Question:
Write an essay on “Karrick Gold & Copper Ltd”.
The Karrick Gold & Copper Ltd Company needs to revalue the assets of its PPE from the historical price to the fair market value. The historical value is the consideration of the value that the cost of the property or the property on the balance sheet report depends on the normal or the original cost. The historical cost procedure need not to represents the actual cost of the property of the organization or the firm (Elliott and Elliott, 2008). However, it is most vital for the organization to present the property or the assets of its fair value. The fair value consideration means which the cost of the property need to be prepared represents at the fair value, and the organization need to take into the account which features of the property and also to assume which the property are exchanged in the transaction purpose between the participants of the market (Epstein and Lee, 2011). The fair value is the price amount which needs to be received by the organization after the sale of the property under the current situation of the market. Moreover, Karrick Gold & Copper Ltd need to revalue its overall property or the assets from the historic cost to the fair value according to represent the actual and original value of PPE. The technique of valuation needs to be used by the organization to consider the fair value and also it maximizing the inputs that are fully observable and minimizing the utilization of the inputs which are totally unobservable (Fifield and Power, 2011). Karrick Gold & Copper Ltd need to disclose statement which need to assist utilizes of the financial statement to assess the property which are considered at the recurring or non-recurring and the fair value depends on the financial situation report after the recognition (Gough, 2002). The fair value consideration of the assets needs to be assisted to represent or the focus the actual and the original value of the property or assets in the financial reports of the organization or the firm. Moreover, the fair value of the property or the assets and also it assumes that assets transactions reposition occurred and either main market place for the property or the assets and it also absence the exact principle of the main bazaar or the marketplace (Holton, 2012). Conversely, Karrick Gold &Copper Ltd Company need to revalue the fair value of PPE.
PPE has a replacement value of $20.5 billion AUD when the value is in the use of $12.0 billion. The amount will increase to $30 billion AUD when the contract is renewed for next ten years. Therefore, as a result, the fair value of PPE is ($20.5-$12+$30 = $38.5 billion). The fair value of PPE is the price which is obtained by the company by selling their assets (Kieso, Weygandt and Warfield, 2011). The measurements of the fair value assume that or consider that the assets are exchanged during the transactions which take place within the participants those who takes part in the performance within the market. That is why the company must measure the fair value of the assets of the company which is used at the time of assuming the market condition and situation and also assumed that whether the participants of the market act in their best interest or not. The KGC Ltd. The company calculates the fair value of PPE depending on the measurement of the fair value (Kieso et al., 2010). The technique of doing a valuation of any assets is used by the company properly to maximize the visible inputs and for minimizing the invisible inputs. That is why, by the help of the fair value of PPE the financial statement users can access the assets of the company which are measured by the help of the fair value and recurring the measurement of the fair value by utilizing the invisible inputs. The KGC Ltd. company calculated their fair value of PPE. The fair value of the assets of a company is a value or costs which are received by selling those assets of the company in an orderly transaction. The valuation technique should be used by the company for measuring the fair value by the help of the information and maximizing the utilization of the visible units (Kimmel, Weygandt and Kieso, 2007). Therefore, the assets of the company which is mentioned in the financial reports of the company must be presented fairly for evaluating the real or actual value of that particular company. The main objective of the financial statements of the company is to give an idea or measurement about the actual value of the assets of the company.
Triple bottom line can be described as a reporting strategy that is being used by Karrick Gold and Copper limited business accounting in the attempt to promote the information that is to be given to the stockholders of the company. The Triple bottom line theory is a theory that is not similar to the conventional financial economic and financial point of views. With the triple bottom line theory, the organization’s influence on the surroundings is determined (Spiceland, Sepe and Nelson, 2011). The triple bottom line theory is divided into three principles. They are the individuals, plant and benefit. It can be explained as the purposeful push to financial, social and ecological contemplation into the organization’s assessment and basic leadership form. This type of reporting helps in building up the standardbuy which an organization need to work to concentrate on the average impact f their activities in both positive and negative sense within the Karrick Gold and Copper limited organization (Stittle and Wearing, 2008). The KGC Ltd TBL’s focus of interest is social as well as environmental contention among the group and the company y. in commencing data on the KGC Ltd company influence an issue, which is impacting supportability. There will be possibilities of developing both the positive as well as negative matters. The reporting of the TBL is consolidated showing that the business is running in great way besides the range of requirement is changed (Warren, Reeve and Fess, 2005). Reporting these specific lines illustrates a drive towards extended and straight forwardness that can be moderate by models on shrouded information.
There are some risk arose opposite to the triple bottom line reporting. With any novel system or control, there is dependable resistance. This can be of afraid of the unusual ethnocentrism. The liking is few companies is that at the final nothing is modified, when different company are more concern with nothing ending which has been initiated, they as well have a tendency to be uneasy on the management which will be give up. Diverse contentions are the standard of additional time which will be added, opposing desire as well as risks which could be associated from use of this process (Wolf, 2008).
