Advanced Financial Accounting

Introduction to Financial Reporting of Sydney Report

Financial reporting refers to the report that is built by the companies to provide financial information, performance, and position to the stakeholder of the organization. In this report, every possible aspect of the general purpose financial reporting is documented. The objectives of the general purpose financial reporting includes providing the appropriate information of financial status to the investors, government, debt providers, government agencies, and creditors. The financial reporting is oriented with a scope of providing qualitative factors of financial information, providing the elements like measurement and recognition to construct the financial statements. The companies prepare their financial reports annually as well as quarterly. The financial reporting can be affected by the various circumstances that include economic, social, and legal.

This report is also constructed on the elements of financial statements that include assets, financial position, liabilities, income, equity, performance and expenses of the organization. The study has demonstrated the financial report of the company of Sydney Airport. The general purpose financial report of the Sydney Airport is documented with the annual report of the company. The objectives that are included in the existing framework of the Sydney Airport are also studied. Further in the report, the factors are also analyzed if the company’s report is a general-purpose financial report or not.

General Purpose of Financial Reporting

Definition -

The financial information that is provided to the stakeholders of the company is known as the financial reporting. Financial reporting refers to the report that is built by the companies to provide financial information, performance, and position to the stakeholder of the organization (Roychowdhury et al., 2019). The financial report of the organization is very crucial as it documents the health of the company. The report is not oriented with providing the insights of the organization culture and the management structure but it is only oriented with providing the overall success of the organization (Ali, 2020). The objectives of the general purpose financial reporting includes providing the appropriate information of financial status to the investors, government, debt providers, government agencies, and creditors. The financial reports of the organization are prepared quarterly as well as annually depending upon the organization. It has various benefits for the organization that includes management in the liability, provides the insights of the time tracking for the accurate decisions to be taken, it helps in improving the management of debt of the organization, it sets standards for the progress in the company and it also enables in tracking the financial activities (Roychowdhury et al., 2020). All these benefits are provided by the general purpose financial reporting to the organization.

Description of General Purpose Financial Reporting

There are several types of general purpose financial reporting that enables to provide the financial performance and position of the organization to the stakeholders and creditors. It enable stakeholders or creditors to make the proper decisions of lending. The description of financial reporting includes -

Cash Flow Statement -

The cash flow statement refers to the statement that helps with the report of the period of time that how much cash being flowed out and flowed into the business (Ghio & Verona, 2020). The cash flow statement helps in making the records of the liquidity to make sure the presence of cash in the business.

Income statement -

The income statement refers to the statement that enables us to show the report at the specific time of period, how much profit or loss that an organization has made. This statement provides the actual profit that is made by showing the revenues that are earned and the expenses that have been paid by the organization (Gavana et al., 2020).

Balance Sheet

Balance sheet refers to the sheet that provides the availability of assets and the liabilities of the organization during a period of time. This shows that how much an organization have the expenses and the revenues (Drake et al., 2019). It also helps in making the decisions strategically in the long run.

Discussion of General Purpose Financial Reporting

The financial reportings have various factors to provide the financial information. The importance of financial reporting can provide the best information to the stakeholders for making the decisions. The importance of general-purpose financial reporting can be demonstrated like -

Financial Analysis -

This is the major part of the investors to look for in the organization before investing. The financial analysis also helps to the creditors and the banks to consider the loans and money lending to an organization (Suryanto & Komalasari, 2019).

Taxes -

Taxes are the legal sources and they are a very important part of the financial report. An organization has to pay taxes in order to get the legal reports and that ensures that the organization is fair.

Raise in Capital -

The general purpose of financial reporting is important to raise the funds. As it provides the crucial information and that enables it to help with the raising capital (Choudhary et al., 2019).

The general purpose financial reporting has various benefits for the organization that includes management in the liability, provides the insights of the time tracking for the accurate decisions to be taken, it helps in improving the management of debt of the organization, it sets standards for the progress in the company and it also enables in tracking the financial activities.

