In the last two decades of twentieth century, in many jurisdictions,
there has been a significant change in public sector accounting. In public
sector financial reporting, and in consolidated governmental reporting,
Australia and New Zealand, are pioneers (Carlin 2005). The New South Wales
Government produced the first consolidated financial report based on accrual
accounting in Australia in 1991-1992 (Christensen 2003). For accrual based
whole of government financial reporting, all Australian federal, territory and
state had adopted and implemented requirements by 2003-04. The Public-Sector
Accounting Standards Board (PSAB) started focusing on traditional principles
which is also known as Generally referred accounting principles (GAAP) from
microeconomics. A common set of accounting principles, procedures and standards
that companies must follow while compiling their financial statements is known
as Generally accepted accounting principles (GAAP).
GAAP is very critical especially if a company wants to issue stocks or
merge or wants to participate in acquisition. Knowing the basic principle, its
advantages and disadvantages can benefit in hiring an excellent financial
service although its responsibility totally is of accountant. The standards set
by GAAP helps comparing the companies as they tend to follow GAAP model while
making financial report. This may increase the company’s stock value potential
and long-term sales.
When accessing financial record, maintaining evenness while dealing with
tax, following the GAAP can assist companies in achieving financial objectives.
The fundamental principles serve as foundation for drafting, analysing and
reporting financial documents even though GAAP principles can be applied and
interpreted in many ways.
We can identify an income of a company by analysing the income statement
of the company for the specific year. Report that shows financial performance
over a specific accounting is known as income statement. This will help in distinguishing
annual income as well as its financial position of a company. The ideals and
systems that determines incomes of the organization in Australia is governed by
Australian Standards Board(AASB)
minerals limited is speciality metals company based in Devo in the UK which focuses on
developing the Drakelands Minetungsten and tin project which is listed on
Australian Stock Exchange(ASX) in February 2007. Tungsten is listed as
‘critical’ metals in European Union.
The Australian Accounting Standards are applicable, issued or modified
and have been dispensed to the financial statements of consolidated company but
are not yet operative.
The financial report of Wolf Minerals and the consolidated financial
report of the Wolf Minerals comply with International Accounting Standards
Board (IASB) and International Financial reporting standards (IFRSs). In accord
with the AASB together with other declarations adopted by the AASB and the
Corporation Act 2001 (for profit oriented entities). In September 28, 2017 by
the Board of Directors, the consolidated financial statements were authorised
for issue giving the board power to reissue and amend financial statements (Wolf
Minerals Limited financial report 2016).
For the latest annual report, the Wolf Minerals has not implemented AASB 9,
financial instruments that incorporates, ‘the guidelines to enhance and
disentangle the method for arrangement, estimation, impedance and hedge
bookkeeping of money related resources and liabilities contrasted and the
prerequisites’ (p.38). The recent amended of AASB 15, which will be effective
as of 1 January 2018 has not been adopted yet. This deals with the revenue from
agreements with consumers. This standard decides the policies that a substance ought to practice filing valuable facts to clients of cash associated articulations
regarding the nature, sum, timing and vulnerability of profits and cash streams
collected from a settlement with a client. As consistent with the corporation,
the reception might not appreciably affect the sums perceived in the contemporary
money associated proclamations.
The organization expresses that the selection of this standard won’t
substantially affect the sums perceived in the financial statement. Wolf
Enterprises have not received alterations on IFRS 16 with respect to finance
which indicates the acknowledgment, estimation, introduction and announcement
of business. Besides, other later alterations made on bookkeeping benchmarks
because of related norms and yearly change comprising AASB 2010-7, AASB 2013-9,
AASB 2014-1 and AASB 2014-10 are probably not going to influence the budgetary
explanation fundamentally if on the off chance that rehashed on utilization of
these new gauges. Westfield company still needs to concentrate on controlling
the present speculators and potential financial specialists by improving the
understandability of the bookkeeping data by showing exact information. Complex
terms and language are found in the report which ought to be rejected or
supplanted with less difficult terms to abstain from misdirecting data which
would influence the basic leadership.
Historical cost basis has been used to prepare consolidated financial
statements except for derivative financial statements, financial statements
profit or loss, available for sale financial assets, liabilities for cash
settled share based payment provisional and defined benefit asset are measured
at fair value (p.30). In normal course of business, normal business activities
and realisation of assets and settlements contemplate with the consolidated
financial report which is made on going concern basis. The company bore a loss
of A$ 74,536, 641 after tax for the year ending 30 June 2017. In addition to
that, Wolf Enterprises has a working capital deficit of A$ 72,958,414 on June 30,
The capacity of the organization and combined element to keep up
consistency with its commitments and agreements and keep on paying its
obligations as and when they fall due its dependency after getting extra
financing help effectively increase generation to nameplate limit and postponement,
fixed debts reimbursements with senior lenders of debt.
In a nutshell, Accounting Standards of Australia has been effectively
implemented by Wolf Enterprises in its financial reporting and business practices.
Although some latest amendments have not been adopted, the Enterprises states there
has been no any major impact on its financial report despite everything, it
needs to make the terms and delineation more straightforward and less obscure
that will serve its shareholders in decision making and basic leadership