Abstract For Corporate Accounting:
Corporate accounting is providing the companies effectiveness in performances. Companies registered in security exchange are required to effectively cope with the requirement and guidelines of security exchange. It is very much essential to present and reflect the material facts in financial statement with the appropriate accounting standard. The shareholders of companies are having rights and control to attend the general meetings and exercise the vote over there. The current study has presented the scenario of functioning of corporate accounting among Polaris Ltd and Beat Ltd.
Introduction
According to Khairurizka (2009) corporate financing provides the management and stakeholder’s opportunity to analyze the process of operation. The international accounting standard has established a number of principles and conventions that the companies needs to comply in financial statement. Companies organize general meetings, annual meeting to make all the stakeholders communicate and interact together. The decision of business expansion and further operation are also taken in these meetings. The main books of account of companies are consolidated balance sheet, income statement, cash flow statement and notes of account. The assumptions, concepts and conventions adopted in process of formation of financial statement have been disclosed in this statement. The current assignment will provide the control and right decisions to Polar Ltd in the general meeting of Beta Ltd.
Part A
CFS (Consolidated financial statement)
Barberis (2008) opined that the companies highlight the performance, profitability and business operation with the consolidated financial statement. The CFS of companies includes summary of assets, equity, income, revenues, liabilities etc of the firm. The International accounting standard has framed the conventional rules and regulation for the companies in preparation of financial statements. The stakeholders and business firms before making decisions of investment analyze the financial statement in order to gain the idea of functioning of companies. There have been a number of benefits and restrictions on the CFS (AccountingCoach.com, 2014).
Benefits
There are a few demerits of financial statements. These have been given below.
With the study and analysis of CFS, companies declare the global customers and stakeholders idea of functioning of the business operations. The CFS provides wide summary of operation and performance of the business functioning (Lazrak et al. 2008). The figures of accounting and financial ratio of companies are measured, analyzed and compared with the CFS. The detail of capital structure and leverages are also provided with the CFS study.
Demerits
Wachter (2009) opined that financial statement highlights the materials aspects that are important related to Corporate Accounting. The minor figures of business are not highlighted in broader way in the CFS. In the CFS of subsidy and Parent companies, the CFS hides many small loopholes in productivity, which can cost wider to the stakeholders. Further, the companies in additional form help in mitigating the poor performances of organizations. Detail statement provides broader presentation of problems where as CFS only focus on the major elements (Iasplus.com, 2014).
In the case scenario of Polar Ltd and Beta ltd, Polar ltd is having the larger number of share holding in Polar ltd. The company is thus authorized to take participation in the general meeting of Beta ltd. Polar ltd is a public based Australian company which mainly focus on Corporate Accounting Department. The shares are also been offered to large number of public over Australia security exchange. The company here needs to build and present the financial statement according to the International accounting standards. The company is further advised to bring the CFS in the general meeting as this will provide the stakeholders with the detail evaluation of functioning and performances of Polar ltd.
The purposes of general meetings are to communicate with the mass stakeholders in process of decision making. The proposal of establishment of projects has been provided and its projected performances are also shown with the presentation of capital budgeting techniques. The capital budgetary techniques help in estimating the future cash inflow of companies with the future projects related to Corporate Accounting. Polar Ltd with the CFS will provide the stakeholders the summary of performances of the past projects. This will assist them in relying on the cash flow with the future projects (Merton, 2009).
Beta Ltd as it is one of the shareholding company of Polar Ltd. The stakeholder’s votes are taken in the meeting to execute the process of investment. In the project financing of companies, huge capital investment are required. The companies with collaboration with its stakeholders gain the necessary funding (Stracca, 2006).
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Part B
Control
Epstein (2009) opined that Level of control states that the process towards strategic control and regulation on the performance and operation. The organization has incorporated its work process with the view of expanding the profitability and productivity in Corporate Accounting. With the increasing globalization and inflation, companies are facing various challenges in its work operation. With the control strategic management the stakeholders will aim in providing the investment process effectiveness in performances (Merton, 2009).
