Report on Corporate Accounting in Australia
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Added on 2020-05-28
Report on Corporate Accounting in Australia
Added on 2020-05-28
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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of the StudentName of the UniversityAuthor’s Note
1CORPORATE ACCOUNTINGTable of ContentsPart I.................................................................................................................................................2Answer to Q1...............................................................................................................................2Answer to Q2...............................................................................................................................2Answer to Q3...............................................................................................................................2Answer to Q4...............................................................................................................................3Part II...............................................................................................................................................4Introduction..................................................................................................................................5Literature Review........................................................................................................................5Disclosure Regime of Australia...............................................................................................5Principles of Continuous Disclosure.......................................................................................6Selective Disclosure.................................................................................................................8Surveillance.............................................................................................................................9Conclusion...................................................................................................................................9References..................................................................................................................................10
2CORPORATE ACCOUNTINGPart IAnswer to Q1Some major financial difficulties have hit the business of Bellamy’s Australia Ltd in therecent years. Certification and Accreditation Administration of the People’s Republic of China(CNCA) has put trading halt on the shares of Bellamy’s Australia Ltd as the Chinese authorityhas imposed a suspension on the milk-exporting license from the Melbourne plant. This aspecthas hit the financial position of Bellamy’s Australia Ltd badly. Apart from this, the managementof Bellamy’s Australia Ltd has asked the Australian authority to suspend their share tradingprocess, as the company has not been complied with continuous disclosure regulation. However,the company has mentioned that they would get enough time to comply with the continuesdisclosure framework in this suspension period. Answer to Q2In the financial statements of 2016, Bellamy’s Australia Ltd has not reported aboutgoodwill. As per the annual report, Bellamy’s Australia Ltd acquired major segment assets in2016 (annualreports.com 2018). In the year 2016, the company acquired segment assets worth$719,000 in Australia, $25,000 in China and Hong Kong and $8000 in East Asia. Apart fromthis, increase in the cash and cash equivalent can be seen in 2017 as compared to 2016 forBellamy’s Australia Ltd. The cash and cash equivalent position of Bellamy’s Australia Ltd in2016 was worth $32,295,000 and worth $32,035,000 in the year 2015 (annualreports.com 2018). Answer to Q3According to 2017 profit and loss statement of Bellamy’s Australia Ltd, the decrease inprofit can be seen in every aspect of their business in 2017 as compared to 2016
3CORPORATE ACCOUNTING(investors.bellamysorganic.com.au 2018). In the year 2017, the company registered decreasedlevel of gross profit as compared to 2016; that is $91,521,000 in 2017 and $101,228,000 in 2016.Apart from this, Bellamy’s Australia Ltd has also witnessed massive dip in net profit as thecompany registered met loss in the year 2017; that is $(809,000) in 2017 and $ 38,328,000 in2016. Moreover, the company registered impairment loss of $(424,000) in 2017 and $(36,000) inthe year 2016. Increase can be seen in every cost of the company. It needs to be mentioned thatthe CNCA has put a suspension on the milk-exporting license of the company from Melbourneplant (investors.bellamysorganic.com.au 2018). Answer to Q4The above discussion show that Bellamy’s Australia Ltd is going through major financialdifficulties due to two specific reasons. First, CNCA put a trading halt on the shares of Bellamy’sAustralia Ltd followed by the suspension of milk-exporting licence from Melbourne plant.Second, the company itself requested Australian authority to suspend their share trading due tonon-compliance with the regulations of continuous disclosure regime. These two aspects has hitthe financial position of the company so hard that the company registered losses in every aspectof their business and the company will take some times to recover from this situation. For allthese reasons, it is advised to the shareholders of Bellamy’s Australia Ltd to sell their shares asthe company’s financial position can become worse in near future.
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