Case Study Of Naa Gee Pty Ltd.

Introduction: Naa Gee Pty Ltd is a large proprietary company that is owned by the Ma and Banks families and have been trading in the furniture manufacturing business for over 30 years. The company has 6 shareholders from within the two families and they does not have any shareholder from the outside. The company’s main working force consists of 20 employees and 5 of which are employed regularly. They have little debt (mainly bank loan of $500,000), more than $15 million of assets and turnover of around $8 million each year. Since 1993, the company has been lodging account with regulators and has had their account audited. Recently the directors of the company realised that preparing audited accounts quite a burden and expensive task. They
These are the legal entity concept for the private sector and the broad concept based on accountability of selected representatives and officials for the public sector. In the private sector, entities are required to produce report whenever they have a legal status. In the public sector, there is a more widespread application of the fund concept of reporting.
Reporting entities are all entities (including economic entities) that have the capacity to deploy relevant information that will assist its users to determine the performance and financial position of that entity. A reporting entity can be either an individual entity or a group contains a number of entities. In the case of a group of entities, one entity will be in control and is in a higher position than the remaining entities and these entities will work together to accomplish goals which are similar to that of the controlling entity. In the public sector, entities that make up the budget sectors may be identified as individual reporting entity because they are controlled by the government and meet the requirement for a reporting entity. In the private sector, a group of entities can be identified as an economic entity only when they are the same legal form (i.e. all the entities are company). In order to decide
The general purpose financial reports can also be a mean that the management and governing bodies use to discharge their accountability to those users. To meet the purpose of the Accounting Concepts and Accounting Standards about adequate disclosure of information to users of the general purpose financial report, it is important that the entities that should report are required to report. Additionally to make sure that the general purpose financial reports are developed rationally and efficiently, it is also important that entities that do not need to report are not required to