Analysis of Contemporary Financial & Integrated Reporting Comparison
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This report offers a comparative analysis of the annual reports of Cochlear Limited and CSL Limited, both prominent healthcare companies listed on the ASX. The study delves into their core businesses, operating activities, and financial performance over several years, examining revenue, net profit, and financial structures. It scrutinizes key elements of their financial statements, including Property, Plant, and Equipment (PPE), intangible assets, and accounting policies related to depreciation and impairment. The report also explores voluntary disclosures, deferred tax assets and liabilities, and the companies' approaches to funding. By comparing these aspects, the report provides insights into the financial health and strategic decisions of both companies, offering a comprehensive understanding of their financial reporting practices and performance within the healthcare industry. The analysis includes detailed comparisons of financial figures, accounting policies, and the composition of assets, providing a robust understanding of each company's financial position.
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Running head: CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Contemporary Financial & Integrated Reporting
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Author’s Note:
Contemporary Financial & Integrated Reporting
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1CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Executive Summary
The report intends to interpret and compare the annual report published by Cochlear Limited and
CSL Limed which are listed in ASX. It has been further discerned that both the companies
contribute to the healthcare industry and hence recognized from the same industry. Some of the
main interpretations of the study will describe the core business of the company and provide
complete details of the business segments. It further aims to discuss the industry in which it
operates and give the rationale whether it is growing are declining in nature. It further aims to
critically analyse the financial structure and address how the company is funded with its internal
and external sources. Some of the main research aspects has further described about the key
elements of financial performance report. The next section has included interpretations about
assets such as PPE and Intangibles. This section has analysed and compared the “carrying
amount of each class of Property, Plant, and Equipment, at reporting date” for both the
companies. The discourse of the study has further included the policies associated to “Property,
Plant, and Equipment”. The main findings have been able to reveal that the Cochlear measures
the value of the “Property, Plant, and Equipment” as the cost of asset, minus accumulated
depreciation and impairment loss. The cost of asset is considered as per the incidental costs
which are directly attributable to the acquisition. CSL Limited The depreciation charges
depreciation on the useful life of the assets based on straight-line method. Buildings are
depreciated 5-40 years as per “straight-line method”, plant and equipment are depreciated 3-15
years “straight-line method” and lease improvements are depreciated 5-10 as per “straight-line
method”. The depictions of financial statement of Cochlear Limited have shown that the total
deferred tax amounted to $ 66586 in 2017 and $ 77144 in 2016. In addition to this, the deferred
tax liabilities that identified with $ 5837 in 2017 and 7122 in 2016. The total deferred tax asset
for CSL Limited in 2017 has been depicted as $ 496.5 million and in 2016 as 389 million.
Additionally, the total deferred tax liabilities have amounted to $ 138.2 million in 2017 and
119.2 million in 2016.
Executive Summary
The report intends to interpret and compare the annual report published by Cochlear Limited and
CSL Limed which are listed in ASX. It has been further discerned that both the companies
contribute to the healthcare industry and hence recognized from the same industry. Some of the
main interpretations of the study will describe the core business of the company and provide
complete details of the business segments. It further aims to discuss the industry in which it
operates and give the rationale whether it is growing are declining in nature. It further aims to
critically analyse the financial structure and address how the company is funded with its internal
and external sources. Some of the main research aspects has further described about the key
elements of financial performance report. The next section has included interpretations about
assets such as PPE and Intangibles. This section has analysed and compared the “carrying
amount of each class of Property, Plant, and Equipment, at reporting date” for both the
companies. The discourse of the study has further included the policies associated to “Property,
Plant, and Equipment”. The main findings have been able to reveal that the Cochlear measures
the value of the “Property, Plant, and Equipment” as the cost of asset, minus accumulated
depreciation and impairment loss. The cost of asset is considered as per the incidental costs
which are directly attributable to the acquisition. CSL Limited The depreciation charges
depreciation on the useful life of the assets based on straight-line method. Buildings are
depreciated 5-40 years as per “straight-line method”, plant and equipment are depreciated 3-15
years “straight-line method” and lease improvements are depreciated 5-10 as per “straight-line
method”. The depictions of financial statement of Cochlear Limited have shown that the total
deferred tax amounted to $ 66586 in 2017 and $ 77144 in 2016. In addition to this, the deferred
tax liabilities that identified with $ 5837 in 2017 and 7122 in 2016. The total deferred tax asset
for CSL Limited in 2017 has been depicted as $ 496.5 million and in 2016 as 389 million.
Additionally, the total deferred tax liabilities have amounted to $ 138.2 million in 2017 and
119.2 million in 2016.

2CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Table of Contents
Introduction......................................................................................................................................3
Company- Introduction, Business & operating activities, Finances and Financial performance....3
Assets – PPE and Intangibles..........................................................................................................5
Leases..............................................................................................................................................7
Voluntary Disclosures.....................................................................................................................8
Accounting for Tax........................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Table of Contents
Introduction......................................................................................................................................3
Company- Introduction, Business & operating activities, Finances and Financial performance....3
Assets – PPE and Intangibles..........................................................................................................5
Leases..............................................................................................................................................7
Voluntary Disclosures.....................................................................................................................8
Accounting for Tax........................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Introduction
The discourse of the report aims to analyse and compare the latest annual report
published by Cochlear Limited and CSL Limed which are listed in ASX. It has been further
discerned that both the companies contribute to the healthcare industry and hence recognized
from the same industry. Some of the main interpretations of the study will describe the core
business of the company and provide complete details of the business segments. It further aims
to discuss the industry in which it operates and give the rationale whether it is growing are
declining in nature. It further aims to critically analyse the financial structure and address how
the company is funded with its internal and external sources. Some of the main research aspects
has further described about the key elements of financial performance report. The next section
has included interpretations about assets such as PPE and Intangibles. This section has analysed
and compared the “carrying amount of each class of Property, Plant, and Equipment, at reporting
date” for both the companies. The discourse of the study has further included the policies
associated to “Property, Plant, and Equipment”. Some of the other depictions of the report has
stated on the composition and relevance of intangible assets. The next section of the study has
determined the real event disclosures associated to the value of lease assets and liabilities. In this
section the study has disclosed the accounts in relation to the lease liabilities and assets. The
fourth section of the report has included assessment for identification of two voluntary
disclosures made by the company in its annual report and this has been also stated with relevance
to the company’s business. The final section has determined the values of “Deferred Tax Assets
and Deferred Tax Liabilities” which are disclosed by the company. This section has further
explained the rationale of using the information provided by the company in the notes to
financial statements (Weygandt, Kimmel and Kieso 2015).
Company- Introduction, Business & operating activities, Finances and Financial
performance
Cochlear Limited headquartered in Sydney is recognized as a medical device company is
designs, supplies and manufacturers “Nucleus cochlear implant, Baha bone conduction implant
and Hybrid electro-acoustic implant”. The operating activities of the company includes
producing three implants for varied range of medical situations. The nucleus is a system which is
Introduction
The discourse of the report aims to analyse and compare the latest annual report
published by Cochlear Limited and CSL Limed which are listed in ASX. It has been further
discerned that both the companies contribute to the healthcare industry and hence recognized
from the same industry. Some of the main interpretations of the study will describe the core
business of the company and provide complete details of the business segments. It further aims
to discuss the industry in which it operates and give the rationale whether it is growing are
declining in nature. It further aims to critically analyse the financial structure and address how
the company is funded with its internal and external sources. Some of the main research aspects
has further described about the key elements of financial performance report. The next section
has included interpretations about assets such as PPE and Intangibles. This section has analysed
and compared the “carrying amount of each class of Property, Plant, and Equipment, at reporting
date” for both the companies. The discourse of the study has further included the policies
associated to “Property, Plant, and Equipment”. Some of the other depictions of the report has
stated on the composition and relevance of intangible assets. The next section of the study has
determined the real event disclosures associated to the value of lease assets and liabilities. In this
section the study has disclosed the accounts in relation to the lease liabilities and assets. The
fourth section of the report has included assessment for identification of two voluntary
disclosures made by the company in its annual report and this has been also stated with relevance
to the company’s business. The final section has determined the values of “Deferred Tax Assets
and Deferred Tax Liabilities” which are disclosed by the company. This section has further
explained the rationale of using the information provided by the company in the notes to
financial statements (Weygandt, Kimmel and Kieso 2015).
Company- Introduction, Business & operating activities, Finances and Financial
performance
Cochlear Limited headquartered in Sydney is recognized as a medical device company is
designs, supplies and manufacturers “Nucleus cochlear implant, Baha bone conduction implant
and Hybrid electro-acoustic implant”. The operating activities of the company includes
producing three implants for varied range of medical situations. The nucleus is a system which is
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4CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
a combination of electrical stimulation instrument which is surgically implanted in the backside
of patients ear. This device is able to process the captured sound and sends the signal to the brain
via electrode array. This product is further identified to be a direct descendent of original
cochlear implant. Nucleus was recognized as the first cochlear implant which was approved by
“U.S. Food and Drug Administration”. Hybrid is identified as it electroacoustic system which is
a combination of Cochlear implant with an acoustic hearing aid and appropriate for patients
having residual hearing at lower frequencies (Millo, Barman and Hall 2016). They implant of
hybrid system is considered as the smaller variant for Nucleas with an electrode which relays
oily high-frequency sounds. Whereas, the acoustic device amplifies the newer frequency sounds
and transmits the same to the brain. Baha is depicted as a bone conduction system which
comprises of small titanium implant which is integrated with the bone behind a patient's ear. The
depictions of the financial performance as per the annual report has shown that the company
successfully increasing both sales revenue and net profit in the last three years. This is evident
with sales revenue of 821 million in 2014, 942 million in 2015 and 1158 million in 2016. The
improvement in the net profit is depicted with adjusted net profit of 110 million in financial year
2014, 146 million in 2015 and 189 million in 2016. As per the depictions of the annual report it
is understood that the company relies on internal sources for finance. The changes in the changes
in accounting policies disclosures are identified with "Note 4.2 – Employee benefit liabilities,
Note 4.3 – Share based payments, Note 5.3 – Intangible assets, Note 5.4 – Business
combinations, Note 5.6 – Provisions, Note 5.7 – Contingent liabilities and Note 6.4 – Financial
risk management" (Warren 2016).
