Altura Mining Ltd: Financial Reporting & Conceptual Framework Review

This report provides a comprehensive analysis of Altura Mining Limited's compliance with accounting standards and the conceptual framework. It evaluates whether the company adhered to measurement requirements, fundamental and enhancing qualitative characteristics, and Generally Accepted...Read More

CONTEMPORARY ISSUES IN ACCOUNTING

Table of contents
Introduction..............................................................................................................................................3
Evaluation of whether the company complied with the measurement requirements of the conceptual framework..................................................3
Explanation on whether the company complied with the fundamental qualitative characteristics.................................................................3
Evaluation on whether the company complied with the enhancing qualitative characteristics....................................................................4
Evaluating on whether are the users of financial reports (investors/potential investors/lenders/other creditors) able to use the report to make decisions...............4
Explanation of whether the users need high knowledge of accounting to know about the company...............................................................5
Evaluating on whether the company has complied to the GAAP..............................................................................................5
Conclusion...............................................................................................................................................5
References...............................................................................................................................................7
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Introduction
Accounting has been a major process and major element within a business operational activity accounting relates to the recording and reporting of financial data as the
elements which have happened within the company in a period of time generally year. Through the development of business operations the developments of accounting
have also occurred companies have now used accounting for various activities and the operational area of accounting has diversified in and very evident manner. in the
current assessment there will be discussion over the issues which are faced in accounting process what are the measurement requirements under the conceptual
accounting framework what are the different types of qualitative characteristics which organization report of a company should comply to and in what ways a company
can make their accounting annual report and efficient one that can be used by stakeholder for making for the decisions. The company has been chosen of annual report
analysis is Altura Mining Limited.
Evaluation of whether the company complied with the measurement requirements of the conceptual framework
It is to be mentioned that in the annual report of the company it has been stated that the company has followed the AASB as well as IFRS to report their accounting
data to the stakeholders and user hen the conceptual framework which the company has followed to report their financial data. Now the as the standard have been
follow the presentation of data and treatment of accounting disclosure will also be made in the same manner (Liu et al. 2016). The use of IFRS is done by a company
which wants to create Universal annual report and report their financial data to report the financial findings and activities with the following have conducted in an
accounting year. It is to be mentioned that the company has followed the IFRS format in and very evident manner because the format used for laying down the value of
Asset and inventory the company has used the appropriate valuation method as prescribed under IFRS format ( Muda et al. 2017). The company has followed
Australian accounting standard board principles in order to lay down their financial report in an evident manner. This shows that the company has been focused on
creating the financial report which compiles to the standard and conceptual framework of both domestic accounting standard as well as International financial reporting
standards. The accounting disclosures made by the company are in compliance to the principles and rules stated by the standards which makes it very effective to say
that the company has complied with the conceptual framework of accounting value putting their financial data to their stakeholders (Feuerriegel et al. 2016).
Explanation on whether the company complied with the fundamental qualitative characteristics
The qualitative characteristics of financial reports are relevance and faithful representation. As compared to Gold Fields Limited In the financial report of Altura
Mining Limited it has been seen that the information report are relevant financial information which show the profitability and financial position of the firm and the
auditor’s report show the faith full representations of the financial data (Nazlioglu et al. 2015).
Relevance:
Relevance is a Fundamental qualitative characteristic which every financial report should have in order to be specific and correct. Relevance means the importance of
the information and relevancy of the information which has been provided with in the financial report to the end user's. The financial report should be relevant and
should have effective information which would have an effect on the decision making process on the stakeholders by using the financial information reported in the
financial report company. It can be said that the financial report should be relevant to the information that is needed by the user for making future distance ( Crowther,
2018).
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Faithful representation:
The financial report of the company’s shares at the financial report has faithful representation which means the company has faithfully represented all the financial data
in a fair manner to make sure that the Decision Process is not affected by any kind of materiality. By faithful representation it is meant that the information provided in
the financial report of the company is faithful and fair based on which uses can make the financial or any kind of this year they want to make (Post and Byron, 2015).
Evaluation on whether the company complied with the enhancing qualitative characteristics
As per the financial reports of the Altura Mining restricted in their present yearly report it tends to be said that the Altura Mining constrained has been streamlining
with the subjective attributes amid the year. It is seen that the equivalent of the attributes has been acquired by the Altura Mining constrained amid the year which are
as per the following
Compatibility
The likeness of the Altura Mining Limited budgetary reports are ought to be of equivalence in respects with the portrayal of the bookkeeping data and ought to be of
appropriate comprehension amid the year. The financial report can be compared by Gold Fields Limited (Easton and Sommers, 2018).
Verifiability
The bookkeeping data and reasonable structures inferred by the Altura Mining restricted must be in such a way, to the point that can be effectively checked and altered
amid the year. In this setting it is likewise to be included that the evidence ought to likewise to be incorporated into the authoritative structure of the Altura Mining
restricted (Tracy and Tracy, 2014).
Evaluating on whether are the users of financial reports (investors/potential investors/lenders/other creditors) able to use the report to
make decisions
Altura Mining Limited Has created financial reports which comply to the Australian accounting standards as well as International financial reporting standards it has
