The financial evaluation of the annual report presented by the company for the year were evaluated and the various accounting policy in relation to the same were taken into account for the same. The accounting policies principles used by the company and the measurement concepts applied by the company in the measurement of the various assets and liabilities of the companies were evaluated. Various aspects including the fundamental qualitative characteristics and and enhancing qualitative characteristics were evaluated for the company. The usefulness of the financial report in the application of the informations and data presented by the company were evaluated and analyzed according to the usage of the same by the investors and stakeholders of the company. The company has well complied with the Australian Accounting Standards and prepared the financial statements of the company in accordance with the International Financial Reporting Standards (Byrne 2018).
The different measurement base with relation to the assets and liabilities of the companies should be disclosed and measured according to the policies and the concepts underlying the Australian Accounting Standards (Schaltegger and Burritt 2017). The financial report for the company has been prepared based on the historical cost and the cost reported on the financial report is based on the fair value assumptions applicable in exchange of assets of the company. The measurement of the asset is based on the estimated cash flows from the assets and assessing the fair market value of the asset of the company with respect to the same. The company has compiled with the measurement requirement with identifying the assets of the company. The AASB framework is to assess the appropriateness of the IFRS Standards in the Australia Context. The Conceptual framework requires that a company should meet the following objectives:
The company has followed and complied with the AASB 9, which introduces new classification tools and methods for the analysis. The company has reported the financial assets of the company at the amortized cost. Other financial assets and instruments are classified and measured at fair value through profit/loss. The financial liabilities of the companies are reported in the Other Comprehensive Income portion when the change in value of liability is reported by the company.
The fundamental qualitative characteristics of the company shows the application of the relevant accounting principles and the relevance of the same in the context of the applying for decision-making. The companies should faithfully represent the information and data and should be complete and neutral (Conway 2018).
The enhancing qualitative characteristics should be available within the company’s financial report so that the various aspect of the financial reports could be applied by the company (Johal 2018). The common features provided by the company in analyzing the financial statements of the companies are:
The users of the financial report for the company were able to better evaluate the financial statements presented by the company as the same were presented by the company following the conceptual framework guidelines. The financial report for the company presented the important data and information related to the company and the same is applied by the investors for making relevant investment decisions. The company has classified and presented the various group of accounts and the relevant data relating to the same are present in the notes to financial statements of the company. The notes to financial statements has provided adequate information about the report presented in the form of the year wise comparison of the data and the account figures. The measurement cost and the management decisions regarding the specific accounts were clearly mentioned. The financial report of the company were properly audited which helped them evaluate the various kinds of accounts and transactions reported by the company. The standards adopted and applied by the company and the implications of the same were discussed properly by the users of the financial reports for the company.
Investors needs various kinds of accounting tools and techniques and relevant details for assessing the performance of the company. The same can be also done if the investor have a basic accounting knowledge and apply the basics of accounting to assess the transaction done by the company and the reporting of the same as per the financial statements of the company. Investors can perform ratio analysis to assess the financial performance of the company and use the trend analysis for analyzing the financial conditions and performance of the companies (Leuz and Wysocki 2016).
Conclusion
The company Aruma Resources Limited has provided all relevant facts and data and information as per the regulatory requirement. The different measurement costs applied by the company and the application of the same in the context of the conceptual framework of the Australian Accounting Standard Bodies were applied by the company. The company has followed with the fundamental qualitative characteristics of the conceptual framework of the accounting bodies. The enhancing qualitative characteristics were found in the financial statements of the companies and the same helped the users of the financial report for assessing and evaluating the performance of the company. Finally it was concluded with the fact that the investors and the users of the financial report should evaluate various ways and tools for assessing and forecasting te financials and financial performance of the company.
Reference
Byrne, D., 2018. Introduction. In Contemporary Issues in Accounting (pp. 1-14). Palgrave Macmillan, Cham.
Conway, E., 2018. The Future of Accountancy—Beyond the Numbers. In Contemporary Issues in Accounting (pp. 187-195). Palgrave Macmillan, Cham.
Craig, R. and Amernic, J., 2015. 2002: Accountability of accounting educators and the rhythm of the university: resistance strategies for postmodern blues. In Accounting Education Research (pp. 218-268). Routledge.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage Learning.
Hoque, Z., 2018. Methodological issues in accounting research. Spiramus Press Ltd.
Johal, P., 2018. Corporate reporting: from Numbers to Narrative. In Contemporary Issues in Accounting (pp. 105-123). Palgrave Macmillan, Cham.
Kim, J.B., Shi, H. and Zhou, J., 2014. International Financial Reporting Standards, institutional infrastructures, and implied cost of equity capital around the world. Review of Quantitative Finance and Accounting, 42(3), pp.469-507.
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.
Moore, A., 2017. Intellectual property and information control: philosophic foundations and contemporary issues. Routledge.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and practice. Routledge.
Thompson, D., 2018. Contemporary Challenges in Audit. In Contemporary Issues in Accounting (pp. 125-143). Palgrave Macmillan, Cham.
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