Question

Select an Australian company listed on ASX and analyse the company's disclosure quality with regards to the disclosure requirments

Please analyse the disclosure quality from the following two aspects based on the annual report of the company selected:

1) Identify the particular information (i.e. the amount or any other specific information) provided by the company in their reports that satisfy the various disclosure requirements contained in the Corporation Act 2001 and the AASB accounting standards;

2) Analyse how the disclosed information (from requirement #1) affect the decision-making of the users of accounting information.

Answer 1

KEY PETROLEUM LIMITED is One of the Company Listed on ASX.

In Its Latest Annual Report, The Company has adequately reported that it has been suffering from losses of $780637 which include loss on disposal of subsidiaries of $62729.

It has disclosed Remuneration Report and Consolidated Financials mandated by the Corporation Act,2001 and disclosed that it had prepared it as per the AASB Accounting Standards.

Now the users will be aware as shown in their audit report also as their exists material uncertainity to their going concern and as it is showing negative profits , the users must not invest in as their Cash Flow mostly consists of Receipt of Issued Shares.