CSL Limited is recognized with Global specialty in biotechnology and marketing
products to treat and prevent various types of serious human medical conditions. Some of the
operating line of the production unaffected by the company includes “blood plasma derivatives,
vaccines, antivenom, and cell culture reagents”. These are mainly required for various medical
and genetic research and applications. The company standouts out to its promise for being a
global pioneer in delivering biotechnology solutions and innovative medicines which protects
public health and helps the individuals in life-threatening medical conditions live full life. CSL
commenced its operations in vacant “Walter and Eliza Hall Institute building at the Melbourne
Hospital in 1918”, prior to which it operated in Parkville premises. Some of the major
achievements of the company includes, early production of insulin, development of tetanus
a combination of electrical stimulation instrument which is surgically implanted in the backside
of patients ear. This device is able to process the captured sound and sends the signal to the brain
via electrode array. This product is further identified to be a direct descendent of original
cochlear implant. Nucleus was recognized as the first cochlear implant which was approved by
“U.S. Food and Drug Administration”. Hybrid is identified as it electroacoustic system which is
a combination of Cochlear implant with an acoustic hearing aid and appropriate for patients
having residual hearing at lower frequencies (Millo, Barman and Hall 2016). They implant of
hybrid system is considered as the smaller variant for Nucleas with an electrode which relays
oily high-frequency sounds. Whereas, the acoustic device amplifies the newer frequency sounds
and transmits the same to the brain. Baha is depicted as a bone conduction system which
comprises of small titanium implant which is integrated with the bone behind a patient's ear. The
depictions of the financial performance as per the annual report has shown that the company
successfully increasing both sales revenue and net profit in the last three years. This is evident
with sales revenue of 821 million in 2014, 942 million in 2015 and 1158 million in 2016. The
improvement in the net profit is depicted with adjusted net profit of 110 million in financial year
2014, 146 million in 2015 and 189 million in 2016. As per the depictions of the annual report it
is understood that the company relies on internal sources for finance. The changes in the changes
in accounting policies disclosures are identified with "Note 4.2 – Employee benefit liabilities,
Note 4.3 – Share based payments, Note 5.3 – Intangible assets, Note 5.4 – Business
combinations, Note 5.6 – Provisions, Note 5.7 – Contingent liabilities and Note 6.4 – Financial
risk management" (Warren 2016).
CSL Limited is recognized with Global specialty in biotechnology and marketing
products to treat and prevent various types of serious human medical conditions. Some of the
operating line of the production unaffected by the company includes “blood plasma derivatives,
vaccines, antivenom, and cell culture reagents”. These are mainly required for various medical
and genetic research and applications. The company standouts out to its promise for being a
global pioneer in delivering biotechnology solutions and innovative medicines which protects
public health and helps the individuals in life-threatening medical conditions live full life. CSL
commenced its operations in vacant “Walter and Eliza Hall Institute building at the Melbourne
Hospital in 1918”, prior to which it operated in Parkville premises. Some of the major
achievements of the company includes, early production of insulin, development of tetanus

5CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
vaccine, developing combined vaccine for diphtheria, whooping cough auntie Dennis. The
companies often known for its collaboration with world's first human “papillomavirus vaccine,
Gardasil, building on the pioneering work by Professor Ian Frazer (1994-2005)”. The depictions
based on the financial performance it has been identified that the company has been able to
significantly improve in areas of operating revenue, sales revenue, R&D investment, profit
before income tax expenses, net profit after tax, net cash inflow from operating activities, capital
investment, return on invested capital and basic earnings per-share. The total net profit after tax
has increased from $ 1242 million in 2015 to $ 1337 million in 2016. In addition to this, CSL
awning per-share has improved from $ 2.69 in financially year 15 to 16 to $ 2.94 in financial
year 16 to 17. It has been further discerned that the total operating revenues of the company has
significantly improved in the last five years. This is evident with total operating revenue of $
5100 million in 2012, 5504 million in 2013, 5612 million in 2014, 6115 million in 2015 and
6923 million in 2016. As per the depictions of the annual report it is understood that the
company relies on internal sources for finance. Some of the applicable accounting policies in the
year ended June 2019 has been identified with “AASB 9-Disclosures to financial instruments”
and “AASB 15- Revenue from contracts with customers” (Cataldo and Anthony 2017).
Assets – PPE and Intangibles
The interpretations of annual report of Cochlear Limited has suggested that the
subsequent costs in relation of replacing the asset and complement of property plant and
equipment is capitalized as per carrying amount of the future economic benefits. It has been
depicted that the carrying amount for plant and equipment in 2016 was $ 69425, which increased
to $ 73995 in 2017. The value of the “Property, Plant, and Equipment” is measured as the cost of
asset, minus accumulated depreciation and impairment loss. The cost of asset is considered as
per the incidental costs which are directly attributable to the acquisition. The intangible assets
such as goodwill is accounted by applying acquisition method at the time of business
combination. In addition to this, the goodwill represents the difference among the “cost of
acquisition and fair value of the net identifiable assets acquired”. System costs are also regarded
as intangible assets where the company controls future economic benefits because of the cost
incurred. The composition of the intangible asset is identified with $ 339976 in 2017 and $
224338 in 2016 out of total assets of $ 923,196 in 2017 and $ 816,734 in 2016. This is forming a
vaccine, developing combined vaccine for diphtheria, whooping cough auntie Dennis. The
companies often known for its collaboration with world's first human “papillomavirus vaccine,
Gardasil, building on the pioneering work by Professor Ian Frazer (1994-2005)”. The depictions
based on the financial performance it has been identified that the company has been able to
significantly improve in areas of operating revenue, sales revenue, R&D investment, profit
before income tax expenses, net profit after tax, net cash inflow from operating activities, capital
investment, return on invested capital and basic earnings per-share. The total net profit after tax
has increased from $ 1242 million in 2015 to $ 1337 million in 2016. In addition to this, CSL
awning per-share has improved from $ 2.69 in financially year 15 to 16 to $ 2.94 in financial
year 16 to 17. It has been further discerned that the total operating revenues of the company has
significantly improved in the last five years. This is evident with total operating revenue of $
5100 million in 2012, 5504 million in 2013, 5612 million in 2014, 6115 million in 2015 and
6923 million in 2016. As per the depictions of the annual report it is understood that the
company relies on internal sources for finance. Some of the applicable accounting policies in the
year ended June 2019 has been identified with “AASB 9-Disclosures to financial instruments”
and “AASB 15- Revenue from contracts with customers” (Cataldo and Anthony 2017).
