Financial Reporting Analysis: Fair Value, Employee Benefits, Revenue

This report provides an in-depth analysis of financial reporting, focusing on Australian Accounting Standard 101 (AASB 101) and its application. The report examines the objectives of financial statements, emphasizing their role in representing an organization's financial operations and aiding decision-making for managers. It delves into key elements such as financial position and cash flow. The report then explores three critical standards: fair value measurement, employee benefits, and revenue recognition. Fair value measurement is defined and applied in the context of asset and liability valuation. Employee benefits, including short-term and long-term considerations, are thoroughly discussed. Revenue measurement, based on fair value and transaction characteristics, is also covered. The report concludes by summarizing the significance of these standards in financial reporting and their implications for organizational governance.

Running head: Financial reporting
Financial Reporting
Name of the Student
Name of the University
Author’s note

1Financial Reporting
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

2Financial Reporting
Introduction
The report is focused to emphasis on Australian accounting standard 101 which identifies
that financial statements of an organization are usually a structured representation various sort of
financial operations which is operated by the company in order to satisfy their need
appropriately. The objective of the company is critically described in the report effectively. The
main objective concludes that it is helpful in the context of passing information about the
company for the managers who are being allocated to come up with certain degree of decisions.
The financial position, cash flow of the company is being determined effectively in the report.
Various attribute of decisions inhabiting with the various users of statements that is being
embedded into the financial statement. There are mainly three types of standards embedded in
the assignment, which consists of Fair value measurement, Employee Benefits, and Revenue of
the company is being defined effectively.
Discussion
Economic decisions
AASB 101 is focused on describing the standards associated with ensuring both of the
financial statement of the company named as Aldar. The company’s financial statement is
generally utilized in the concern of selecting previous period of the entity in comparison of
others respectively. It also set up the entire framework of overall requirement adjusted within in
the course of presenting the financial statement guideline for preparing the report. It is helpful in
coming up with preparation of financial statements in issuing as a sustainable form of
representation that is done in respect to focus on providing the information to managers in by
analyzing the financial position of company (Naritomi. 2019). However, there are certain
targets, which are required by them in considering for focusing to the policy and standards

3Financial Reporting
mentioned by the Australia Accounting Standard. These entities are assets, liabilities, equity,
income and expense statement which mainly includes gain and losses structure. Contributions as
well as distribution regarding the owners by analyzing the degree of capacity involved in them.
Last one is focused to the cash flows generated by company. Aldar has a complete set of
financial statements that includes a statement of financial position focusing upon end of the
accounting period (Jaworski et al. 2018). During the other system, it is involved to a statement of
profit and loss and mainly including the other part of profit and loss for the selected accounting
period. They utilize comparative information, which is maintained by the company. In order to
implement several rules and regulation that the company for enacting to extract several
information amended to the auditors who are generally preparing the auditing assignment for a
selected client (Abedin et al. 2018). The types of information, which are mainly required, is
focused on preceding period of financial data related to the client or an entity (Xu. 2019).
It gently enquires about all amounts in associated to the preceding period. An entity is
expected to undergo with understanding the betterment of them in associated in conditioning
towards presenting with minimum amount of financial positions. Two statement of profit and
loss statements and other part emphasis on having a structure of comprehensive income for the
betterment of changes in equity structure and it aids to better understanding of financial
statements (Coghlan. 2019).
Fair Value Measurement
Fair value is defined as the price which is mainly received in order to sell an asset or
either paying it in order to transfer a liability of the company by following an orderly variation of
transaction between the market participants during the time of measurement date. Fair value

