Advanced financial Accounting Assignment Example | Topics and Well Written Essays - 1750 words

Advanced financial Accounting - Assignment Example Auckland Int’l Airport handles almost 70% of the international traffic or 13 million passengers annually for New Zealand. (Auckland International Airport, 2013). For this financial analysis, Annual Financial Filings for last three years (FY2012, 2011 and 2010) have been used. These are available on company website http://www.aucklandairport.co.nz. Summarized 3 year financial reports are provided in Appendix 1. Deloitte is the independent auditor for Auckland International Airport. Deloitte in the Audit report mentions that they conduct these audits based on International Standards on Auditing and International Standards on Auditing (New Zealand) and that it is the responsibility of the Company (Auckland International Airport) to prepare and consolidate these reports. In the Annual report of 2012 (Auckland International Airport Ltd., 2012), The Company prepares its financial statements in accordance with NZ GAAP standards. However, the auditors certify that these reports comply with NZ IFRS and other applicable Financial Report Standards, such as IFRS, appropriate for profit-oriented entities. The Company treats cash as Current Assets in accordance with generally accepted good accounting practices. Discussion on this item is relevant to Balance Sheet and Cash Flow statement. The company explains the definition of cash in Note 2h (Auckland International Airport Ltd., 2012, p. 49) as follows: â€Å"Cash in the balance sheet comprises cash on hand, on-call deposits held with banks and short-term highly liquid investments. For the purposes of the cash flow statement, cash consists of cash as defined above, net of outstanding bank overdrafts.† According to Note 2j (2012, p. 49), an estimate of impairment for uncollectible amounts is made where there is objective evidence that collection of the full amount is no longer probable. Bad debts are written off when