Jardine Matheson Group

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Case 3-1 Jardine Matheson Group (Part 1) |

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09/20/2012 |

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IAS 1 is the International Accounting Standard (IAS) that provides guidelines to issuers for the correct presentation of financial statements. Jardine Matheson is a multinational Corporation that presents its financial statements according to International Financial Reporting Standards (IFRS). The Company’s financial statements appear to be in compliance with IAS 1 for most of the financials however, there are certain items that were not presented accordingly.

The company’s annual report contains a complete set of financial statements which comprises of a Statement of Balance Sheet, Income Statement, Statement of cash flows, Statement of Changes in Equity and Notes. The financial statements are comparative, showing financial information for 2009 and 2008 and the basis of presentation is indicated in the notes.

On the face of the balance sheet, in the asset section, the minimum obligatory lines are presented, investment property, intangible assets, trade and other receivables and cash and cash equivalents are described in the notes. In the liability section, trade and other payables, provisions, current and deferred taxes and financial liabilities are presented according to IAS 1. Current vs. Non- Current distinction in the asset and liability section of the balance sheet is also shown. On the Income Statement revenue, finance costs and tax expense are adequately disclosed per IAS 1. Notes are cross-referenced from the face of the financials to the accompanying notes.

The majority of the financial statement is compliant with IAS 1 however a few items were not presented as prescribed, specifically regarding equity. IAS 1 requires minority interest to be shown in the equity section of the balance sheet however, I was not able to locate this information in the equity portion of the balance sheet. Also the number of shares authorized, issued, paid or not fully paid was...