ACG27 Financial Accounting Annual Report - University Assignment

This document presents a comprehensive financial accounting annual report, likely prepared as an assignment for an ACG27 course. It includes key financial statements such as the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, and the Statement of Changes in Equity. The report also features detailed Notes to Accounts, providing crucial context and explanations for the financial figures. Furthermore, the document contains a Directors Declaration, outlining the directors' opinions on the company's financial position and performance, and an Annual Auditors Report, offering an independent assessment of the financial statements. Bibliographies are included, and the report is based on a case study with trial balance and additional information. The report covers topics such as income, expenses, tax expenses, cash and cash equivalents, receivables, inventories, property, plant, and equipment, goodwill, provisions, capital management, dividends, and contingent liabilities. The Directors' Declaration includes statements on the company's ability to pay debts, compliance with IFRS and the Corporations Act, and a review of the company's financial performance, capital allocation, and investments. The Annual Directors Report focuses on corporate governance, insurance, and indemnification of directors, environmental regulations, and a review of the company's portfolio and remuneration practices. Overall, the report is a detailed analysis of a company's financial performance and position, adhering to accounting standards and providing insights into various aspects of the business.

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student
Name of the University
Authors Note
Course ID

1FINANCIAL ACCOUNTING
Table of Contents
Statement of Profit and Loss or Other Comprehensive Income:...............................................2
Statement of Financial Position:................................................................................................3
Statement of Changes in Equity:................................................................................................4
Notes to Accounts:.....................................................................................................................4
Directors Declaration:................................................................................................................8
Annual directors Report:..........................................................................................................10
Annual auditors Report:...........................................................................................................13
Bibliographies:.........................................................................................................................17

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Statement of Profit and Loss or Other Comprehensive Income:

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Statement of Financial Position:

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Statement of Changes in Equity:
Notes to Accounts:
1: Income:

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2: Expenses:
3: Tax Expenses:
4: Cash and Cash Equivalents:
The cash at bank during the date of preparing the balance sheet stands $563,000
5: Receivables:
Accounts receivables during the date of preparing the balance sheet stood $27, 62,000
6: Inventories:
Recognition and Measurement: The inventories are measured at lower cost and based on
net realizable worth. The net realizable value of the inventories represents the amount which

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can only be recovered after the sale of inventories following the deduction of cost that can be
recovered after selling. During the date of preparing the balance sheet the values of
inventories stood $49, 47,800.
7: Property, Plant and Other Equipment:
8: Goodwill and Other Intangible Assets:
9: Provisions:

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10: Capital Management:
The main purpose of this company is to provide its shareholders an adequate returns
based on the investment made by them. This will be attained by the company by increasing
the ROIC in respect of the cost of capital and assuring that the shareholders are content with
the returns given.
11: Dividends and Distributions:
The dividends that were paid and distributed for the year stood $12, 48,000. During
the month of June a dividend of $13 cents per share was declared but it is yet to be approved
by board in the AGM and therefore it is avoided from being recorded in the books of
accounts.
12: Contingent Liabilities:
A contingent liability relating to legal provisions that were not anticipated to be
realized and valued at $3, 70,500 is not yet recorded in the financial statements since it is not

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anticipated to be recovered in the present financial year by the organization and therefore it is
disclosed in a separate manner.
Directors Declaration:
As per the declaration of directors;
 As per the opinion of directors, there are adequate reason to consider that the
company is capable of paying its debts as and when they become due.
 As per the opinion of directors, the attached financial report adheres with the
International Financial Reporting Standards (IFRS).
 As per the opinion of directors, the attached financial report along with the statements
complies with the Corporation Act 2001 (Cth). The financial report also complies
with the necessary accounting standards and gives a true and faire view of company’s
financial position together with its overall performance.
At the date of declaration, the company falls within the class of company that is
impacted by the instrument 2016/785 of the ASIC Corporation. The cross deed provides
guarantee where the company is viewed as party to guarantees of deed and every creditor are
paid of their full debt in respect of the cross deed agreement.
As per the opinion of director, a reasonable ground is to believe that the company to
which the deeds are applicable are proficient enough to satisfy the obligations and liabilities
to which the company may be within obligation in relation to the cross deed guarantee. The
directors also declare that the annual report presents the financial performance of the
company for the year 2019. As per the opinion of director, it notifies that the company has
strengthened the capital allocation framework by sharpening its organization culture and
productivity and has delivered a strong financial results. This has enabled the firm to declare
the dividend of $13 cents per share.

