Accg224

ACCG224

Intermediate Financial Accounting

S1, 2013

Research Based Case Study and Report:

Financial Reporting Disclosures in the Australian Corporate Sector

As a new accounting graduate, you have just joined the financial reporting unit of a company* listed on the S&P/ASX200 index when your boss, the Chief Financial Officer (CFO), approaches your with your first task. In their last meeting, the Board of Directors of your company has discussed ASIC's press release 12-140MR ASIC’S areas of focus for 30 June 2012 financial reports. The attachment to this press release contains the following item (ASIC (2012): Attachment to 12-140MR: ASIC’s areas of focus for 30 June 2012 financial reports. Last viewed 4 April 2013: http://www.asic.gov.au/asic/asic.nsf/byheadline/Attachment+to+12140MR%3A+ASIC’s+areas+of+focus+for+30+June+2012++financial+reports?openDocument): 8. Estimates and accounting policy judgments Findings Some entities did not make material disclosures of sources of estimation uncertainty and significant judgements in applying accounting policies. Focuses Disclosures in this area are important to allow users of the financial report to assess the reported financial position and performance of an entity with all relevant and necessary information. Directors should review the disclosures in the 30 June 2012 financial report to ensure the necessary disclosures are made and are specific to the assets, liabilities, income and expenses of the entity. The Board was concerned about the company's reputational standing in the market if ASIC found any deviations from AASB requirements in this matter and therefore decided to have a review of the relevant disclosures in the company's annual report undertaken as recommended by ASIC, responsible Board member: CFO. Required; Based on this Board's decision, the CFO asks you to draft a business research report addressed to the Board of Directors on the following: a. the requirements according to the respective accounting...