Assets – PPE and Intangibles
The interpretations of annual report of Cochlear Limited has suggested that the
subsequent costs in relation of replacing the asset and complement of property plant and
equipment is capitalized as per carrying amount of the future economic benefits. It has been
depicted that the carrying amount for plant and equipment in 2016 was $ 69425, which increased
to $ 73995 in 2017. The value of the “Property, Plant, and Equipment” is measured as the cost of
asset, minus accumulated depreciation and impairment loss. The cost of asset is considered as
per the incidental costs which are directly attributable to the acquisition. The intangible assets
such as goodwill is accounted by applying acquisition method at the time of business
combination. In addition to this, the goodwill represents the difference among the “cost of
acquisition and fair value of the net identifiable assets acquired”. System costs are also regarded
as intangible assets where the company controls future economic benefits because of the cost
incurred. The composition of the intangible asset is identified with $ 339976 in 2017 and $
224338 in 2016 out of total assets of $ 923,196 in 2017 and $ 816,734 in 2016. This is forming a

6CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
percentage of 36.8% intangibles in 2017 and 27.4% in 2016 respectively. The intangible assets
for the company with indefinite useful life are systematically tested for impairment on an annual
basis (Maynard 2017).
In case of CSL Limited, the value of “Property, Plant, and Equipment” such as land and
buildings, the capital work in progress are recorded at historical cost less the applicable
amortization and depreciation. The depreciation is charged on the useful life of the assets based
on straight-line method. Buildings are depreciated 5-40 years as per “straight-line method”, plant
and equipment are depreciated 3-15 years “straight-line method” and lease improvements are
depreciated 5-10 as per “straight-line method”. The impairment testing of PPE is done when the
impairment trigger is identified (McGuire, Wang and Wilson 2014). Intangible assets are
considered with goodwill, intellectual property and software. The excess of fair value of the
purchase consideration for goodwill is identified with net assets minus incidental expenses which
are recorded as goodwill. It needs to be further understood that goodwill is allocated to the
individual as generating units which represents the lowest value within the group in which
goodwill is monitored. The company believes in amortizing and reviewing for impairment for
those assets which have finite lives. The intangible assets having indefinite useful life are not
subject to amortization and henceforth not tested for impairment. The carrying amount of the
goodwill allocated to the business is seen as $ 688.3 in 2017. It has been further discerned that
goodwill is not amortized but measured at cost less any accumulated impairment losses. The
composition of the intangible asset is discerned with $ 1055.4 million in 2017 and 942.6 million
in 2016 out of total assets of $ 9122.7 in 2017 million and 7562.7 million in 2016. This is
forming a composition percentage of 11.5% intangibles in 2017 and 12.4% in 2016 respectively.
Cochlear Limited CSL Limited
Particulars 2017 2016 2017 2016
Intangible Assets 339976 224338 1055.4 942.6
Total Assets 9,23,196 8,16,734 9122.7 7562.7
Composition of Intangible
Assets 37% 27% 12% 12%
percentage of 36.8% intangibles in 2017 and 27.4% in 2016 respectively. The intangible assets
for the company with indefinite useful life are systematically tested for impairment on an annual
basis (Maynard 2017).
In case of CSL Limited, the value of “Property, Plant, and Equipment” such as land and
buildings, the capital work in progress are recorded at historical cost less the applicable
amortization and depreciation. The depreciation is charged on the useful life of the assets based
on straight-line method. Buildings are depreciated 5-40 years as per “straight-line method”, plant
and equipment are depreciated 3-15 years “straight-line method” and lease improvements are
depreciated 5-10 as per “straight-line method”. The impairment testing of PPE is done when the
impairment trigger is identified (McGuire, Wang and Wilson 2014). Intangible assets are
considered with goodwill, intellectual property and software. The excess of fair value of the
purchase consideration for goodwill is identified with net assets minus incidental expenses which
are recorded as goodwill. It needs to be further understood that goodwill is allocated to the
individual as generating units which represents the lowest value within the group in which
goodwill is monitored. The company believes in amortizing and reviewing for impairment for
those assets which have finite lives. The intangible assets having indefinite useful life are not
subject to amortization and henceforth not tested for impairment. The carrying amount of the
goodwill allocated to the business is seen as $ 688.3 in 2017. It has been further discerned that
goodwill is not amortized but measured at cost less any accumulated impairment losses. The
composition of the intangible asset is discerned with $ 1055.4 million in 2017 and 942.6 million
in 2016 out of total assets of $ 9122.7 in 2017 million and 7562.7 million in 2016. This is
forming a composition percentage of 11.5% intangibles in 2017 and 12.4% in 2016 respectively.
