Adherence To AASB Reporting Standards And Qualitative Enhancing Characteristics Of TPG Telecom Limited's Financial Essay.

Adherence to the objectives of the conceptual framework with its reporting

The selected company TPG Telecom Ltd considered as one of the most reputed Australian telecommunications and information technology brand specialised in Internet and mobile telephone services. The company has been depicted as second largest Internet service provider along with several mobile and virtual network operating facilities. TPG Telecom Limited is seen to be having customer base more than 358000 landline subscribers and 360000 mobile subscribers. It is second largest “ADSL2+ network in Australia, consisting of 391 ADSL2+ DSLAMs”.  TPG Telecom Ltd discerned to provide main services which includes “OEM services, mobile phone services, networking equipment, Internet access and accounting software”.

The main intention of the report is to discuss the adherence of conceptual framework and recognise the criteria for reporting of Assets, Liabilities, Equity, Revenue and Expenses in the financial report. Moreover, the study has assessed the fundamental qualitative characteristics which is discerned with the relevancy and faithfulness of the representation. Some of the other initiatives has been taken towards recognising the qualitative enhancing characteristics which is seen in terms of compatibility, ease of understanding and viability of the information obtained (Potter, Ravlic and Wright 2013).

“Australian Accounting Standards Board (AASB)” has been depicted as the primary Australian government agency for maintaining and developing of the financial report it is applicable to both public and private sectors economy in Australia. AASB is further seen to be playing a contributing role towards financial reporting standards with “Australian securities and investment commission at 2001”. As on December 2013, the board has included several revisions to cover more areas which has been related to reporting entity, disclosure, better measurement, financial performance, presentation and de-recognition. The mission has been further able to meet the tips of financial reporting which helped in bringing about management stewardship of several entities (Moehrle et al. 2016).

Based on the depictions made by the financial report published in 2016, TPG Telecom Ltd has been able to consolidate the financial statements which has been prepared as per “Australian accounting standards (AASBs) adopted by Australian accounting standards board (AASB)”. The financial reports have been further seen to comply with the conceptual framework objectives of “Corporation Act 2001”. The various types of consideration of financial statements has been regarded as per “International Financial Reporting Standards (IASB)”. It needs to further depicted that the different types of accounting policies maintained by the company are consistent in all the periods of financial year followed by consideration of financial statements which is consistently applied within all the hierarchies of the group. Some of the standards issued by AASB which are yet to be adopted has been depicted in terms of “Financial Instruments (Revised AASB 9)”, “Revenue from Contracts with Customers (AASB 15)” and “Leases (AASB 16)” (Andrew and Cortese 2013).

The different types of investment activities have been considered with assets available for sale and treated under ASX listed securities. The recognition criteria for reporting Assets, Liabilities, Equity, Revenue and Expenses has been further seen to be considered with fair value method. The assets listed for sale has been measured with “Level I under fair value hierarchy of AASB 7”. The different types of revenue expenses and assets is taken into consideration with the net amount of GST in cases where GST amount has not been recoverable from taxation authority. In such situations the GST amount is depicted with the cost of acquisition of the assets along with expenses will. The payables and receivables are stated with a total amount of GST included and the net amount of recoverable GST which is payable with the current asset or liability statement of financial position. The accounting policy of the group and disclosure is determined with fair value for both non-financial assets, financial and liabilities. The depiction of the fair value is seen with the measurement and disclosure of material assets like PPE, intangible assets and inventory. In addition to this, the fair value of debt and equity is determined with quoted closing price paid at the date of reporting. For generating a true and fair view of financial position of the group the consideration of financial statements is clearly mentioned in pages 35 to 90 which are in accordance to “Corporations Act 2001” (Krismiaji, Aryani and Suhardjanto 2016).

Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue and Expenses

The main assessment of the information given in the annual report has been depicted with number of food and committee meetings which were held in financial year and a meeting attended by directors including committee members. The group members have been further able to mitigate the risk by monitoring closely related development activities which includes relevant regulatory bodies which are in compliance with the regulations. The faithfulness of the information depicted has been discerned with individual interest of the director and opinions over such instruments which are issued by the company within the group and notified the same to the directors and further on to Australian Stock Exchange in accordance with S205G (1) of the “corporations act 2001” (Jamal and Sunder 2014).

The main assessment is based on the cost incurred includes insurance cost which are scrutinised by relevant officers in defending proceedings associated to both criminal and civil irrespective of the results.

The cost excluding the expenditure is considered to be directly attributable along with the acquisition cost of the assets. It has been further depicted that the cost incurred for self-construction of assets includes cost of material, initial estimate and direct labour wherever it is seen to be relevant. The share based the band system has been disclosed for the performance right which has been able to reflect fair value of the individual identified a number of the shares granted by the shareholders (Financial Accounting Standards Board (FASB) 2013).

