also discerned with the declarations pertaining to the directors. The last part of the
financial statement has also included the evidence for including shareholders statement and
corporate information.

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FINANCIAL REPORTING
Table of Contents
Introduction......................................................................................................................................3
Social Accountability in the AASB conceptual Framework...........................................................3
Importance of complying with AASB in the Australian business practice.....................................4
Nature of information facilitated in the annual report of Nick Scali Limited.................................4
Incentives to the manager for disclosing certain types of the information in Nick Scali Limited. .5
Reaction of the investors for disclosure of certain types of the information in the annual report...6
Presentation of the information and effective communication........................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
List of Appendix............................................................................................................................11

3
FINANCIAL REPORTING
Introduction
The company chosen for this assignment is Nick Scali Limited which is listed under
ASX. Nick Scali Limited and its subsidiaries are involved in different types of operations
relating to retailing and sourcing of household furniture is across New Zealand and Australia.
The main products include a wide range of furniture such as TV units, dining tables, chairs,
pendants and buffet. The discourse of the study has primarily focused on the social
accountability concepts listed under AASB and also covering the major compliance which are
stated as per GPFR. The latter part has also included presentation of information by AASB
(Au.finance.yahoo.com. 2018).
Social Accountability in the AASB conceptual Framework
The excerpt from “AASB 1053 (June 2010)” depicts that the normal portion of public
funds in terms of different areas of public amenities and social activities are often maintained in
support of the government (Aasb.gov.au. 2018). Despite of this, the funds pertaining to
individual source for any corporation is at a much lower degree in terms of financial information
needed by the individual. A considerable amount of public accountability needs to be
incorporated within the sources of funds which are as per the sponsors or foundations of
accounting. The existing gap for the AASB in terms of principles relating to Aus-specific
standards should be also addressed. This criterion needs to overcome the gaps which are
associated with social benefits of a project. Moreover, the social benefits are also focused on the
individuals who have defaulted on specific eligibility criteria or wish to alleviate any form of
social risk which are pertaining to commonly accessible service. In addition to this, the risk