Research Based Case Study and Report: Financial Reporting Disclosures in the Australian Corporate Sector As a new accounting graduate, you have just joined the financial reporting unit of a listed company* when your manager, the Chief Financial Officer (CFO), approaches you with your first task. In their last meeting, the board members of your company is concerned about the company’s reputational standing in the market relating to the quality of financial information in the annual report and keen to ensure that asset values are appropriately reflected and disclosed in the company’s latest annual report. Therefore, the Board decided to have a review of the relevant treatments and disclosures in the 2017 annual report pertaining to Property, Plant and Equipment (PPE) and whether these treatments and disclosures are aligned with the requirements of AASB 116 Property, Plant and Equipment. Required: Based on the Board’s decision, the CFO asks you to draft a business research report addressed to the Board of Directors on the following: a. A critical analysis of some of the complexities and key issues involved in accounting for PPE. In your analysis, you can refer to one or more publications issued by the ‘Big 4’ firms, accounting professional bodies or academic journals. This section does not need to be linked to your specific case study. (10 marks). b. Provide a detailed explanation of the PPE disclosures made by your company in the year ended 30 June 2017. Your explanation should include a discussion of the asset(s) and amounts, the valuation model used (cost or revaluation) an analysis of depreciation, revaluations and asset purchases/sales. (10 marks). c. Critically analyse to what extent the latest annual report of your company meets the disclosure requirements of accounting for PPE as per AASB 116. (15 marks). d. Based on your findings in part c, critically discuss to what extent the disclosures of PPE align with the objective of general purpose financial reporting and, as a conclusion, recommend actions for improvement. (5 marks). *You need to choose a suitable company by yourself from: 1. Is constituent of the S&P/ASX 300 index ( except for the A2 Milk company. 2. Publishes audited annual reports in English, fully complying with IAS/IFRS or AASB; 3. Must have a 30 June 2017 year-end; and 4. Does NOT belong to the financial sector