Accounting Theory and Concept: Analysis of Crown Resorts Report

This report provides an analysis of Crown Resorts Limited's financial report, focusing on its adherence to the general purpose reporting framework established by the Australian Accounting Standards Board. The report examines various aspects of the company's financial statements, including the company profile, recent news regarding the company, and the treatment of intangible assets like licenses and goodwill. It also analyzes the remuneration report for non-executive directors and provides a recommendation on the report's compliance with accounting standards. The report concludes that the annual report generally adheres to the prescribed format but suggests improvements regarding the length of the report. The analysis references several academic sources to support its findings, offering a comprehensive overview of Crown Resorts' financial reporting practices.

Running head: ACCOUNTING THEORY AND CONCEPT CONCEPTUAL FRAMEWORK
Accounting Theory and Concept Conceptual Framework
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Table of Contents
Introduction......................................................................................................................................2
Company Profile..............................................................................................................................2
1. Outside News...........................................................................................................................3
2. Intangible Assets......................................................................................................................3
3. Remuneration Report...............................................................................................................4
Recommendation.............................................................................................................................5
References........................................................................................................................................6

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Introduction
The issue that has been presented in the question is that the accounting report of a
particular corporate entity has been asked to be analyzed for the purpose of ensuring the fact
whether the financial statements have been prepared in accordance to the general purpose
reporting framework that has been established by the Australian Accounting Standards Board.
This particular study aims to have an overview into the annual report of the particular
corporate entity of Crown Resorts Limited and in the process understand the general features of
the reporting framework that should be mandatorily followed by the listed organizations that are
located in Australia.
Company Profile
Crown Resorts Limited has been one of the largest entertainment groups situated in the
country of Australia. The particular corporate entity has continued to invest in the resorts of
Australia and has resulted in making the fact prominent that it remains one of the most valuable
tourism assets in the country. There are four branches that the corporate entity has in total. These
are Crown Sydney, Crown Perth, Crown Melbourne and Crown Aspinalls. This means that this
particular resort enterprise in Australia is spreads over the entire country. It can be further stated
that in Australia, Crown Resorts totally owns and carries out the operations of two of the most
popular resorts in Australia that are of the name Crown Melbourne Entertainment Complex and
Crown Perth Entertainment Complex. It should be noted here that this particular corporate entity
also carries out its significant operations outside Australia. This means that the corporate entity
also has a business unit in London with the name Crown Aspinalls which has gained much
popularity in the foreign country (Tham and Huang 2018).
Moreover, another fact that can be mentioned in regards to the benefits that have been
acquired from the company is that the resorts of Crown that are located in Sydney, Melbourne,
Perth and Aspinalls have contributed to the annual GDP of Australia by a significant amount.
Furthermore, this business entity also holds the record of consisting a majority number of
employees in Australia. To be precise, it consists of 15,600 employees in total. In addition to
this, it has been further mentioned in the annual report of the corporate entity that for the

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financial year of 2017, Crown Resorts had incurred a profit of $308.9 million (Tham and Huang
2018).
1. Outside News
There have been several news in the market in regards to the operations that have been
carried out by the corporate entity of Crown Limited. This means that there has been more
than one issues hovering in the market in regards to Crown Limited. Some of the news are as
follows:
 There has been an issue in regards to the Crown Resort that is situated in Melbourne. To
be precise, Crown Melbourne has been of the opinion that it did not commit a breach in
regards to the gambling regulation act. The management of Crown Melbourne has stated
the fact that it had not conducted a particular breach of the gambling regulation act while
carrying out the trial of the gambling machines.
 Another important piece of news has been that the billionaire James Packer had resigned
from the position of a Board of Director on account of mental health issues. It can be
further stated here that the new executive chairman who has shared his review in the
accounting report for the financial year of 2017 has been of the name John H Alexander.
James Packer had been operating as a casino operator for all the casinos that had been
held by Crown Resorts Limited. Moreover, it had been mentioned in the news disclosure
that the 50 year old Australian has the plans to leave all his commitments and retire from
the job position that he holds. It has been further reported that under his operational
times, the price of the stocks did fall as low as 1.7 percent in Sydney. Furthermore, the
mental trauma of break up with his long-time partner with whom he had been engaged
further added up to the mental issues that had ultimately led to the removal from the
Board of the Crown Resorts.
2. Intangible Assets
It has been provided in the annual report of the company for the financial year of 2017 that
the assessment of the impairment of the intangible assets have been judgmental and complicated
in nature. This is because this particular method consists of the estimates and the assumptions
that has incurred a significant impact due to the estimated future performance and the conditions
of the market like the forecasts provided by the cash flow statements, rates of discount and

