Financial Accounting and Reporting Assignment - (Doc)

EXECUTIVE SUMMARY
The report has followed the premise of the title. The topic of the report has laid down the
importance of the role of the management in the accounting and the financial reporting practices
adopted in the company. The first aim of the report is to have an investigation of the affairs and
the performance of the company as exhibited in the annual report of the company. The other aim
of this report is to evaluate the accounting policies adopted by the company and how the strategy
of company has been reflected from the applied accounting concepts and the accounting policies.
The other aim of this report is to evaluate and identify the discrepancies present in the annual
report of the company and assess whether company has complied with the conceptual framework
of accounting. This investigation report has been made available with appropriate sections and
bifurcation.

Contents
EXECUTIVE SUMMARY................................................................................................. 2
INTRODUCTION........................................................................................................... 4
ACCOUNTING POLICIES ADOPTED..............................................................................5
FLEXIBILITY IN ACCOUNTING...................................................................................... 6
ACCOUNTING STRATEGY............................................................................................ 8
DISCLOSURE AND ITS QUALITY................................................................................... 9
RED FLAGS IN ANNUAL REPORT...............................................................................10
REPORTING – CONCEPTUAL FRAMEWORK................................................................10
CONCLUSION............................................................................................................ 11
REFERENCES............................................................................................................ 11

INTRODUCTION
Every company shall function in the proper manner. The overall working of the company
depends upon each function that the company performs whether it is purchase, sales, production
or marketing. These functions further depend upon the main function of the company which is
finance function. It’s the function of the finance which controls the overall working and
operations of the company. Many of the companies located across the globe have been collapsed
only because of the irregular conduct and operation of the finance function. For the purpose of
the investigation report, the company that has been selected is the Woolworths Limited. The
annual report of the selected company has been analyzed for the two consecutive periods – two
thousand and seventeen and two thousand and sixteen.
Under the first heading of the report, the key accounting policy adopted by the company has
been identified in relation to estimates, critical factors, etc. Under the second heading, the
probabilities of the distorted picture of the financial statements have been detailed with reference
to the choices of the managers. Then the strategy of the management has been evaluated as to
how the management of the company has allowed the managers to make choices as per their
discretion. In the next heading, the quality of the disclosure of the financial information in the
annual report has been discussed. Along with the above, in the next section, the flaws in
accounting and financial reporting practices have been detailed and identified the areas which
require the more information. In the last section of the main body of the report, the assessment
has been made whether the company complies with the conceptual framework of accounting or