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HA2032 Corporate and Financial Accounting Assignment

   

Added on  2020-05-16

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CORPORATE AND FINANCIAL ACCOUNTING1CORPORATE AND FINANCIAL ACCOUNTINGBy (Name)Name of the CourseProfessorName of UniversityCity and StateDateWord Count: 2838
HA2032 Corporate and Financial Accounting Assignment_1
CORPORATE AND FINANCIAL ACCOUNTING2Executive SummaryAccording to research, it has been found out that financial accounting and reportingshould be regulated. Managers must not be let to disclose financial accounting voluntarily. It hasalso been established from research that there are a number of ways in which the AustralianAccounting Standards Board (AASB) participates in setting the global standards of accounting.These have been discussed in detail in the sections below.Four public limited companies which are listed on the Australian Securities Exchange(ASX) that are in the same industry have been researched. These companies are Acacia CoalLimited, Aura Energy Limited, Amour Energy Limited and Adx Energy Limited. The researchfindings indicate that the four firms have a favorable debt and equity position since they haveused more of equity financing in funding most of their business operations. Furthermore, thereare various changes in their items of equity such as issued/contributed capital, reserves andaccumulated losses. However, it has been noted that for the Financial Years 2014 all through2017, the four firms have been making operational losses, which have consequentially translatedinto increasingly huge accumulated losses. The analysis has been provided in the varioussections below.
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CORPORATE AND FINANCIAL ACCOUNTING3TABLE OF CONTENTSCONTENTPAGEIntroduction.................................................................................................................................................4Corporate governance..................................................................................................................................4i.Whether Financial Accounting and Reporting Should be Regulated....................................4Setting of accounting standards....................................................................................................................6i.How AASB participates in setting of Global standards of accounting..................................6ii.The reasons why the IFRS Established by IASB Are not mandatory for its member countries......7Owners’ equity............................................................................................................................................7i.Items of Equity...............................................................................................................................7Issued Capital............................................................................8Reserves.................................................................................8Retained earnings and Accumulated losses.........................................8ii.Changes in items of equity and reasons for changes.........................................................9iii.Comparative analysis of the debt and equity position of the four firms................................10Conclusion.................................................................................................................................................12References.................................................................................................................................................13
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CORPORATE AND FINANCIAL ACCOUNTING4IntroductionThe main purpose of this paper is do carry out a research and discuss if the financialaccounting and reporting should be regulated or a manager should be allowed to disclosefinancial accounting information voluntarily (Vernimmen, Quiry, Dallocchio, Le Fur and Salvi2014, pp. 22). The paper also gives an explanation on how the Australian Accounting StandardsBoard (AASB) participates in the setting process of global accounting standards and why theIFRS set by IASB is not regarded mandatory for IASB member countries. This paper alsochooses four public limited companies that are listed on the Australian Securities Exchange anddiscusses their annual financial reports for the last four years with regard to items of equity aswell as debt and equity positions.A.Corporate Regulationi.Whether Financial Accounting and Reporting Should be RegulatedAfter conducting research, it has been established that financial accounting and reportingshould be regulated. Managers must not be let to disclose financial accounting voluntarily. Thisproposition is supported by a number of arguments, as found in the research. In the absence offinancial accounting reporting regulation, optimal levels of disclosure would not be generated inthe financial markets as a result of the interplaying forces. Financial instrument providers arefaced with stiff competition in the capital and financial markets which are mainly populated bynumerous investors with various interests and objectives (Whittington 2008, pp. 495). Firmswhose main concern is to maximize their shareholder value often establish attractive incentivesand consider it necessary make disclosures of all information which is available to them, forpurposes of obtaining higher prices than those of their competitors. This is done mainly because
HA2032 Corporate and Financial Accounting Assignment_4

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