Case 3-1Jardine Matheson Group

Prepared by

For professor C. E. ReeseIn partial fulfillment of the requirements for

ACC 508 International Accounting

School of Business/Graduate StudiesSt. Thomas University

Miami Gardens, Florida

Term FL1/Fall,2019September 08th 2019

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Table of contentsIssues…………………………………………………………………………………………………….3

Facts……………………………………………………………………………………………………..4

Analysis………………………………………………………………………………………………….5

Conclusion……………………………………………………………………………………………….7

Reference………………………………………………………………………………………………..8

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Issues

1.Whether the financial statements presented comply with the presentation

requirements in IAS 1?

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Facts

Jardine Matheson Group is a market-leading business. The company is an

Asian-based business and have the subsidiary company such as Jardine Pacific,

Jardine Motors Group, Hong Kong Land, Dairy Farm, Mandarin Oriental, Cycle&

Carriage, and Jardine Lloyd Thompson. Company business involves Engineering,

construction, transport service, motor trading, property, retailing, restaurants, hotels,

and insurance broking. With the support of Jardine Matheson’s extensive knowledge

of doing business and relationship with other business, Jardine Matheson Group aims

to produce sustained growth in shareholder value and attract more investment.

Through a balance of cash-producing activities, the company also invested in

the new business. Jardine Matheson Group Incorporated in Bermuda and company’s

share listing in London. The secondary share listing in Singapore and Bermuda. The

company provides management services and making management, provide financial

legal, human resources and treasury support service.

Jardine Matheson uses International Financial standards to report company

financial statement for many years. The purpose of this case is to review the company

latest annual report and look through the consolidated financial statement and

evaluate whether the financial statement follows IAS 1, presentation of financial

statement.

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Analysis

According to company’s latest annual report, Jardine Matheson Group

underlying earnings per share up 13%, Full year dividend increase 7%, company have

a strong trading performance compare with most business (Jardines 2017). As a

market-leading business, follow the accounting standards and prepare correct

financial statement is necessary. The company uses International Financial Reporting

Standards in preparing its financial statements for many years.

IFRS is an international based standard; it is very convenient for the company

to use this standard to make the financial statement especially doing business around

the world. What is more, IFRS designed for a profit-oriented entity (KPMG P4).

Jardine Matheson Group is a market-leading business and has business around the

world, so it is an excellent choice for the company to use IFRS standards.

IAS 1 Presentation of the financial statement issued in September 2007 (IFRS

2007). According to IFRS website, “IAS 1, presentation of Financial statement set out

the overall requirement and provide a guide for structure and require an entity to

prepare a complete financial report at least annually (IFRS 2007). To find whether the

company complies with IAS 1 it is important to determine a consolidated financial

statement based on company annual report.

First, IAS required an entity to provide a financial statement at the end of each

period. Jardine Matheson Group follows this require and prepare financial statement

both annually and half-yearly. The latest annual report is 2017 annual report. This

annual report end at calendar year-end period, which is December 31, 2017. So, it

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meets IAS first requirement.

Second, IAS 1 required the company to provide the statement of profit and loss

and other comprehensive income for the period (IFRS 2007). Jardine Matheson Group

provides an apparent consolidated profit and loss account. Jardine Matheson Group is

a market-leading entity. According to the company 2017 annual report, Jardine

Matheson Group report revenue $31,556 million and net operating costs $(28,593)

million. The company also reported operating profit $2,963 million under the

underlying business performance. Company annual reports also show that the total

profit after tax was $3,359 million, and $4,850 no trading item (Jardins 2018). The

company also use 2016 Consolidated Profit and Loss Account to compare with 2017;

the company makes much profit in the year 2017 it is good for the investor to invest.

The third requirement is IAS required entity to provide a statement of change in

equity for the period (IFRS 2007). From company Consolidated Statement of Change

in Equity, Jardine company equity increases $8,015 million. Company report change

such as Total comprehensive income, the dividend paid by the company, Scrip issued

in lieu of dividends and Employee share option schemes (Jardines 2017).On the

Consolidated Statements of Change in equity for the period, both company revenue

reverse increase and Attributable to shareholders of the company increase and help the

company to get more equity.

Fourth, under IAS 1, to prepare a financial statement, the company need to

provide a statement of cash flow for the period. Jardine Matheson Group follow this

require and have Consolidated Cash Flow Statement. On the company financial

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statement, it compares 2016 and 2017 cash flows. For the year-end 2017 operating

profit was $7,732 million.

Next requirement is providing notes, a summary of significant accounting

policies and other explanatory information. (IFRS). According to company annual

report, Jardine Matheson Group provide Notes to the financial statement, Financial

risk management, Critical Accounting Estimates and Judgements, and other important

notes,

which include principle accounting policy.

Last, IAS 1 required company provide a statement of financial position at the

beginning period. According to company use, 2017 year-end financial record compare

with January record, this is also complying with the presentation requirements in IAS

1.

In the auditor’s opinion, after the auditor pointed out that the data that the

company use to prepare financial statement is accurate and based on available

evidence. In the company 2017 annual report, company use the accrual basis of

accounting and prepared financial assuming company as going concern and will

continue operating for the foreseeable future.

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ConclusionAfter reviewing the company’s consolidated financial statement, it can say that

Jardine Matheson Group is a marketing-leading business. From the company latest

annual report, the company followed IFRS standards and presented comply with IAS

1 Presentation of financial statements; the company prepares all necessary

consolidated financial statement that IAS required and have detail notes.

According to company annual report, Jardine Matheson Group strategy is to

take a strategic stake into the multinational business. From company 2017 annual

report, the company makes profit world wild. An accurate financial report can provide

manager detail information about company financial situation and help company

investors to invest.

In conclusion, Jardine Matheson Group doing will in its business and follow the

financial statement report rules and provide all required statements to company

investors and assist users of financial statement to get the information they need. A

successful company needs to provide an accurate financial report for both manager

and investor.

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ReferenceDeloitte. (2017). IAS Plus IAS 1presentation of Financial statement. Retrieved from https://www.iasplus.com/en/standards/ias/ias16

IFRS (2007).IAS 1 Retrieved from https://www.ifrs.org/issued-standards/list-of- standards/ias-1-presentation-of-financial-statements/

KPMG LLP (2017). IFRS compared to U.S. GAAP. Retrieved from:https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/12/ifrs-us-gaap-2017.pdf

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