MAA310 Accounting and society - Assessment task 1 Report

Required:

Assume you are a business consultant, reporting to the board of directors of KiMy Ltd, a large Australian public company which is not listed on the Australian Securities Exchange. KiMY is a family owned company with ten major shareholders, five of which are board member. KiMy provides software services to the Victorian government. Over a number of years, it received over $10,000,000 to develop and operate the Victorian public transport ticketing system. On a continuing basis, KiMy receives significant business from the Victorian Government to maintain and update the ticketing system. KiMy also has a number of other large customers. There were problems and delays with the development and implementation of the ticketing system which attracted much media attention. Most Victorians have an opinion and interest in the ticketing system. KiMy is required to lodge annual reports with ASIC and currently prepares Special Purpose Financial Statements (SPFS), having decided it is not a reporting entity which is required to lodge General Purpose Financial Statements (GPFS). You have been contracted to provide a report to KiMy’s Board of Directors which:

2. Explains the distinction in the current requirements for GPFS Tier 1 and GPFS Tier 2 under the current reporting framework. (suggested 100 words)