Financial Statements and Newsletter Report for Winter Limited Analysis

This report analyzes the financial statements and newsletter of Winter Limited, focusing on changes in accounting standards by AASB between May 2017 and August 2017. It provides an overview of the Australian AASB roadmap for tax transparency, insurance contracts, property, plant, and equipment, infrastructure transparency, and tax liability reporting. The report includes Winter Limited's balance sheet as of June 30, 2017, detailing equity, liabilities, and assets. Assets include land, plant and equipment, goodwill, investment property, inventories, cash, and accounts receivable. Liabilities encompass share capital, retained earnings, bank loans, provisions, debentures, accounts payable, accrued wages, interest, tax, and dividends. The document concludes with a bibliography of cited sources.

Running Head: NEWSLETTER AND FINANCIAL STATEMENTS
Newsletter and Financial Statements
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

2
NEWSLETTER AND FINANCIAL STATEMENTS
ANSWER TO QUESTION 1
CHANGES DEPICTING IN THE ACCOUNTING STANDAD BY AASB
DURING 1ST MAY 2017 TO 4T H AUGUST 2017
AUSTRALIAN
AASB ROADMAP
FOR TAX
TRANSPARENCY
(16-05-17)
The Australian
stakeholders and global
investors intend to view
consistent and
comparable tax
reporting about the tax
position of the
organisations. This
guidance enables the
organisations in
communicating their tax
information, which is
consistent with evolving
global disclosure
practices and the needs
of ASIC regarding non-
GAAP. This needs the
disclosure of an ETR
depending on corporate
tax only for enabling
comparison to company
tax rate. This guidance
establishes the needed
disclosures for assuring
that the interested
parties could understand
the variations between
ETR under the code and
accounting ETR
developed in accordance
with the standards of
accounting.
INSURANCE
CONTRACTS (18-05-
2017)
The Australian insurance
analysts would seek
advantage from the
enhanced global
comparability offered
through IFRS 17
contracts issued on the
part of IASB. According
to these contracts, the
global insurers would not
be allowed to use
historical cost in the
financial reports. With the
help of these contracts,
opportunities are
minimised to blend
profitable and
unprofitable business
within a single portfolio
resulting in earlier
recognition of losses.
ED 280- PROPERTY,
PLANT AND
EQUIPMENT
This is a proposal in
making narrow
amendments to AASB
116- Property, Plant and
Equipment. According to
the proposal, the proceeds
from selling items
produced at the time of
bringing property, plant
and equipment to the
condition and location
essential for it to be
capable of operating in
the way intended on the
part of the management.
For instance, the
inventory manufactured
2

3
NEWSLETTER AND FINANCIAL STATEMENTS
at the time of testing
machinery would be
incorporated in profit and
loss and it need not be
subtracted from the asset
cost.
BETTER
INFRASTRUCTURE
TRANSPARENCY
FOR TAXPAYERS
(20-07-2017)
According to this
development, the public
sector organisations
would be needed to
realise assets and
liabilities associated with
the public-private
partnerships. In addition,
these projects would be
realised on the balance
sheet statements of the
organisation resulting in
rise in overall assets and
liabilities. This would
help in enhanced
accountability and better
management.
MORE
ORGANISATIONS
NEED TO REPORT
ON TAX
LIABILITIES (04-07-
2017)
According to this
amendment, the directors
are needed to assess
continually the
aggressiveness associated
with tax positions by
assuming that the tax
authority has full
knowledge of the overall
facts. In addition, the tax
liability for the estimated
amount of settlement
need not be realised in the
balance sheet statement of
the organisation.
AASB BOARD
STRATEGY AND
CORPORATE PLAN
(28-07-16)
This amendment has been
established in partnership
with the “Auditing and
Assurance Standards
Board”. AASB has
developed this strategy
for the year 2017 to 2021.
The common individuals
are able to comment on
this standard in the
overall strategy
finalisation.
END OF AN ERA
(29-07-17)
This amendment would
mark the closure of AAS
accounting standards, as
AASB 1056 has
superseded the AAS 25
Financial Reporting by
Superannuation Plans
from the existing
financial year.
3

4
NEWSLETTER AND FINANCIAL STATEMENTS
Answer to Question 2:
Balance Sheet of Winter Limited for the year ended 30th June 2017
Particulars Amount (in $) Amount (in $)
Equity and liabilities:
Shareholders' funds:
Share capital
500,00
0
Retained earnings
873,30
0
General reserve
276,80
0
Non-current liabilities:
Bank loan
500,00
0
Provision for annual leave
36,00
0
Less: Repayable in a year
19,00
0
17,00
0
Provision for long service leave
27,00
0
Less: Repayable in a year
8,00
0
19,00
0
Provision for warranty
17,00
0
Less: Repayable in a year 5,00 12,00
4

5
NEWSLETTER AND FINANCIAL STATEMENTS
0 0
Debentures
600,00
0
Current liabilities and
provisions:
Accounts payable
75,80
0
Add: Provisions repayable
32,00
0
107,80
0
Accrued wages payable
8,20
0
Interest payable
8,30
0
Current tax liability
33,50
0
Dividends payable
45,00
0
Total
3,000,90
0
Assets:
Non-current assets:
Land
1,100,00
0
Plant and equipment
652,20
0
5

6
NEWSLETTER AND FINANCIAL STATEMENTS
Less: Accumulated depreciation
104,30
0
547,90
0
Goodwill
68,30
0
Non-current investments:
Investment property
614,00
0
Current assets:
Inventories
212,40
0
Raw materials
100,50
0
312,90
0
Cash at bank
18,20
0
Cash management account
150,00
0
168,20
0
Accounts receivable
123,90
0
Less: Allowance for doubtful debts
14,60
0
109,30
0
Interest receivable
6,70
0
Loan receivable
60,00
0
Prepaid rent 13,60
6

7
NEWSLETTER AND FINANCIAL STATEMENTS
0
Total
3,000,90
0
7