Analyzing FHL's Accounting Practices Step by step Solution with Explanation

Your question:

Identify areas where the company has not complied with the requirements of the selected accounting standard and suggest any improvements to the selected accounting standard.

Support your research findings with the listed company Fijian Holdings LTD in Fiji. Accounting standards

Analyzing FHL's Accounting Practices Answers and Explanation

• Lack of Detailed Disclosure: If Fijian Holdings Ltd. does not provide detailed disclosure about revenue recognition policies, performance obligations, and significant judgments used, it might be non-compliant with IFRS 15.

• Inadequate Presentation of Contracts: Contracts with customers might not be adequately detailed, including how performance obligations are satisfied.

Non-Compliance Areas:

• Impairment Model: Failure to use the expected credit loss model for impairment of financial assets could be a compliance issue.

3. Leases (IFRS 16)

Non-Compliance Areas:

• Enhanced Lease Disclosures: Provide detailed disclosures about lease terms, renewal options, and significant judgments.

4. Presentation of Financial Statements (IAS 1)

• Improve Financial Statement Presentation: Ensure financial statements are presented in a clear and consistent manner, following the structure prescribed by IAS 1.

• Detailed Accounting Policies: Provide detailed disclosures about accounting policies and significant judgments to enhance transparency.

4. Increased Emphasis on Forward-Looking Information: Enhancing requirements for forward-looking information, particularly in impairment and credit risk assessments, could provide more relevant information to stakeholders.

Supporting Research Findings for Fijian Holdings Ltd.

• Financial Statement Presentation: Assess the presentation and disclosure practices in line with IAS 1.

Improving compliance with these standards and incorporating suggested improvements will help Fijian Holdings Ltd. ensure accurate and transparent financial reporting.