Nick Scali Limited (listed under ASX) along with its subsidiaries is responsible for different types of sourcing and retailing for the household furniture across Australia and New Zealand. Some of the main services offered by the company relates to offering of dining tables, chairs, buffets, TV units, lamps and pendants (Bloomberg.com 2018). The main excerpts of the study have included the discussions pertaining to Social accountability in AASB covering the significant aspects of GPFR.
Social Accountability in the AASB conceptual Framework
As per the AASB 1053 (June 2010), the general level of the public funds is depicted to be involved in the several domains of community services and social activities which are depicted to be carried on behalf of the government. Despite of such a measure, it needs to be discerned that the individual source of funds for an individual corporation is much lower degree as per the public accountability than the required financial information which is needed by an individual. The moderate level of the public accountability is included in the sources of funds as per the foundations or sponsors (Aasb.gov.au 2018). The present gap in the AASB needs to be also addressed with developing the principles based on Aus-specific standards.
This is needed to fill the gap pertaining to the social benefits included in the project. The social benefits are aimed at individuals who are not able to meet a certain eligibility criteria or want to mitigate the various types of the social risks associated to the universally accessible services. The social risk is also depicted to beneficia as per the welfare of the individuals or the households in event of any adversary (Aasb.gov.au 2018).
Necessity of establishing AASB in the Australian business practice
The discourse in the statement of AASB defines that the Government expectation about the different types of the responsibilities and roles of the AASB is seen in relation to the Government and resolution in the issues concerning transparency, operational efficiency and general accountability. The role of the Government in this aspect has been depicted to be defined with the several types of the important considerations which are based on the developing and maintaining high quality of financial information which is applicable to all sectors as per the economy of Australia and contribution towards global standards.
The important contribution has been also seen to be conducive in terms of the enhancing the confidence of the financial reporting along with the capital markets. The imperatives under the AASB needs be identified as per the independent objectives and functions of exercising the power which are stated as per the Part 12 of the “Australian securities and investments commission act”. In addition to this, as per the expectations of the Government, AASB is discerned to reduce the several types of compliance cost required for a business and communities in contributing to the public investments. They are also seen to be playing a beneficial role in reducing the target of red and green tape (Aasb.gov.au 2018).
Types of information provided in the annual report of Nick Scali Limited
The significant contents of the annual report are recognized with review of the company by the chairman and managing director’s review, directors’ report, auditor’s independence declaration, statement of comprehensive income, information on the financial position along with the changes in the equity. In addition to this, the annual report of Nick Scali Limited has also included statement for cash flow position of the company. Some of the various types of the other crucial information included by the company in the annual report has been depicted as per the various information which are related to the declaration made by the directors. The latter part of the annual report has also included the necessary information about the shareholder’s information and corporate information.
The significant nature of information as per the notes to the financial statement has been also seen to include the necessary excerpts of the information which depicted as per the notes on the basis of preparation of the financial report. In addition to this, the annual report of the company has been also seen disclose the important perspectives of the information which shows the segmental information, revenue, expenses, IT expenses, earnings per shares, equity and dividends. It has also included the necessary information for showing the operating assets and liabilities (Nickscali.com.au. 2018).
Incentives to the manager for disclosing certain types of the information in Nick Scali Limited
The incentives to the managers in disclosure of certain types of the information needs to be identified as per the various types of benefits which are understood as per the stakeholders and societies at large. These types of information have been seen with community services and social activities. In addition to this, the managers are also seen to release relevant information in terms of corporate social responsibilities and social activities. The important benefits associated to such disclosures are seen with leveraging the goodwill.
Most of the employees and community members are seen to contribute to the strategical improvement for the future benefits of the company. it needs to be also depicted that the social activities reported by the companies are important in addressing the future needs in the developed economy which will be respectful to the people and environment at large. The implementation of the disclosures pertaining to the AASB shows that an entity has maintained the standards as per fairness and integrity. Moreover, the necessary information pertaining to the CSR has been able to define the scope of value creation through both responsible and source of value (Fast Company 2014).
Reaction of the investors for disclosure of certain types of the information in the annual report
In general. Conceptual disclosure is considered as an integral part of the financial reporting which is all the investors are concerned. The consideration of the new information in the financial statement forms a new confidence among the investors which has been able to define the significant nature of the confidence among the investors. In addition to this, there are several companies which has defined the information which are related to the investors interest with the decision of investment (Gan, Sellar and Lingard 2016).
The investors look for important information on the previous EPS to know about the scope of the growth for the future stock. In addition to this, some investors closely monitor the changes pertaining to the closing price of the shares. In case there has been increased volatility of the closing share price in compare to the market index, then they usually don’t consider the portfolio for investment. The general information as per the performance of the assets and liabilities are conducive in defining the financial health of the company whether there is any scope of future investment (Abdel?Samad and Flanigan 2018).
The various types of the disclosure of the information which are associated to the social activities are also closely taken onto account by the investors. Based on the nature of the investors the main key point of consideration for the decision to invest in the shares of the company are often related to the performance of the company in terms of the social initiatives (Econjournals.com. 2018).
Presentation of the information and effective communication
The presentation of the relevant information is seen as per AASB 101. This is relevant with the presentation and communication of the financial information as prescribed by IASB. The paragraphs specific to the prefix of the Aus and RDR are applicable for both profit making and non-profit making entities. In this case, the presentation of information for Nick Scali Limited is depicted with AASB 1053. These depicted with the adherence of the company with the disclosure of the information in terms of stating the purpose of finial reporting. Such information is disclosed with the consideration of assets, liabilities, cash flows and income statement. In addition to this, the adherence of the company pertaining to the significant nature of the information are seen to be considered as per the relevant nature of the information as per publishing of statement of financial position at the end of each financial period (Epstein 2018).
Conclusion
The important disclosure on the preventability of the financial information followed by the company needs to be identified in terms of following of Tier 2 of the AASB 101 disclosure. In addition to this, the significant learnings from Social Accountability in the AASB conceptual Framework shows that the general level of the public funds is depicted to be involved in the several domains of community services and social activities which are depicted to be carried on behalf of the government. In addition to this, present gap in the AASB needs to be also addressed with developing the principles based on Aus-specific standards.
This is needed to fill the gap pertaining to the social benefits included in the project. The significant aspect of the importance of establishing the AASB as per the Australian business context needs to be taken into account with the present gap in the AASB needs to be also addressed with developing the principles based on Aus-specific standards. This is needed to fill the gap pertaining to the social benefits included in the project.
References
Conceptual Framework for Financial Reporting
IPSASB ED 63 Social Benefits
Presentation of Financial Statements
STATEMENT OF EXPECTATIONS — THE AUSTRALIAN ACCOUNTING STANDARDS BOARD [online]
Abdel?Samad, M. and Flanigan, S.T., 2018. Social Accountability in Diaspora Organizations Aiding Syrian Migrants. International Migration.
Bloomberg.com. 2018. Terms of Service .
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Fast Company. 2014. Corporate Social Responsibility: Leveraging Good Will.
GAN, A.H., Sellar, S. and LINGARD, B.O., 2016. Corporate social responsibility and neo-social accountability in education: The case of pearson plc. In World Yearbook of Education 2016 (pp. 127-144). Routledge.
Nickscali.com.au. 2018. Annual Report 2017.
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