Aircruising Australia Limited's Annual Report
Obtain an annual report for the year ending 2012 of an Australian listed company where a MODIFIED or an EMPHASIS OF MATTER opinion was given due to going concern issues.
The company we have chosen is “Aircruising Australia Limited”. The company is Australian owned, based in Sydney and was established in 1983. The company operates under “Bill Peach Journeys”. The company provides a service to its customers. They aim to give people the opportunity to have air cruise experiences in Australia and worldwide. They provide travel through private aircrafts, cruises and private trains. They also organise personalised tours, accommodation and fine dining throughout the travel.
The term going concern refers to the assumption that the company will remain in business for the foreseeable future (ASA 570, para. 2; ISA 570, para. 2). When an audit is being planned, the auditor must consider whether or not the company will remain as a going concern.
When a financial report is prepared, those charged with governance (Board of Directors) are responsible for ensuring that the information contained within it is relevant, reliable, comparable and understandable. As well as this they must also ensure that the report is true and fair in nature which means that the reports must be faithful and have a consistent application of accounting standards or applicable framework. Management, or those charged with governance are required by Section 295(4)(c) of the Corporations Act 2001 to provide a Directors’ statement of solvency, stating that to the best of their knowledge and information, the entity does and will continue to trade as a going concern for the foreseeable future. The Accounting Standard AASB 101 Presentation of Financial Statements states that management must make an assessment as to the ability of the entity to continue trading as a going concern in the foreseeable future when preparing the financial reports and make necessary disclosures as to any conditions that may
The company we have chosen is “Aircruising Australia Limited”. The company is Australian owned, based in Sydney and was established in 1983. The company operates under “Bill Peach Journeys”. The company provides a service to its customers. They aim to give people the opportunity to have air cruise experiences in Australia and worldwide. They provide travel through private aircrafts, cruises and private trains. They also organise personalised tours, accommodation and fine dining throughout the travel.
The term going concern refers to the assumption that the company will remain in business for the foreseeable future (ASA 570, para. 2; ISA 570, para. 2). When an audit is being planned, the auditor must consider whether or not the company will remain as a going concern.
When a financial report is prepared, those charged with governance (Board of Directors) are responsible for ensuring that the information contained within it is relevant, reliable, comparable and understandable. As well as this they must also ensure that the report is true and fair in nature which means that the reports must be faithful and have a consistent application of accounting standards or applicable framework. Management, or those charged with governance are required by Section 295(4)(c) of the Corporations Act 2001 to provide a Directors’ statement of solvency, stating that to the best of their knowledge and information, the entity does and will continue to trade as a going concern for the foreseeable future. The Accounting Standard AASB 101 Presentation of Financial Statements states that management must make an assessment as to the ability of the entity to continue trading as a going concern in the foreseeable future when preparing the financial reports and make necessary disclosures as to any conditions that may