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BAO2203 The Role of Continuous Disclosure Framework - Bellamy Australia Limited

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Victoria University | Melbourne Australia

   

BAO2203 - Corporate Accounting (BAO2203)

   

Added on  2020-05-28

BAO2203 The Role of Continuous Disclosure Framework - Bellamy Australia Limited

   

Victoria University | Melbourne Australia

   

BAO2203 - Corporate Accounting (BAO2203)

   Added on 2020-05-28

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Running head: THE ROLE OF THE CONTINUOUS DISCLOSURE FRAMEWORKThe Role of the Continuous Disclosure FrameworkName of the Student:Name of the University:Author’s Note:Course ID:
BAO2203 The Role of Continuous Disclosure Framework - Bellamy Australia Limited_1
1THE ROLE OF THE CONTINUOUS DISCLOSURE FRAMEWORKTable of ContentsPart 1:...............................................................................................................................................2Answer to Question 1:.................................................................................................................2Answer to Question 2:.................................................................................................................2Answer to Question 3:.................................................................................................................2Answer to Question 4:.................................................................................................................2Part II:..............................................................................................................................................2Abstract:.......................................................................................................................................2Introduction:................................................................................................................................2Literature review:.........................................................................................................................2Conclusion:..................................................................................................................................2References:......................................................................................................................................3
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2THE ROLE OF THE CONTINUOUS DISCLOSURE FRAMEWORKPart 1:Answer to Question 1:In the current years, it could be observed that Bellamy’s Australia Limited is goingthrough certain financial predicaments because of different particular reasons. One suchpredicament is the trading halt of its shares, since its license has been suspended on the part ofthe “Certification and Accreditation Administration of the People’s Republic of China (CNCA)”needed to export milk formula from the plant of Melbourne. Thus, this aspect has impact on thefinancial position of the firm. (Lewis 2016) Another major issue for Bellamy’s Australia Limitedis inherent in the current period. It has been identified that the organisation has requested theASX in relation to its share suspension and such decision has negative impact on theshareholders. The primary reason behind this share suspension is the non-adherence to the doctrines ofcontinuous disclosure (Fergie 2017). As per the statement of the management of theorganisation, it would not have adequate time in managing its obligations related to continuousdisclosure. Thus, these two main aspects are the main reasons behind the financial predicamentsfor Bellamy’s Australia Limited. Answer to Question 2:In accordance with the annual report of the organisation, it could be found that goodwillis not mentioned in its financial statements in 2016. However, it has acquired some significantsegmental assets in the same year. Some of the asset acquisitions of the organisation include$719,000 in Australia, $8,000 in East Asia and $25,000 combined in Hong Kong and China(Annualreports.com 2018). The balance sheet statement of the organisation states that the cash
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3THE ROLE OF THE CONTINUOUS DISCLOSURE FRAMEWORKand cash equivalent has been $32,295,000 in 2016 compared to $32,035,000 in 2015. Hence,there has been a marginal increase in the cash base of the organisation. Answer to Question 3:As per the income statement of Bellamy’s Australia Limited, it has experienced declinein profit level in 2017 compared to 2016. The gross income has fallen from $101,228,000 in2016 to $91,521,000 in 2017. The situation has worsened in 2017 due to the net loss sufferedamounting to $809,000 compared to net income of $38,328,000 in 2016. In addition, there isincrease in administrative and other costs in 2017 compared to the past year. Finally, the milk-exporting license of the organisation from the Melbourne plant has been suspended on the part ofCNCA (Hyatt and Approx 2017). Answer to Question 4:The above discussion clearly states that the financial condition of the organisation hasexperienced a downfall in 2017. The share suspension and trading halt have experiencedsignificant negative impact on the financial performance of Bellamy’s Australia Limited. Due toall these aspects, it has incurred significant loss in 2017. Hence, the clients are advised to sell theshares of the organisation.
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