Financial Reporting and Analysis: Bega Cheese Company Overview

This report provides a comprehensive analysis of Bega Cheese's financial reporting practices. It begins with a summary of Bega Cheese's business activities, highlighting its focus on dairy product manufacturing and distribution across Australia and internationally. The report then identifies and explains key accounting policies relevant to the company's success, emphasizing the importance of adhering to Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS). It examines how the company applies these standards, including those related to fair value measurement and disclosure, and how it ensures consistency in its financial statements. The report concludes that the company prepares its financial statements in compliance with appropriate accounting standards, presenting a true and fair view of its financial position and performance. The report also cites relevant academic literature that supports the analysis of financial reporting and accounting standards.

Running head: FINANCIAL REPORTING AND ANALYSIS
Financial reporting and analysis
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FINANCIAL REPORTING AND ANALYSIS
Summary of activities of company:
Bega Cheese is a dairy company based in Australia that was established in year 1899
and is located in Bega Valley in New South Wales. Organization has been successful in
producing and distributing value added cheese products that are of higher quality to the
consumers of Australia and around fifty countries of world. Activities and input of
organization are controlled through the quality management system of group that helps in
procuring ingredient to the delivery of products. Group intends to maintain close relationship
with its dairy farm suppliers in relation to system of environment management.
The principal activities of Bega is to receive, process, manufactures and distribute the
dairy and associated products to the consumers of Australia and other countries in the world.
There is an active engagement on part of group with the suppliers of milk across the country
for assisting them in the facets of the dairy business. The factors that are considered
important for prosperity and growth of business of Bega are efficiency, sustainability and
succession (Bega Cheese.com.au 2018). Group is committed to carry out the activities in a
socially and environmentally sustainable manner intending to improve the farm practices and
minimizing the environmental impacts.
Identification of key accounting policies relevant to the success of company:
The accounting policies of group have been applied by considering the significant
areas of estimation, critical judgment and evaluation that have considerable impact on the
recognized amount in the financial statements. Financial report of the group is prepared by
adopting principle accounting policies that have been applied consistently in all the areas.
The general purpose financial statements are prepared according to the Corporation
Act, 2001 and Australian accounting standard board and its interpretation (Leuz and Wysocki
2016). In addition to this, there has been change in subsidiaries accounting policies that is

FINANCIAL REPORTING AND ANALYSIS
required for ensuring consistency with other accounting policies adopted by the group. The
financial statements of group are prepared based on historical cost convention that is
modified by the financial assets and liabilities revaluation. Consolidate financial statement
also comply with International financial reporting standard. Some of the accounting standard
that is adopted by the group is as follows:
AASB 7- For the measurement and disclosure along with the purpose of disclosure,
the fair value of financial liabilities and financial assets are estimated as per this standard. A
hierarchy of fair value measurement is used for disclosing the measurement of fair value by
levels.
AASB 2015-2 amendments to Australian accounting standards- This standard
intends to make amendment in the disclosure initiative that helps in exploring how
disclosures of financial statements can be improved. The guidance on AASB 101 is clarified
by amendment on aggregation and materiality, accounting policies disclosure and financial
statement structures (Lang and Stice-Lawrence 2015).
From the analysis of annual report of Bega Cheese group, it is inferred that financial
statement is prepared in compliance with appropriate accounting standards that depicts true
and fair view of financial position.

FINANCIAL REPORTING AND ANALYSIS
References list
Bamber, M. and McMeeking, K., 2016. An examination of international accounting standard-setting
due process and the implications for legitimacy. The British Accounting Review, 48(1), pp.59-73.
Bega Cheese. (2018). Annual Reports - Bega Cheese. [online] Available at:
https://www.begacheese.com.au/investors/annual-reports/ [Accessed 14 May 2018].
Lang, M. and Stice-Lawrence, L., 2015. Textual analysis and international financial reporting: Large
sample evidence. Journal of Accounting and Economics, 60(2-3), pp.110-135.
Leuz, C. and Wysocki, P.D., 2016. The economics of disclosure and financial reporting regulation:
Evidence and suggestions for future research. Journal of Accounting Research, 54(2), pp.525-622.

FINANCIAL REPORTING AND ANALYSIS