The Australia Holdings Pty Ltd Essay

848 Words4 Pages
In order to determine as to whether or not News Australia Holdings Pty Ltd, is indeed a non-reporting entity, direct attention must be drawn to SAC1, “Definition of the Reporting Entity”, as issued by the Australian Accounting Standards Board. SAC1, defines a reporting entity, as an economic entity, in which it is expected that a substantiated group of users, rely on an entity’s general purpose financial reports. Such reliance on general purpose financial reports, as defined in SAC1, paragraphs 12 & 15, are deemed important by dependent external users, as they affect evaluative decisions with regards to the allocation of monetary resources. News Australia Holdings Pty Ltd, may be deemed a non-reporting entity, in instances where dependent users are virtually non existent. Paragraph 19 of SAC1, defines subsequent SAC1 sections 20 & 22, whereby identifying factors are considered in determining as to whether or not a reporting entity exists. Section 20 indicates that in instances where the spread of ownership/members is large, it is more likely that dependent users rely on general purpose financial reporting, for decisions regarding resource allocation. Moreover, Section 22 indicates that in instances where indebtedness or resource allocation is vast, general purpose financial reporting is also imperative for external users. With regards to commentary made in the State Inquiry, by CFO of News Australia Holdings Pty Ltd, Ms. Susan Panuccio, she conveys the proprietary nature
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