Overview

For this assessment you will work in groups of three (3) and complete the following questions which are based on a practical case-study. This is completed by downloading ASX listed companyAnnual Reportsfrom the internet.

Activity

Part I General features and Qualitative characteristics of financial statements

Review the most recent financial statements of two (2) ASX listed Australian firms. Critically evaluate the financial statements and discuss how the information disclosed meets the central tenets from the AASB Conceptual Framework; namelyRelevance and Faithful Representation. Compare that analysis with the eight (8) general principles as outlined in AASB 101 Presentation of Financial Statements and provide examples from the annual reports of the application of AASB 101 and the AASB Conceptual Framework.

Part II Recognition and measurement of Property, Plant and Equipment.

Discuss the recognition criteria of assets prescribed by the AASB Conceptual Framework and compare those with the measurement of AASB 116 Property, Plant and Equipment and AASB 136 Impairment of Assets. Part of your critique will be to assess the consistency between AASB 116 and AASB 136 with the requirements of the AASB Framework. Include some extracts from the annual reports as examples and discuss these disclosures

Chapters 5, 7, 16 and 18 from Loftus et al (2020) will assist you with background reading.