SUGGESTIONS REGARDING ASSIGNMENT 1USE YOUR INDEX WISELY......Go to Balance Sheet, Income Statements, NOTE 1 (methods adopted by company) and other notes from the financial reports, Remuneration Report, Auditors ReportREMUNERATION REPORT – SCREEN SHOT OR TAKE ELEMENTS FROM ACTUAL REPORT IN RELATION TO EXECUTIVE REMUNERATION. LINKED TO PROFIT? SHARE PRICE? OR OTHER - consider how this drives culture with organisations including a desire to obtain profit to receive bonus payments.ISSUES WITH REMUNERATION can be SELF INTEREST – SHORT TERM DECISION MAKING, TELEOPATHY (unhealthy pursuit of goals), manipulation of accounts, not adhering to the conceptual framework, aasb issues like in leasesIn your discussion using examples from annual reports (of many companies) will assist however focus should be on your company(ies)GPFR – general purpose financial reports – for users to make financial decisionsperhaps to affect profit rather than in accordance with AASB or conceptual frameworkINVENTORY – OVERSTATE- aasb VALUED AT COST OR LOWER OF COST OR MARKET.ACCOUNTS RECEIVABLE – OVERSTATE – ESTIMATION OF PROVISION FOR BAD AND DOUBTFUL DEBTS – UNDERSTATE YOUR PROVISIONPPE – OVERVALUE – EXCESS VALUATION (PRUDENCE) – DEPRECIATION – CHOOSE METHODS perhaps to affect profit rather than in accordance with AASB or conceptual frameworkLIABILITIES – LEASES – INTANGIBLE ASSETS – NOTES – LOOK FOR EVIDENCE OF ANY LEASINGContingent legal liabilities – where companies have had to pay out legal obligations due to issuesLEASES HAVE BEEN LEFT OFF BALANCE SHEETS – LIMIT RATIO – ATTRACT INVESTORSOverstated Revenues, sales returnsUnderstated expensesTAXATIONTRANSFER PRICING – FACEBOOK -TAXATIONEg.TRANSFER PRICING – FACEBOOK -3-5 BN additional tax payments
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