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As per the opinion of director, the company has made investment in future projects as
throughout the year the board has accepted funds for capital expenses relating to its project in
Australia after making a detailed assessment of capital allocation framework. As per the
opinion of director investment in capital projects would help the company in yielding returns
for the shareholders and ultimately it would contribute to the overall performance of the
organization. The director is please share in his report that the company has delivered a
strong financial result and has made reposition of its financial position to assure that it has
right environment for sustainable value creation. The director’s opinion denotes that changes
in company and those that are in progress is directed by unwavering promise of achieving
business objective by providing satisfactory returns to its shareholders.
As per the opinion of director, the business has rendered strong financial result with
revenues from continuous operations and excepting the significant items. The net profit after
tax represents the trading profit. The revenues derived by company has freed it from
operating profit, future capital and lease obligations as well as organization’s financial
position. Based on its operations in Australia, as per the opinion of director the company has
rendered a strong sales revenue and it can be reflected as the constant improvement in its
customer offer through making investment in price and services.
The directors in their opinion states that the revenues reported for the year is
estimated to be greater than the projected figure due to the annualized present year
investment in customer offers, one-off items and lower convenience earnings. Overall, it can
be fairly seen that the company has rendered a strong rise in revenue and momentum in sales
all through the year because of improvement in its customer service and retail execution.
The business in its segmental performance has delivered a strong growth in revenues
by building position with its suppliers as the leader of international product development

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company and discount retailer. With the help of reduced cost and inventory control the
company was successful in improving its earnings in the current year. The conditions for
trading to attain the targeted performance has been challenging in the present year and the
same is reflected in the current non-cash impairment identified during the year. The company
also looks forward to invest in sophisticated consumer oriented channel which provides
excellent value and suitability to the consumers.
The director is pleased to inform that the company has witnessed a stupendous growth
in its business model. Understandably the business has attained capacity in moving swiftly to
manage its portion and renewal flexibility. To extend the divisional autonomy model the
business has the exceptional ability of retaining its customers and deliver strong performance
based on the changes in time. As per the opinion of director, the company is capable of
providing satisfactory returns to its shareholders by forming a long-term shareholders value,
team members, suppliers and community where it carries out its business operations. As per
the opinion of director, the company has contributed towards workplace safety, lower
emissions, consolidation of business process through ethical sourcing. With the help of
customers and team members the company looks forward to make community contributions.
Annual directors Report:
A strong corporate governance is treated as the vital element in an organization’s
approach towards improving long-term shareholders value. The board of directors and
management are committed towards organizational policies and practices that meets the
compliance of higher level disclosure.
Insurance and indemnification of directors and officers:
After the end of financial year, a premium is paid by the company in respect of the
contracts which insures the directors and officers of the organizations against particular

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liabilities which occurs within that capacity. The disclosure relating to the nature liability is
duly covered within the premiums and insurance paid and it is subjected to confidentiality
under the insurance contract obligations. By adhering with the company’s constitution, the
company formed a deed of indemnity, insurance which has access to each directors within the
organization. The deed comprises of;
 Completely indemnifying the directors up to the extent which is permitted by the law
against liabilities occurred by directors working in capacity of company’s officer or
in respect of body corporate.
 Insuring the directors against the liabilities incurred by them.
 Granting the director with constant access while in office and for specific time period
after the director ceases from its position for a certain documents of company that is
related to period in office of director.
Along with this, the organization’s constitution provides indemnity to officers of the
company or from any liability that might occur in capacity of person. No such indemnity
payment has been made throughout the year for any documents which is stated above.
Corporate governance:
By understanding the requirement for higher corporate governance standard and
accountability, the directors supports and follows the the third edition principles and
recommendations of ASX Corporate governance councils.
Proceeding on behalf of the company:
During the year no proceedings have being bought on behalf of the company, neither
there is any application has been made by the organization with respect to the section 237 of
the Corporation Act 2001.