Financial Accounting Report: Analysis of XYZ Group's 2019 Financials

This financial accounting report presents the financial statements of XYZ Group for the year ended June 30, 2019. It includes the statement of profit or loss and other comprehensive income, statement of financial position, notes to the financial statements, directors' declaration, and the independent auditor's report. The report details the company's accounting policies, significant transactions, and financial performance, including revenue recognition, inventory valuation, provisions, and tax rates. It also covers the company's principal activities, environmental regulations, and the auditor's opinion on the financial statements' compliance with the Corporations Act 2001 and Australian Accounting Standards. The report provides a comprehensive overview of the company's financial position and performance, including details on dividends, loan interest, and related-party transactions. The Directors' Declaration affirms the company's ability to meet its debts and the financial statements' compliance with accounting standards. The report concludes with a bibliography of cited accounting standards and literature.

Running head: FINANCIAL ACCOUNTING
Financial accounting
Name of the student
Name of the university
Student ID
Author note

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Table of Contents
Financial statement for the year closed dated 30th June 2019..........................................................2
Notes to financial statements...........................................................................................................4
Directors Declaration.......................................................................................................................5
Independent auditor’s report............................................................................................................6
Annual director’s report...................................................................................................................6
Bibliography....................................................................................................................................8

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Financial statement for the year closed dated 30th June 2019

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Notes to financial statements
1. Basis of preparation
Consolidated financial statements (CFS) are prepared in compliance with AAS that
assures that financial reports are complied with the IFRS issued by IASB. Further, these have
been prepared in confirmation with IASB and IFRS. Accounting policies consistently have been
applied to all the periods those are presented under CFS unless it has been stated otherwise.
2. Significant accounting policies
Inventories – the inventories are measured at lower of the cost and the net realisable value
Revenue – for the goods in store, control over the same is transferred to customer at the point of
purchase by the customer. Where the payments for the goods are received before transfer of
control to customers, recognition of revenue is deferred under contract liabilities under accounts
receivable in statement of financial position.
3. Provisions
The entity records provisions where uncertainty is there regarding the amount or timing
that will be paid, however likely amount of settlement can be estimated reliably by the entity.
Major provisions held are associated with legal cases, annual leave for employees, long service
leave of employees and warranty.
4. Notes related to Statement of Profit and loss statement and other comprehensive income
 Opening balance of employee benefits has been adjusted with closing balance of
employee benefits for computing the payment towards employee benefits.
 Loan on interest was paid at the rate of 6%

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 Dividend recommended by the directors eventually has been authorised as well as
approved amounted to $153,000.
 Applicable tax rate on the income was 30%
 Proceeds from sale of land are expected to be collected from August 2019 onwards.
Hence, the same will not be considered in the financial statement dated 30th June 2019.
5. Notes related to Statement of financial position
 The entity was involved in the legal dispute; however, at the year closed dated 30th June
2018 it has been recognised that the entity is not liable and is not required to pay any
amounts associated with the same.
Directors Declaration
It has been declared by the directors that
(a) In director’s opinion, reasonable grounds are there for believing that corporation will be
able paying the debts as and while the same become due as well as payable.
(b) In the opinion of the directors, CFS attached are in conformity with the IFRS as stated in
the notes to CFS.
(c) In the opinion of the directors, CFS attached and notes thereon are in compliance with
Corporation Act 2001 that includes compliance with the accounting standards and
provides trues and fair view regarding financial position as well as performance of
organisation and
(d) Directors provided declaration as required by section 295A of Corporation Act 2001.
On date of the declaration, the entity is within the class of the entities those are impacted
by ASIC Corporations Instruments 2016/785. Nature of deed for cross guarantee is such that
each of the entity that is the party to deed guarantee to each of the creditor payment in full of any
debt as per the deed of cross guarantee. In the opinion of director reasonable grounds are there
for believing that company as well as companies to which instruments applies, as prescribed in
notes to consolidated financial statements as the entity will be able meeting the obligation if any
or the liabilities to which they are or they may become subject by the virtue for the cross
guarantee deed.

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Independent auditor’s report
Opinion
Audit for the financial report of XYZ Group Ltd and subsidiaries those comprises
consolidated financial position statement dated 30th June 2019, consolidated statement for profit
and loss, consolidated statement of other comprehensive income, consolidated statement of
changes in the equity and consolidated statement of the cash flows for 1 year period along with
notes associated with financial statements including the summary regarding significant
accounting policies and declaration of the directors.
In the opinion of the auditor, associated financial report of the entity is conformity with
Corporation Act 2001 including –
(i) Providing true and fair view regarding financial position of the entity dated 30th June
2019 and financial performance for 1 year ended and
(ii) Are in compliance with the AAS and Corporation Regulations 2001.
Basis for the opinion
Audit has been carried out by the auditors as per the requirement of AAS.
Responsibilities of the auditors under the standards are described further in responsibilities of the
auditor for conducting audit of financial report section of report. The auditors are independent of
entity as per the independence requirement in confirmation with Corporation Act 2001 along
with ethical requirement of accounting professional as well as ethical requirements of APES 110
code of ethics for the professional accountant.
Annual director’s report
This director’s report is in respect of the entity and its associated entities those have been
controlled at the close of the year dated 30th June 2019.
Principal activities – the entity operates mainly in Australia with 12 stores and approximately at
the close of the year. Principal activities of the entity include selling foods, endeavouring drinks
and supplying foods to the supermarket as whole sellers.
Name of the directors –

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 P A Tesija
 S F Kramer
 M C Cairns
 T S Perkins
 S L McKenna
Environmental regulation
Operations of the entity are regulated by wide range of environmental provisions in
accordance with law of Commonwealth of Australia and its territories and states. It is further
subjected to different state as well as local government food licensing requirement and are
further subjected to environmental regulations associated with development of the cites for
shopping centre. However, the entity has not sustained any notable liabilities under the
environmental legislation.

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Bibliography
Australian Accounting Standards Board, 2015. AASB 13: Fair Value Measurement. Melbourne:
Author.
Böcskei, E., Fenyves, V., Zsidó, E. and Bács, Z., 2015. Expected risk assessment—Annual
report versus social responsibility. Sustainability, 7(8), pp.9960-9972.
Bond, D., Govendir, B. and Wells, P., 2016. An evaluation of asset impairments by Australian
firms and whether they were impacted by AASB 136. Accounting & Finance, 56(1), pp.259-288.
Kabir, H., Rahman, A. and Su, L., 2017. The Association between Goodwill Impairment Loss
and Goodwill Impairment Test-Related Disclosures in Australia. In 8th Conference on Financial
Markets and Corporate Governance (FMCG).
Standard, I.A., 2015. Presentation of Financial Statements. Balance Sheet, 54, p.80A.