Regulation of Financial Statements and Analysis of Equity and Debt Position of Listed Entities in Mineral Industry

TABLE OF CONTENT
TABLE OF CONTENT...............................................................1
EXECUTIVE SUMMARY...........................................................2
INTRODUCTION.......................................................................3
Annexure-1(i).............................................................................4
Annexure-1(ii)............................................................................5
Annexure-3................................................................................6
References:.............................................................................12

EXECUTIVE SUMMARY
The report highlights the importance of regulation of financial statements along with the drawback of
not regulating the same. The report further set out to deal in length about how AASB contributes to
IFRS and the rationale behind IFRS not being declared mandatory for members.
In the second half of the report, the analysis deals with the equity and debt position of 4 listed entities
dealing in mineral industry. Further, the analysis has been carried out over a period of 4 years.

INTRODUCTION
This report shows the requirement of the preparation of financial statement along with the
shortcomings of not preparing the financial statement. This report shows the contribution of AASB to
IFRS and reason IFRS not being made mandatory to members.
The other part of the report deals about four listed companies in mineral industry and there debt and
equity position over a period of four years.

Annexure-1(i)
Expanding of corporate scandal like Enron and WorldCom lead to the emergence of regulation of
accounting system and a fair and transparency reporting so that all the books of the company is
maintained in such a way that it depicts a true picture of the company without any hidden transaction.
All the bodies and regulators have thereby requested for the reporting pattern which should be
transparent in nature and improvement in standards of accounting and rules thereof.
(Uniassignment.com, 2018) It is very mush necessary to set the standards on accounting as on the
basis of this the auditors can easily form there opinion about the companies and provide justification
on the report on basis of such standard which enhance the value of their professionalism.
The accounting regulation and set of standard also ease the users of financial statement to make
comparison easily and judge the future prospects of the company and their investment decision. It
also helps in saving of cost if certain information is easily available from the disclosures.
The disclosure and setting of standard in accounting helps the investors to easily make their
investment decision so helping the entity to maximise their value and achieve high value.
The error of non-reporting can hide many material facts from the users to financial statements and the
investors will be at risk so a need to regulate the accounting system is required. The disclosures in
financials of the company solve the gap of information between the directors of the company and the
outsiders such as shareholders, suppliers, customers, government and others; it makes the user
group to easily compare the financials of the company with the other company within the same
industry. The accounting method to choose from must be reliable, easily understandable and
comparable with other company in same industry. Through regulation in accounting scam such as
WorldCom can be prevented.