The company chosen for this assignment is Nick Scali Limited which is listed under ASX. Nick Scali Limited and its subsidiaries are involved in different types of operations relating to retailing and sourcing of household furniture is across New Zealand and Australia. The main products include a wide range of furniture such as TV units, dining tables, chairs, pendants and buffet. The discourse of the study has primarily focused on the social accountability concepts listed under AASB and also covering the major compliance which are stated as per GPFR. The latter part has also included presentation of information by AASB (Au.finance.yahoo.com. 2018).
The excerpt from “AASB 1053 (June 2010)” depicts that the normal portion of public funds in terms of different areas of public amenities and social activities are often maintained in support of the government (Aasb.gov.au. 2018). Despite of this, the funds pertaining to individual source for any corporation is at a much lower degree in terms of financial information needed by the individual. A considerable amount of public accountability needs to be incorporated within the sources of funds which are as per the sponsors or foundations of accounting. The existing gap for the AASB in terms of principles relating to Aus-specific standards should be also addressed. This criterion needs to overcome the gaps which are associated with social benefits of a project. Moreover, the social benefits are also focused on the individuals who have defaulted on specific eligibility criteria or wish to alleviate any form of social risk which are pertaining to commonly accessible service. In addition to this, the risk pertaining to social accountability such as event of adversary has been also included under the conceptual framework of AASB (Cohen 2017)
The discussions pertaining to AASB mentions about the expectations of the government on the responsibilities for different types of issues relating to general accountability, transparency and operational efficiency. Moreover, the government rule is often defined with significant nature of consideration in relation with developing and maintaining high quality financial reports in the applicable sectors. This function is carried out as per maintaining universality in global standards and also ensuring clear depiction of Australian market while preparation of the financial reports. The significant contribution of AASB is also discerned with enhancement of financial statements while evaluating the capital markets. The main imperative for AASB needs to be considered with the purposes and objectives for exercising various power which was stated under Part 12 of the “Australian securities and investments commission act”. Moreover, the government expectation for AASB is depicted to be reducing the cost of compliance relating to business and communities and also contributing to public investments. There are also major benefiting roles in decreasing the target for green tape and red tape issues (Dey 2018).
The different types of content as per the financial statement depicted to be monitored by auditor’s independence declaration, chairman and managing director’s review, statement of financial position and statement of income. Moreover, the financial statement of Nick Scali Limited is also discerned to include the statement for showing position of cash flow in the last two years. The significant information in the annual report is to be also discerned with the declarations pertaining to the directors (Aasb.gov.au. 2018). The last part of the financial statement has also included the evidence for including shareholders statement and corporate information. Some of the other important aspects of excerpts of details under the financial statement is also identified with the framework followed for preparation of the overall financial report. It needs to be understood that the annual report of the company has made several disclosures on the perspectives of information which is identified with equity, dividends, revenue and IT expenses. The company is also depicted to include significant information for the disclosure of the operating assets and liabilities (Belal 2016).
The major incentives to the managers need to be identified in terms of facilitating the information which are understood with the stakeholder engagement and society. This concept of information disclosure is seen to be relevant with the initiatives taken by the company for social activities and the same is referred as the social accounting (Aasb.gov.au. 2018). The significant nature of benefits for disclosing of such an information is depicted with leveraging of the goodwill for the company. In most cases, the community members and employees are responsible for bringing about strategical improvements which are associated to the future benefits brought by a company. Some of the other aspects of the social activities are associated with reporting of the various necessities which are required in the future. The important nature of disclosures related to AASB clearly identifies that the entity has adhered to the standards as per integrity and fairness. In addition to this, the information pertaining to CSR activities have also pointed out the scope of value creation with both the inclusion of source of value and responsibility (Thomson 2015).
The conceptual disclosure concept is regarded as an important portion of financial reporting which are concerned with the investors. This is associated with the inclusion of new information in the financial statement and forms the basis of confidence among the investors. Moreover, there has been large number of companies which have stated on the information associated with the investors which are in the fair interest of decision-making ability. These decisions are mainly based on making investment. The investors also look forward to a presentation of financial data such as EPS to know about the growth opportunities of future stock (Michelon and Vourvachis 2015). It needs to be also understood that some of the investors are also seen to closely monitor the deviations associated with closing price in the shares. If there is an increased volatility among the closing price of the shares then the market index of the portfolio is not considered for investment purposes. The over-all information based on the performance of liabilities and assets are also beneficial in stating about the financial health of a company and whether it is adding any scope of future investment (Aasb.gov.au. 2018).
