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BAO2203 Corporate Accounting Assignment - (Solved)
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Added on 2020-05-28
BAO2203 Corporate Accounting Assignment - (Solved)
Added on 2020-05-28
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Running head: CORPORTE ACCOUNTINGCorporate accountingName of the studentName of the universityAuthor note
1CORPORTE ACCOUTINGTable of ContentsPart 1..........................................................................................................................................2Answer to question 1..............................................................................................................2Answer to question 2..............................................................................................................2Answer to question 3..............................................................................................................3Answer to question 4..............................................................................................................3Part 2..........................................................................................................................................4Introduction................................................................................................................................5Literature R-eview.....................................................................................................................5Release of information on time:.............................................................................................6The access to the information -should be equal:....................................................................7Premature release:..................................................................................................................7Variable commercial interests:...............................................................................................7Prevention of the disclosure of the confidentiality of information:.......................................8Enforcement and remedies:....................................................................................................8Conclusion..................................................................................................................................9References................................................................................................................................10
2CORPORTE ACCOUTINGPart 1Answer to question 1It has been observed that Bellamy`s Australia Ltd has faced some serious financialcrisis due to some reasons. The reasons are specific and they are quite major. It was howeverreported that the company was facing a halt in the shares that they had as Certification andAccreditation Administration of the People`s Republic of China (CNCA) that suspended thelicense of the company that is required for the export of the milk formula from the plant ofMelbourne. The halt in the share trading has affected the in the financial position of thecompany. Apart from this it has been observed that the company has faced another majorissue in the current times. It was witnessed that Bellamy`s Australia Ltd has requested theAustralian Stock Exchange (ASX) for the suspension of their shares. This decision had ahavoc effect on the company and especially on the shareholders. The decision had a negativeeffect on the company. The major reason of this decision is the non-compliance with theprinciples of continuous disclosure. The Bellamy`s Australia Ltd came up with the view thatthe decision of suspension would enable to get enough time to manage their obligation for thecontinuous disclosure. These two important reasons are causing a financial quandary for thecompany.Answer to question 2The annual report of the company proved that the company has neglected about theoption of goodwill in their financial statements for the year 2016. They made assetsacquisition of 719,000 dollars in Australia, 8000 in East Asia and 25,000 combined in China(annualreports.com 2018). This proved the fact that the company had some majoracquisitions of segment assets in the year 2016. Therefore it has been observed that there has
3CORPORTE ACCOUTINGbeen a slight increase in the cash position in the year 2016 as compared to the year 2015(annualreports.com 2018).Answer to question 3The statement of profit and loss of Bellamy`s Australia Ltd shows the decreased levelof profit for the company in the year 2017 as compared to the year 2016. In the year 2017, itwas observed that the company faced a decrease in the gross profit as compared to the year2016. In the year 2016 the company faced the profit of 101,228,000 dollars and in the year2017 the company suffered the loss as it had the profit of 91,521,000 dollars. This was not theend things grew worse when the company witnessed a net loss of 809,000 dollars in the year2017. On the other hand the net profit of the company in the year 2016 was 38,328,000dollars. The years 2016 and 2017 saw an increase in the administrative and other costs. Laterthe CNCA suspended the milk-exporting license on Bellamy`s Australia Ltd from theMelbourne plant (investors.bellamysorganic.com.au 2018).Answer to question 4The above explanation justifies the fact that the financial position of Bellamy`sAustralia Ltd has become shoddier in the year 2017. The negative effect was because of thehalt that the company had to experience in the trade and also the suspension of the shares.The above mentioned aspects are the only thing responsible for the major loss of thecompany in the year 2017. The company is going through such loss that it is recommendedfor the clients to sell the shares of Bellamy`s Australia Ltd.
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