been mentioned by various colors that International financial reporting standards is one of the most lucid and easy formats of financial reporting which can be done to
the users of the financial report. It is important to have an evident financial report which is easy to use and evaluate on in order to make for the decision over the
companies investment or Association (Elshahat et al. 2015). It is the duty of the company to create simple and lucid financial report so that the stakeholders of the
company like investors, shareholders and customers are able to make financial decision or father investment of the company. Altura Mining Limited has annual reports
in accordance to the Australian accounting standards which make sure that the company follows principles of accounting which are inherited in a simple and specific
manner (Miller-Nobles et al. 2016). It is also seen that the company has successfully implemented the IFRS for financial reporting system of the company which means
the company has reported their financial report following the formats of international financial reporting standards which is one of the most simple and specific format
in which information on given in a very simple manner which has the stakeholders to use the following and make future decision over investment and Association with
the firm.
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Explanation of whether the users need high knowledge of accounting to know about the company
The need of financial knowledge in order to analyze financial details and information given in and financial report of a company is very important there are two classes
of people who are the uses of and financial report of a company one are those who are only concerned with the financial position and profitability of the firm in order to
make decisions and the other are the ones who go into the financial report and carry out an in-depth analysis of the financial position with the company holds in every
aspect (Buehlmaier and Whited, 2018). It should be stated that people who need financial report just to know about the financial position of the company do not need
financial knowledge to know the financial position of the company for the financial report but they will only need basic knowledge about how to analyses the
profitability of the company and the financial position of the company. It is to be mentioned that with basic knowledge of accounting one can identify the company's
profitability and financial position in an efficient manner there is no need of Indian financial accounting knowledge to just know how the company was is earning profit
or if it is going in loss or what is the company's Assets and liabilities ratio. Although there is a section of stakeholders and annual report uses which want to know
about the financial position with the company holds an in-depth before making decisions on whether to invest in the following company or not. In such cases the need
of financial and accounting information is needed highly because if the following wants to go in depth of the financial report it will have to know the standards and
every major parameter of the key basic parameters which are there in the accounting and financial reporting system analyze each and every financial aspect of the
company reported in the financial report evidently (Verguet et al. 2015).
Evaluating on whether the company has complied to the GAAP
As the company has followed AASB as there accounting guideline for preparation of accounting reports for the company's financial activities it can be said that the
following accounting standards or any accounting standard are based on the Bedrock of Generally Accepted Accounting principle ( Vogel, 2014). majority of the
standard which are there in the AASB are derived from the Generally Accepted Accounting Principles it is very evident to say that the company has followed GAAP
in reporting the financials to the stakeholders through their financial reports. Hence it has been very evident that the company has used Generally Accepted Accounting
principle in order of accounting process and the reporting procedure which one has been conducted by the company in the financial reporting system (Burnes et al
2017).
Conclusion
The investigation has been finished with the incorporation of a research on the Altura Mining Limited Constrained amid the ebb and flow budgetary year in regards to
the monetary and authoritative exercises. Not just that the investigation likewise incorporates a few discourses in regards to the budgetary and bookkeeping ideas of the
Altura Mining Limited amid the year alongside the premise in which the hierarchical exercises and activities are directed. The investigation was finished with the
incorporation of different divisions in a few segments which features the parts of the bookkeeping and money related ideas of the Altura Mining Limited alongside the
utilization of their techniques and strategies for the organization applied systems amid the year. Crucial qualities alongside the money related reports uses are
distinguished and delineated amid the year so as to get the sufficient understandings of the Altura Mining Limited bookkeeping ideas.
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References
Buehlmaier, M.M. and Whited, T.M., 2018. Are financial constraints priced? Evidence from textual analysis. The Review of Financial Studies, 31(7), pp.2693-2728.
Burnes, D., Henderson Jr, C.R., Sheppard, C., Zhao, R., Pillemer, K. and Lachs, M.S., 2017. Prevalence of financial fraud and scams among older adults in the United
States: A systematic review and meta-analysis. American journal of public health, 107(8), pp.e13-e21.
Crowther, D., 2018. A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of
Corporate Financial and Environmental Reporting. Routledge.
Easton, M. and Sommers, Z., 2018. Financial Statement Analysis & Valuation, 5e.
Elshahat, I., Freedman, M. and Elshahat, A., 2015. Are index measures better than individual measures in assessing the association between environmental and
financial performance? A multivariate analysis study. International Journal of Critical Accounting, 7(2), pp.191-212.
Feuerriegel, S., Ratku, A. and Neumann, D., 2016, January. Analysis of how underlying topics in financial news affect stock prices using latent dirichlet allocation. In
2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 1072-1081). IEEE.
Liu, Y.W., Liu, L.C., Wang, C.J. and Tsai, M.F., 2016, October. Fin10k: A web-based information system for financial report analysis and visualization. In
Proceedings of the 25th ACM International on Conference on Information and Knowledge Management (pp. 2441-2444). ACM.
Miller-Nobles, T.L., Mattison, B. and Matsumura, E.M., 2016. Horngren's Financial & Managerial Accounting: The Managerial Chapters. Pearson.
Muda, I., Wardani, D.Y., Maksum, A., Lubis, A.F., Bukit, R. and Abubakar, E., 2017. THE INFLUENCE OF HUMAN RESOURCES COMPETENCY AND THE
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Post, C. and Byron, K., 2015. Women on boards and firm financial performance: A meta-analysis. Academy of Management Journal, 58(5), pp.1546-1571.
Tracy, J.A. and Tracy, T., 2014. The Comprehensive Guide on How to Read a Financial Report,+ Website: Wringing Vital Signs Out of the Numbers . John Wiley &
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Verguet, S., Olson, Z.D., Babigumira, J.B., Desalegn, D., Johansson, K.A., Kruk, M.E., Levin, C.E., Nugent, R.A., Pecenka, C., Shrime, M.G. and Memirie, S.T.,
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Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis. Cambridge University Press.
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