Accg224 Demonstration Slides
Home, Plant and
Aim of Presentation:
1 . Provide a description of Rj Tinto and its particular activities
regarding Property, Herb and Equipment (PPE)
installment payments on your Analyse how a disclosure requirements of PPE
met by simply Rio Morapio satisfy the two fundamental
qualities of beneficial financial information
along with two boosting characteristics.
three or more. State the extent to which the disclosure
requirements of PPE line-up with the aims of
practical financial information
4. Advise actions intended for improvement
Rio Tinto and PPE
British-Australian multinational alloys and exploration
Headquarters located in Greater london and a
management office in Melbourne
Disclosure requirements of PPE as of AASB 116
Rj Tinto's 2013 annual report and its endeavors to
meet the disclosure requirements of PPE
Meets most requirements besides one, 77f of the AASB
Rj Tinto and PPE
PPE and Qualitative
Qualitative characteristics are more comfortable with make
financial information more useful and achieve the
purpose of economic reports.
All of us will look in the two critical characteristics
relevance and dedicated representation. Two
enhancing qualities understandability and
Relevance, predictive and/or confirmatory value, and materiality. An example of relevance is definitely the listing of valuable lives of assets. Faithful Representation
To become faithfully displayed it must be full, neutral and free from error.
Explanations supplied are an example of complete information. Due to a shortage of 77f, this info is not complete or free from error therefore not satisfying this kind of qualitative feature.
Related information can be presented intended for the agencies PPE in
two diverse years permitting comparability.
Economic information and methods utilized are similar to
different entities allowing comparability.
Rio Tinto's financial details comes with very clear
descriptions and notes combined with the numeric info.
For instance, PPE has its own section under theory
accounting plans used on web page 122.
PPE and the Aims of Basic
Purpose Monetary Reports
Target of general purpose financial studies is to
offer useful economical information to primary
PPE disclosure requirements complement the
objectives of general purpose economical reports
Viewed through the requirements satisfying the
For example the requirement to list assets agreed
as protection is very valuable and will effect decision
producing and examination.
The 2013 twelve-monthly report offers met the majority of the
disclosure requirements listed in the AASB 116
PPE requirements more often than not satisfy the
four aforementioned qualitative attributes of
economical information. Done through obvious concise
business presentation of statistical data and explanations.
The objective of general purpose economical reports
line-up with the disclosure requirements of PPE because
they make financial information even more useful.
I would recommend Rio de janeiro Tinto to add the
dependence on 77f and in addition list the four further
optional disclosure requirements classified by
paragraph 79 of AASB 116.
An example of this is 79b whereby can be gives the
option to list the gross having amount of any completely
depreciated PPE that is continue to in use.
Through these advice I believe the
financial information of Rio Tinto might become
more useful and additional satisfy the qualitative
characteristics of economic information.