Moreover, there are significant excerpts of other information which relates to the social activities and these are also accounted by the investors. Depending on the nature of investors, the definitive points decide whether to invest in the shares of the company are often associated with the social initiatives taken by a company (Michelon and Vourvachis 2015).
AASB 101 provides the guidelines for presentation of information. It is depicted to be associated with communication and presentation aspect of financial information as defined by IASB standard. Moreover, the paragraphs which are appropriate to the prefix of the Aus and RDR are pertinent among both nonprofitmaking and profit-making entities. The consideration of exhibition of information for Nick Scali Limited is recognized with the standards prescribed by AASB 1053. This is seen with conformity of the company to disclose information that is related to stating the purpose of reporting. Therefore, this type of information is often inclusive of overheads for assets, liabilities, cash flows and income statement. Furthermore, the compliance of the company to other form of information are also evident with the publishing of financial position which are to be considered for nature of the information (Aasb.gov.au. 2018).
Conclusion
The discourse of the study has stated that some of the significant nature of the financial information pertaining to the companies followed with guidelines given under Tier 2 of the AASB 101 disclosure. Furthermore, there are other learnings of the study which are related to Social Accountability in the AASB conceptual Framework which are relevant with the disclosure pertaining to general level of public funds and several other domains of social activities and community services which are carried out in behalf of the government. Moreover, it has been understood that the major incentives to the managers need to be identified in terms of facilitating the information which are understood with the stakeholder engagement and society has significant nature of benefits with leveraging of the goodwill. It is further discerned that in most cases, the community members and employees are responsible for bringing about strategical improvements which are associated to the future benefits brought by a company. Some of the other aspects of the social activities are associated with reporting of the various necessities which are required in the future. Nick Scali Limited is recognized with the standards prescribed by AASB 1053. The inclusion of new information in the financial statement and forms the basis of confidence among the investors. Moreover, there has been large number of companies which have stated on the information associated with the investors which are in the fair interest of decision-making ability.
References
Aasb.gov.au. 2018. AASB Action Alert [online] Available at: https://www.aasb.gov.au/admin/file/content102/c3/189-ActionAlert.pdf [Accessed 18 Sep. 2018].
Aasb.gov.au. 2018. Conceptual Framework for Financial Reporting [online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/ACCED264_06-15.pdf [Accessed 18 Sep. 2018].
Aasb.gov.au. 2018. IPSASB ED 63 Social Benefits [online] Available at: https://www.aasb.gov.au/admin/file/content102/c3/9.2_Presentation_Social_Benefits_M162.pdf [Accessed 18 Sep. 2018].
Aasb.gov.au. 2018. Presentation of Financial Statements [online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf [Accessed 18 Sep. 2018].
Aasb.gov.au. 2018. STATEMENT OF EXPECTATIONS — THE AUSTRALIAN ACCOUNTING STANDARDS BOARD [online] Available at: https://www.aasb.gov.au/admin/file/content102/c3/AASB_Statement_of_Expectations.pdf [Accessed 18 Sep. 2018].
Au.finance.yahoo.com. 2018. Yahoo is now a part of Oath. [online] Available at: https://au.finance.yahoo.com/quote/NCK.AX/profile?p=NCK.AX [Accessed 21 Sep. 2018].
Belal, A.R., 2016. Corporate social responsibility reporting in developing countries: The case of Bangladesh. Routledge.
Cohen, S.I., 2017. Social accounting for industrial and transition economies. Routledge.
Dey, C., 2018. Contemporary Issues in Social Accounting. Social and Environmental Accountability Journal, 38(2), pp.157-158.
Michelon, G. and Vourvachis, P., 2015. Accounting for social value [book review].
Retolaza, J.L., San-Jose, L. and Ruíz-Roqueñi, M., 2016. Social accounting for sustainability: Monetizing the social value. Cham: Springer.
Thomson, I., 2015. ‘But does sustainability need capitalism or an integrated report’a commentary on ‘The International Integrated Reporting Council: A story of failure’by Flower, J. Critical Perspectives on Accounting, 27, pp.18-22.
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