Green Logistics LTD Financial Statement - Example

Annual Report Assignment Student's Name: Course Name and Number: Instructor's Name: Date Submitted: GREEN LOGISTICS LTD FINANCIAL STATEMENT FOR THE YEAR ENDED 30th JUNE 2012 Contents Pages Statement of Comprehensive income 3 Statement of financial position 4 Statement of Changes in equity 5 Notes to the financial statements 6 Directors declaration 12 Annual directors report 13 Annual auditor’s report 15 Reference list 18 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2012 $’000 $’000 Note AASB101.82 (a) Sales Revenue 2.3&3 120,544 - AASB101.99 Cost of Sales (21,850) - _______ _____ AASB101.85 Gross Profit 987,038 - AASB101.85 Other Income 4 940 - AASB101.99 Selling Cost (16,614) - AASB101.82 (b) Financial expenses 13 (244) - AASB101.99 Other Expenses (3,006) - _______ ______ AASB101.85 Profit before Tax 79,780 - AASB101.82 (d) Income Tax Expense (10, 965) - ______ ___- AASB101.85 Profit 68,814 - ======= ====== STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30TH JUNE 2012 2012 2011 Notes $’000 $’ 000 Current Assets AASB101.54 (i) Cash and Bank balances 7 380 - AASB101.54(b) Receivables 2.7&5 31,480 - AASB101.54 (g) Inventories 6 14,510 - AASB101.55 Other 8 203 - _______ ________ Total Current Assets 46,573 - _______ ________ Non Current Assets AASB101.54(c) Intangible assets 2.6&9 444 - AASB101.54 (a) Property, Plant and Equipment 2.5&10 55,500 - _______ ______ Total Non Current Assets 55,944 - _______ ______ _______ ______ Total Assets 102,517 - ====== ====== Current Liabilities Payables 11 28,900 - Accrued Liabilities 11 4,868 - Provisions for Employees Benefits 2.4&12 992 - _______ ______ 34,760 - _______ ______ Non Current Liabilities Loan 13 3,600 - _______ ______ Total Non Current Liabilities 3,600 - _______ ______ _______ ______ Total Liabilities 38,360 - _______ ______ Net Assets 64,157 - ======= ====== Equity Share Capital 9,137 - Retained Earnings 12,630 - General reserves 76,377 - _______ ______ Total Equity 98,144 - ====== ====== STATEMENT OF CHANGES OF EQUITY FOR THE YEAR ENDED 30TH JUNE 2012 Share Capital General Reserve Retained Earnings As at 01/07/2011 - 9,430 11,239 Additional / Reduction of capital 9,137 3,200 (3,200) Profit for the year - - 68,814 __________ _____________ _____________ As at 30/06/2012 9,137 12,630 76,377 ========= ============ ============= GREEN LOGISTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/06/12 1. GENERAL INFORMATION AASB101.10 (e) Green Logistics Limited is a Limited Company incorporated in Australia. According to the AASB, the location of the company and the principal activity of the company should be well stated in the annual report. 51(b), (c).The principal activity of Green Logistics Limited Company is the sale of computer software. 2. SIGNIFICANT ACCOUNTING POLICIES Materiality In accordance with AASB 1031, only those transactions that have relative size and are important to the organization should be recognized. Failure to disclose material transaction can have a negative impact on the firm’s financial statements. 2.1 Statement of Compliance AASB101.These financial statements are general purpose financial statements which have Aus 15.2 been prepared in accordance with the Corporations Act 2001, Accounting Aus 15.3 Standards and Interpretations, and comply with other requirements of the law. 2.2 Basis of Preparation AASB101. The Financial statements have been prepared on the basis of historical cost. 112(a) Going Concern Basis According to AASB101.25, an organization is expected to carry on its activities even in the unforeseeable future. Where transactions are material, doubts may exist with regards to a firm’s ability to exist in the long term. Due to the political uprising on a subsidiary entity that the directors decided to suspend company operations in the region for an indefinite time. 2.3 Revenue Recognition AASB.118.35 Revenue should be determined at the fair value of the amount earned. Also, an amount should be set aside to cater for customer returns. 2.4 Employee Benefits AASB119.120 (a) Members of the staff are entitled to benefits with regards to sick leave, salaries, sick leave and annual leave. Thus, a Liability should be recognized to cater for the staff benefits. According to AASB, Staff benefits should be measured reliably. 2.5 Property, Plant and Equipment AASB116.73. (a) /(b) Cost of land which is used to produce goods and services as stated in the Statement of Financial Position is determined at the fair value less subsequent accumulated depreciation. Freehold land is not depreciated. Property is carried at cost, less any recognized impairment loss. Fixtures and Equipment are stated at cost less accumulated depreciation. For each class of depreciable asset, the following depreciation and amortization rates are used: Depreciable asset Class Rate % Buildings 2 -20 Plant and equipment: Motor vehicles 25 -33.3 Leased equipment 10 -25 Leasehold improvements 2 - 20 Other equipment 10 - 20 Intangible Assets: Intellectual property 10 -15 Software Purchased 12.5 -25 Software Internally Generated 12.5 -25 2.6 Intangible assets AASB138.118 (b) The Carrying amounts of intangible assets are reviewed to find out whether there is an impairment loss. If there is an impairment loss, the amount recoverable should be determined to cater for the impairment loss suffered. Brand names recognized by the company have an indefinite useful life reviewed to determine whether events and circumstances have value in the future. 