Australian Financial Reporting Standards

Question: Discuss about theAustralian Financial Reporting Standards. Answer: Introduction The overall report analysis is based on identifying the characteristics adopted by Australian based organization to from international financial reporting standards, and how it is improving the companys disclosure on that particular period of time (Accaglobal.com 2016). Here, we are about to discuss the financial disclosure of Caltex Australia limited and Quantas. According to the discussion on the financial statement stated by the companies comparison will be discussed in the further report (Ifrs.org 2016). Caltex Australia limited is a fuel and lubricant supplying entity, whereas on the other hand, Quantas is a flag carrier airline of Australia. Both the companies are listed over Australian stock exchange as per the guidelines of international financial and reporting standards. In the analysis, usage of same regulation and practices for different companies related to different industries will be shown. Caltex Australia Ltd Quantas Caltex Australia limited is an Australia based company and also listed over Australian securities exchange. On the other hand, Quantas is a flag carrier airline of Australia. As per the financial statement reports of both the companies shown that they are following reporting standards policies by keeping appropriate transparency with the shareholders and investors in the market. According the IFRS section 3, both the companies are presented fair valuation and stated the compliance activities by disclosing the different statements like income statement, balance sheet and cash flow statement (Gebhardt Wagenhofer 2014, pp.107-116). According to the IFRS Section 2, the company should competent enough to manage the understandability, reliability, relevance and monitoring the balance between total cost and benefits incurred by the organization. The proper analysis of total assets and liabilities holds by the organization is also considered as the reporting standards to properly monitor an d control them effectively. Quantas is also mentioned their assets allocation and total liabilities holds by the organization within a particular financial period of time and also fluctuation in profitability scenario is also shown in form of presented graphs (Qantas.com 2016). On the other hand, Caltex Australia has been also represented the financial report for every financial as per the regulated structure of IFRS and mentioned their allocated assets and liabilities and profitability index for every financial year (Caltex.com 2016). The auditing authorities of both the companies are properly managed the financial review process and other financial disclosures. As per the financial statement of Caltex Australia, it is also shown that profitability will be considering on the basis of historical pricing method. The replacement cost of sales operating profit has been excluded several cost and indirect expenses before or after calculation of tax is also based of frameworks of international financial reporting standards (Caltex.com 2016). According to the under section 3a, Caltex Australia is also following fixed remuneration policies which is consisting base salary of their employees, superannuation benefits and non monetary benefits of the organization. Caltex Australia is also imposed that will pay short term incentive to their employees if company will be able to achieve 80% of total net profit after tax (Iasplus.com 2016). The market performance measurement will be done on the basis of assessing the probability o f total equity and their related performance under section 4b. As per section 295A (Company Act), board of director of the company has been declared compliance with accounting standards under section 296 and fair valuation under section 297 accordingly. There are also a statement related to compliance issue with IFRS is mentioned in the Note A stated by the organization on every financial year end. According to the Note A of the company Caltex Australia limited has been adopted a mandatory accounting procedures to maintain the relevancy of their current reporting activities effectively and also declared that all new standards and policies will be amended at the beginning of the financial year (Caltex.com 2016). According to the Notes of auditing authorities of Quantas airways limited is accompanied the consolidated financial statement in every financial year end with the specific summary and accounting policies. As per the analysis of financial statement of both the companies Caltex and Quantas is shown that accounting standards are implemented for the welfare and growth of the organization. The expenses to remuneration entire financial activities are affected according to the disclosures of international financial and reporting standards. The declaration statement of directors of Quantas is also shown that they are in process to follow true and fair valuation under Australian accounting standards and corporation Act 2001. The entire financial statements are presented on the basis of Australian Accounting Standards (AASB 101) (Ewelt-Knauer 2014, pp.827-864). The valuation activities for Quantas have been completed for every financial year in the month of June and also all the related disclosure will be disclosed under Corporation Regulations 2001 in Note 29(A) (Qantas.com 2016). The remuneration report represented by the Quantas every financial year is prepared on the basis of under section 300A and auditing procedures are based of valid auditing standards. According to the analysis of financial reports of Caltex and Quantas, it is found that though both the companies are belongs to different industries and operational activities, accordingly their accounting activities also differs while following similar types of accounting framework. Conclusion According to the overall analysis of financial statement of both the companies Caltex Australia limited and Quantas is following various types of regulatory measures and guidelines to represent their financial statement. As per the analysis of disclosures and guidelines, it is also found that both the companies are different financial period to declare their financial statement and also due to difference in the industries, procedures of handling the same remuneration activities are different under similar accounting and reporting standards. By following these regulatory frameworks, these companies are monitoring and controlling the accounting and remuneration activities accordingly. Also fair valuation measures providing appropriate amount of benefits to shareholders, stakeholders and market investors of the concern companies. The consistency, relevancy and transparency concept is also followed the organization within a specified financial period while preparation of their remunerati on and director declaration report. In the above mentioned entire analysis is showing that importance of international financial reporting standard and several improvements which are achieved the organization while following those procedures. Reference Accaglobal.com, A., 2016.Global body for professional accountants | Accountancy | ACCA | ACCA Global. [online] Accaglobal.com. Available at: https://www.accaglobal.com [Accessed 15 Sep. 2016]. Caltex.com, 2016.Caltex Australia. [online] Caltex. Available at: https://www.caltex.com.au [Accessed 15 Sep. 2016]. Ewelt-Knauer, C., 2014. Determining reporting entity boundaries in the light of neoinstitutional theories beyond the conceptual framework of IFRS.Journal of Business Economics, 84(6), pp.827-864. Gebhardt, G., Mora, A. Wagenhofer, A., 2014. Revisiting the Fundamental Concepts of IFRS.Abacus, 50(1), pp.107-116. Iasplus.com, 2016.Australia. [online] Iasplus.com. Available at: https://www.iasplus.com/en/jurisdictions/oceania/australia [Accessed 15 Sep. 2016]. Ifrs.org, 2016.IFRS - Home. [online] Ifrs.org. Available at: https://www.ifrs.org [Accessed 15 Sep. 2016]. Qantas.com, 2016.Qantas | Book airfares on Australia Pacific's Best Airline. [online] Qantas.com. Available at: https://www.qantas.com [Accessed 15 Sep. 2016]. Stadler, C. Nobes, C., 2014. The Influence of Country, Industry, and Topic Factors on IFRS Policy Choice.Abacus, 50(4), pp.386-421.