Posted: August 7th, 2013
Alacer Gold Corporation
Alacer Gold Corporation is an Australian incorporated entity that deals with the exploration and mining of gold for export and local consumption. The entity provides information that has been duly audited by an independent auditor to verify the presence of material errors and the presence of fraud. Audited information is presentable to the public and the stakeholders within the organization. The entity has been able to disclose all the particulars as recorded in the financial records of the organization (Nandakumar, 33).
The disclosure of the financial information is done with respect to the international accounting standards with regard to disclosure and reporting of financial information. The presentation and reporting of financial information could be affected significantly by the view and approach of presenting financial information. Hence, it is important to use an appropriate approach in presentation of financial information. Accounting polices usually differ from one entity to another. It is also paramount to disclose the accounting policies used by an entity to ensure that information presented is appreciated with regard to the accounting policies and standards used. It is also necessary as stipulated by international accounting laws in relation to the presentation of financial information (Revsine, Collins & Johnson, 29).
The entity uses appropriate forms of classifications and measurement of the values of various items for eventual presentation in the financial information. The entity presents, reports risks associated with the various financial instruments for the stakeholders to understand the implications of such instruments. Various policies are used by the organization as well as other entities on an international perspective.
Balance Sheet For the period Ended December 31 2011
|ASSETS||Amounts in US$|
|Cash and Cash Equivalents||249,565|
|Receivables and other||21,460|
|Assets held for sale||–|
|Mineral properties and equipment net||1,431,346|
|Deferred tax assets||21,849|
|Trade and other Payables||154,623|
|Borrowings current portion||144,943|
|Current Income tax liabilities||1,574|
|Deferred Tax Liabilities||8,026|
|Equity attributable to owners of the parent|
|Non-Controlling interests in subsidiary||17,961|
|Total liabilities and equity||1,802,912|
It is essential for the entity to disclose all the liabilities and financial instruments accrued to the organization. Various steps have been observed in the presentation and reporting of the above financial information. Essentially the International Accounting Standards are used to ensure conformity and parity in the presentation of financial information for all stakeholders to understand the information for their individual purposes (Gregoriou, & Mohamed, 45).
All the information provided is given with the consideration of basic accounting principles. Such principles include the going concern principle whereby the entity is considered to continue in operation in the near future. Another principle used is the accrual basis whereby the elements and items provided in the financial statements solely relate to the financial period for which they have been accounted for in the financial statements.
International Financial Reporting Standards (IFRS) were also used for reporting the financial information (Alexander, David & Jorissen., 34). As evidenced by the balance sheet adequate disclosures have been provided in relation to the risks associated with the various financial instruments such income and tax liabilities, liabilities and their related provisions. Such use makes information useable form an international perspective. The classifications of all the elements provided are in relation to the accounting as well as the reporting international standards.
Alexander, David, Anne Britton, & Ann Jorissen. International Financial Reporting and Analysis. London: Thomson Learning, 2003. Print.
Gregoriou, Greg N, & Mohamed K. A.G. Gaber. International Accounting: Standards, Regulations, and Financial Reporting. Amsterdam: Elsevier, 2006. Print.
Nandakumar, A K. Understanding IFRS Fundamentals: International Financial Reporting Standards. Hoboken, N.J: Wiley, 2010. Print.
Revsine, Lawrence, Daniel W. Collins, & W B. Johnson. Financial Reporting and Analysis. Upper Saddle River, NJ: Pearson/Prentice Hall, 2005. Print.
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