Critical Discussion on General-Purpose Financial Reporting

The general purpose financial reporting provides the objective of the conceptual framework. There are several objectives, limitations and usefulness in the general purpose financial reporting that includes -

  1. The major objective of the financial report is to help and provide the financial information and the financial position to the investors, government, debt providers, government agencies, and creditors (Nijam & Jahfer, 2016).
  2. It also helps in making the decisions to the investors and creditors and that includes selling and buying the shares.
  3. The decision involved in holding, buying, and selling the equity instruments depends on the interest of potential and existing investors of the organization.
  4. The effective and efficient decisions of potential investors also depend on the management as there can be organizational changes depending on the economic factor and the unfavorable changes in technologies (Nijam & Jahfer, 2016).
  5. There are several investors who do not want to check and see the reports other than the general purpose financial reporting. Hence, those investors are treated as the primary users of the general financial reporting.
  6. However, one of the drawbacks of the general financial reporting is that it cannot provide all the information that is needed to the potential investors and they need to check to the other reports such as political climate and political events and many more.

Identification of General Purpose of Financial Reporting

The financial report of the organization is very crucial as it documents the health of the company. The report is not oriented with providing the insights of the organization culture and the management structure but it is only oriented with providing the overall success of the organization (Ismail et al., 2017). The objectives of the general purpose financial reporting include providing the appropriate information of financial status to the investors, government, debt providers, government agencies, and creditors (Aluchna & Roszkowska-Menkes, 2019). The financial reporting can be identified in several ways including the income statement that provides the actual profit that is made by showing the revenues that are earned and the expenses that have been paid by the organization, cash flow statement that helps in making the records of the liquidity to make sure the presence of cash in the business and at last the balance sheet that refers to the sheet that provides the availability of assets and the liabilities of the organization during a period of time (Ismail et al., 2019). This shows that how much an organization have the expenses and the revenues. It also helps in making the decisions strategically in the long run. The financial reporting also helps in making the decisions to the investors and creditors and that includes selling and buying the shares.

Objectives of The General Purpose Financial Reporting Within the Existing Conceptual Framework Project

In the Sydney Airport, the annual financial statement refers to the financial information that is provided by the company to its stakeholders, creditors, and public (Sydney Airport, 2019). In the annual financial statement of Sydney Airport, the objectives of the general-purpose financial reporting includes providing the appropriate information of financial status to the investors, government, debt providers, government agencies, and creditors are mentioned. The financial reports of the Sydney Airport are prepared annually and it is of the year 2019.

The company has mentioned the various factors related to the general purpose financial report that includes -

  1. Expansion of the passengers that is 44.4 million in 2019 within the challenging market.
  2. The capital investment for 2019 was $300.8 million and they are also delivering great customer services and have expanded their business by providing the hotels to stay (Sydney Airport, 2019).
  3. The costs of the expenses were also controlled within the year.
  4. The total earning of the Sydney Airport was $1336.3 million before excluding the amortization and tax depreciation (Sydney Airport, 2019).
  5. The overall satisfaction of the customer services were also increased in the one year (Sydney Airport, 2019).

In the annual financial report of Sydney Airport, the appeared objectives are to provide the necessary information to the stakeholders for the better decisions and the investment as the major objective of the financial report is to help and provide the financial information and the financial position to the investors, government, debt providers, government agencies, and creditors (Sydney Airport, 2019). It also helps in making the decisions to the investors and creditors and that includes selling and buying the shares.

Whether the company’s report is a general-purpose financial report or not and the objective of the general-purpose financial report achieved or not.

The financial reporting of Sydney Airport is oriented with a scope of providing qualitative factors of financial information, providing the elements like measurement and recognition to construct the financial statements (Busco et al., 2020). There are many factors that are included in the general purpose financial report including the income statement that provides the actual profit that is made by showing the revenues that are earned and the expenses that have been paid by the organization, cash flow statement that helps in making the records of the liquidity to make sure the presence of cash in the business and at last the balance sheet that refers to the sheet that provides the availability of assets and the liabilities of the organization during a period of time. This shows that how much an organization have the expenses and the revenues (Ghio & Verona, 2020). It also helps in making the decisions strategically in the long run. The financial reporting also helps in making the decisions to the investors and creditors and that includes selling and buying the shares.

Hence, the objective of the general purpose financial report is achieved by Sydney Airport because it has all the information that is required for the investors and the stakeholders to make the decisions (Chychyla et l., 2019). Therefore, the report of the Sydney Airport is the general purpose financial report as it has a balance sheet with full information, and the total growth in the organization is also demonstrated that will enable the public, investors, and stakeholders to make the strategi decision of selling and buying the equity.

