GMG case study
CONTENTS
Executive Summary ……………………………………………………...
3
1.
Profile and Strategies …………………………………………………….
4
2.
Key Accounting Policies ………………………………………………...
4
2.1.
Revenue Recognition [AASB 118] ……………………………………...
4
2.2.
Impairment of Asset (AASB 116) ……………………………………….
4
2.3.
Foreign Currency Transactions (AASB 121) ……………………………
5
2.4.
Employee Benefits (AASB 119) ………………………………………...
5
3. Degree of flexibility ……………………………………………………...
5
3.1.
Revenue Recognition – Moderate ……………………………………….
5
3.2.
Foreign currency Transactions –Low ……………………………………
5
3.3.
Employee Benefits – Moderate ………………………………………….
6
3.4.
Impairment of assets – high ……………………………………………...
6
4.
Accounting strategies and incentives …………………………………….
6
5.
Quality of Disclosure …………………………………………………….
7
6.
Potential questionable accounting numbers ……………………………...
8
7
Undo Distortion ………………………………………………………….
9
8.
Financial Press Discussion ………………………………………………
9
Reference ………………………………………………………………...
10
Appendixes ………………………………………………………………
11
Executive Summary
Goodman Group Ltd. is an industrial property and management company in Australia with 36 offices in 18 countries around Europe, UK, North America, Brazil and the Asia-Pacific region. This report utilises the 2013 financial Report of Goodman Group Ltd, and analyses some details of these statements combined with accounting policies, while outlining the various activities and business strategies of the company. By evaluating the flexibility allowed in reporting requirements, the company’s accounting strategies and incentives, as well as the quality of disclosure, and issues surrounding questionable accounting figures, this report attempts to provide a broad understanding into the Financial reporting practices of Goodman Group Ltd. This evaluation has found that the quality of disclosure in the report is accurate,
Executive Summary ……………………………………………………...
3
1.
Profile and Strategies …………………………………………………….
4
2.
Key Accounting Policies ………………………………………………...
4
2.1.
Revenue Recognition [AASB 118] ……………………………………...
4
2.2.
Impairment of Asset (AASB 116) ……………………………………….
4
2.3.
Foreign Currency Transactions (AASB 121) ……………………………
5
2.4.
Employee Benefits (AASB 119) ………………………………………...
5
3. Degree of flexibility ……………………………………………………...
5
3.1.
Revenue Recognition – Moderate ……………………………………….
5
3.2.
Foreign currency Transactions –Low ……………………………………
5
3.3.
Employee Benefits – Moderate ………………………………………….
6
3.4.
Impairment of assets – high ……………………………………………...
6
4.
Accounting strategies and incentives …………………………………….
6
5.
Quality of Disclosure …………………………………………………….
7
6.
Potential questionable accounting numbers ……………………………...
8
7
Undo Distortion ………………………………………………………….
9
8.
Financial Press Discussion ………………………………………………
9
Reference ………………………………………………………………...
10
Appendixes ………………………………………………………………
11
Executive Summary
Goodman Group Ltd. is an industrial property and management company in Australia with 36 offices in 18 countries around Europe, UK, North America, Brazil and the Asia-Pacific region. This report utilises the 2013 financial Report of Goodman Group Ltd, and analyses some details of these statements combined with accounting policies, while outlining the various activities and business strategies of the company. By evaluating the flexibility allowed in reporting requirements, the company’s accounting strategies and incentives, as well as the quality of disclosure, and issues surrounding questionable accounting figures, this report attempts to provide a broad understanding into the Financial reporting practices of Goodman Group Ltd. This evaluation has found that the quality of disclosure in the report is accurate,
References: Cummins, C. 2013, Goodman Group to focus on development in US, Brazil, The Sydney Morning Herald, viewed 1 October 2013, . Goodman Group, 2013, Goodman Group Annual Report 2013, . Sydney Morning Herald, 2013, Goodman Group profit jumps, viewed 1 October .