Cochlear Limited CSL Limited
Particulars 2017 2016 2017 2016
Intangible Assets 339976 224338 1055.4 942.6
Total Assets 9,23,196 8,16,734 9122.7 7562.7
Composition of Intangible
Assets 37% 27% 12% 12%
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7CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
2016 2015 2016 2015
0%
5%
10%
15%
20%
25%
30%
35%
40% 37%
27%
12% 12%
Composition of Intangible Assets
Cochlear Limited
CSL Limited
Figure: Comparison of Composition of Intangible Assets in Cochlear Limited and CSL
Limited
(Source: Cochlear.com. 2018)
Leases
The various types of payments made under the operating leases are expensed as per
straight-line method over the lease term for Cochlear Limited. This however follows the
exception where alternative basis is more representable with the pattern of benefits which are
derived from leased property. The minimum lease payments consist of fixed-rate interests. The
company has been further depicted with number of operating leases over its offices which
requires the premises to be returned to the lessor as per of their initial condition. It needs to be
further discerned that the operating lease payments does not include repairs and overhauls.
Cochlear is identified to lease property under “noncancelable operating leases” expiring over 15
years. The leases are generally provided with the right of renewal at which the terms are
renegotiated. The future noncancelable leases for not later than one year is seen as $ 22142 in
2017 and $ 22372 in 2016. In addition to this, future noncancelable leases later than one year but
not later than five years is depicted to be $ 70016 in 2017 and $ 82528 in 2016. The lease is later
2016 2015 2016 2015
0%
5%
10%
15%
20%
25%
30%
35%
40% 37%
27%
12% 12%
Composition of Intangible Assets
Cochlear Limited
CSL Limited
Figure: Comparison of Composition of Intangible Assets in Cochlear Limited and CSL
Limited
(Source: Cochlear.com. 2018)
Leases
The various types of payments made under the operating leases are expensed as per
straight-line method over the lease term for Cochlear Limited. This however follows the
exception where alternative basis is more representable with the pattern of benefits which are
derived from leased property. The minimum lease payments consist of fixed-rate interests. The
company has been further depicted with number of operating leases over its offices which
requires the premises to be returned to the lessor as per of their initial condition. It needs to be
further discerned that the operating lease payments does not include repairs and overhauls.
Cochlear is identified to lease property under “noncancelable operating leases” expiring over 15
years. The leases are generally provided with the right of renewal at which the terms are
renegotiated. The future noncancelable leases for not later than one year is seen as $ 22142 in
2017 and $ 22372 in 2016. In addition to this, future noncancelable leases later than one year but
not later than five years is depicted to be $ 70016 in 2017 and $ 82528 in 2016. The lease is later

8CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
than five years is determined as $ 58897 in 2017 and 65312 in 2016. The total operating lease
commitments for Cochlear is seen to be $ 151055 in 2017 and 170212 in 2016. Some of the new
standards which are yet to be adopted for leases includes the adoption AASB 16 leases which is
mandated for the company to follow in 2020 (Warren and Jones2018).
Figure: Disclosure on Lease Assets
(Source: Cochlear.com. 2018)
The total lease improvement cost is depicted as $ 275.9 million in 2017 and 223.3 million
in 2016 for CSL Limited. The total lease “property, plant and equipment” is determined to be $
35.4 million in 2017 and 32.8 million in 2016. The lease of the “property, plant and equipment”
in which the group is determined with substantial risk and reward of ownership are segregated as
financial leases. Finance lease is capitalized at the leases inception at “fair value of the minimum
lease payments”. Each of the lease payment is depicted to be allocated between liability and
finance cost. The finance cost is further seen to be charged to the statement of comprehensive
income over the lease period in order to produce a constant periodic rate of interest on the
remaining balance of the needs for each period. The various types of “property, plant and
equipment” acquired as per the finance lease is depreciated over the shorter assets useful life and
leased term. Used to be further understood that the cost of improvement for the leasehold
properties are amortized over the unexpired cost ranging for the lease or estimated useful life of
improvement whichever is depicted to be shorter in nature. The financial instruments comprise
of the “cash and cash equivalents, receivables, payables, lease liabilities and other derivative
instrument”. The operating lease are determined to have a varying for renewal rights. The
different types of rental payments under the leases are predominantly fixed however they are
generally consist of inflation escalation clauses. It needs to be understood that no operating or
than five years is determined as $ 58897 in 2017 and 65312 in 2016. The total operating lease
commitments for Cochlear is seen to be $ 151055 in 2017 and 170212 in 2016. Some of the new
standards which are yet to be adopted for leases includes the adoption AASB 16 leases which is
mandated for the company to follow in 2020 (Warren and Jones2018).
