Company Accounting Report: Elevated Enterprise Ltd Analysis

This comprehensive report delves into the realm of company accounting, encompassing a detailed analysis of financial statements, shareholder reports, and key financial metrics. The report begins with a corrected financial statement for Elevated Enterprise Ltd and progresses to a thorough financial report, which includes notes on significant accounting policies, depreciation methods, goodwill, and tax reconciliation. A shareholder's report is also presented, offering an executive summary, introduction, discussions on taxation, director's duties, and material items. The report explores integrated computer accounting systems, various formats, and crucial topics like leave provisions, depreciation calculations, and double-entry bookkeeping. It also provides a comparison between credit cash and credit balance accountants. Furthermore, the report incorporates an analysis of financial statements from Lynch Quality Goods, evaluating their income statements and balance sheets from 2016/2017 and 2017/2018, including ratio analysis, and the impact of a potential investment on financial ratios. The report offers insights into the business's performance and provides advice on financial strategies.

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
Name of the University:
Author’s Note:
Table of Contents

1COMPANY ACCOUNTING
Part A: Corrected financial statement:.............................................................................................2
Part B: Financial Report:.................................................................................................................5
Part C: Shareholders’ Report:........................................................................................................10
Executive Summary...................................................................................................................10
Introduction................................................................................................................................11
Discussions................................................................................................................................11
Taxation legislature...................................................................................................................12
Director’s duties in relation to conflict of interest and confidentiality......................................12
Material items from the report...................................................................................................13
Integrated computer accounting system....................................................................................14
Formats......................................................................................................................................14
Leave provision.........................................................................................................................14
Options to calculate depreciation and amortization...................................................................15
Double entry book keeping........................................................................................................15
Difference between credit cash accountant and credit balance accountant...............................16
Conclusion.................................................................................................................................16
References......................................................................................................................................17

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Part A: Corrected financial statement:

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Part B: Financial Report:

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Notes to the financial statement:
1. Significant accounting policies:
The Financial statement of Elevated Enterprise Ltd has been prepared using the accrual
basis of accounting. Provisions of IFRS 101 have been followed for preparation and presentation
of the financial statements. Tangible and intangible assets have been subjected to fair valuation
and reported at their fair value and respective treatments for impairment and revaluation have
been given in the books of accounts accordingly. All other treatments in accounting have been
given as per the respective accounting standards issued by AASB.
2. Method of depreciation:
Straight-line method of depreciation has been followed for computing depreciation and
amortization of fixed assets and all the fixed assets have been shown in their fair value. For
intangible assets instead of amortizations system, the impairment system has been followed.
3. Goodwill and intangibles:
There was no acquisition of business within the current accounting year resulting into any
change in the value of goodwill, however the goodwill is subject to impairment test and the

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impairment of goodwill has been calculated accordingly. All other intangible assets have also
been tested for impairment and respective impairments have been recorded.
4. Reconciliation of tax liability:
5. Reconciliation of cash used in operating activities to operating profit:
6. Lease commitment:
7. Inventory Valuation:
Inventory has been valued at lower of fair value and cost. As all of the assets have been
assessed for impairment test, the inventory has been reported at net realizable value.

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Part C: Shareholders’ Report:
Executive Summary
The report is mainly emphasized into the process of helping out the shareholders in the focus of
getting them understandable into financial terms, which are regarded as the factor where
financial statements are mainly attributed to the fact that they do not possess with sound financial
background. Hence, it is quite hectic for them in order to get to know about the financial
illustration of the company. Leave provisions, which are mainly outlined with enhancing with
leaving provisions adjusted within the report. The different types of reports, which are mainly
available for the outlining the formats are mainly discussed effectively. The options those are
mainly available in the context of availing in the sort of calculating the depreciation as well as
amortization. It can be concluded from the above topic that financial statements plays an
important role in this context which is inherited with the procedure that shareholders are
liberated with the procedure that which is helpful in the context of report where all the types of
transactions generally discussed with the attribution of maintaining the cash credit balance
account.