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ACC3005 The Accounting Research Project

Assessment 4 Instructions: (Word limit: 4000)

Final Report

The assessment 4 is the final phase of the research project identified in assessment 2. This project is an appraisal and evaluation of a contemporary accounting issue. In assessment 2 (A2), you have identified the research topic and have provided research objective and research framework. Assessment 3 (A3), you have designed the research methodology, evaluated the relevant theories, and provided literature review. The assessment 4 deals with empirical research on 10 ASX listed companies using the issues selected.
Content and Structure:
In this assessment A4, you need to,
a) Analyse annual reports of 10 ASX listed companies on the information related to the topic.
b) Provide discussion on main findings using your analysis.
c) Provide conclusion using your research question, objective and hypothesis.

Solution:

Social Accounting Issues in Business

Introduction

Accounting is the significant process undertaken by the business management to record the business transaction  (Abdusalomova, 2019). Along with that, the accounting process in the association refers to the activities that help to operate the day to day financial operations (Septiandani, et al., 2017). The accounting practices is required to produce the annual report which includes the income statement, balance sheet and cash flow statement. This assessment 4 is based on assessment 2 which defines the social accounting issues which are faced by the companies to direct the business operation. The purpose of the assignment is to analyze the social accounting issues by evaluating the annual report of ten ASX listed companies. 

Analysis of the annual report of 10 ASX companies

The annual reports of the 10 ASX are analyzed for evaluating the accounting practices in terms of the social accounting issues. The social accounting issues are the legitimacy of the social accounting, disclosure of the information and the CSR motive (Dierkes & Siepelmeyer, 2019). The analysis of the annual reports of the ASX listed company is described as follows:

Imugene Limited

The ASX listed company is the leading biotechnology firm in Australia and it is successful in creating a progressive and trustworthy brand image with its innovative accounting practices. On the evaluation of the annual report of the Australian biotechnology company for the year 2019, it is found that it is tactfully detailed what initiatives it has taken and it is going to take to make the global community free from the adverse effect of immunotherapy (imugene, 2022). Apart from it, with the help of the financial report of 2019, the management of the ASX listed company is successful in depicting the working capital which it has invested to increase the efficiency of its cancer-treating methodology without caring about its profit margin.

With the support of the clear information disclosure-related accounting practice, the business head of the ASX listed firm has empowered in communicating its progressive and consumer-centric operational strategy and this has eventually helped it to build a competitive brand image. On the other hand, on the interpretation of the financial position related report of the Australian biotechnology company, it is found that it has not detailed how its therapeutic cancer vaccine is going to be available for the poor and needy people at an affordable cost. It means that the accounting head of the ASX listed company has found marginally inefficient in communicating its community-centric approach towards the availability of cancer vaccines and this might impact its future growth effectively.

Telix Pharmaceuticals Limited

The ASX Listed company is a famous therapeutic and diagnostic product manufacturing company of Australia and it has empowered in incorporating a competitive kind of brand image with its customer-centric accounting practices. On the interpretation of the annual report, 2019, of the ASX Listed company, it is noticed that its management is successful in detailing how it is going to utilize the technique of MTR (Molecularly Targeted Radiation) for supporting societies in fighting critical diseases (telixpharma, 2022). In the annual report of 2019, the accounting team of the Australian biopharma company has detailed which kind of financial principles and standards it has followed to compute and communicate its monetary transactions.

Apart from it, the administration of the ASX listed firm has detailed its plan about the minimization of the adverse effect of its diagnostic machine or product so that any kind of disadvantages might not be faced by users, societies, and the surrounding environment directly or indirectly. On the other hand, the significant kind of social accounting related issues which have been identified within the annual report of the ASX listed company is that it has not detailed how it is going to minimize its dependency on natural resources for developing its products and this might impact its plan for sustainable growth.

CSL limited

CSL is limited is an Australian multination biotechnological company that is listed on the Australian Stock exchange list. The company has attained $8.539 million in 2019 by researching developing and manufacturing medical products to tear and prevent the several medical conditions of human beings (CSL, 2022). It is observed in this ASX listed company’s annual report, that there is no detailed information regarding the CSR policies or the motives to improve the business process but it provides detailed information regarding sustainability and its values.

Macquarie group limited

Macquarie group limited is a global financial service group which have been headquartered in Australian. This ASX listed company directs its business operation in 33 markets in the retail and business banking, leasing and asset financing, renewable development, assets management etc. By analyzing the annual report of Macquarie group limited, it is noticed that the management include the ESG governance and the principles of opportunities, accountability and integrity.

Apart from that, on the interpretation of the annual report, 2021, of the ASX Listed Company, it is observed that the management considers four accounting practices that are associated with social and environmental risk management, Climate change, social and environmental financing and sustainability in the direct financing (Macquarie Group, 2022).