Figure: Disclosure on Lease Assets
(Source: Cochlear.com. 2018)
The total lease improvement cost is depicted as $ 275.9 million in 2017 and 223.3 million
in 2016 for CSL Limited. The total lease “property, plant and equipment” is determined to be $
35.4 million in 2017 and 32.8 million in 2016. The lease of the “property, plant and equipment”
in which the group is determined with substantial risk and reward of ownership are segregated as
financial leases. Finance lease is capitalized at the leases inception at “fair value of the minimum
lease payments”. Each of the lease payment is depicted to be allocated between liability and
finance cost. The finance cost is further seen to be charged to the statement of comprehensive
income over the lease period in order to produce a constant periodic rate of interest on the
remaining balance of the needs for each period. The various types of “property, plant and
equipment” acquired as per the finance lease is depreciated over the shorter assets useful life and
leased term. Used to be further understood that the cost of improvement for the leasehold
properties are amortized over the unexpired cost ranging for the lease or estimated useful life of
improvement whichever is depicted to be shorter in nature. The financial instruments comprise
of the “cash and cash equivalents, receivables, payables, lease liabilities and other derivative
instrument”. The operating lease are determined to have a varying for renewal rights. The
different types of rental payments under the leases are predominantly fixed however they are
generally consist of inflation escalation clauses. It needs to be understood that no operating or

9CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
financier lease consists of restrictions over leasing activities for the company. Similar to
Cochlear Limited, some of the new standards which are yet to be adopted for leases includes the
adoption AASB 16 leases which is mandated for the company to follow in 2020 (Henderson et
al. 2015).
Figure: Lease treatment for CSL
(Source: Csl.com. 2018)
Voluntary Disclosures
Based on the significance of the exchange rate movements, the directors of Cochlear
Limited decided to present the non-IFRS financial measure which is applied to the underlying
financial performance of the business. The non-IFRS financial disclosure is completely voluntary
nature and are not subject to review our audit. The first disclosure is identified with constant
currency. The constant currency eliminates the impact of any sort of exchange rate movements
which is required to facilitate comparability of the operational excellence for Cochlear. This is
applied with converting the prior comparable period net profit of entities with the use of currency
other than Australian dollar (Bartlett and Beamish 2018). The company is further depicted to
make voluntary disclosure in area of key management personal. This is in particular has been
maintained with disclosing the short-term employee benefits, postemployment benefits, other
long-term benefits, director retirement benefits and share-based payments. The information
associated to the individual KMP remuneration is considered to be plummeted by section 300A
of the “Corporation’s Act 2001”. It needs to be also understood that KMP has not received any
loans from Cochlear and there has been no related party transaction with the company (McGuire,
Wang and Wilson 2014).
financier lease consists of restrictions over leasing activities for the company. Similar to
Cochlear Limited, some of the new standards which are yet to be adopted for leases includes the
adoption AASB 16 leases which is mandated for the company to follow in 2020 (Henderson et
al. 2015).
Figure: Lease treatment for CSL
(Source: Csl.com. 2018)
Voluntary Disclosures
Based on the significance of the exchange rate movements, the directors of Cochlear
Limited decided to present the non-IFRS financial measure which is applied to the underlying
financial performance of the business. The non-IFRS financial disclosure is completely voluntary
nature and are not subject to review our audit. The first disclosure is identified with constant
currency. The constant currency eliminates the impact of any sort of exchange rate movements
which is required to facilitate comparability of the operational excellence for Cochlear. This is
applied with converting the prior comparable period net profit of entities with the use of currency
other than Australian dollar (Bartlett and Beamish 2018). The company is further depicted to
make voluntary disclosure in area of key management personal. This is in particular has been
maintained with disclosing the short-term employee benefits, postemployment benefits, other
long-term benefits, director retirement benefits and share-based payments. The information
associated to the individual KMP remuneration is considered to be plummeted by section 300A
of the “Corporation’s Act 2001”. It needs to be also understood that KMP has not received any
loans from Cochlear and there has been no related party transaction with the company (McGuire,
Wang and Wilson 2014).
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10CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Figure: Disclosure on Non-IFRS Measures
(Source: Cochlear.com. 2018)
Figure: Disclosure on Constant Currency
(Source: Cochlear.com. 2018)
The interpretations made for CSL Limited shows that the main voluntary disclosure is
identified with executive KMP ammunition received in 2017. The table 5 clearly states about the
actual take-home pay of executive KMP. The main difference between the actual take-home pay
disclosure and stated disclosures is considered with the inclusion of “opportunity to earn
performance-based achievement”. The second important voluntary disclosure for the company is
identified with statutory remuneration disclosure of nonexecutive director’s remuneration. This
Figure: Disclosure on Non-IFRS Measures
(Source: Cochlear.com. 2018)
Figure: Disclosure on Constant Currency
(Source: Cochlear.com. 2018)
The interpretations made for CSL Limited shows that the main voluntary disclosure is
identified with executive KMP ammunition received in 2017. The table 5 clearly states about the
actual take-home pay of executive KMP. The main difference between the actual take-home pay
disclosure and stated disclosures is considered with the inclusion of “opportunity to earn
performance-based achievement”. The second important voluntary disclosure for the company is
identified with statutory remuneration disclosure of nonexecutive director’s remuneration. This

11CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
has included the enumeration for the nonexecutive director and segregated the same with short-
term and postemployment benefits (Macve 2015).
Figure: Disclosure on Executive Remuneration
(Source: Csl.com. 2018)
Figure: Disclosure on Statutory Remuneration
has included the enumeration for the nonexecutive director and segregated the same with short-
term and postemployment benefits (Macve 2015).
Figure: Disclosure on Executive Remuneration
(Source: Csl.com. 2018)
Figure: Disclosure on Statutory Remuneration

12CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
(Source: Csl.com. 2018)
Accounting for Tax
The depictions of financial statement of Cochlear Limited have shown that the total
deferred tax amounted to $ 66586 in 2017 and $ 77144 in 2016. In addition to this, the deferred
tax liabilities that identified with $ 5837 in 2017 and 7122 in 2016. The present and the deferred
tax are recognized in the income statement, however exceptions apply to the items which are
directly a part of income or equity. The company recognizes deferred tax as the “temporary
differences between the carrying amount of the assets and liabilities for financial reporting and
taxation purpose”. It needs to be further understood that the measurement of deferred tax is
recognized to the extent that it is probable that “future tax profits will be available against which
they can be utilized” (Martin, X. and Roychowdhury 2015).
