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Qualitative Characteristics of the Financial Statement

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Added on  2021-06-17

Qualitative Characteristics of the Financial Statement

   Added on 2021-06-17

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Running head: ACCOUNTINGAccountingName of the StudentName of the UniversityAuthor’s Note
Qualitative Characteristics of the Financial Statement_1
ACCOUNTING1Executive SummaryThe report aims to analyze the role of the ASIC and the evaluate the resuts. The next sectionincludes the analysie which are seento be based on the various types of the “analysis ofimpairment write-downs in Wesfarmers”. The study has also identified the qualitativecharacteristics of the financial statement. The final section includes the compliance of thecompany with the GPFR for the impairment.
Qualitative Characteristics of the Financial Statement_2
ACCOUNTING2Table of ContentsIntroduction......................................................................................................................................3Role of ASIC...................................................................................................................................3Details of Impairment Write-downs in Wesfarmers........................................................................4Compliance with Qualitative Characteristics..................................................................................5Compliance with Objectives of General Purpose Financial Reporting...........................................8Conclusion.......................................................................................................................................9References......................................................................................................................................10
Qualitative Characteristics of the Financial Statement_3
ACCOUNTING3IntroductionThe primary objective of the learnings in the discussion has been seen with the evaluationof the necessary aspects related to the impairment written down for the companies which arerelated as per the “Australian Security Exchange (ASX)”. In order to maintain the simplicity“Wesfarmers Limited” is taken into consideration which is identified as the major retailer in theAustralian retail industry. The discourse in the report has focused on the role of “AustralianSecurities and Investment Commission (ASIC)” as the main corporate regulator.Role of ASICASIC is considered to be operating with the independence in the commonwealth body ofAustralia thereby ensuring the growth in the Australian economy. Among the three major rolesof ASIC, the first involves promotion of the trust and confidence of the customers and investors.The second role has been identified with assuring efficiency and fair market operation. The thirdimportant role is seen with providing efficient registration services. ASIX involves efficientregistration of thee services. In addition to this, ASIC is responsible for the different types of theimproving initiatives in the quality aspects of the financial report and surveillance is alsoconsidered as one of their main functions” (Asic.gov.au. 2018).Post review of the financial statements, ASIC has found that the main problems areassociated to the “impairment testing, asset valuation, revenue recognition, tax accounting andaccounting policy judgment and estimation”. Based on the findings of ASIC the companies areseen to be identify the “cash generating units (CGU)” with utmost priority despite of presence of“large independent cash flow, asset valuation and impairment”. In addition to this, ASIC hasevaluated the inefficiencies of the business activities based on the non-disclosure of theinformation based on “sensitivity analysis, accounting assumptions and fair value methodtechniques”. As per the ASIC the two-significant problems of revenue recognition is consideredwith recognition of the contracts of the properties and the various types of the developmentalactivities which are seen to be related to the contracts of the property brought at the time ofshowing the revenue. As per the ASIC, the techniques of the tax accounting and sufficiency forthe future taxable income for recovering the deferred tax assets is considered as the main
Qualitative Characteristics of the Financial Statement_4

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