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multiples of the terminal value of the intangible assets. It has been further mentioned in the
annual report of the corporate entity that the intangible asset of deferred tax has been recognized
on the basis of the fact that the Australian Accounting Standards Board has laid down the
accounting standards of AASB 112 for the treatment of this particular set of intangible assets.
Furthermore, in BC4.32 of the initial accounting framework that has been published by the
accounting regulatory body of Australian Accounting Standards Board it has been mentioned
that the treatment of the intangible assets should be carried out in such a way that the rights in
regards to this particular financial component is applicable when required (Barth 2013).
The other intangible assets that have been included in the accounting report of the corporate
entity are the license. The intangible asset of license is mentioned to be carried at cost from
which the particular amount of amortization or any other impairment loss has been deducted.
Moreover, it has been further stated that the directors of the company execute the regular
assessments of the carrying value of the casino licenses for the purpose of ensuring the fact that
the carrying value of the components have not been taken forward at a value that is more than the
recoverable amount. The other intangible asset that has been included in the financial report of
the corporate entity is the financial component of goodwill. It has been stated that the financial
component of goodwill has been acquired on the basis of the initial that has been carried out at
cost. After the initial recognition the goodwill, it has been further mentioned in the accounting
report of the corporate entity that the component of goodwill is particularly measured at a cost
from which accumulated impairment losses have been deducted. Moreover, it has been further
disclosed in the accounting report of the corporate entity that at the time when the goodwill
forms a portion of the cash generating unit and a portion of the operation has been necessarily
disposed off then the goodwill that has been associated with the operations disposed will be
included in the amount that is carried forward in regards to the operations at the time of
executing the determination of the particular loss or gain in regards to the disposal of the
operation (Barth 2013).
Therefore, it can be rightfully concluded here that the proceedings of the Australian
Accounting Standards Board particularly AASB 138 that lists down the procedures for the
treatment of the intangible assets have been rightfully adhered to.

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3. Remuneration Report
The remuneration report that has been included in the financial report of the corporate entity
aims to identify and define the names of the non-executive directors that form a significant part
of the corporate entity. Moreover, a detailed structure of the group of directors have been
included in the remuneration report of the corporate entity. It has been further found out that the
remuneration report has been segregated skillfully and includes all the essential points that
should necessarily be a part of the report. The remuneration report of Crown Resorts Limited
also consists of the particular head of directors according to their rank and the details of the
structure of their remuneration. The remuneration report has been prepared on the basis of the
senior executives and the non-executive directors (Mardini, Crawford and Power 2015).
Recommendation
The recommendation that is applicable in this particular situation is that the annual report
of the corporate entity of Crown Resorts Limited has been prepared in accordance to the
prescribed format and standard established by the accounting body of Australian Accounting
Standards Board. However, a particular factor that should be noted here by the preparers of the
annual report is that the length of the report has been too long which has affected the quality of
the report. However, the other features of the report have been apt and the annual report of the
company has been prepared in accordance to the general purpose reporting framework.

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References
Barth, M.E., 2013. Measurement in financial reporting: The need for concepts. Accounting
Horizons, 28(2), pp.331-352.
Barth, M.E., 2015. Financial accounting research, practice, and financial accountability.
prAbacus, 51(4), pp.499-510.
Chand, P., Patel, A. and White, M., 2015. Adopting international financial reporting standards
for small and medium‐sized enterprises. Australian Accounting Review, 25(2), pp.139-154.
Crawford, L. and Power, D.M., 2015. Perceptions of external auditors, preparers and users of
financial statements about the adoption of IFRS 8. Journal of Applied Accounting Research,
16(1), pp.2-27.
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting.
Pearson Higher Education AU.
Mardini, G.H., Crawford, L. and Power, D.M., 2015. Perceptions of external auditors, preparers
and users of financial statements about the adoption of IFRS 8: Evidence from Jordan. Journal
of Applied Accounting Research, 16(1), pp.2-27.
Newberry, S., 2015. Public sector accounting: shifting concepts of accountability. Public Money
& Management, 35(5), pp.371-376.
Tham, A. and Huang, D., 2018. Game on! A new integrated resort business model. Tourism
Review.