From the annual report of Karoon Energy Ltd company and in addition, to providing examples, define, describe and critically discuss the objectives of general purpose financial reporting (GPFR)? Which...

PROJECT REPORT ON GENERAL PURPOSE FINANCIAL REPORTING
TABLE OF CONTENTS
    
Serial No.
    
Contents
    
Page number
    
1.
    
Introduction
    
3
    
2.
    
General Purpose Financial Reporting
    
4-5
    
3.
    
Objectives of GPFR within the Conceptual Framework
    
6-8
    
4.
    
Conclusion
    
9
    
5.
    
References
    
10
INTRODUCTION
Karoon Energy Ltd is an Oil and Gas Exploration and Production Company (Karoon or the Company) listed on the Australian Stock Exchange. It was incorporated during November 2003 but got listed on the Australian Securities Exchange Board in June 2004. It has headquarters in Melbourne, Australia but has offices in Peru and Brazil as well. The two important persons to contribute to the foundation of the company are Mr. Robert Hosking (Managing Director) and Mr. Mark Smith (Director of Exploration). The company has a highly trained and qualified team of persons who perform the operations and production-related activities. Being an Oil and Gas Exploration Company safety is the foremost priority in this Company. Various strategies are adopted by the Company to maintain trust and loyalty among its Shareholders. The company strives to achieve maximum benefits from the existing resources and carry out extensive innovation and research work to make use of resources efficiently and explore new resources.
The main purpose of this report is to make a detailed analysis of General-Purpose Financial Reporting – its definition, description, conceptual framework, objectives, and how the above-stated company Karoon Energy Ltd. establishes its financial Statements and what does it contains. It will analyze whether the company prepares GPRF and its objectives are fulfilled. The main aspects which are dealt with within it are the assets, liabilities, income, expenses, etc. The report will also deal with all the components which are to be kept in mind while deciding the Conceptual Framework of General-Purpose Financial Reporting (GPFR) and the reasons for which it should be simple and reliable.
GENERAL PURPOSE FINANCIAL REPORTING (GPFR):
1. Definition and Description
The General-Purpose Financial Reporting (GPFR) refers to the statements and reports which are presented to different groups of users by the Board of Directors of a Company (Flower, J. and Ebbers, G). There are various purposes for which these statements are issued. For example, to analyze the creditworthiness of the company, knowing about the financial position of the Company, etc. The users of General-Purpose Financial Reporting (GPFR) mainly include the creditors, shareholders, and various stakeholders. It is a reporting method through which all the activities, transactions, and events relating to a company are recorded. This reporting helps in the various decision-making process and is also relevant for building trust and confidence among the investors. It signifies a communication process.
The Company Karoon Energy Ltd.is a Listed company and hence General-purpose Financial Reporting is essential to be provided to the public at large. Various Stakeholders of the mentioned company will require the GPFR for making various decisions. For example, the creditors will require it to know about the financial position and the outstanding dues of the Company, the investors will require it to know the earnings of the Company and determine their share.
1. Critical Discussion on General Purpose Financial Reporting
General-Purpose Financial Reporting (GPFR) is important for any company as it provides an insight into the Company. Some of the reasons which signifies the importance of GPRF for any company are:
· Clarity in the Decision-Making Process: As the GPRF is released by the Board of Directors of the Company, the information contained is generally considered reliable and correct. Hence the decision-making process for any stakeholder regarding any purpose becomes easier and clearer.
· Makes the Compliance Process with different authorities: As all the information is contained in the GPRF...