Discussion

Aspire Mining Limited operating as an exploration and development company with its primary focus on the discovery and development of the coal deposits in the Mongolia region. The public company is listed in the Australian Stock Exchange with its ticker symbol as AKM. The country focuses on country like Mongolia a mineral rich country where the work of exploration and supplying it to the largest consumers like China and Russia. The company has followed and complied with the Australian Accounting Standard Bodies for the preparation of the financial report for the company. The financial report for the company were evaluated to identify the various qualities and characteristics it provide while analyzing the performance of the company (McCombs 2017).

Aspire Mining Limited Company has followed the historical cost basis concept for reporting the financial report of the company and the cost is based on the fair values of consideration for exchange of assets. The functional and the reported currency for the measurement of the financial report was the Australian Dollars (Nichols 2018). The financial report for the company has been based and prepared on the going concern basis. The financial instruments of the company were measured using the AASB 9 (2014) which guides the company with the classification and measurement of the accounting policies for classification and measurement of the assets (Spencer and Webb 2015). The financial report for Aspire Mining Limited Company has complied within the given standard rules and regulations of the Australian Accounting Standards. The AASB 15 helps the company recognizes the contracts with customers for determining the revenue of the company and the company has followed the same for

The company for the classification of leases as finance lease has applied the AASB 16. The company based on the flowing economic benefits to the Group and the measurement of the revenue simultaneously recognizes the revenue. The cash equivalents for the company were measured by the cash the company in the form of cash in hand and cash at bank. The company has complied with the conceptual framework policies of accounting and the same were used in the preparation of the financial report for the company (Lafond, McAleer and Wentzel 2016).

The fundamental qualitative characteristics of the Aspire Mining Limited Company reflects the usage and application of the various accounting principles of the company and the usage/application of the same in the context of decision making by the firm. The companies should try to maintain the general criteria and characteristics for preparation of the financial report of the companies (Henderson et al. 2015).

• Relevance: The accounting data and informations presented by the company should be relevant enough and the auditors of the company should verify the same. The relevant financial data will help the investors and stakeholders of the company assess important and relevant data in the process of decision making and evaluating the financial condition of the company. The data and informations presented by the company were found to be relevant enough as the companies have provided all relevant details and information’s

• Faithful Representation: The financial report presented by the company should be faithful and relevant enough so that the same can be applied for forecasting the financials of the company and making relevant decisions. The accounting informations included in the financial report of the company should be relevant and should be assessed on the accounting principles that are neutral. The auditors of the company have significantly conducted due diligence and check whether the company has faithfully represented all the

• relevant details and information’s pertaining to the same (Conway 2018).

The enhancing qualitative characteristics of the Aspire Mining Limited Company shows the representation of the financial report of the company and the qualitative characteristics the company provides. The common qualitative characteristics present and found in the financial report of the company are as follows:

• Comparability:The comparability feature provided by the company shows the measurement of the company’s financial performance with respect to the other players in the industry. The comparability features in a financial report of the company is usually see when the financial report of the comp any is prepared within the given accounting standards and the prescribed format. The comparability features allows the stakeholders and the users of the financial report asses important relevant information for forecasting the financials and the current performance of the company (Zhang et al. 2016).

• Verifiability:The auditors of the company verified the data and informations presented by the company and the same should also be verified from the company in order to ensure that the financial informations are free from error. The verified data would be useful for the stakeholders of the company in order to ensure that the financial condition and performance of the company is assessed properly (Hoque 2018).

• Timeliness: The financial informations and data presented by the company should be presented in a timely manner so that the users of the financial report could apply them in timely manner. The financial report were presented by the Aspire Mining Limited Company in a timely manner and the company has tried to present all the relevant financial data and informations timely by updating the stakeholders of the company with the developments and the actions taken by the company in the respective field (Tingey-Holyoak 2015).

• Understandability: The financial report for the company should be well within the accounting principles and the conceptual framework for the same should be followed so that the report is clear. The company has clearly mentioned the various kinds of developments and classification of accounts were observed in the financial reports, which would help the users of the financial report asses and understand the various aspects of company.

The report presented by the company were complete and clear in all respects and the same was done by following the Australian Accounting Standard Board. The investors and the stakeholders are the primary users of the financial report presented by the company, which are applied by them for assessing the financial conditions and the performance of the company. The financial report had relevant detailed discussions about the Aspire Mining Limited Company including the footnotes and notes to financial statement about the company. The measurement cost, management assumptions were clearly stated which had helped the users of the financial report able to use for making economic and financial decisions (Byrne 2018).

Fundamental Qualitative Characteristics

The conceptual framework says that if the companies follows the prescribed format and requirement than the users of the financial report would not require much in depth details about the accounting concepts. Investors and financial users should have basic accounting concept so that they are able to use the same in the analysis and decision making process. The users of the financial report and the stakeholders of the company should have basic idea and should also know various tool and techniques for evaluating the financial condition of the company for evaluating the financial condition of the company (Schaltegger and Burritt 2017).

Conclusion

The Company Aspire Mining Limited has complied with the conceptual framework and the accounting principles provided by the Australian Accounting Standard Board. The Company has provided a in-dept. detail discussion about the company accounts and operations and the various informations related to the various accounts of the companies. The financial footnotes of the company were discussed in detail and had all necessary information, which might be useful for the investor for assessing the financial performance of the company. The financial report of the company were having fundamental characteristics, which included the relevance and faithful representation of the data for the company. The company also had enhancing qualitative characteristics within the financial report of the company, which ensured that the report is completely verified and complete in all sense.  The users of the financial report were able to assess the financial condition by the given informations and details provided by the company so that the same can be applied for making economic decisions. The financial report of the company had followed relevant accounting principles and the conceptual framework so that the company meets all the requirement of the financial reporting.

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