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Compliance with AASB standards of ADCORP Australia Ltd.

To illustrate this article tow companies selected are ADCORP Australia Limited and APN News and Media Ltd. both these companies are from the GICS group of Media. ADCORP is represented by ASX code AAU while APN News is represented by the ASX code APN. Both companies have registered office at NSW, Sydney, Australia. They are maintaining their annual fiscal period ending on 30th June. In this article their compliance with AASB standards will be highlighted with screenshot extracted from their latest annual financial report with the analyses of financial reports as of 30.06.2016 (Unm, 2006).

Refer to below screenshot, the Directors’ Report endorses the concept of adaptation of new and amended AASB standards as per the application date along with the confirmation of basis of preparation of the accounting information as per AASB standards as set by the Corporation Act, 2001 (Bloomberg, 2016). 

AASB 9 related to financial instruments and AASB 15 related to revenue from contracts with customers are applicable from 01.01.2018 and AASB 16 related to lease is applicable from 01.01.2019. Following screenshot of Directors’ Report extracted from the annual financial report for the year ended on 30.06.2016 depict the same (Aasb, 2014). 

Following AASB standards as listed in the Board of Directors’ Report has no significant impact on the accounting practices of the company and so they are not applicable for compliance as per the report of 30.06.2016. 

It is declared in the Auditors’ Report that the responsibility of the directors’ is lying with preparation of annual financial report of the company as per AASB 101.

ADCORP Australia Ltd.

Analysis of income statement for the F Y ended on 30.06.2016

Components

Amount in AUD '000

Amount in AUD '000

2016

2015

Variance (+/-)

Revenue and other income

            11,545

            14,639

                              (21)

Expenses

            11,843

            13,443

                              (12)

Loss for the year

                (298)

              1,196

                            (125)

  • Revenue and other income is reduced with negative variance of 21%
  • Accumulated Expenses are reduced by 12% negative variance.
  • Loss for the year had grown with 125% variance(Bloomberg, 2017).  

ADCORP Australia Ltd.

Analysis of consolidated position of financial statement for the F Y ended on 30.06.2016

Components

Amount in AUD '000

Amount in AUD '000

2016

2015

Variance (+/-)

Current Assets

            25,857

            22,665

                               14

Non Current Assets

              2,482

              2,464

                                 1

Total Assets

            28,339

            25,129

                               13

current Liabilities

            24,849

            24,792

                                 0

Non-current liabilities

                 648

                 656

                                (1)

Total Liabilities

            25,497

            25,448

                                 0

net assets

              2,842

                (319)

                            (991)

Share capital

            32,353

            28,894

                               12

Accounted losses

           (29,511)

           (29,213)

                                 1

Total equity

              2,842

                (319)

                            (991)

  • Total assets are increased by 13% with current assets increased by 14% and non-current assets  increased by 1% variance
  • Total liabilities are even with no significant increment or decrement
  • Total equity and net assets are with negative variance of 991%.
  • Working capital is positive in 2016 which was negative in 2015. This proves positive liquidity feature of the company. 
  • To ensure prudence and transparency in financial report through compliance with AASB and IFRS to secure the interest of the stakeholders
  • To ensure implementation of amendments of AASB as directed by Corporation Act, 2001
  • To ensure proper gathering of financial data and preparation of financial information through the guideline as specified by the Corporation Act 2001(Adcorp, 2016).

Below screenshot from the annual financial report had shown confirmation from Directors that the financial information is being prepared as per convention of AASB which is confirmed under the head Basis of Preparation (Aasb, 2015). 

AASB 13 for fair value measurement of assets and liabilities are exercised by the company which is confirmed through following screenshot extracted from annual financial report of the company and Directors’ declaration from that report:

Future compliance is thought of by the management against AASB 15 for revenue from contract customers with effect from 01.01.2018 (Aasb, 2014).

 AASB 16 - lease is effective from 01.01.2019.

AASB 9 for financial instruments is applicable from 01.01.2018 and the company is judging the applicability for the implementation of the same. 

APN NEWS & MEDIA LIMITED

Analysis of income statement for the F Y ended on 30.06.2016

Components

Amount in AUD '000

Amount in AUD '000

2016

2015

Variance (+/-)

Revenue & other income

        529,659

       270,494

                 96

Expenses

        247,681

       242,413

                   2

 profit from continuing operation

        281,978

         28,081

               904

 income tax expenses

         (30,301)

       (13,449)

               125

 profit from continuing operation

        251,677

         14,632

            1,620

 Loss from discontinued operation

       (251,140)

       (19,016)

            1,221

 Profit for the year

               537

         (4,384)

              (112)

Basic earning per share from continuing operation(in pence)

          122.60

             5.60

            2,089

Diluted earning per share from continuing operation(in pence)

          122.30

             5.60

            2,084

Basic earning per share from discontinuing operation(in pence)

             (3.00)

           (6.50)

                (54)

Diluted earning per share from discontinuing operation(in pence)

             (3.00)

           (6.50)

                (54)

  • Revenue and other income, expenses, profit from continuing operation, income tax expenses, loss from discontinued operation EPS from continuing operation are all showed as positive.
  • Profit for the year was turned from loss to profit.
  • EPS from discontinued operation is showing negative variance. 

