Applying Accounting Theories to Iluka Resources' Financials

This report provides a comprehensive analysis of Iluka Resources' financial performance, applying various accounting theories to its business activities and operations. It examines the company's profile, products, and recent share price movements, including its 2017 financial results. The report delves into the application of key accounting theories such as the conceptual framework (reliability, relevance, understandability, and comparability) and agency theory (with a focus on directors' remuneration). A critical evaluation assesses how well Iluka Resources adheres to these theories, considering its net loss, increased debt, and dividend payouts. The analysis offers recommendations to improve the company's financial position and transparency in reporting, addressing issues related to liquidity, solvency, comparability, and capital project investments. The report highlights the significance of reliable and relevant financial information for investor decision-making, as well as the importance of aligning directors' incentives with shareholder interests. Finally, the report suggests improvements in the company's financial reporting practices.