Fortescue metal group

Fortescue metal group is the ASX listed mining company which is the fourth largest iron ore producer in the world (FMGL, Fortescue Metals Group Ltd). On the interpretation of the annual report, 2019, of the ASX Listed Company, it is observed that the corporation releases the corporate social responsibilities. The CSR of the Fortescue metal group provides detailed information regarding the corporation’s progress against the three core governance that is safeguarding the society and the environment, creating position communal change and creating high standards (Fortescue Metals Group Ltd, 2022). It reflects that in order to produce the iron ore, the company maintain its social responsibilities and reduce carbon emissions and pollution.      

Woodside petroleum limited

Woodside petroleum limited is one of the popular Australian petroleum production and exploration company that have been headquartered in Perth, Australia. Woodside is the operator of gas and oil production in Australia and this company is also considered as an independent association that is dedicated to oil and gas production. In order to produce petroleum, the management of the company considers the rapid change world, climate change, social responsibilities, the consequences of the excessive carbon emission and Greenhouse gases. Apart from that by evaluating the annual report of Woodside in 2021, it is observed that the company has decreased 10% in the equity scope 1 and 2 harmful gases, compared to the 2016-2020 gross yearly average (Woodside , 2022). The company also invested $20.3 million in the society globally in 2021 to maintain the global corporate social responsibilities and reduce environmental impact.   

Rea group limited

Rea group limited and its subsidiary association is also known as Rea group, is listed in the Australian stock exchange list. This ASX listed company make up the online real estate advertising company which have headquartered in Richmond Australia. The main operations of the company are associated with establishing advertisement for real estate (Rea Group Limited, 2022). By evaluating the annual report it is observed that the company has developed the values of respecting public thoughts and the culture. That helps to maintain the social responsibilities and the disclosure of the information in the financial statement by using the AASB and IFRS standard helps to communicate with the potential stakeholders. 

Reece Limited

Reece limited is one of the popular Australian public companies which is enlisted in the ASX list. The company is considered the largest supplier of bathroom supplies and plumbing. By evaluating the annual report of Reece limited it is observed that the company improve the way of supporting the community and creates the five core pillars to reduce the social accountancy issues that are the Reece grant, Reece gives, Reece reconciliation, Reece wellness and the Reece partners (Reece Group, 2022). The company has established the Reece foundation to enable employees and consumers to have an impact by developing the communities through a better standard of living.    

CIMIC Group

CIMIC Group is an Australian multinational contractors company, which is listed in the ASX list. The company has attained $1090 by including the activities of telecommunication, infrastructure, engineering, building and property, mining and resources (Cimic Group, 2022). From the annual report, it is observed that the management and the accounting department use the appropriate accounting standard like IFRS to prepare the financial report and that helps to reduce the issues of lack of information. The annual report discloses all the information associated with the social and communal responsibilities. That allows the management to communicate with the potential investors and stakeholders regarding the upcoming initiatives.  

IGO limited

IGO limited is the ASX listed company that is focused on making a better world for the future generation by developing discovering, delivering products to clean energy. From the annual report of IGO limited, it is observed that the company is mining metal to establish a clean energy future and a developing standard of living (IGO, 2022). Apart from that, it is observed by evaluating the annual report that the management cares about the social and environmental responsibilities by developing the social policies.

Finding and Analysis

Thematic data analysis is demarcated as the significant data analysis policy which allows the researcher to recognize information and evaluate by using the extract, code and theme.

ExtractCode
The social responsibilities of the business are associated with the internal as well as external stakeholders like the public, employees, investors, board of directors etc.The internal and the external stakeholders consider the environmental policy and social responsibilities
The management of businesses considers four accounting practices that are associated with social and environmental risk management,  Climate change, social and environmental financing and sustainability in the direct financingThe ASX companies direct the business operating by analyzing Climate change, social and environmental financing and sustainability in the direct financing
The annual reports of ASX companies disclose all the information associated with the social and communal responsibilitiesThe annual reports of ASX companies disclose all the information
CodeTheme
The internal and the external stakeholders consider the environmental policy and social responsibilitiesCommunication with the internal and external stakeholders is importunate for maintaining social responsibilities
The ASX companies direct the business operating by analyzing Climate change, social and environmental financing and sustainability in the direct financingThe ASX companies consider the social factors  
The annual reports of ASX companies disclose all the informationThe annual reports of ASX companies disclose relevant information

Theme 1: Communication with the internal and external stakeholders is importunate for maintaining social responsibilities