2.7 Inventories AASB102.36 (a) First-in-first-out basis (FIFO) should be used to determine the inventories’ cost. 3. REVENUE AASB118.35 (b) 2012 2011 $’ 000 $’ 000 Sales Revenue 51,475 - (Less) Sales Returns (980) - Services Revenue 69,907 - Interest Earned 152 ______ ______ 120,554 - ====== ===== 4. OTHER GAINS 2012 2011 AASB101.98(c) $’ 000 $’ 000 Gain on Sale of Non Current assets 940 - _______ ______ 940 - ====== ====== 5. TRADE AND OTHER RECEIVABLES 2012 2011 AASB7.36(c) $’ 000 $’ 000 Trade Receivables 32,750 - (Less) Allowance for doubtful debts (1,270) - _______ ______ 31,480 - ====== ====== According to AASB 7.36 (c), the credit terms should be strictly 60 days after the invoice date. Interest should not be charged on trade and other receivables before the expiry of 60 days. From then on, an interest of 2 % p.a is charged on the due amount. From historical experience, those debts which are not settled within 120 days are irrecoverable. Thus, Green Logistics Limited has 100% provision for bad and doubtful debts. 6. INVENTORIES AASB102.36 (a) 2012 2011 $’ 000 $’ 000 Finished Goods 14,510 - _______ ______ Cost of sales 14,510 - ====== ====== The financial report shall disclose the amount of inventories recognised as an expense during the Period (Aswathappa, 2010, 612). Also, the circumstances facing the company may demand the inclusion of other amounts, such as distribution costs (Dagwell et.al, 2007, 14). 7. CASH & BANK BALANCES 2012 2011 $’ 000 $’ 000 Cash & Cash equivalents 380 - _______ ______ 380 - ====== ====== 8. OTHERS 2012 2011 $’ 000 $’ 000 Prepayments 203,000 - _______ ______ 203,000 - ====== ====== 9. INTAGIBLE ASSETS AASB138.118(c), (e) 2012 2011 $’ 000 $’ 000 Carrying amounts Brand 320 - Goodwill 124 - _______ ______ 444 - ====== ====== 10. PROPERTY & EQUIPMENT AASB117.31 (a) 2012 2011 $’ 000 $’ 000 Carrying amounts Vehicles 896 - Buildings 18,530 - Plant & Equipment 17,250 - Land 19,900 - _______ ______ 56,576 - ====== ====== Accumulated depreciation Vehicles 156 - Buildings 1,230 - Plant & Equipment 2,690 - Land - - _______ ______ 4,076 - ====== ====== 11. TRADE AND OTHER PAYABLES AASB2.51 (b) 2012 2011 $’ 000 $’ 000 Trade Payables 28,900 - _______ ______ 28,900 - ====== ====== ACCRUED LIABILITIES 2012 2011 $’ 000 $’ 000 Trade Payables 28,900 - _______ ______ 28,900 - ====== ====== 12. EMPLOYEE BENEFITS 2012 2011 $’ 000 $’ 000 Provision for annual Leave 562 - Provision for long service leave 430 - _______ ______ 992 - ====== ====== 13. BORROWING AASB7.8 (f) 2012 2011 $’ 000 $’ 000 Loan from ABank 28,900 - _______ ______ 28,900 - ====== ====== BORROWING COSTS 2012 2011 $’ 000 $’ 000 Interest 243 - Loan application fees 1 _______ ______ 244 - ====== ====== DIRECTORS’ DECLARATION The directors declare that: a) Based on the report, the directors are confident that the firm is in a position to clear its outstanding debts on time. b) Based on the report, the directors are on the view that the statements comply with the International Financial Reporting Standards as outlined in note 2.1. c) The directors are on the view that the financial statements and notes outlined in the report are consistent with the provisions under Corporations Act 2001, and they give a true and fair view of the financial position of the company. d) The declarations of S.295A of Company’s Act 2001 have been given to the directors [listed companies, listed disclosing entities and listed registered schemes only]. Based on the financial statements, the directors are on the view that Green Logistics Limited has been affected by the ASIC Class Order 98/1418. As such, the company guarantees creditors full payment as per the deed of cross guarantee. The directors are confident that the company is in a position to clear its outstanding debts in accordance to the principle of deed of cross guarantee. Signed in Sydney, on 11 September, 2012 as per the directors’ resolution in accordance with the Corporations Act of 2001. Elizabeth Griffin, Director On behalf of the Directors GREEN LOGISTICS LTD REPORT OF THE DIRECTORS The directors present their annual report as well as the audited financial statements for the period ended 30th June, 2012 .This report represents the firm’s state of affairs (Hakiki, 2008, 190). ACTIVITIES The primary activity of Green Logistics Ltd is the sale of Computer software. RESULTS 