As Karrick Gold and Copper Ltd is implementing a triple bottom line theory which is inclusive of excess reporting, the organization needs to fuse extra data in the reports that are better presented to the partners. The specified data needs to be reassessed repeatedly in order to make sure of the fact that the over burdened representatives needs to have extra bindings taking into consideration the end goal being to fuse and measure new techniques. Excess work can be described as extra weight on the work asset
The Triple Bottom reporting is compelling and workplace of professional should be reconstructed. The organizations have the tendency to be unenthusiastic towards the generous change. The conventional money is related to the direction to drive the reporting and the company should organize their operations and arrangements around the necessaries (Elliott and Elliott, 2008). Therefore, in order to change the foundation that the company is based would require venturing in the obscure regions and may face lot of danger by the company while developing its operations (Fifield and Power, 2011). The triple bottom line should be added in the report procedure of the organization and taking time to diverse the influence of their main concerns and the quality of the operations. The organization should analyze its operations as per the goals and objectives and executing net techniques and methods in order to develop its operations and has to follow the new techniques. The KGC Limited includes the reporting and the company should focus on data and information in the reports and achieving the goals (Holton, 2012). The organizations should analyze the obligations by keeping in mind the objectives and measuring the new techniques. The sustainability of an organization is very important as it helps to develop in long run. The company main point of the company is environmental and societal assertion between organization and group. When the organisation’s report procedures are added by the TBL, the chance is created for the proper continuation of the extra time that helps in the adversely effecting the concerns that are created by the company (Kieso, Weygandt and Warfield, 2011). The company also expands the qualities that are continued by the creation of the many-sided operation and thus it also helps in the achieving the quality of the operation. The decision for the scoring the objectives that are achieved by the company for the creation of the proper co-ordination of the objectives and thus the execution of the new objectives takes place for the proper enhancement of the strategies for the removing the burden of the organization (Kieso et al., 2010). Thus, the obligations are also created for the extra obligations that help in the creation of the goal in order to fuse the structures for the proper enhancement of the weighing of the work assets. Extra- work and is added for the individual creation of the data that are helpful for the proper enhancement of the individual issues as well as the organization’s weakness (Kimmel, Weygandt and Kieso, 2007). Thus the non- appearance is also created for the proper diminishing of the employment fulfillment and also helps in securing the passionate state for the organization.
The nature of the Legitimacy and significance of the KGC Ltd to maintain the legitimacy should analyzed in the eyes of traditional land owners, people of Australia and government of the PNG. The rules and regulation are implemented by the government in order to maintain peace and harmony within the country. The mining of gold and copper requires legal license and the company has to take permission from the government of the country (Spiceland, Sepe and Nelson, 2011). The mining in mountains range and other places can hamper the environment and animals living in that places. Therefore, it is very much important to follow the rules, policies and other regulations in order to maintain the eco system as well other factors associated with it. The legitimacy power is always in the hand of law system/structure and the capacity of a company to follow the rules and translate into its business operation can help in the execution of the business effectively and efficiently and thus maintaining peace and harmony within the country (Stittle and Wearing, 2008). It is the legitimacy that is grounded into the institutional legal framework and institutional structure and also managing the operations into the legal system and legal structure. The government and the law structure are very much important as it keeps the operations within the country under control and if they are not followed then the law system can take actions against the companies or other organization. However, the charming and traditional typologies have no formal legitimate and institutional structure to guide the activities, deciding capabilities and controlling the activities and also holding the power to regulate the activities of the organization (Warren, Reeve and Fess, 2005). The operations of the organization need to be evaluated and tested as per the legal rules and regulations that are being implemented in the sector or mining within the country. Therefore, this will help to make both the appealing and conventional power less power types in respect to legitimacy of the same type of authorities (Wolf, 2008). The source of legitimacy separates the sound power of the law from rest of the association with both generous and procedural agreement with the KGC Limited in controlling and managing the legitimacy in eyes of people of Australia, government of the PNG and traditional land owners.
The legitimacy of the organization is at the risk, and it also needed to affect the operations of the organization. If the organization loses the legitimacy, then it needs to be difficult for the organization to operate the business operations. This type of legitimacy needs to the legal system and also the lawful since it meets the necessity of law (Warren, Reeve and Fess, 2005). The policies or the techniques and the rules and regulations that are generally implemented by the government and it must follow by the company or the organization or the firm (Stittle and Wearing, 2008). The rules and regulations of the government are strictly applied according to operate that most of the company or the organizations or the firm need to be followed such types of ethics to the guidelines and the principles. However, it also creates a crucial risk for the firm or the company or the organization. Conversely, it also formed a severe risk for the company or the organization or the firm though it also loses the legitimacy or the legal authority (Elliott and Elliott, 2008). However, it also needs to be followed by the business or the company or this organization also. Success is depending on the organization not only for their rules & regulations and also the terms and the conditions but also on the controlling and the managing the ethical issues or the problems, government rules and regulations and also their terms and conditions, political environment (Epstein and Lee, 2011). The legal norms and regulations and also the terms and conditions totally depend on the government which also facilitates to control and also maintain all types of operation throughout the world or the nation. The KGC may suffer from the rules and policies implemented by the government of PNG. The government implements strict rules for mining industries and this might affect the operations of the organization. The legal system can oppose any illegal act of any company and KGC can face lot of problems.
