Essays on Financial Accounting Australia Case Study

Download full paperFile format: .doc, available for editing

The paper 'Financial Accounting Australia' is a great example of a Finance and Accounting Case Study. This report is written based on the AASB policies. These policies have been constantly applied to all the years existing, except if not stated. The financial report includes details for G8 Education Limited as an individual entity and the consolidated entity consisting of G8 Education Limited and its subsidiaries. (a) Basis of preparation This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group and the Corporations Act 2001. The Company acquired 5 of its centers between 1 February 2008 and 14 March 2008; as such the comparatives showed in the financial report are not directly comparable.

Notwithstanding the fact that the Group has net current liabilities of $3,034,610, the directors are of the view that the Company will be able to pay its debts as and when they become due and payable, for the following reasons: • Cash flows as per the 2010 budget are adequate to cover operational and loan repayment requirements: • The Group has an unused overdraft facility of $1,500,000 which can be drawn upon if needed; and • Current liabilities include fees received in advance and enrolment deposits of approximately $988,000 and annual leave entitlements of approximately $679,000.

It is a Company policy for fees to be in advance and in the normal course of business these balances fluctuate only to the extent of seasonal changes in business activity. Compliance with IFRS   Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report of G8 Education Limited and the Group complies with International Financial Reporting Standards (IFRS) Introduction G8 Education Limited (ASX code: GEM) formally Early Learning Services (ASX code: ELY) was listed on the Australian Securities Exchange in on 5 December 2007.

The company had only 17 centers owned at that time, the group has however extended to now consist of 65 owned centers and 33 managed centers situated across Australia, with discussions continuing to expand the group. Its zeal is nurturing and developing children while transforming centers into a community hub with the aim of making families feel valued in a happy and caring environment. The group’ s mission is easy.

It aims to be Australia’ s leading provider of high quality, developmental, and educational child care services. It seeks to achieve this through our four pillars for growth and sustainability. On quality education & Care, the company aims to nurture and develop children’ s minds, social skills, and confidence in a safe and stimulating environment. On its employees’ target, the company is committed to employee development and rewarding culture that will ensure an engaged and driven workforce.

It also strives to be responsive to local families and deliver upon community expectations while staying on the business objective to grow and derive value for shareholders through innovative services, systems, and management. Business Combinations The purchase method of accounting is used to account for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. Cost is calculated as the fair value of the possessions given, equity instruments issued or liabilities incurred or unspecified at the date of replacement plus costs openly attributable to the acquirement.

Where equity instruments are issued in an acquisition, the fair value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more reliable measure of fair value.

References

:

Beechey, V. &Perkins, Accounting Guidelines Minneapolis: University of Minnesota Press. (2007).

Tybout, A. & Calder, J. B. Financial reporting River Street Hoboken, NJ: John Wiley and Sons (2010).

Coughlan, A.T. ASSB guideline, Upper Saddle River, NJ: Prentice Hall (2001).

Icun Y. & Getty, M. BCI: Fundamentals of accounting, New York: Elex Media Komputindo (2007).

Norgaard, R. B. Fundamentals of Australian accounting System. London: Cambridge Press, (2004).

North, D. C. Basics of ASSB and IFAS, New York-London, (2001).

Download full paperFile format: .doc, available for editing
Contact Us