Assignment 1 Financial accountability and reporting journal report The article I choose is titled ‘ASIC get tough on financial reports’. It is about ASIC find some problems after reviewing the annual financial. There are three main problems appear in this article. First is value asset, due to the financial globe crisis impact Australia market, company have a low level of asset impairment, some company disclose the minor information which could mislead the investor’ decision making. The AASB introduces the AASB 8 which required segmental results to be regularly reviewed by the relevant division’s “chief operating decision maker. The second problem is the indistinct information will make the chosen of accounting policy, financial instruments such as derivatives contracts will have to be examined, ASIC says company have to provide more information to users, rather than boilerplate disclosures. The third problem is some resources are uncertainty to be estimated ; it is about many companies write down the intangible asset. In order to solve these problems. ASIC decides to focus on segmenting and reporting in which profits are identified by geographic region or by type. It can help investor understand the financial position and performance for the company and avoid these problems happened.
In this article, we can see ASIC play a regulatory role in the accounting profession. ASIC is Australian Securities and Investment Commission, it is monitoring and regulating various investment products for company. ASIC is Australia’s corporate, market and financial service regulator. The function for ASIC is requiring directors whether large company or small company has to provide true and fair financial statement for a given financial year. Secondly is maintenance, facilitating and improving the performance of the financial system and entities in it. Thirdly is