ACCG2024 Financial Accounting and Reporting-annual report

Therefore, the Board decided to have a review of the relevant disclosures in the company’s annual report for the year ending 30 June 2020 pertaining to PPE and whether these disclosures were aligned with the Conceptual Framework’s objective and qualitative characteristics of financial reporting. The purpose of reviewing last year’s annual report is to ensure that all relevant information is disclosed this year.

Required:

Based on the Board’s decision, the CFO asks you to draft a business research report addressed to the Board of Directors on the following:
a. Critically analyse to what extent the 30 June 2020 annual report of your company meets the disclosure requirements for PPE as per AASB 116.

b. Based on your findings in part a, critically analyse to what extent the disclosures on PPE satisfy the fundamental and one of the enhancing qualitative characteristics of useful financial information.

c. Based on your findings in part b, critically discuss to what extent the disclosures on PPE align with the objective of general-purpose financial reporting.

d. Recommend any actions to be taken by your company to improve their disclosures for 30 June 2021 annual reports based on your analysis in part b and c

 

The CFO was impressed by your report and has asked you to prepare a video presentation to be played to the Board of Directors at their next meeting. Based on your report, your video presentation should:

a) Provide a critical summary of the PPE disclosures made by your chosen company for the year ended 30 June 2020.

b) Explain if those disclosures meet the fundamental and one enhancing qualitative characteristics of financial information.

c) Critically discuss if those disclosures satisfy the objective of financial reporting and any recommendations