Conclusion on Financial Reporting of Sydney Report

This report demonstrated the definition of the general purpose financial report that is built by the companies to provide financial information, performance, and position to the stakeholder of the organization. The objectives of financial reporting have been documented in the study. The general purpose financial reporting provides the objective of the conceptual framework. There are several objectives, limitations, and usefulness in the general purpose financial reporting that are demonstrated in the report. The importance of general-purpose financial reporting is the taxes, financial analysis, and the rise in the capital of the organization. There is one of the drawbacks of the general financial reporting is that it cannot provide all the information that is needed to the potential investors and they need to check to the other reports such as political climate and political events and many more. The annual financial performance of the Sydney Airport were also demonstrated in the report. The Sydney Airport’s annual financial report was the general purpose financial report as it has all the needed information and a balance sheet that investors and stakeholders need to make better decisions. The objective of the general purpose financial report was also achieved by the Sydney Airport. 

References for Financial Reporting of Sydney Report

Ali, A. F. (2020). A Study of Formulating Financial Reporting Model for Intangible Assets. International Journal of Multicultural and Multireligious Understanding7(1), 90-105.

Aluchna, M., & Roszkowska-Menkes, M. (2019). Non-financial Reporting. Conceptual Framework, Regulation and Practice. In Corporate Social Responsibility in Poland (pp. 213-236). Springer, Cham.

Busco, C., Consolandi, C., Eccles, R. G., & Sofra, E. (2020). A Preliminary Analysis of SASB Reporting: Disclosure Topics, Financial Relevance, and the Financial Intensity of ESG Materiality. Financial Relevance, and the Financial Intensity of ESG Materiality (March 4, 2020).

Choudhary, P., Merkley, K., & Schipper, K. (2019). Auditors’ quantitative materiality judgments: Properties and implications for financial reporting reliability. Journal of Accounting Research57(5), 1303-1351.

Chychyla, R., Leone, A. J., & Minutti-Meza, M. (2019). Complexity of financial reporting standards and accounting expertise. Journal of Accounting and Economics67(1), 226-253.

Drake, M. S., Hales, J., & Rees, L. (2019). Disclosure Overload? A Professional User Perspective on the Usefulness of General Purpose Financial Statements. Contemporary Accounting Research36(4), 1935-1965.

Gavana, G., Gottardo, P., & Moisello, A. M. (2020). Did the switch to IFRS 11 for joint ventures affect the value relevance of corporate consolidated financial statements? Evidence from France and Italy. Journal of International Accounting, Auditing and Taxation, 100300.

Ghio, A., & Verona, R. (2020). An Analysis of Financial Reporting. In The Evolution of Corporate Disclosure (pp. 17-54). Springer, Cham.

Ismail, K., Izah, K. N., & Ahmad, H. (2017). The doption of cash-basis IPSAS: A conceptual framework for enhancing decision-useful financial reporting. Journal of Business Management and Accounting (JBMA)7(1), 51-68.

Nijam, H. M., & Jahfer, A. (2016). International financial reporting standards: a review of status of adoption and approaches for evaluation. International Letters of Social and Humanistic Sciences69, 69-78.

Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019). The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting and Economics68(2-3), 101246.

Suryanto, T., & Komalasari, A. (2019). Effect of mandatory adoption of international financial reporting standard (IFRS) on supply chain management: A case of Indonesian dairy industry. Uncertain Supply Chain Management7(2), 169-178.

Sydney Airport. (2019).Annual Report 2019. Retrieved from https://www.sydneyairport.com.au/investor/investors-centre/reports/annual-reports

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

"

5 Stars to their Experts for my Assignment Assistance.

There experts have good understanding and knowledge of university guidelines. So, its better if you take their Assistance rather than doing the assignments on your own.

What you will benefit from their service -

I saved my Time (which I utilized for my exam studies) & Money, and my grades were HD (better than my last assignments done by me)

What you will lose using this service -

Absolutely nothing.

Unfortunately, i had only 36 hours to complete my assignment when I realized that it's better to focus on exams and pass this to some experts, and then I came across this website.

Kudos Guys!

Jacob

"

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?