Monitoring Operations Of The Organisation †Myassignmenthelp.Com

Question: Why Is It Necessary To Have A Continuous Reporting Regime For Disclosure Entities And Is It Effective? Answer: The predicament is mainly identified from the annual report of Surfstitch Ltd, which is directly reflects overall decline in operational capability of the company after the exit of Justin Cameron in 2015. In addition, management of Surfstitch Ltd was not able to control the increasing expenses, which is directly affecting financial stability of the organisation. Moreover, the organisation has high-end administrative costs and selling distribution costs, which is directly increasing in nature and hampering the overall net profit. The rising expenses of the company have mainly declined its ability to generate the required profit, which could support its financial activities in near future. This mainly increased predicament in the overall financial stability of the organisation (Market Index 2017). Mentioning about the 2015 goodwill, investment in subsidiary and cash position The evaluation of the annual report of Surfstitch Ltd for 2015 mainly portrayed goodwill of $73,832,000. In addition, the investment in subsidiary was mainly identified at $70,197,000 and the cash cash equivalent position of Surfstitch Ltd was detected at $40,837,000 (Market Index 2017). Mentioning about the 2016 impairment costs, selling distribution and administrative expenses in the profit and loss statement: In 2015, the impairment cost was not used in the annual report, whereas in 2016 the impairment cost increased to $88,999,000, as portrayed in the annual report. Moreover, the evaluation of annual report also portrayed an increment in the selling and distribution levels of $44,683,000 in 2015 and $101,268,000 in 2016 for Surfstitch Ltd. In addition, the administrative expenses of Surfstitch Ltd in 2015 mainly stood at $7,424,000 and in 2016, it stood at $49,237,000. Hence, organisations overall financial stability mainly declined over the period of two years, where it could directly affect its financial stability (Market Index 2017). Providing relevant recommendations whether to buy, hold or sell Surfstitch Ltd shares and why: The evaluation of overall annual report and specified expenses of Surfstitch Ltd could mainly helps in identifying the financial viability of the company. Therefore, it could be identified that the financial stabilities of the organisation is not achievable in near future. In addition, the current financial predicament of Surfstitch Ltd is mainly declining, which is in turn hampering the profitability generation capability of the company (Gopalan and Hogan 2014). The current financial stability of Surfstitch Ltd is mainly declining, as relevant expenses have been increasing. The losses of the company have relatively increased in 21016 as compared to 2015. Hence, the evaluation mainly helps in identifying the relevant (Market Index 2017). Therefore, from the evaluation of the share price of Surfstitch Ltd, it could be identified that the company is losing high-end value in the share market. This is relatively declining the overall financial stability of the organisation and hampering the relevant income generation capacity of the organisation. The share price has fallen drastically over the period of 2 years, where investors should avoid investments in the company. Moreover, the investors having share of Surfstitch Ltd should sell it, as the company is not portraying any future prospects. The evaluation of the readings provided for the identification of the significance for continuous disclosure mainly portrays the relevant reason for the continuous reporting regime. The continuous disclosure measure that is been imposed by the Australian authorities has mainly helped in reducing the excessive manipulations, which could be conducted by organization. The evaluation of the case of Surfstitch Ltd mainly helps in identifying that the organisation used the disclosure measures to portray wrong information to the shareholders. Moreover, the financial stability of the organizations are mainly determined by the continuous disclosure measures, that the company is liable to disclose all the relevant information regarding the decision taken for future growth of the organization. In this context, Beekes, Brown and Zhang (2015) mentioned that implementation of continuous disclosure measures could eventually help in identifying the relevant financials conduction of the company, whic h could allow investors to make adequate investment decision. The evaluation of the research paper mainly evaluates the disclosures that is been conducted by the companies during 2000. This mainly helped in evaluating the significance and viability of the future projection disclosure, which is been conducted by the companies to portray their financial conduction. Thus, research paper was mainly focused in providing relevant information of the organization that is been presented in 2000, where there was no adequate measures conducted by the Australian government. Hence, the overall research paper was mainly conducted on the old data, which there was no specified measures that was been conducted by the ATO. On the other hand, Seamer (2014) argued that some of the companies mainly use the disclosure measure to inflate their share price, which could increase their market capitalization. Previously of the companies mainly presented data in their annual report without adequate research and valuation, Therefore, the projected valuation of the companie s were not adequate, which directly prompted the use of reliable valuation method by the organization. Consequently, the implementation of continuous disclosure measure needs to be conducted, as the relevant changes in the annual report could be identified. The article mainly states that use of continuous disclosure measure could eventually allow the investor to detect the relevant changes in the annual report that could be conducted due to the decision taken by the management. Mayorga (2013) mentioned that with the helpful of continuous disclosure measure investors are mainly able to identify the changes in revenue and net profit that could be generated by the organization. The overall evaluation of the article Australias continuous disclosure system: clear or confused?, mainly helps in identifying the relevant confusion conducted by the continuous disclosure system. In addition, the article mainly states that the continuous disclosure system that is been imposed by the ASX mainly