APN News & MEDIA LIMITED

Analysis of consolidated position of financial statement for the F Y ended on 30.06.2016

Components

Amount in AUD '000

Amount in AUD '000

2016

2015

Variance (+/-)

Current Assets

        123,594

       162,056

                (24)

Non Current Assets

     1,021,294

       972,083

                   5

Total Assets

     1,144,888

    1,134,139

                   1

current Liabilities

        114,110

       144,178

                (21)

Non-Current liabilities

        194,313

       528,436

                (63)

Total Liabilities

        308,423

       672,614

                (54)

net assets

        836,465

       461,525

                 81

Share capital

     1,528,022

    1,222,780

                 25

Reserves

         (45,347)

     (137,102)

                (67)

Accumulated losses

       (682,088)

     (659,333)

                   3

Total equity

        800,587

       426,345

                 88

Non-Controlling Interest

          35,878

         35,180

                   2

Total Equity

             836,465

           461,525

                        90

  • Total assets are enhanced by 1% variance
  • Total liabilities are decreased by 54%
  • Net assets and total equity had shown 90% growth with positive variance(Apn, 2017).
  • The company should well judge the applicability of AASB standards as per deadline mentioned by Corporation Act 2001 for implementation.
  • The prudence or transparency for stakeholders can be assured through the proper practice of accounting system which is to be endorsed by the AASB standards.
  • The company has to follow IFRS for its presentation of financial information to the stakeholders of the company.
  • Board of directors should aware of their duties and comply the same as per the guideline set by the authorities related to accounting practice and financial information presentation honoring the effort of global convergence between IASB and AASB with presentation through International Financial Reporting Standard. 

References:  

Aasb, 2014. AASB 15: Revenue from Contracts with Customers. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB15_12-14.pdf [Accessed 10 April 2017].

Aasb, 2014. AASB 9: Financial Instruments. [Online] Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB9_12-14.pdf [Accessed 10 April 2017].

Aasb, 2015. Certificate of Compliance For Financial Year 30 June 2015 The Office of the Australian Accounting Standards Board. [Online] Available at: https://www.aasb.gov.au/admin/file/content102/c3/Compliance_Certificate_2015_AASB.pdf [Accessed 10 April 2017].

Adcorp, 2016. Adcorp Full Year Financial Results FY2016. [Online] Available at: https://www.adcorp.com.au/WWW_Adcorp/media/Content/Investors/Annual%20Reports/Statutory-Financial-Accounts-Announcement-Aug-2016.pdf [Accessed 10 April 2017].

Apn, 2017. APN News & Media has a diverse portfolio of vibrant media assets in Australia and NZ. [Online] Available at: https://investorcentre.apn.com.au/phoenix.zhtml?c=144006&p=irol-news&nyo=0 [Accessed 10 April 2017].

Bloomberg, 2016. Company Overview of Adcorp Australia Limited. [Online] Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4493467 [Accessed 10 April 2017].

Bloomberg, 2017. Adcorp Australia Ltd AAU:AU ASE. [Online] Available at: https://www.bloomberg.com/quote/AAU:AU [Accessed 10 April 2017].

Unm, 2006. Global Industry Classification Standard (GICS). [Online] Available at: https://www.unm.edu/~maj/Security%20Analysis/GICS.pdf [Accessed 10 April 2017].

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2022). Compliance With AASB Standards Of ADCORP Australia Ltd. And APN News & Media Ltd. Is Essay.. Retrieved from https://myassignmenthelp.com/free-samples/acc303-contemporary-issues-in-accounting/adcorp-australia-limited-file-C861DB.html.

"Compliance With AASB Standards Of ADCORP Australia Ltd. And APN News & Media Ltd. Is Essay.." My Assignment Help, 2022, https://myassignmenthelp.com/free-samples/acc303-contemporary-issues-in-accounting/adcorp-australia-limited-file-C861DB.html.

My Assignment Help (2022) Compliance With AASB Standards Of ADCORP Australia Ltd. And APN News & Media Ltd. Is Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/acc303-contemporary-issues-in-accounting/adcorp-australia-limited-file-C861DB.html
[Accessed 05 March 2024].

My Assignment Help. 'Compliance With AASB Standards Of ADCORP Australia Ltd. And APN News & Media Ltd. Is Essay.' (My Assignment Help, 2022) <https://myassignmenthelp.com/free-samples/acc303-contemporary-issues-in-accounting/adcorp-australia-limited-file-C861DB.html> accessed 05 March 2024.

My Assignment Help. Compliance With AASB Standards Of ADCORP Australia Ltd. And APN News & Media Ltd. Is Essay. [Internet]. My Assignment Help. 2022 [cited 05 March 2024]. Available from: https://myassignmenthelp.com/free-samples/acc303-contemporary-issues-in-accounting/adcorp-australia-limited-file-C861DB.html.

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