Financial Reporting Disclosure Analysis of Ansell Limited (ASX Listed)

This report provides an in-depth analysis of the financial reporting practices of Ansell Limited, a company listed on the Australian Securities Exchange (ASX). The report evaluates Ansell Limited's adherence to the general purpose accounting regulations and the conceptual framework, ensuring comparability with international standards. It specifically examines the company's compliance with AASB 116 regarding the disclosure of Property, Plant, and Equipment (PPE), assessing the extent to which Ansell Limited meets the regulatory requirements and offers recommendations for improvement. The analysis covers the qualitative characteristics of financial information, such as materiality, relevance, and faithful representation, and how Ansell Limited's disclosures enhance the usefulness of financial information for stakeholders. The report concludes that the AASB 116 provides comprehensive information on PPE, and suggests further improvements, such as detailed asset listings and the reporting of depreciation method changes and their financial impact.

Financial Reporting Disclosure
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Executive summary
In the current report analyze is done of the disclosure of financial statement of Ansell limited
which is listed with the ASX. The report ensures that the company can complied with the general
purpose accounting regulation at the time reporting the financial statement. The report states the
way management of the company has complied with the conceptual framework to ensure
comparison with the international organization.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Objective of general purpose financial reporting and characteristic of financial information as per CF......4
The extent by which Ansell limited has complied with conceptual framework...........................................6
The extent to which the company has meet the regulation of PPE and recommendation of improvement. .7
Disclosure of PPE to enhance the useful of financial information...............................................................8
Conclusion...................................................................................................................................................9
Bibliography..............................................................................................................................................10
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Introduction
A large company has a large number of stakeholders who are interested in the financial
information of the affairs of the company. The shareholders are owners of the company and can
be thousands of lakhs in numbers for any big company. Now it will be practically impossible for
the company to provide a copy of financial information of the company to each and every
shareholder of the company. Thus the financial statement is made available on the internet and
various other public sources. The various another stakeholder of the organization that is
interested in the financial information of the company is loan providers, creditors, and investors
which want to know the financial position of the company for purpose of their various needs.
The financial reporting requirement does not bind the company to present every business
activities of the company. The company has to give the financial data of the company which will
be helpful in predicting the future of the company. Any financial information that reflects change
in the assets and liabilities of the company or the future existence for the company should be
considered as material and reflected separately in the financial statements (Walker, 2013).
Objective of general purpose financial reporting and characteristic of financial information
as per CF
The qualitative characteristics help in differentiating the material aspect of the financial
information with the non-material aspect. It helps in identifying that which financial data is
important for the users of the financial information of the company so that that should be
presented in the financial reporting requirement of the Useful financial information. The
qualitative aspect applies to the general purpose financial statements well as financial
information presented otherwise. The various characteristics of the financial information which
determines the qualitative characteristic of the financial statements are as follows :
Materiality: The materiality of financial information means that its capacity to influence the
decision of the user of the financial statement.
Relevance: the financial information presented should be related to the need of the users of the
financial statements. It should not contain information that is not relevant to the users of financial
information and making financial statement unnecessary long.
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Comparability: the information provided in the financial statements should be in the generally
accepted format so that it can be compared with the financial information of other companies.
Faithful representation: the financial information should be presented with integrity and should
not contain fake data which can mislead the users.
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The extent by which Ansell limited has complied with conceptual framework
Name of the company: ANSELL LIMITED.
Ansell Limited is a healthcare company that provides healthcare service and manufacture and
sells high-quality products for protection of human beings at the workplace. Ansell Limited
mainly deals in providing protection equipment for the industrial workers from the accidents that
can happen at the workplace while working. Ansell Limited also conduct time to time awareness
programs for educating dentists, physicians, and nurses from in different hospitals. These
programs are conducted to enhance the capability of these professionals and to aware them about
the various new challenges that are emerging from time to time.
The criteria of the disclosure requirements for PPE are defined in the AASB 116. It requires the
company to disclose the information about the Property, Plant, and Equipment. The various
information that is required to be disclosed as per AASB 116 is as follows :
1. The depreciation method used.
2. The base for measuring the gross amount of the asset.
3. Useful lives of the asset.
4. The gross value of the asset and the accumulated depreciation of the asset.
5. Reconciliation of the gross value of the asset from the beginning of the period till the end.
In the annual report of the Ansell Limited for the years ending 2016, all the requirements of
AASB 116 have been met by the finance departments while preparing the financial statement of
the company. The useful life of the assets of different blocks has been separately mentioned in
the financial statement. The depreciation method used by the company is the straight-line
method. The gross carrying amount is calculated by deducting the accumulated depreciation and
adjusting any impairment loss or gain from the cost of the asset at the time of purchasing the
plant or Equipment. the cost incurred afterward are either included in the assets or mentioned as
separate assets and then depreciated accordingly. The depreciation is charged to the useful life of
the asset as per straight-line method (Ansell, 2016).