From the secondary data evaluation and the analysis of the annual report, it is observed that communication with the external as well as the internal stakeholders like employees, the public, investors and the shareholders is important. The companies in the ASX list are disclosed relevant information like the turnover, recent trades, current assets, investment amount on the social initiatives or any type of the nova projects. That helps the management to take effective decisions to overcome social accounting issues. For example, Rea group limited company has established the values regarding public thoughts and ethics. That helps to continue the social responsibilities and the discovery of the information in the pecuniary statement by using the AASB and IFRS standard supports to communicate with the stakeholders

Theme 2: The ASX companies consider the social factors

From the secondary data evaluation, it has found that the social accounting issues are considered as the problems which affect the whole business structure and the operation. The social accounting issues associated with the charitable contribution in terms of the volunteer time and the equipment, financial support for the educational initiatives like test funding or the sponsorships. It is observed that The ASX listed companies consider four accounting applies that are connected with social and conservational risk management, climate transformation, social and environmental financing and sustainability in the direct financing etc. For example, Woodside decreased 10% in scope 1 and 2 in the Greenhouse gas emission and invested $20.3 million to maintain the social responsibilities (Woodside , 2022).

Theme 3: The annual reports of ASX companies disclose relevant information

It is observed from the secondary data evaluation that CSR or corporate social responsibility is described as the significant business model which allows the business management to become socially sustainable (Dierkes & Siepelmeyer, 2019). The social responsibilities of the business are associated with the internal as well as external stakeholders like the public, employees, investors, board of directors etc. The corporate social responsibilities are engaged with the social accounting which is widely used to create documentation of the documentation of any factor’s achievement and record all the business transactions as well. The financial statement of ASX listed company provides all the relevant information regarding the CSR and environment policy to take effective decisions for the future.

Conclusion

It is concluded that the accounting practices are associated with CSR and the social accounting principles as the business management also includes social activities. The ASX listed companies are sole concentrates on using the IFRS accounting standard and creating a detailed financial report which includes sustainable approaches, policies etc.   

References

Cimic Group, 2022. Financial Summary | CIMIC Group Investors. [Online]
Available at: https://www.cimic.com.au/en/investors/financial-summary
[Accessed 24 February 2022].

CSL, 2022. Annual Reports – Investors. [Online]
Available at: https://investors.csl.com/site/investors/annual-reports
[Accessed 24 February 2022].

Dierkes, S. & Siepelmeyer, D., 2019. Production and cost theory-based material flow cost accounting. Journal of Cleaner Production, 23(5), pp. 483-495; DOI : 10.1016/j.jclepro.2019.06.212.

FMGL, Fortescue Metals Group Ltd. Announcements and Reports | Fortescue Metals Group Ltd. [Online]
Available at: https://www.fmgl.com.au/investors/asx-announcements
[Accessed 24 February 2022].

Fortescue Metals Group Ltd, 2022. Fortescue releases FY19 Corporate Social Responsibility report. [Online]
Available at: https://www.fmgl.com.au/in-the-news/media-releases/2019/08/25/fortescue-releases-fy19-corporate-social-responsibility-report#:~:text=Fortescue%20Metals%20Group%20(Fortescue)%20is,and%20creating%20positive%20social%20change.
[Accessed 24 February 2022].

IGO, 2022. Annual Reports – Investor Centre – IGO Limited. [Online]
Available at: https://www.igo.com.au/site/investor-center/annual-reports
[Accessed 24 February 2022].

imugene, 2022. Annual Reports. [Online]
Available at: https://www.imugene.com/annual-reports

Macquarie Group, 2022. Macquarie Group Annual Report. [Online]
Available at: https://www.macquarie.com/assets/macq/investor/reports/2021/macquarie-group-fy21-annual-report.pdf
[Accessed 24 February 2022].

Rea Group Limited, 2022. Annual Report – REA Group. [Online]
Available at: https://cdn.rea-group.com/wp-content/uploads/2016/10/15163642/AnnualReporttoshareholders.pdf
[Accessed 24 February 2022].

Reece Group, 2022. Annual Report 2021 – AFR. [Online]
Available at: https://company-announcements.afr.com/asx/reh/026b4ffb-04a3-11ec-8963-06ef51a09471.pdf
[Accessed 24 february 2022].

Septiandani, D. et al., 2017. Managers Perceptions towards the Success of E-performance Reporting System. Telkomnika, 13(4), pp. 22-29; doi : 10.1108/02686900810839866.

telixpharma, 2022. Annual Report. [Online]
Available at: https://telixpharma.com/news-media/telix-releases-full-year-2020-results-and-2020-annual-report/

Woodside , 2022. Reports & investor briefings – Woodside Energy. [Online]
Available at: https://www.woodside.com.au/investors/reports-investor-briefings
[Accessed 24 February 2022].

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