ACC00145 - AASB Standards & Financial Reporting: Amcor Analysis

This report provides an analysis of financial reporting, focusing on the incorporation of social accountability in AASB and the importance of AASB in Australian business practice, particularly in the context of Amcor Limited. It examines the types of information provided in Amcor's annual report, the benefits to managers for disclosing specific information, and the response of investors to these disclosures. The report also discusses effective communication in financial statement presentation, referencing AASB 101 and IAS 1. The analysis highlights the role of AASB in ensuring compliance and maintaining integrity in financial services, emphasizing the significance of social accountability and the need for consistent implementation of social reporting practices across different types of companies. This student-contributed assignment is available on Desklib, a platform offering study tools and resources for students.

Running head: FINANCIAL REPORTING
Financial Reporting
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Executive Summary
The have included social accountability concept incorporated in AASB and covered the several
types of the other aspects of GPFR. Incorporation of Social Accountability in AASB is identified
with the general level of the public accountability which is expected that the community and the
social accounting disclosures are present for government. Importance of AASB in the Australian
business practice with the interpretations which are stated as per the definitive ideas considered
as per IASB guidelines. Furthermore, the important of such a conceptual framework is also seen
to eb based on the several types of the other aspects of the reporting which first time adoption,
share based payment and presentation of the financial statement as per the general compliance of
the accounting standards. The inclusion of the various types of the specific information
pertaining to social accounting is seen to form the base form the basis of the information for
enhancing the interest of the investors.

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Table of Contents
Introduction......................................................................................................................................3
Incorporation of Social Accountability in AASB............................................................................3
Importance of AASB in the Australian business practice...............................................................4
Types of information provided in the annual report of Amcor Limited..........................................4
Benefits to the managers for disclosure of specific types of the information in Amcor.................5
Response of the investors for the disclosure of specific information in their financial report........5
Effective communication by presentation of information...............................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
List of Appendix..............................................................................................................................9

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Introduction
Amcor is considered as the global leader in terms of the delivering the services which are
seen to be depicted as per producing and developing high quality of packaging solutions for
personal-care, pharmaceutical and medical-device. The operational leadership of the company is
depicted with the excellence in the field of procurement and manufacturing by developing
various types of the cost advantages for the customers. The innovation aspect of the company
needs to be identified as per developing of products, processes and services which are
differentiated in nature. The main discussions of the study have included social accountability
concept incorporated in AASB and covered the several types of the other aspects of GPFR
(Amcor.com 2018).
Incorporation of Social Accountability in AASB
As per AASB 1053, the conceptual framework of AASB has suggested several
disclosures for profit making entities in the public sector. The board has declared that the nature
of social accounting in profit making entities among the public sector is different from the
private sectors pertaining to the social policy obligations. In addition to this, under the different
tiers of reporting there may be several types of complexities which relate to the changing
requirements for different sizes of the entities. This is further seen to vary in terms of the
political, social and economic requirements across the wide range of economic sectors. In order
to avoid such inconsistencies, it needs to be identified that the various types of the companies are
seen to be implement and facilitate the social reporting in an effective and efficient manner. As
per the statement under the general level of the public accountability it is expected that the

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community and the social accounting disclosures are present for government (Aasb.gov.au
2018).
Importance of AASB in the Australian business practice
The “Australian Securities and Investments Commission’s (ASIC's)”, is identified with
the role of implementing and formulating the several types of functions which are based on the
enforcing and regulate financial services for maintaining integrity among the consumers. Some
of the important interpretations of AASB needs to be identified with the companies adhering to
the Corporation Act 2001 and government preparing the financial statement as per the guidelines
of “General Government Sector (GGS)” (Croes and Rivera 2017). It is seen that AASB has a
pivotal role in maintain the compliance of reporting as per “Tier 1: Australian Accounting
Standards” and “Tier 2: Australian Accounting Standards – Reduced Disclosure
Requirements”, under AASB 1053. The requirements as per the IFRS is seen to include the
interpretations which are stated as per the definitive ideas which are considered as per IASB.
Furthermore, the important of such a conceptual framework is also seen to eb based on the
several types of the other aspects of the reporting which first time adoption, share based payment
and presentation of the financial statement as per the general compliance of the accounting
standards (Cohen 2017).
Types of information provided in the annual report of Amcor Limited
The annual report of the company is seen to be in compliance with the guidelines of
AASB and includes the fundamental information such as income statement, statement of