2012 2011 $’000 $’000 Profit before tax 79800 - Tax (charge) (10,965) - ________ _______ Profit after tax 68,814 - ======== ======= DIVIDEND The directors do decided to transfer $3,200,000 from retained earnings to the general reserve account. The Directors declared a final dividend of $510,000 from retained earnings, which is not, subject to further authorization or approval. On 1 September 2011 the company paid a dividend of $476,000.This dividend had been declared on 29th June 2011 from retained earnings and was not subject to further authorization or approval. DIRECTORS The office was held by two directors who included; Elizabeth Griffin and Rose Blake. INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREEN LOGISTICS LIMITED An independent auditor’s report shall be prepared by the auditor In accordance with the Australian Auditing Standards (Berrington & Bhandari, 2011, 968). Duty to form an opinion According to the AASB, the auditor has a duty to form an opinion on the following; • Whether the financial statements are in accordance with the Corporations Act 2001, Including: i). whether the financial statements comply with accounting standards; and ii). whether the financial statements give a true and fair view of the financial Performance and position of the entity (or consolidated entity); • If the financial statements include additional information under s.295 (3) (c) (information included to determine whether the statements reflect a fair view of the performance and financial position) whether the additional information that was included reflects a true and fair view as required by s.297; • Whether the auditor has all the information and assistance he requires to carry out the audit effectively; • Whether the company, registered scheme or disclosing entity has maintained proper records to facilitate preparation and auditing of financial statements; •To determine whether the firm has kept other registers and records in accordance with the Corporations Act 2001; • Whether a remuneration report exists in the director’s report and whether the auditor is of the opinion that the remuneration report complies with s.300A of the Corporations Act 2001. If the remuneration report does not comply with s.300A, the auditors are required to give reasons why in the auditor’s report; and • Whether an entity, in accordance with Australian Accounting Standard AASB 101‘Presentation of Financial Statements’, has attached explicit and unreserved statement of compliance with International Financial Reporting Standards (IFRS) .Whether auditors are confident that the financial statements comply with IFRSs. The auditor is only required to include in the audit report this opinion where the auditor agrees with the entity’s statement of compliance. The auditor is only required to include in the audit report all failures, deficiencies and shortcomings in respect of any matter referred to in s.307 (b), (c) or (d) above. Qualified audit opinions Where, in the auditor’s opinion, there has been a departure from a particular Australian Accounting Standard, the audit report must, to the extent that is practicable to do so, determine the financial obligations that a company faces as a result of non-compliance. Duty to report The auditor is required to report any defect or irregularity in the financial statements. According to the auditing standards, the audit report should include all the statements and disclosures. If the financial statements include additional information under s.295 (3) (c), a statement of the independent auditor’s opinion should be attached to the auditor’s report. Duty to inform The auditor must inform the ASIC in writing if the auditor is aware of circumstances that: • The auditor is confident that the Corporations Act 2001 has been breached; or • There was an attempt to manipulate, coerce or mislead those who carried out the company’s audit; or • An attempt by a person to interfere with the auditing process The auditor is required to notify ASIC in writing of the circumstances of the matters outlined above immediately i.e. within twenty eight days .ASIC-RG 34 ASIC Regulatory Guide 34 provides guidelines on steps to be taken by registered company auditors in complying with s.311 of the Corporations Act 2001, including specific reference to evidence of a contravention, examples of contraventions and timing of notification. REFERENCE LIST) Limited Aswathappa.2010. International Business 4E .New Delhi: Tata McGraw-Hill Education. Berrington, M & Bhandari, V.2011 .Pinnacle Financial Statements .London: IFRS SYSTEM. Dagwell, R et.al.2007.Corporate Accounting in Australia.Sydney: UNSW Press. Hakiki, P.2008.Local authorities accounting and financial reporting. Trends and techniques in a multinational perspective.Milan: FrancoAngeli. Kumar, B.A.2011.Studies in Accounting and Finance: Contemporary Issues and Debates.New Delhi: Pearson Education India. Read More