General Features, Disclosures and the Format for Financial Statements Followed by 99 Wuxian Limited - Case Study Example

Table of Contents Introduction 2 Topic 1 2 Topic 2 7 Topic 3 11 Mind Map 12 Introduction This report looks to provide the different disclosure which has been provided in the financial statement of 99 Wuxian Limited and whether they are in accordance with the standards provided by AASB. The comparison is made with regard to the general features, general disclosure, disclosure in relation to financial statement and format of financial statement. The would thereby help to understand whether the financial is consistent with the needs and requirements of AASB. Topic 1 This section will look to provide information regarding the general features, disclosures and the format for three of the financial statements which has been followed by 99 Wuxian Limited and whether they are in accordance with the standards provided by AASB. The details are as The organization has looked towards continuous disclosure which has been stated by AASB. It is imperative that all materials information which has an impact on decision making is disclosed which has been abided and provided for in the financial report. The AASB requires that corporate governance is followed by organizations and a disclosure of the same is provided. This helps the reader to ensure that the business is working on the principle of good governance and all information are provided. This has been achieved to a large degree by the organization by providing the disclosure regarding the corporate governance needs. AASB states that all disclosures which has an impact on shareholders, employees and society at a large are provided in the financial statement. The organization has ensure that the changes have been provided in the general meeting and the organization has been able to give justification for the changes which has been made The organization has also provided a disclosure regarding the changes which the business is undergoing with regard to auditor. The same will be passed on it the general meeting so that people are aware of the changes highlighting that the disclosure are in accordance with the needs of AASB. AASB requires that the general information of the business, its area of operation and address is provided. This has been duly accounted in the financial statement as the same has been properly detailed in the financial statement. The organization has ensured a disclosure which prevents people working in the organization to have a substantial holding in the company. The AASB requires that business should work for the shareholders and people associated with the organization should not have substantial interest in the organization as they can influence the business and garner personal gains. This has been properly addressed in the financial statement. AASB requires that the financial statements should be prepared in such a manner that it ensures easy comparability between different organizations and comparison of the performance for different years within the same organization. The financial report shows that the guiding principle which has helped in the preparation of financial statement is followed which has thereby ensured that the financial statement is prepared as per the needs and requirements laid by AASB AASB requires the preparation of cash flow statement which highlights the operational, financial and operating activities differently. It is further required that a comparison between two years are made so that changes can be seen. The financial statement has provided complete details regarding the same thereby ensuring that the presentation of financial statement is as per the requirements laid by AASB AASB requires the preparation of balance sheet which highlights the current assets, fixed assets, current liabilities, changes in capital and other activities. It is further required that a comparison between two years are made so that changes can be seen. The financial statement has provided complete details regarding the same thereby ensuring that the presentation of financial statement is as per the requirements laid by AASB AASB requires the preparation of income statement which highlights the different sources of revenues, the sales, the cost and all other expenses the business incurred so that profitability can be gauged. It is further required that a comparison between two years are made so that changes can be seen. The financial statement has provided complete details regarding the same thereby ensuring that the presentation of financial statement is as per the requirements laid by AASB The financial statement has thereby been able to be consistent with the needs of AASB and has furnished information pertaining to disclosure, general information and presentation of financial statements. Topic 2 This section will look to provide information disclosure with regard to standards which have an impact on financial statement which has been followed by 99 Wuxian limited and whether they are in accordance with the standards provided by AASB. The details are as The financial statement has provided a disclosure regarding the manner in which impairment loss is being treated. It is imperative under that AASB that all material information is disclosed so that users of the financial statement are able to understand the financials better and gauge the actual performance. The mechanism which the financial statement has followed with regard to compliance has been properly documented in the financial statement. This will help the user to understand the different standards and principles which are applicable and would help to facilitate better comparison. The financial statement provides details regarding the accounting policies which are followed. This has an impact on the financial statement as using different policies provide different results. AASB requires that the accounting policies and standards which are used should be clearly provided. This has been properly documented and would thereby enable the user to understand the financials better. The financial statement provides a justification that the value of subsidiary units have been recorded as and where required. This follows the AASB principles as it ensures that all material information is properly documented as it can have an impact on performance. This would thereby enable the user to take better decisions and ensure that no information is concealed. The financial statement provides disclosure related to income tax which would help the user to understand the financials properly and is as per the needs and requirements of the standards. The financial statement provides complete details regarding different judgements and estimates which has been followed. This would help the user to ensure that the financial statement is free from any error and provides complete justification to the different information which has been provided. The AASB requires that all material information which has an impact on financial statement should be provided and has been provided in the financial statement. The financials provides justification that the business follows the ASX listing rules which hereby implies that the different standards and policies which ASX requires have been undertaken. This helps to increase the authenticity of the document and ensures that all material information is properly provided in the financial as it would otherwise impact the financial statement. Changes in approach with regard to revenue recognition have been disclosed in the financials. This follows the AASB standards and ensures that the users are provided with complete and correct information. This also entails into one where the user will be able to gauge the real performance and based on it take financial decisions which would have otherwise impacted them. The organization has ensured a disclosure which prevents people working in the organization to have a substantial holding in the company. The AASB requires that business should work for the shareholders and people associated with the organization should not have substantial interest in the organization as they can influence the business and garner personal gains. This has been properly addressed in the financial statement. The financial statement thereby provides complete description of the different disclosure which has been followed and the manner in which it would have otherwise impacted the financial performance. This thereby helps the user to ensure consistency and take better decisions. Topic 3 It is imperative that the incident is highlighted in the financial statement as there is material information which might otherwise have an impact on the financial decisions. Since, it is lawsuit and financials are involved the corporate governance norm requires that the incident is properly highlighted in the financials. This will help some of the users as they will be able to understand the incident and take decision based on it. As a result the decision would be better and including the material information would provide justification for being morally correct and authentic to its stakeholders. Further, this would also help the users to ensure that a disclosure regarding the same has been provided as it would ensure better decision making. It would ensure that no information is concealed and the stakeholders are considered important by the organization. This would help to ensure better disclosure policies and would help the business to be more lucrative as decisions will be taken after considering all the factors which have an impact on the financial performance and results in financial issues. Mind Map Read More