More, the standards require that the identifiable intangible assets must be disclosed by means of subdividing the assets into classes with similar identifiable intangible assets being grouped together with regards to their usage and operations. Cash generating units impairment testing should be through the process of comparing the carrying amounts of identifiable intangible assets, goodwill working capital, and PPE of the cash-generating units. It is also important to note that valuation approaches during disclosure needs to be financial ratios and discounted cash flow. The company also needs to ensure that sensitivity analysis is done in case there are changes in key assumptions used during financial reporting. The importance of carrying out a sensitivity analysis to changes in key assumptions is due to the need to evaluate variations and their effects on financial reporting. Sensitivity analysis will also enable corrective actions to ensure compliance of financial reporting requirements. According to analysis of the company’s reporting practice, forecast must be corrected to be based on present value of future expected future cash flows. Forecasts on future cash flows must also be based on an established cyclic cash flow pattern. Table of Contents Introduction Identifiable Intangible Assets Impairment Testing on Cash Generating Units Calculation of Discount Rates and Growth Rates Sensitivity analysis to Key Assumption changes Financial Reporting Practice of CCA LTD Recommendations Financial Reporting Disclosures in the Australian Corporate Sector Introduction Corporate companies are subject to Corporations Act, which is being promoted by ASIC reviewers to ensure compliance with financial reporting requirements. The ASIC further provides non-compliance allowance for specific requirements to corporations. Confidence of investors and integrity levels in the Australian Corporate sector is largely boosted by the ASIC activities of monitoring corporation’s compliance to financial reporting requirements. Users of financial reporting and auditing information are able to make informed decisions about the reliability and relevance of financial reporting disclosures in the Australian Corporate Sector. There is need for Coca Cola Amatil LTD to ensure that their financial reporting standards adhere to the professional and legal requirements of the corporations act. The objective of these financial reporting disclosures report is to ensure that Coca Cola Amatil LTD adheres to corporate Act’s requirements of financial reporting disclosures in the Australian Corporate Sector. Identifiable Intangible Assets The corporate act specifies reporting standards that must be adhered to when disclosing information regarding identifiable intangible assets such as names of brands, relationship with customers and written off intangible assets of Coca Cola Amatil LTD. The company should disclose identifiable intangible assets that would have been recognized during business formation or combinations and research and development assets. These intangible assets do not include assets that are recognized through contract basis or any other means that is legal. During financial reporti
Running head: Financial Reporting Disclosures in the Australian Corporate Sector Financial Reporting Disclosures in the Australian Corporate Sector Insert Name Insert Insert 29 September 2011 Executive Summary Coca Cola Amatil LTD needs to ensure adherence to ASIC financial reporting requirements as per the corporations act with regards to the Australian Corporate Sector…
The company has its operations in more than 75 countries with about 70,000 employees. The company is listed on London Stock Exchange. SAB Plc has changed its name to SabMiller Plc after acquiring Miller Brewing Company. The growth of the emerging economies with increasing disposable income of the middle class augurs well for the development of the business.
The Managing Director is not keen on including Lease A in the books as a finance lease and, instead, wants it recorded as an operating lease. A new accounting standard that will replace International Accounting Standard (IAS) 17, which covers 'Leases', is due to be finalized within the year.
United Nations Global Compact and Global Reporting Initiative
Everyday, many people enjoy so many things offered by corporations. From goods, to services, food, among others, it affects the lives and livelihood of mostly the world’s population. However, many people denounce corporations for what they think they are: a “fictitious legal person or an artificial legal entity” distinct from its owners and officers, which seek perpetual existence (Hessen, 1979).
CSR is interpreted broadly as the duty of business firms to take account of the interest of a broader class of stakeholders when making business decisions and conducting business activities (Moir, 2001). To this end, a broader class of stakeholders include employees, consumers, governments, communities, shareholders, suppliers and creditors.
It is a known fact that the companies create various social problems such as, resource depletion and pollution, which negatively impacts the society as well as the environment (Moir, 2001). The increasing concerns and attention of the general public have reached this sphere which has made it almost mandatory for the organizations to count the CSR activities among their responsibilities.
It is known to everyone that organizations are responsible for creating various social problems such as, pollution or resource depletion, which has a negative impact on society and environment (Moir, 2001). The increasing attention or concern of public in this sphere has resulted in mandating the performance of corporate social responsibility activities of organizations.
The lack of the set of standards/guidelines in this regard compounded the intensity of the issue much better than ever before. . Big corporations prepare environmental reports on their own way as a ritual rather than a necessity. There have been also differences in the usage of reports by various stakeholders.
and transparency in the firms relationship with its all stakeholders (financiers, customers, management, employees, government, and the community)” (BusinessDictionary.com, 2009). The development of this area has been affected by many theories such as agency theory,
ompanies aims are as follows: to identify compelling intellectual property-base opportunities in their key target sectors; to develop the identified opportunities into a diversified portfolio of robust businesses; to grow the assets on behalf of the third ;arty; and to provide
Integrated reporting was selected for assessment because it is an emerging concept and the underlying scope of research is relatively broad. Integrated reporting was primarily developed post corporate scandals in 2010 by
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