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Wesfarmers - Business & Human Rights Resource Centre (PDF)

   

Added on  2021-05-31

15 Pages3291 Words30 Views
Finance
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qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfgAuditing & Assurance
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WesfarmersExecutive summaryThis report assists in offering information on the new ASA 701 (communicating key audit matters) in the report of Independent auditor accounting for the impact of global financial crisis and revision towards ASA 570 (going concern). Further, with the help of this report, thekey audit matters of Wesfarmers will be highlighted. Moreover, an enhanced study of the company’s audit report for the year 2016 also assists in reflecting no ASA 701 standard has been adopted. Thus, this company can serve as the best example for this report. Further, othercompanies that are in the top ASX 100 like Woolworths, The A2 Milk company, Graincorp Limited , Coca Cola is taken into consideration. Nevertheless, this report reflects three significant key audit matters and offers brief reasons and description for the same. Overall, anenhanced discussion of the company’s annual report highlights that such possible KAM’s may be selected by the auditor’s in the upcoming tenures because these are effective and relevant.2
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WesfarmersContentsIntroduction...........................................................................................................................................3Reasons for revising ASA 570................................................................................................................4Major concepts of ASA 701 in the independent report of auditors.......................................................4Related matters for auditors and directors...........................................................................................4Disadvantages and advantages of ASA 701 standard............................................................................5Review of the company’s annual report and focus on Consumer Staples Sector..................................5Rebates through suppliers.............................................................................................................6Impairment of the company’s non-current assets that also included intangibles.................................7Finalization of the acquisition accounting of Homebase.......................................................................8Conclusion and recommendations......................................................................................................11References...........................................................................................................................................133
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WesfarmersIntroductionThe influence of global financial crisis reverberated the entire world that has resulted in the introduction of new accounting standards. The accounting standard related to financial instruments lacked the urgent and revision on the part of IASB. This is the reason why revision in accounting standards was held quite remarkable given that many companies were just getting accustomed to business reporting in the context of present standards (Moroney & Trotman, 2016). Moreover, the past standards were faced with an issue of significant decrement in earnings owing to extensive losses being identified on the fair value remeasurement of derivative instruments. Furthermore, the aftermath of such global financial crisis can also be observable till date and the reason behind this can be attributed to the inefficacies prevalent in the past accounting standards. Therefore, new accounting standards like ASA 701 and ASA 570 have been introduced by the IASB that played a major role in eradicating such issues (Petty et. al, 2012). Besides, key audit matters remained unreported inthe prior years, thereby costing huge amounts to the investors. Nonetheless, with the assistance of this report, annual report of Wesfarmers will be studies wherein the reasons for revising these standards will be highlighted. This will be followed by directors and auditors’ concerns regarding the same and lastly, the disadvantages and advantages of ASA 701 will also be discussed.4
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