Financial Reporting Report: AASB Amendments and Financials

This report provides an analysis of financial reporting, focusing on recent amendments by AASB and the financial statements of Winter Ltd. The report begins by outlining key changes in accounting standards, including those related to Property, Plant, and Equipment (AASB 116), insurance contracts, and tax transparency. It also discusses the AASB Board Strategy and Corporate Plan, along with the implications of these changes. The second part of the report presents a detailed Statement of Financial Position for Winter Ltd as of June 30, 2017, including asset and liability breakdowns, along with working notes for calculations and the accounting standards applied. The report concludes with a list of relevant references to support the analysis.

Running head: FINANCIAL REPORTING
Financial Reporting
Name of the Student
Name of the University
Authors Note
Course ID

1FINANCIAL REPORTING
Answer to question 1
CHANGES Stated in the accounting standard by AASB From 1st May 2017 to 4th August
2017
Australian
AASB Road Map for the
tax transparency
The international investors
and the Australian
stakeholders have stated to
view constant and
equivalent tax reporting
concerning the tax position
of the companies. Such
direction provides the
organization to facilitate
communication regarding
their tax information that is
constant with the changing
global disclosure practice
along with the requirements
of ASIC concerning the
Non-GAAP. This requires
the disclosure of an ETR
based on the corporate tax
in order to enable the
companies to company the
tax rate. Such direction
helps in establishing the
required disclosure with the
objective of making sure
that the interested parties
Contracts related to
insurance:
The insurance of analyst
of Australia would pursue
the advantage from the
improved global
comparison that is offered
with the help of IFRS 17
contracts that is issued
from the IASB. As per
this contract, the
international insurers are
not permitted to make use
of the historical cost at the
time of preparing financial
reports. From this contract
opportunities are lessened
to balance the profitable
and unprofitable business
under the sole portfolio
leading to early
identification of losses.
ED 280 Property Plant
and Equipment:
This state down the
proposal of narrowing
down the amendments to
AASB 116- Property,
Plant and Equipment. As
per the proposal, the
revenue generated from
the disposal of the items at
the time of carrying
Property, Plant and
Equipment to the essential
conditions and locations it
is vital to be capable of
functioning in the intended
method by the
administration. For
example, the manufactured
inventory while testing
machinery would be
included in the profit and
loss statement and does
not required to be
subtracted from the cost of
asset.

2FINANCIAL REPORTING
AASB Board Strategy
and Corporate Plan:
The above stated
amendments has been
created in partnership in
association with the
Auditing and Assurance
Standard Board. AASB
has established this
strategy for the year
ranging from 2017 to
2021. The common
individuals are provided
with the opportunity of
stating their overall
viewpoint in the
finalization of strategy.
End of an Era:
The above stated
amendment would mark
the conclusion of AAS
since AASB has
succeeded the AAS 25
Financial Reporting from
the Superannuation Plans
from the present
financial year.

3FINANCIAL REPORTING
Better infrastructure for
transparency of
taxpayers:
As per the development, the
public sector companies are
required to realize the asset
and liabilities connected
with the partnership of
public and private
companies. Furthermore,
such projects can be stated
in the statement of financial
position of the companies
leading to overall increase
in the values of assets and
liabilities. This may assist
in improving the
accountability and superior
administration.
More organizations are
required to report on Tax
Liabilities:
As per this amendment the
directors are required to
evaluate constantly the
aggressiveness that is
linked with the position of
tax assuming that the
authorities of tax has
complete knowledge
regarding the overall facts.
Furthermore, the tax
liability for the projected
sum of settlement are not
required to be realized in
the statement of financial
position of the
organization.

4FINANCIAL REPORTING
Answer to question 2:
Statement of Financial Position:
Winter Ltd includes
Statement of financial position
As on 30th June 2017
Assets
Current Assets
Cash & Equivalents 168,200
Trade and other receivables 11, 6000
Inventories and materials312,900
Other current assets.13,600
Total current Assets 6,10,700
Non-current Assets
Properties and plants22,61,900
Loan receivable 60,000
Goodwill68,300
Total Non-current Assets 2,39,0200
Total assets3,000,900
Liabilities
Current Liabilities
Trade and other Payables1,37,300
Tax Liability33,500

5FINANCIAL REPORTING
Other provisions32,000
Totalcurrent Liabilities202,800
Non-current liabilities
Debentures600,000
Bank Loan500,000
Provisions.48,000
Total Non-current Liabilities11,48,000
Owner’s Equity
Shared capital500,000
Retained Earnings873,300
General reserve276,800
Total Owner’s Equity 1649800
Total Liabilities and Owner’s Equity 3000,600
Working:
Assets:
Cash & Equivalents
Cash at bank 18,200
Cash Management Account 150,000
168,200
Trade & other Receivables
Account receivable 123,900

6FINANCIAL REPORTING
Interest receivable 6,700
130,600
Less: Allowance for doubtful debts (14,600)
116,000
Inventories and Materials:
Inventory 212,400
Raw Materials 100,500
312,900
Other current Assets
Prepaid rent 13,600
Properties and plant:
Investment property614,000
Plant and equipment 652,200
Land at cost 1,1,00,000
2,36,62,00
Less: Accumulated depreciation (104,300)
22, 61,900
Liabilities:
Trade and other payables:
Account payable 75,800
Accrued wages payable 82, 00
Interest payable 83, 00
Dividends payable 45,000

7FINANCIAL REPORTING
137,300
All provisions:
Provision for leave 19,000
Provision for long service leave8,000
Provision for warranty 5,000
32,000

8FINANCIAL REPORTING
References:
Carey, P., Potter, B., & Tanewski, G. (2014). Application of the reporting entity concept in
Australia. Abacus, 50(4), 460-489.
He, L., Evans, E., & He, R. (2016). The Impact of AASB 8 Operating Segments on Analysts’
Earnings Forecasts: Australian Evidence. Australian Accounting Review, 26(4), 330-
340.
Williams, J. (2014). Financial accounting. McGraw-Hill Higher Education.
Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.

9FINANCIAL REPORTING