The paper "Intermediate Financial Accounting" is a great example of a finance and accounting assignment. In the accounting process, disclosures are required so as to disclose the information concerning the importance of the financial instruments to an organization. Disclosures of these instruments are also needed to find the information about the nature and extent of risks that arise from these instruments. The information should be disclosed both in qualitative and quantitative terms. Specific disclosures are required when accounting for a particular kind of assets. Both tangible and intangible assets should be considered during the disclosures process.
Assets disclosure is very much important in the accounting exercise because it enables the investors to better compare financial statements that are prepared according to both IFRS and GAAP (IFRS. org, 2011, pp2). Moreover, the disclosure requirements help in improving transparency when reporting on how organizations mitigate credit risks. However, the disclosure process tends to differ from one region to another because of different accounting standards. For example, the accounting standards used in Australia were different from those used in the US and the UK (IFRS. org, 2011, pp5).
Therefore, the disclosures of certain items differed to some extent. These differences are being solved by the adoption of international financial reporting standards (IFRS) which is the accounting standards that are required to be followed by all accounting firms all over the world. Abacus property group (ABP) is an Australian company trading on the Australian stock exchange (Abacus property group, 2014, pp39). Abacus Property Group is a diversified property group that trades in property opportunities across the Australian commercial property market. It deals in retail and industrial property, mortgage investments, property fund management and development of syndicates.
Question A: Requirements of IFRS on disclosuresThe IFRS provides guidelines on how various instruments need to be disclosed during the accounting process. For example, when conducting impairment tests and asset valuing, the auditors and directors should ensure that first, the cash flows and assumptions are reasonable (IFRS. org, 2011, pp5).
Abacus Fund management. (2006). “Abacus Property Group Explanatory Memorandum.” Accessed 0n 17 December 2014. Retrieved from
Abacus property group. (2014). “Abacus property group: Annual financial report for the year ended 30 June 2014.” Accessed on 17 December 2014. Retrieved from http://www.openbriefing.com/AsxDownload.aspx?pdfUrl=Report%2FComNews%2F201 40828%2F01547393.pdf
IFRS.org. (2011). “Disclosures: Offsetting financial assets and financial (Amendments to IFRS 7).” Accessed on 17 December 2014. Retrieved from http://www.ifrs.org/Alerts/PressRelease/Documents/DisclosuresOffsettingFAssetsandFLi abilties_AmdmentstoIFRS7_WEBSITE.pdf