Accounting Report: Analysis of IWebGate Limited Business Combination

This report provides an analysis of the accounting practices of IWebGate Limited, specifically focusing on its business combination and segment reporting. The report examines the company's operations, including its network services and sales of accessories, and its revenue generation across various segments. It discusses the application of AASB 8 and IFRS 8 in disclosing segment information, including geographical segments and the reconciliation of financial figures due to different accounting policies. The report highlights the significance of operating segments in generating revenue and incurring expenses, emphasizing the importance of accurate financial reporting and the reconciliation of financial data to ensure consistency. The report also references relevant literature on the impact of IFRS 8 and segment reporting on financial analysis and forecasting.

ACCOUNTING
Accounting For IWebGate Limited Business Combination
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ACCOUNTING
(a)
All firms in operation whether profit-making or not is seen to exist within outlines of
the sole purpose of operations of that firm.Iwebgate Limited Company together with its
segments operating outside Sydney is seen to engage itself in network service providers as
well as the sale of accessories. The change of name from IWebGate to NetLinks is expected
to boost and expand the market since it connects sites to define devices via use of software-
defined area network plan Birt(2011.Pg 260).
Iwebgate Limited can be conclusively said to be conducting operation network-based
operations locally and internationally with the aim of generating revenue and fulfillment of
customer satisfaction. This is witnessed more at the operating segmental levels whereby the
sources of revenue per concept is disclosed with its roots made on the provision of network-
based services and sale of the network accessories Leung(2015.Pg 300. The segments are
seen classified for the purpose of revenue generation thus at the respective level they act on
behalf of the parent company with the aim customer satisfaction and growth. Directors in
their letter have outlined objectives and expectation of the firm to be that of cost saving and
customer satisfaction per segmental concept and group.
(b)
Relevant information regarding segments in question have been disclosed as per
AASB 8 and IFRS 8 as depicted in note 3 of the internal annual report where we see the
annex information of its applicability from revenue generation to expenses being disclosed
per concept Crawford(2012.Pg 30). Iwebgate Ltd from the look of things it has five operating
segments whose transaction has been clearly accounted for and disclosed in the 2016 June
annual report. This segments are disclosed to be operational and geographically in nature and
should be disclosed and reported separately. Attention is therefore brought to operating
segments to involve the course of actions that are the business in nature and that which

ACCOUNTING
generates revenue and incur expenses within the same roof of the business with examples of
Iwebgate operating segments operating in Australia, USA, Europe, and Corporate. For
accounting purposes, the operating segments are supposed to be disclosed whether in notes or
annexes. On the other reporting segments entirely involves items that are under the
subjection of identification and measurability for purposes of reporting i.e the existence of
geographical non- current asset for reporting purpose in the financial statements.
(c)
Each the finance item disclosed under the qualitative threshold technique is seen not
to match or rhyme the consolidated figures of the Iwebgate Ltd company due to the presence
of applicability of different accounting policies such that used in segments is different from
the approach in other areas Nobes(2008.Pg 24). Therefore at the reporting period, there
always exists the reconciliation part to rhyme sort the differences emerged from the use of
different accounting policies.

ACCOUNTING
References
Birt, J. and Shailer, G., 2011. Forecasting confidence under segment reporting. Accounting
Research Journal, 24(3), pp.245-267.
Crawford, L., Crawford, L., Extance, H., Helliar, C. and Power, D., 2012. Operating
segments: The usefulness of IFRS 8. ICAS.
Leung, E. and Verriest, A., 2015. The impact of IFRS 8 on geographical segment
information. Journal of Business Finance & Accounting, 42(3-4), pp.273-309.
Nobes, C. and Parker, R.H., 2008. Comparative international accounting. Pearson Education.