Figure: Deferred Tax Assets of Cochlear Limited
(Source: Cochlear.com. 2018)
Figure: Deferred Tax Liabilities of Cochlear Limited
(Source: Cochlear.com. 2018)
(Source: Csl.com. 2018)
Accounting for Tax
The depictions of financial statement of Cochlear Limited have shown that the total
deferred tax amounted to $ 66586 in 2017 and $ 77144 in 2016. In addition to this, the deferred
tax liabilities that identified with $ 5837 in 2017 and 7122 in 2016. The present and the deferred
tax are recognized in the income statement, however exceptions apply to the items which are
directly a part of income or equity. The company recognizes deferred tax as the “temporary
differences between the carrying amount of the assets and liabilities for financial reporting and
taxation purpose”. It needs to be further understood that the measurement of deferred tax is
recognized to the extent that it is probable that “future tax profits will be available against which
they can be utilized” (Martin, X. and Roychowdhury 2015).
Figure: Deferred Tax Assets of Cochlear Limited
(Source: Cochlear.com. 2018)
Figure: Deferred Tax Liabilities of Cochlear Limited
(Source: Cochlear.com. 2018)
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13CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Figure: Disclosure on deferred Tax of Cochlear Limited
(Source: Cochlear.com. 2018)
The total deferred tax asset for CSL Limited in 2017 has been depicted as $ 496.5 million
and in 2016 as 389 million. Additionally, the total deferred tax liabilities have amounted to $
138.2 million in 2017 and 119.2 million in 2016. The deferred tax liabilities are recognized with
the temporary tax differences. These are determined as per the deductible temporary differences,
unused tax losses and unused tax assets. The total getting amount of deferred income taxes
reviewed at the reporting date in case it is no longer profitable. The deferred tax assets are
measured using the tax rates and laws which are enacted with reporting date and expected to
apply with related deferred income tax. These are offset with legally enforceable rights to set off
“current tax assets against the current tax liabilities”. It needs to be understood that the deferred
tax assets in respect of carry forward tax losses are principally recorded in the entities of CSL
existing in Switzerland and the UK (Scott 2015).
Figure: Deferred Tax Assets of CSL Limited
(Source: Csl.com. 2018)
Figure: Disclosure on deferred Tax of Cochlear Limited
(Source: Cochlear.com. 2018)
The total deferred tax asset for CSL Limited in 2017 has been depicted as $ 496.5 million
and in 2016 as 389 million. Additionally, the total deferred tax liabilities have amounted to $
138.2 million in 2017 and 119.2 million in 2016. The deferred tax liabilities are recognized with
the temporary tax differences. These are determined as per the deductible temporary differences,
unused tax losses and unused tax assets. The total getting amount of deferred income taxes
reviewed at the reporting date in case it is no longer profitable. The deferred tax assets are
measured using the tax rates and laws which are enacted with reporting date and expected to
apply with related deferred income tax. These are offset with legally enforceable rights to set off
“current tax assets against the current tax liabilities”. It needs to be understood that the deferred
tax assets in respect of carry forward tax losses are principally recorded in the entities of CSL
existing in Switzerland and the UK (Scott 2015).
Figure: Deferred Tax Assets of CSL Limited
(Source: Csl.com. 2018)

14CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Conclusion
Based on the depictions of the report the value of the “Property, Plant, and Equipment”
for Cochlear is measured as the cost of asset, minus accumulated depreciation and impairment
loss. The cost of asset is considered as per the incidental costs which are directly attributable to
the acquisition. The intangible assets such as goodwill is accounted by applying acquisition
method at the time of business combination. In addition to this, the goodwill represents the
difference among the “cost of acquisition and fair value of the net identifiable assets acquired”.
In terms of CSL Limited The depreciation is charged on the useful life of the assets based on
straight-line method. Buildings are depreciated 5-40 years as per “straight-line method”, plant
and equipment are depreciated 3-15 years “straight-line method” and lease improvements are
depreciated 5-10 as per “straight-line method”. The impairment testing of PPE is done when the
impairment trigger is identified. Intangible assets are considered with goodwill, intellectual
property and software. The excess of fair value of the purchase consideration for goodwill is
identified with net assets minus incidental expenses which are recorded as goodwill. It is further
determined that payments made under the operating leases are expensed as per straight-line
method over the lease term for Cochlear Limited. This however follows the exception where
alternative basis is more representable with the pattern of benefits which are derived from leased
property. The minimum lease payments consist of fixed-rate interests.The various types of
“property, plant and equipment” acquired as per the finance lease is depreciated over the shorter
assets useful life and leased term. Used to be further understood that the cost of improvement for
the leasehold properties are amortized over the unexpired cost ranging for the lease or estimated
useful life of improvement whichever is depicted to be shorter in nature.
Conclusion
Based on the depictions of the report the value of the “Property, Plant, and Equipment”
for Cochlear is measured as the cost of asset, minus accumulated depreciation and impairment
loss. The cost of asset is considered as per the incidental costs which are directly attributable to
the acquisition. The intangible assets such as goodwill is accounted by applying acquisition
method at the time of business combination. In addition to this, the goodwill represents the
difference among the “cost of acquisition and fair value of the net identifiable assets acquired”.