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The extent to which the company has meet the regulation of PPE and recommendation of
improvement
As per the findings mentioned in the Answer B, the Ansell Limited has met the criteria of the
AASB 116 reporting requirements. The discloser that is mentioned in the AASB 116 that is
required to be disclosed by the company has been reported by the Ansell Limited. The method
adopted for Calculation of depreciation and the method used to determine the carrying amount of
the asset have been laid down in the annual report of the Ansell Limited (Deloitte, 2010).
The Fundamental Qualitative Characteristics of the Financial reporting states that the financial
statement of the company should be presented with full integrity and the financial data should be
relevant to the users of the financial statement. Ansell Limited has stated the information of the
assets in the Annual Report of 2016 as per the Disclosures laid down in the AASB 116. The
Annual report of the Ansell Limited given all the relevant calculation and financial information
with full integrity.
The material aspect of the company has been shown in details in notes to account for the
Financial Statements. The materiality concept of the fundamental Qualitative Characteristic of
the general purpose financial statement is incepted into the AASB 116. Fixed assets of the
company are a very important element of the organization and can seriously affect the decision
of the users of the financial statement. False information of the assets can show the different
financial position of the company (Accounting, 2014).
The enhancing Qualitative characteristic states that the comparability of the financial information
of the company should be made easily with the financial information of the other companies. The
financial statement of Ansell Limited is prepared and presented in the general format which is
used by the other companies listed on the ASX. This format will make it easy for the users of the
financial statement of the Ansell Limited to compare the Data with other companies. The data
Ansell limited can be compared with the previous year data as the Annual report contain data of
previous as well as the present year.
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Disclosure of PPE to enhance the useful of financial information
The disclosure on the Property, Plant and Equipment that are laid down by AASB 116 provide
detail reporting of the financial information about the asset of the company. Assets are an
important part of any organization and help in identifying the financial position of the company
by various users of the financial statement. The AASB 116 complies fully with the objective of
the general purpose financial reporting. As the object behind the general purpose financial
reporting is to provide the users of the financial information about the financial position of the
company and its affairs. The AASB 116 provides complete information about the assets of the
company in the general purpose financial statement. The useful life of the asset over which the
depreciation is to be apportioned (Bradbury, 2008).
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Conclusion
The conclusion from the above discussion can be made that the AASB 116 (Property, Plant and
Equipment) provide complete information of the plant, property etc to the users of the financial
statement. The basic objective of the general purpose financial statement is to give true and
relevant information to the users of the financial statement. Therefore it can be assumed that the
basic objective of the financial statement is achieved by the AASB in the field of assets reporting
of the company. For the further improvement of the AASB 116 with the scope of the objective of
the general purpose financial statement, the block of assets of the company should be showing
the list of the assets that are covered in the block. The change in method of depreciation should
be reported and the effect of such change in the method on the financial statement should be
reported by the company.
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Bibliography
Accounting, A. (2014). Property, Plant and Equipment. Retrieved September 18, 2017, from
Compiled AASB Standard AASB 116:
http://www.aasb.gov.au/admin/file/content105/c9/AASB116_07-04_COMPjun14_07-14.pdf
Ansell. (2016). Annual Report 2016. Retrieved September 18, 2017, from Ansell:
http://www.ansell.com/-/media/Corporate/MainWebsite/About/Investor-Center/Annual-Report-
2016/Annual-Report-to-Shareholders-2016.ashx?la=en
Deloitte. (2010). Conceptual Framework for Financial Reporting 2010. Retrieved September 18,
2017, from Deloitte: https://www.iasplus.com/en/standards/other/framework
Walker, R. G. (2013). Objectives of Financial Reporting. Retrieved September 18, 2017, from
Wiley Online Library: http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6281.2003.00137.x/full
Bradbury, M.E., (2008). Fifty‐seven Curious Defects in Haswell and Langfield‐Smith (2008): A
Comment. Australian Accounting Review, 18(4), pp.287-293.
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