Financial Reporting Disclosures in the Australian Corporate Sector

FINANCIAL REPORTING DISCLOSURES IN THE AUSTRALIAN
CORPORATE SECTOR

Table of contents
Introduction......................................................................................................................................3
Critical analysis of some of the complexities and key issues involved in accounting for PPE.......3
Providing a detailed explanation of the PPE disclosures made by the company............................4
Critically analysing of to what extent the latest annual report of your company meets the
disclosure requirements of accounting for PPE as per AASB 116..................................................5
Critically discussing to what extent the disclosures of PPE align with the.....................................6
Conclusion and Recommendation...................................................................................................6
References........................................................................................................................................8
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Introduction
Valuation of physical and tangible asset is very crucial for a company to conduct in order to
fairly report this value to the stakeholder showing the financial position of the firm. Property,
Plant and Equipment is also tangibles asset valuation of which is very necessary in order to
report fair values of the following the financial reports of the firm. In the current Assessment
there will be discussion over the complexities which are there in the fair valuation of PPE.
Annual Report of Woolworths Group Limited that is ASX listed company will be evaluated and
analyzed to ensure the disclosure made by the following company in respect to PPE in order to
know what approach in disclosing values relating to PPE are made.
Critical analysis of some of the complexities and key issues involved in
accounting for PPE
Property Plant and Equipment are major part of financial asset which is acquired by a company
in the operational procedure. It can be asset are subject to value on realization. It can be said that
accounting for Property Plant and Equipment are very complex in nature when its comes to
accounting for there tangibles. It can be said that valuations as well as accounting for Property
Plant and Equipment comes under the AASB 116 (wow2017ar.qreports.com.au, 2018). It can be
said that valuation for plant, property and equipment is complex because of the involvement of
Impairment, depreciation and carrying values of the assets. It can be said that very asset is
termed for depreciation which is charged on the following from the date of acquisition. It can be
said that depreciation is charged on two methods that is straight line and diminishing method (Xu
et al. 2017). Thus the fair value measurement of the asset comes into play. There is two method
some companies in Australia value there asset in the date of acquisition and some organization
use the fair value measurement. It can be said that fair value measurement is termed as one of the
most efficient method when its company valuation of physical asset as it help in up to date
valuation of the firm. Other than depreciation impairment of asset is also a problem that is faced
by a company while conducting the valuation of PPE in the firm (wow2017ar.qreports.com.au,
2018). It can be said while in the operational activities of the firm a descending years result in
asset becoming impaired decrease or impairing the actual value of asset that is of the asset in the
current time. This leads to a very complex process resulting in error valuation of PPE that are
present in the company. It can be said that future value of or current value of PPE can be
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