Topic: Making sense of company executives' compensation and employee benefits through the lens of cultural effects. How the conceptual framework revision to include Prudence is likely to address the disparity in Corporate Reporting. Task Details: Download the latest annual report of any two listed companies. Annual Reports are available on the company website or ASX website. Analyse annual reports of your chosen companies in light of the reporting requirements imposed on accountants and those charged with governance of corporations. Your analysis should include the following:  Are the annual reports in compliance with the conceptual framework and AASB standard requirements?  You need to use extracts from the annual reports to support your analysis.  Provide screen shots of the relevant sections from the reports in your assignment.  If they are not in compliance, explain the reason.  How the conceptual framework revision to include Prudence is likely to address the disparity in Corporate Reporting  You may find the explanations in the notes to the financial statements or in the Director's Report.  Compare and contrast the two annual reports, identify the differences in disclosures of these corporations.  Reference to material of Advanced Accounting and a critical analysis of the annual reports is required. Students are to critically analyse and develop supported recommendations and conclusions, in reference to the relevant accounting framework (see Topics 1-5). The analysis and supported recommendations need to be formatted into a professional report as would be expected in a modern organisation by management and clients. Research Students need to support their analysis and recommendations with the text and Requirements: minimum of 10 recent and relevant academic journal articles. Other sources may also be used but students need to be confident of the academic validity of such sources. Presentation: Report – 2000 +10% word report The word count excludes the cover sheet, contents page, references, appendices, and illustrations (e.g. diagrams, graphs and tables).  Every page should be clearly numbered.  The assignment should include the following parts: (a) A title / cover page, which indicates basic information such as Subject title, Subject code, Trimester number, Assignment title, group members' full names and KOI student numbers, word count and name of the tutor; (b) Executive Summary; (c) Table of Contents; (d) Main contents – Introduction, analysis using suitable headings and subheadings, Conclusions and Recommendations, Appendices (if any); (e) References (using Harvard – Anglia style); and/or (f) Attachments. Marking Guide: Analysis 30% Research – extent and application 30% Recommendations/conclusions 20% Presentation 20% SUGGESTIONS REGARDING ASSIGNMENT 1 USE YOUR INDEX WISELY...... Go to Balance Sheet, Income Statements, NOTE 1 (methods adopted by company) and other notes from the financial reports, Remuneration Report, Auditors Report REMUNERATION REPORT – SCREEN SHOT OR TAKE ELEMENTS FROM ACTUAL REPORT IN RELATION TO EXECUTIVE REMUNERATION. LINKED TO PROFIT? SHARE PRICE? OR OTHER - consider how this drives culture with organisations including a desire to obtain profit to receive bonus payments. ISSUES WITH REMUNERATION can be SELF INTEREST – SHORT TERM DECISION MAKING, TELEOPATHY (unhealthy pursuit of goals), manipulation of accounts, not adhering to the conceptual framework, aasb issues like in leases In your discussion using examples from annual reports (of many companies) will assist however focus should be on your company(ies) GPFR – general purpose financial reports – for users to make financial decisions perhaps to affect profit rather than in accordance with AASB or conceptual framework INVENTORY – OVERSTATE- aasbVALUED AT COST OR LOWER OF COST OR MARKET. ACCOUNTS RECEIVABLE – OVERSTATE – ESTIMATION OF PROVISION FOR BAD AND DOUBTFUL DEBTS – UNDERSTATE YOUR PROVISION PPE – OVERVALUE – EXCESS VALUATION (PRUDENCE) – DEPRECIATION – CHOOSE METHODS perhaps to affect profit rather than in accordance with AASB or conceptual framework LIABILITIES – LEASES – INTANGIBLE ASSETS – NOTES – LOOK FOR EVIDENCE OF ANY LEASING Contingent legal liabilities – where companies have had to pay out legal obligations due to issues LEASES HAVE BEEN LEFT OFF BALANCE SHEETS – LIMIT RATIO – ATTRACT INVESTORS Overstated Revenues, sales returns Understated expenses TAXATION TRANSFER PRICING – FACEBOOK -TAXATION Eg.TRANSFER PRICING – FACEBOOK -3-5 BN additional tax payments DISCUSS PRUDENCE – WHAT IS PROPOSED FOR UPDATING THE CONCEPTUAL FRAMEWORK HOW YOU THINK THIS WILL AFFECT THE REPORTING? BENEFITS AND CRITICISMS (cpaeg) The inclusion of prudence, then removal and now addition again by accounting. Or are the issue much more complex than that? Do accountants adhere to the CF? Perhaps addressing remuneration and other issues would achieve better outcomes? Etcetc etc