Importance of Regulating Financial Reporting Process and Analysis of Equity Position of ASX Listed Companies

Running head: CORPORATE AND FINANCIAL ACCOUNTING
Corporate and financial accounting
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Author’s Note:

1CORPORATE AND FINANCIAL ACCOUNTING
Executive summary:
The current paper elucidates the importance of regulating the financial reporting process by
critically researching the importance of such disclosure requirement. The report has been divided
into three sections comprising of corporate regulations, accounting standard settings and owners
equity In addition to this, critical research was also conducted on the standard setting process of
AASB (Australian accounting standard board). For evaluation of owner’s equity, comparative
analysis has been performed by comparing the figures of components of equity of the companies
for four years listed on the Australian stock exchange. Data presented in the financial report of
the companies have been used for evaluating the equity and financial leverage of the companies.
Table of Contents
Introduction:....................................................................................................................................3

2CORPORATE AND FINANCIAL ACCOUNTING
Discussion:.......................................................................................................................................3
Corporate regulation:.......................................................................................................................3
Critical analysis of regulation of financial reporting and accounting:............................................3
Critical Explanation of participation of setting process of global accounting standard of
Australian accounting standard board:............................................................................................4
Explanation of why IFRS is not mandatory for IASB member countries:......................................6
Analysis of owner’s equity of four selected companies:.................................................................7
Comparative analysis of debt and equity position of chosen companies:.......................................9
Conclusion:....................................................................................................................................10
References and Bibliography list:..................................................................................................12

3CORPORATE AND FINANCIAL ACCOUNTING
Introduction:
The report has been prepared to demonstrate the importance of regulation of financial
report of companies and why the voluntary disclosure by managers of reporting entities
considered essential. The accounting standard setting process of Australian accounting standard
board has been explained critically and whether the IFRS set by standard board is mandatory for
the member countries of IASB. The later section of report conducts an analysis on the equity
position of the selected companies from the Australian stock exchange (Christensen et al. 2015).
Companies that have been selected are Argimin limited, Bauxite resources limited, Jupiter mines
limited and Adelaide Brighton limited. Agrimin limited is a mineral company that is engaged in
the development and exploration of Australian mineral properties. Bauxite resources limited on
other hand is a company that is engaged in the development, acquisition and exploration of
minerals deposit of bauxite in Australia. Jupiter mines limited is a company is a company based
in Perth, Australia which is involved in carrying out operation and development activities of
mineral resource. Adelaide Brighton limited is a manufacturer company based in Australia with
its principal activities of importing, producing, distribution and marketing of cement.
Discussion:
Corporate regulation:
Analyzing the effectiveness of financial reporting regulations:
There are various users of financial reports seeking different information and such wide
range of users comprised of government, employees, shareholders, investors, communities and