ANALYSIS OF JARDINE MATHESON`S FINANCIAL STATEMENTS
The InternationalAccounting Standard Board (IASB) provides a standard framework for astructured presentation of the financial well-being of anorganization. Financial statements function in providing financialinformation used by a wide range of end users in economicdecision-making and predicting a company’s future (Vicente etal. 2015). It also shows the products of the management’seffort in exploiting the resources entrusted to it. The InternationalAccounting Standard (IAS) 1 details the framework for preparing andpresenting financial statements where their structure and minimumrequirements are explained. This paper evaluates the compliance ofthe financial statements of Jardine Matheson with IAS 1.
A full set of financial statements presents the information about afirm’s assets, liabilities, equity, income and expenses, cashflows, and the contribution by and distribution to its owners(Chaudhry A. et al. 2015). This information is evident in the2015 annual financial statements of Jardine Matheson. Thepresentation and classification of the entities in the 2015 AnnualReport of Jardine Matheson are consistent with the previous year asrequired by IAS 1.45. In order to comply with the IAS 1, the recentannual report of the company compares the consolidated financialstatements of 2015 with those published in 2014. According to IAS 1,financial statements must contain the balance sheet, comprehensiveincome report, changes in equity, cash flows, and notes of the abovereports.
The 2015 AnnualReport of Jardine Matheson contains various details about thecompany’s internal and external environment. However, the financialstatements are distinct from other contents of the report as requiredby the IAS framework. Furthermore, every statement can bedistinguished from the rest. The consolidated financial statement ofthe company, the reporting period, the currency and level of roundingused are clearly indicated.
In theconsolidated balance sheet of the firm, assets and liabilities havebeen classified into current and non-current. Jardine Matheson’s2015 Annual report used a single statement format of profit or lossand other comprehensive income and named it Consolidated Statement ofComprehensive Income. As required by IAS framework, the reportpresented the profit, total other comprehensive income, comprehensiveincome for 2015, and an allocation of profit and comprehensive incomefor the year between non-controlling interests and the shareholders(Wiley-VCH. 2014). The structure and content of the cash flowstatement in the company’s report also complied with the IAS 1requirements. The fundamental principles of the statement wereclassified as operating, investing and financing activities. In thereport, there is a separate statement of changes in equity which metthe minimum requirements of IAS 1.106. The last part of the financialreport of the company is the notes. It is required that the note tofirst present a statement of compliance with the InternationalFinancial Reporting Standards (IFRSs), followed by the accountingpolicies applied and lastly, the information supporting the entitiespresented in various financial reports. However, the JardineMatheson`s 2015 Annual Report did not include the statement ofcompliance with IFRSs (IAS Plus).
Generally,Jardine Matheson’s 2015 Annual Report complies with the IAS 1Presentation of Financial Statements. The company’s reportcontained all of its financial statements for the year ending 2015.The compliance is also evident in structure and minimum requirementsfor the contents of every statement. The distinct nature of thefinancial statements in the report is a merit based on IAS 1framework.
Chaudhry A. et al. (2015), Wiley IFRS 2015: Interpretationand Application of International Financial Reporting Standards,John Wiley & Sons
IAS Plus, IAS 1 — Presentation of Financial Statements,retrieved from http://www.iasplus.com/en/standards/ias/ias1on August 28, 2016
Jardine Matheson, Annual Report 2015, retrieved fromhttp://www.jardines.com/investors/financial-reports.htmlon August 28, 2016
Vicente L. M., Sanchez H. M., & Sobrino J. N. R. (2015).Assessing The Impact of Accounting Choices And The Economic ContextOn Firm’s Compliance With The Mandatory Requirements OfIFRS. Actual Problems of Economics/Aktual`ni ProblemiEkonomìki, 164(2).
Wiley-VCH. (2014). International Financial ReportingStandards (IFRS) 2014: Deutsch-Englische Textausgabe der von der EUgebilligten Standards. English & German edition of the officialstandards approved by the EU. Weinheim, Bergstr: Wiley-VCH.