4Financial Reporting
measurement is considered for a selected asset or liability of the company. While measuring the
asset and liability of the company, they are mainly issued with checking the characteristics of
assets and liabilities of the company which is mainly associated with measurement date. The
pricing of assets and liabilities are taken into consideration for applying the measurement
involved in it (Dermit-Richard, Scelles and Morrow. 2019). Conditions applied with considering
locations of the assets are gently involved within the company structure. Effect on measurement
is involved in the process which invites the process of inheriting the fair value. Aldar is required
to possess about evaluating the market recognition upon which it is quite easier to understand
about measuring about the market value and principal market by segregating and evaluating the
most advantageous situation and other sort of benefits which are helpful for them in order to fix
up the position for enhancing transactions in the business. The company is being able to access
the market easily and they are being able to sell the particular assets and particular liability
aligned into the business quite effectively (aldar.com. 2019).
Employee benefits
It generally include short term benefits involving in wages, salaries, social security
contributions, paid annual leaves, paid sick leaves, profit sharing polices and the bonuses
maintained by them in apportion to monetary and non-momentary segments in focusing of the
current employees. Post employee benefits are also accorded such as pensions, retirement
benefits and medical benefits provided to the workers in an organization (Baghai and Becker.
2018). Long-term employee benefits are mainly involved by the organization in order to boost
the morale of employees who served the organization for a great long time. The companies
provide termination benefits to the employees or the dependents of the employees, which helps
them to secure the goodwill of the company into some great extent particularly. Retirement

5Financial Reporting
benefit plans and pension plans are incurred with specified standard in order to fix up the
investment returns arriving through arising from contributions delivered by those employees.
Revenue
Measurement of revenue is considered with the arising on either transaction at fair value
involved with featuring the determination in relation that is received or receivable from the
clients (Gârleanu and Pedersen. 2018). Amount of revenue featuring on transaction is mainly
considered between the entity, the buyer, and the usage of assets involved within the transaction.
Fair value of the assets is maintained with reelecting into the amount of trade that is inherited by
making discounts and volume of rebate is being allowed to them in relation to the entity. Sale of
goods prevailing to the entity in consideration of significant risks involved within the transaction
and inheriting the amount rewards owned by them particularly. Cost incurred in respect of the
transactions that are being available in terms of measurement is performed reliably.

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Conclusion
It can be concluded from the above topic that objectives of financial statements are being
attributed very effectively in the context of representing the financial position of the company
and maintaining the appropriate combination which is inherited with making out the appropriate
combination relating to the consumption of the company very effectively. Various out flow of
decision-making system is appropriated in considering the proper level of combination
constituting effectively. The three important associative studies that mainly includes employee
benefit measurement, fair value measurement and most importantly revenue measurement is
determined and discussed effectively and effectively in the report. The outcome associated
throughout study of the report is aligned to significant procedure envied that is needed to be
implemented within the governance of the Organization.

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Reference
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Encephalopathy is an under Recognized Entity in Clinical Practice of Bangladeshi
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Baghai, R.P. and Becker, B., 2018. Non-rating revenue and conflicts of interest. Journal of
Financial Economics, 127(1), pp.94-112.
Coghlan, D., 2019. Doing action research in your own organization. SAGE Publications
Limited.
Dermit-Richard, N., Scelles, N. and Morrow, S., 2019. French DNCG management control
versus UEFA Financial Fair Play: a divergent conception of financial regulation
objectives. Soccer & Society, 20(3), pp.408-430.
Gârleanu, N. and Pedersen, L.H., 2018. Efficiently inefficient markets for assets and asset
management. The Journal of Finance, 73(4), pp.1663-1712.
Jaworski, C., Ravichandran, S., Karpinski, A.C. and Singh, S., 2018. The effects of training
satisfaction, employee benefits, and incentives on part-time employees’
commitment. International Journal of Hospitality Management, 74, pp.1-12.
Naritomi, J., 2019. Consumers as tax auditors. American Economic Review, 109(9), pp.3031-72.
Open Graph Site. 2019. Aldar Properties and Development - Abu Dhabi. online Available at:
aldar.com/en Accessed 21 Sep. 2019.
Traina, J., 2018. Is aggregate market power increasing? production trends using financial
statements. Production Trends Using Financial Statements (February 8, 2018).

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Xu, P., 2019. Exit of Small Businesses: Differentiating between Insolvency, Voluntary Closures
and M&A. Research Institute of Economy, Trade and Industry (RIETI).