In terms of CSL Limited The depreciation is charged on the useful life of the assets based on
straight-line method. Buildings are depreciated 5-40 years as per “straight-line method”, plant
and equipment are depreciated 3-15 years “straight-line method” and lease improvements are
depreciated 5-10 as per “straight-line method”. The impairment testing of PPE is done when the
impairment trigger is identified. Intangible assets are considered with goodwill, intellectual
property and software. The excess of fair value of the purchase consideration for goodwill is
identified with net assets minus incidental expenses which are recorded as goodwill. It is further
determined that payments made under the operating leases are expensed as per straight-line
method over the lease term for Cochlear Limited. This however follows the exception where
alternative basis is more representable with the pattern of benefits which are derived from leased
property. The minimum lease payments consist of fixed-rate interests.The various types of
“property, plant and equipment” acquired as per the finance lease is depreciated over the shorter
assets useful life and leased term. Used to be further understood that the cost of improvement for
the leasehold properties are amortized over the unexpired cost ranging for the lease or estimated
useful life of improvement whichever is depicted to be shorter in nature.

15CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
References
Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University
Press.
Cataldo, I.I. and Anthony, J., 2017. CPA Yaeger Review-Financial Accounting and Reporting.
Cochlear.com. (2018). [online] Available at: https://www.cochlear.com/b0dffcb0-9826-4c99-
9d58-ad7a760bddac/en_corporate_cochlear_annualreport2017_1.78mb.pdf?
MOD=AJPERES&CONVERT_TO=url&CACHEID=ROOTWORKSPACE-b0dffcb0-
9826-4c99-9d58-ad7a760bddac-lTJByF- [Accessed 8 May 2018].
Csl.com. (2018). [online] Available at: https://www.csl.com/-/media/shared/documents/5/2017-
fy-asx.pdf?la=en-us&hash=0AA5E03E5FCB98E184CC3116677BDD07741EF572 [Accessed 8
May 2018].
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting.
Pearson Higher Education AU.
Macve, R., 2015. A Conceptual Framework for Financial Accounting and Reporting: Vision,
Tool, Or Threat?. Routledge.
Martin, X. and Roychowdhury, S., 2015. Do financial market developments influence
accounting practices? Credit default swaps and borrowers׳ reporting conservatism. Journal of
Accounting and Economics, 59(1), pp.80-104.
Maynard, J., 2017. Financial Accounting, Reporting, and Analysis. Oxford University Press.
McGuire, S.T., Wang, D. and Wilson, R.J., 2014. Dual class ownership and tax avoidance. The
Accounting Review, 89(4), pp.1487-1516.
Millo, Y., Barman, E. and Hall, M., 2016. Accounting measurement tools and their impact on
managerial decision making. economic sociology_the european electronic newsletter, 17(2),
pp.17-23.
Scott, W.R., 2015. Financial accounting theory (Vol. 2, No. 0, p. 0). Prentice Hall.
References
Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University
Press.
Cataldo, I.I. and Anthony, J., 2017. CPA Yaeger Review-Financial Accounting and Reporting.
Cochlear.com. (2018). [online] Available at: https://www.cochlear.com/b0dffcb0-9826-4c99-
9d58-ad7a760bddac/en_corporate_cochlear_annualreport2017_1.78mb.pdf?
MOD=AJPERES&CONVERT_TO=url&CACHEID=ROOTWORKSPACE-b0dffcb0-
9826-4c99-9d58-ad7a760bddac-lTJByF- [Accessed 8 May 2018].
Csl.com. (2018). [online] Available at: https://www.csl.com/-/media/shared/documents/5/2017-
fy-asx.pdf?la=en-us&hash=0AA5E03E5FCB98E184CC3116677BDD07741EF572 [Accessed 8
May 2018].
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting.
Pearson Higher Education AU.
Macve, R., 2015. A Conceptual Framework for Financial Accounting and Reporting: Vision,
Tool, Or Threat?. Routledge.
Martin, X. and Roychowdhury, S., 2015. Do financial market developments influence
accounting practices? Credit default swaps and borrowers׳ reporting conservatism. Journal of
Accounting and Economics, 59(1), pp.80-104.
Maynard, J., 2017. Financial Accounting, Reporting, and Analysis. Oxford University Press.
McGuire, S.T., Wang, D. and Wilson, R.J., 2014. Dual class ownership and tax avoidance. The
Accounting Review, 89(4), pp.1487-1516.
Millo, Y., Barman, E. and Hall, M., 2016. Accounting measurement tools and their impact on
managerial decision making. economic sociology_the european electronic newsletter, 17(2),
pp.17-23.
Scott, W.R., 2015. Financial accounting theory (Vol. 2, No. 0, p. 0). Prentice Hall.
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16CONTEMPORARY FINANCIAL & INTEGRATED REPORTING
Warren, C.M., 2016. The impact of International Accounting Standards Board
(IASB)/International Financial Reporting Standard 16 (IFRS 16). Property Management, 34(3).
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John
Wiley & Sons.
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education.
Warren, C.M., 2016. The impact of International Accounting Standards Board
(IASB)/International Financial Reporting Standard 16 (IFRS 16). Property Management, 34(3).
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & managerial accounting. John
Wiley & Sons.
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education.
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