The company KGC ltd is able to restore the legitimacies regarding the rules and the regulations that are useful for the company and thus it also helps in adopting the proper guidelines for the company. The company gets benefitted by the development of the ethical guidelines that are used for the creation of the proper base and the gaining of the royalties (Holton, 2012). The royalties determines the costs that are paid to the government for the continuation of the operation and also help-s the company to create the proper building operations for the hospitals, mining grades, water processing plants and the health centres. The mining process also create a great impact on the environment and thus, the importance’s for following the rules and the regulations that are processed for the regulation of the proper enviro0nment (Kieso, Weygandt and Warfield, 2011). These rules and the regulations also helps in the development of the perfect environment for the company that helps in the proper maintenance for the development of the creation of the environment and thus the company also helps in the development of the perfect creation of the environment for the company. The financial report of the company is seemed to be maintained which shows the ethical rules and the regulations which are advised by the government for the following the rules and the regulations (Kimmel, Weygandt and Kieso, 2007). Thus the mining activities that are carried out in the Star Mountain Range in the Papua of the New guinea requires rules and the policies that are helps in guiding the company for the proper creation of the advantageous platform for carrying out the mining operations and thus it also acts as a guidance for enacting the activities that helps in the performance increment for the company. The stakeholder theory refers to the relationship between KGC and its external and internal environment. The stakeholder can be from outside or inside of the business such as stockholders, employees, suppliers, nonprofit groups, customers, local community and government. Therefore, KGC can restore its legitimacy by building healthy relationships with its stakeholders.
There are various methods that are followed by the KGC ltd is to track the cost of the harm that are the fair value costs. It is associated with the sludge spills that are requisite for the spilling and thus it also helps in spilling the compensating cash payments which also includes the fines and the offsetting works. Thus, the plan of the investment also helps to gain the correct and the appropriate measurement of the costs that are used for the purpose of recording and hence the fair value costs are recorded for the proper creation of the advantages for the company or the firm (Elliott and Elliott, 2008). Thus company uses this method for the purpose recording the harms that are measured or calculated by the company. The advantages are created for the company helps in the creation of the appropriate values of the cost development and measurement. It also helps to remove the methods that are disadvantageous for the company and thus it also helps in signifying the complex methods that are created for the costs by the company (Fifield and Power, 2011). Thus it also helps in the gaining the perfect calculations that helps in the creation of the perfect results that helps in the formation of the perfect calculations for the company. The company KGC ltd is able to calculate the correct values that are enhanced by the connected by the company for the proper enhancement and the growth for the company. Thus it helps in keeping track on the records that are valuable for the company and thus it also helps in gaining the perfect measurements for the company. The cost benefit analysis will help to calculate the cost harm. The main advantage is that it will help to provide estimation of the cost of harm and disadvantage is that it will not provide accurate value.
References
Elliott, B. and Elliott, J. (2008). Financial accounting and reporting. Harlow: Financial Times Prentice Hall.
Epstein, M. and Lee, J. (2011). Advances in management accounting. Bingley, UK: Emerald.
Fifield, S. and Power, D. (2011). Managerial finance. [Bradford, UK]: Emerald.
Gough, L. (2002). Global finance. Oxford, U.K.: Capstone Pub.
Holton, R. (2012). Global finance. Abingdon, Oxon: Routledge.
Kieso, D., Weygandt, J. and Warfield, T. (2011). Intermediate accounting. Hoboken, NJ: John Wiley & Sons.
Kieso, D., Weygandt, J., Warfield, T. and Kieso, D. (2010). Intermediate accounting. Hoboken, N.J.: Wiley.
Kimmel, P., Weygandt, J. and Kieso, D. (2007). Financial accounting. Hoboken, NJ: John Wiley.
Spiceland, J., Sepe, J. and Nelson, M. (2011). Intermediate accounting. New York: McGraw-Hill Irwin.
Stittle, J. and Wearing, B. (2008). Financial accounting. Los Angeles: SAGE Publications.
Warren, C., Reeve, J. and Fess, P. (2005). Financial & managerial accounting. Mason, Ohio: Thomson/South-Western.
Wolf, M. (2008). Fixing global finance. Baltimore, Md.: Johns Hopkins University Press.
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