increases the confusion among investors regarding operations of the organization. The relevant unethical measures that could be used by the organization with the help of continuous disclosure measure were mainly depicted in the article. Moreover, the article mainly evaluates the measures taken by David Jones for increasing demand for the company, whose demand for the takeover bid could be identified (Hempel 2015). In addition, the experiment conducted by David Jones was mainly seen that relevant discourse regarding the takeover bid mainly forced in increasing demand for the shares of the company among potential investors. These experiments mainly helped in identifying the impa ct of continuous disclosure measure, which could be conducted by organization. The author mainly identified the listing rules of 3.1.A.3, where relevant measures could be identified that needs to be maintained by organization before disclosing any new information. Therefore, it could be identified that the companies with the help of continuous disclosure measure are mainly able to portray the changes in the annual report. Hence, it could be identified that the measures taken by David Jones could mainly help in generating the relevant measures, which in turn could help in reducing the manipulative measures conducted by companies, David Jones directly identified the overall loopholes in the continuous disclosure nature, which is been used by the organization. In this context, Di (2014) mentioned that ASX with the help of continuous disclosure measure are mainly able to identify the relevant companies that are complying with the rule laid down by the Australian security exchange divisi on. Consequently, in the article, it is mentioned that AASB will take relevant measures in controlling the disclosure information, which is been conducted by companies through the ASX portal. Thus, adequate measures and recommendation needs to be implemented by ASX, which could help in reducing the unethical measures that is been conducted by organization (Truong and Nguyen 2017). There are different types of rules that need to be followed by organization before adequately conducting the disclosure requirements laid down by ASX. In addition, the relevant continuous disclosure measure needs to be evaluated with certain criterias, which could help organizations to determine the reliability of the information that is been disclosed. Therefore, the criterias that needs to be evaluated are depicted as follows. If the information is trade secret of the organization If there is any breach of cetin law, while disclosing the information Understanding the information is generated for internal management If the information is not complete on the negotiations and proposals Thereafter, from the evaluation of the above criteria mentioned in ASX, companies are not able to present non-conformed information to the investors. This mainly helps in reducing the excess unethical measures, which could directly affect the share price of the organization (Price 2014). Hence, the use of continuous disclosure measures is mainly needed in Australia, as it might help in reducing the affect of 2008 financial criticizes. In addition, it also helps in reducing the manipulations, which could directly be conducted by the organization to inflate their share price. Furthermore, the continuous disclosure measure, which is mentioned in the Continuous Disclosure: an arbitrage guide, mainly states different types of measures, which are used by companies to adequately publish relevant news through ASX platform. Relevant information is mainly listed, which could be disclosed by the companies to their shareholder. In this context, Lewis 2015) mentioned that ASX platform could adequ ately be used by companies for providing relevant inflation to its shareholders, which could directly have impact on the financial report. Therefore, it is mainly estimated that use of continuous disclosure measure allows investors to identify the relevant impact of news, which could affect financial stability of the organization. Moreover, the continuous disclosure measures could also help in raising reliability of the information that is been given by the organization. During the financial crisis annual report of companies were mainly manipulated, which directly projected wrong information regarding future profitability (Feigin et al. 2016). Therefore, the measures that is been used by ASX is mainly helpful in reducing unethical measures that could be implemented by organization in their financial report. Hence, disclosure measure could be used with certain limitations, where companies are not able to provide information regarding verbal agreement. The overall announcements and disclosure should only be conducted on written agreement that has been conducted by the company. This could eventually help in reducing any ki nd of unethical measures that might be taken by the organisation. Thus, use of disclosure measure is viable and essential for the entire organisation that is operating in Australia and is public limited (Ferguson, Feigin and Kean 2013). There is a relevant points mentioned in the article, the research paper, and ASX disclosure measures mainly state that Adequate measures need to be maintained by Australian authorities, as it is essential for monitoring operations of the organisation.Hence, the use of continuous disclosure measure could be implemented with certain restrictions on unethical news display. The article 3.a could be developed more for the 4 reducing any kind of unethical measures used by companies as portrayed by David Jones in the news article. Thus, it could be identified that use of continuous disclosure measure would eventually help investors reduce the risk from investments (Prokofieva 2014). References Beekes, W., Brown, P. and Zhang, Q., 2015. Corporate governance and the informativeness of disclosures in Australia: a re?examination.Accounting Finance,55(4), pp.931-963. Carnegie, G.D. and OConnell, B.T., 2014. 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Twitter-based dissemination of corporate disclosure and the intervening effects of firms' visibility: Evidence from Australian-listed companies.Journal of Information Systems,29(2), pp.107-136. Seamer, M., 2014. Does Effective Corporate Governance Facilitate Continuous Market Disclosure?.Australian Accounting Review,24(2), pp.111-126. Truong, T.P. and Nguyen, N.N., 2017. Regulatory Enforcement, Financial Reporting Quality and Investment Efficiency: A Pitch.Accounting Research Journal,30(1).