The main form of the comparability of the financial information has been used with several types of graphic representation. For example, the result is based on operating with the has been clearly classified “EBITDA, NPAT, EPS, operating cash flow and dividends per share”. In order to compare the various types of results with the date the respective factors of the data have been presented by taking into consideration financial year 2009 to financial year 2016. The main form of the depiction of the assignment has been able to reveal that the qualitative characteristics has maintained the time factor (Gipper, Lombardi and Skinner 2013). In order to adhere to the qualitative characteristics of reporting customer growth factor has shown by using monthly stack: chart which has been further able to segregate the data as per “ADSL bundle, ADSL standalone, ADSL off net standalone and NBN subscriptions”. Based on the important depictions of the company, the subscriber of the telecom company has been depicted with the linear growth from a time period of January 2014 to July 2016. TPG corporate division has been able to achieve total revenue of $ 654.6 million in financial year 2016 which is an increase of $ 2.1 million compared to the previous year. The easy understanding of the data representation of the same has been evident with the use of pie chart. The review of financial standings of the company has been classified with the result of 2016 with the previous year’s data. For example, the key elements of financial 2016 has been depicted with increasing revenue or decrease in revenue in compare to the increase of decrease of the same in 2015 (Mohammed, Fahmi and Ahmad 2015).

Conclusions and Recommendations

The main revealing as per the rational for adherence to the objective of conceptual framework of the reporting has been depicted with compliance with “Australian accounting standards (AASBs) which has been further seen to be adopted by Australian accounting standards board (AASB)”. The conceptual framework of the reporting date has been further seen to be prepared as per the guidelines given by “Corporation Act 2001”. The significant amount of consideration for the financial statements has been seen to adhere to the guidelines stated under “International Financial Reporting Standards (IASB)”. It has been further depicted that the group has been able to recognise the assets with Level I under fair value hierarchy of AASB 7 and revenues and the net amount of “goods and services tax (GST)”. The cost excluding the expenditure is considered to be directly attributable along with the acquisition cost of the assets. It has been further depicted that the cost incurred for self-construction of assets includes cost of material, initial estimate and direct labour wherever it is seen to be relevant. In addition to this, the comparability of the financial information has been used with several types of graphic representation. For example, the result is based on operating with the has been clearly classified “EBITDA, NPAT, EPS, operating cash flow and dividends per share”.

References

Andrew, J. and Cortese, C. (2013) ‘Free market environmentalism and the neoliberal project: The case of the Climate Disclosure Standards Board’, Critical Perspectives on Accounting, 24(6), pp. 397–409. doi: 10.1016/j.cpa.2013.05.010.

Financial Accounting Standards Board (FASB) (2013) ‘Recognition and Measurement of Financial Assets and Financial Liabilities, Exposure Draft: Proposed Accounting Standards Update’, Financial Accounting Standards Board, Norwalk. doi: 10.1002/jcaf.

Gipper, B., Lombardi, B. J. and Skinner, D. J. (2013) ‘The politics of accounting standard-setting: A review of empirical research’, Australian Journal of Management, 38(3), pp. 523–551. doi: 10.1177/0312896213510713.

Jamal, K. and Sunder, S. (2014) ‘Monopoly versus Competition in Setting Accounting Standards’, Abacus, 50(4), pp. 369–385. doi: 10.1111/abac.12034.

Krismiaji, Aryani, Y. A. and Suhardjanto, D. (2016) ‘International Financial Reporting Standards, board governance, and accounting quality’, Asian Review of Accounting, 24(4), pp. 474–497. doi: 10.1108/ARA-06-2014-0064.

Moehrle, S. R., Franzen, L., Meckfessel, M. and Reynolds-Moehrle, J. (2016) ‘Developments in accounting regulation: A synthesis and annotated bibliography of evidence and commentary in the 2015 academic literature’, Research in Accounting Regulation, 28(2), pp. 96–108. doi: 10.1016/j.racreg.2016.09.007.

Mohammed, N. F., Fahmi, F. M. and Ahmad, A. E. (2015) ‘The Influence of AAOIFI Accounting Standards in Reporting Islamic Financial Institutions in Malaysia’, Procedia Economics and Finance, 31, pp. 418–424. doi: 10.1016/S2212-5671(15)01216-2.

Potter, B., Ravlic, T. and Wright, S. (2013) ‘Developing Accounting Regulations that Reflect Public Viewpoints: The Australian Solution to Differential Reporting’, Australian Accounting Review, 23(1), pp. 18–28. doi: 10.1111/auar.12000.