The term financial planning aims in formulating strategic role in financial management and planning cycle of the organization with looking into the objectives of financial management. The activities of financial planning includes assessment of business environment and calculating the summarize cost statement of the business. The financial information like profit, cash flows, investment etc provides huge scope in assisting the decision making process of the organization. The financial decisions are taken with the functioning and expansion of the business entity. The financial statement plays a vital role in showing the profitability, liquidity and efficiency of the business organization.
Financial planning in Corporate Accounting helps in increasing the performance and efficiency of the organization. The financial planning in business establishments are done with considering some major ratio and tools like IRR, ARR, NPV and payback period. Further, the liquidity and profitability ratio are also equivalent in taking financial decisions (Iasplus.com, 2014).
Looking in the scenario of functioning among Polar ltd and Beta ltd, the companies are participating in the general meeting. The stakeholders control states that the stakeholders have the right to exercise their vote in the decision making process. The stakeholder’s opinions are taken in the general meeting of companies (Lazrak et al. 2008). The performance evaluation is also enumerated and discussed with the all the stakeholders. The stakeholders’ controls are also associated with the number of shares retained by them. The wider the shareholding pattern of the stakeholder will be, the higher will be his control over the decision making process. The aspects of loopholes in operation are also managed in the stakeholders meetings (Khairurizka, 2009).
Part C- Rights
According to Laughlin and Gray (2008) Stakeholders rights provides them authority to access the books of account of companies in which the shares has been bought in Corporate Accounting, visit offices and attend and receive meetings, journals, press release. The stakeholder’s pattern of Polar ltd is wider in the capital structure of Beta ltd. The company is here authorized to provide all the annual journals, press release, annual reports etc dispatched to them. The stakeholders of Polar Ltd in the current scenario are having the right to attend the general meeting of Beta Ltd. The company is further has the right to exercise the control of right to vote in the general meeting of Beta ltd.
The investors are very much concerned with the investment of money that they invest in the business functioning. Companies in order maintain the effective relation with the shareholders communicate effectively with them and provide all the necessary information relating the investment (Iasplus.com, 2014). The operation and functioning of Polaris Ltd is also required to be conducted with the general meeting of Beta ltd.
The member’s right and control are essential to conduct the business general meeting the effectively. The shareholders of Polaris ltd are further requiring coping up with the challenges in the presentation and preparation of the CFS. The operation of the Polaris is aimed to be managed with the success and expansion process of functioning among the companies. The process towards managing the right and control of investors in the Beta ltd is also crucial in the scenario of functioning. The process towards expansion of business functioning has been illustrated in the context of both Polaris Ltd and Beta ltd.
The shares of Polar ltd are offered to public in the Australia security exchange. The security exchange board has given declaration to all the listed companies to comply with the international accounting standard and international financial reporting standards. Polar ltd is here also requires to properly co-operate with the task and approaches of accounting standard and conventions of international corporate accounting. The stakeholders are required to attend the general meeting. The general meetings are conducted with the view to execute the financial productivity of company (Dai and Singleton, 2009). The stakeholders can also recruit proxy in name of them. But at the same time, for on stakeholders only one proxy cab ne recruited. Further, the proxy members are not having the legal control and right to vote at general meeting (Barberis, 2008).
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Conclusions
Corporate accounting provides the business organization to exercise right and duties in the company’s performances. With the preparation of financial statement, the companies show the financial productivity, operation and efficiency of the firm. The CFS of parent companies is associated with services and operation of companies. In the case scenario of Polaris Ltd and Beta Ltd, the stakeholders are having the right to attend the meeting. The stakeholders can also exercise the right on the decision making in the meeting of Beta Ltd. CFS is giving its functioning with the financial statement. The summaries of performances are helpful in measuring the financial profitability. In the current study, the corporate accounting has been illustrated with taking in account of operation and case scenario of Beta Ltd and Polar Ltd.