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financial, stamen for changes in equity and cash flow statement. The various types of the
disclosures of the financial information in the annual report of Amcor has been segregated under
six sections. The first section has stated on the earning per share, dividends, segmental
performance, taxation, income and expense. The second sections of includes inventories, trade
and receivables disclosure. The third section of the study have shown important discussions
pertaining to the group’s capital risks such as net debt and capital management (Michelon and
Vourvachis 2015). The important information in the section 4 is recognised with the business
portfolio disclosure. These are depicted as per the acquisitions made by the business and the
various types of the equity accounted investment. The faith and sixth has included the disclosure
pertaining to the employee remuneration and other disclosures such as adductor’s remuneration,
deed of the cross guarantee and various types of the other information for subsequent events
(Belal 2016).
Benefits to the managers for disclosure of specific types of the information in Amcor
The information pertaining to the social accountability is depicted with including the
specific information such as responding to the requirements of environment and communities. In
the 2017 edition of the GRI report the annual research report of the company has stated on the
significant nature of the information which are seen to be associated to the public disclosures of
the social reporting under the ESG initiatives. The incentive for the management for the
disclosure of such information is depicted with better assessment of the suppliers. The managers
are also able to maintain the significant nature of the standard pertaining to the minimizing the
environmental impact and maximizing the social value. In case of the larger the manufacturing
concerns the managers are able to increase the efficiency in terms of using the raw materials
(Fuentes-Saguar, Mainar-Causapé and Ferrari 2017).

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Response of the investors for the disclosure of specific information in their financial report
The various types of the conceptual disclosure are seen to form a significant part of the
financial reporting. The inclusion of the various types of the specific information pertaining to
social accounting is seen to form the base form the basis of the information for enhancing the
interest of the investors. It needs to be understood that the investors also seen with the disclosure
of the various types of the information which are associated to the social accountability. Some of
the specific nature of the other financial information looked by the investors are depicted in
terms of the deviation in the closing price of the shares in compared to the market index. In
addition to this, some of the other nature of the information analyzed by the shareholders are also
depicted with the earning price of the shares in the previous years of operations (Fathurrahman,
Kat and Soytaṣ 2017).
Effective communication by presentation of information
The guidelines for the presentation of the information needs to be depicted with AASB
101. The comparison and presentation rulings are also seen with “Presentation of Financial
Statements” incorporated by IAS 1. The standard has further identified the disclosure relating to
the Tier 1 requirements and tier 2 requirements. The tier 1 has stated about presentation of
information for the profit-making entities. Both profit-making and non-profit making entities
needs to prepare the report as per IAS 1 however in case of any “Aus” paragraphs this standard
may not be applicable. The tier 2 entities are further seen to report the general purpose of the
financial statements which are seen to be associated to the consideration of various types of the
information with reduced compliance of IFRS. The AASB 1053 also applies to the ensure better
conformity of GPFR and comparability of the reports. The important information as per the

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IFRS is also identified with compliance of the International accounting standards along with
several types of IFRIC and SIC assessment (Grubnic 2014).
Conclusion
The significance of AASB for the Australian business is understood with the “Australian
Securities and Investments Commission’s (ASIC's)”, is identified with the role of implementing
and formulating the several types of functions which are based on the enforcing and regulate
financial services for maintaining integrity among the consumers. Some of the important
interpretations of AASB needs to be identified with the companies adhering to the Corporation
Act 2001. The social accountability importance in the report is discussed with the different tiers
of reporting which may involve several complexities relating to the changing requirements for
different sizes of the entities. In order to avoid such inconsistencies, it needs to be identified that
the various types of the companies are seen to be implement and facilitate the social reporting in
an effective and efficient manner.

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References
Aasb.gov.au. 2018. Presentation of Financial Statements [online] Available at:
https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf [Accessed 22 Sep.
2018].
Amcor.com. 2018. Overview [online] Available at:
https://www.amcor.com/about/overview/being-amcor [Accessed 22 Sep. 2018].
Belal, A.R., 2016. Corporate social responsibility reporting in developing countries: The case of
Bangladesh. Routledge.
Cohen, S.I., 2017. Social accounting for industrial and transition economies. Routledge.
Croes, R. and Rivera, M.A., 2017. Tourism’s potential to benefit the poor: A social accounting
matrix model applied to Ecuador. Tourism Economics, 23(1), pp.29-48.
Fathurrahman, F., Kat, B. and Soytaṣ, U., 2017. Simulating Indonesian fuel subsidy reform: a
social accounting matrix analysis. Annals of Operations Research, 255(1-2), pp.591-615.
Fuentes-Saguar, P.D., Mainar-Causapé, A.J. and Ferrari, E., 2017. The role of bioeconomy
sectors and natural resources in EU economies: A social accounting matrix-based analysis
approach. Sustainability, 9(12), p.2383.
Grubnic, S., 2014. Accountability, Social Responsibility and Sustainability: Accounting for
Society and the Environment.
Michelon, G. and Vourvachis, P., 2015. Accounting for social value [book review].

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Retolaza, J.L., San-Jose, L. and Ruíz-Roqueñi, M., 2016. Social accounting for sustainability:
Monetizing the social value. Cham: Springer.
List of Appendix

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