DISCLOSURE ANALYSIS

Analysis of YBR Holding Limited

Analysis of YBR Holdings Limited

Yellow Bricks Road Holding Limited (YBR) is an Australian non-bank financial services company whose prospect is to lead the industry by 2020. As a result of this ambition, the company has laid down a strategy that will help them realize the dream before 2020. As a result of this ambition, the investors and regulators are interested in learning very important information regarding the company’s profitability, cash flow, compliance, and strategic goals. Therefore, a lot of importance is put on how credible that YBR will disclose information about itself (Yellow Brick Road, 2016). This paper will analyse the disclosure status of the company.

The financial reports that are necessary for any company include the balance sheet, statement of cash flow and income statement. This has all been given in the annual report of the company and has been clearly illustrated. For the purpose of being informative and showing the trend to the interested stakeholders, the company have prepared important financial aspects in comparison with that of previous year.

In the disclosure, and to enhance the reliability of the reported information, the company creates a room for the declaration of the independence of the auditors. The independent auditor, as required for by the section 307c of the Corporations Act 2001, provided a declaration of no contraventions and signed alongside it.

In terms of shareholding and stocks, the company has provided a list of the major shareholders and the value of the shares they hold. The report also compares the share value for each at the beginning and at the closing of the year. This is very important to promote transparency and accountability.

The other important information that have been disclosed in this annual report is the compensation and remuneration linked to performance as well as fixed proportion, this is important to know how the revenue is used to compensate the executive directors, non-executive directors, and other key management personnel. This break-down of compensation, remuneration, and benefits is also compared to the previous year for the purpose of comparison.

The company also discloses the name of all the members of Board of Directors as well as their credentials and the qualification for every position. This also include the relation to the position and various position held before rising to the current position.

Among other important information that the company gives is visual representation of key issues like the profitability with time, the share prices growth, market growth, qualified representative numbers, the lending rates among others. This information is presented in graphs and charts to enhance visibility.

Ranking table

Analysis

Ranking /3

1. Nature and regulation of companies

  • The company gives a clear information of its shares, shareholding, Board of Directors, and market regulations and compliances that guides the business activities.

2. Financing

(debt, equity)

  • The company provides Statement of Financial Position with separate current and non-current liabilities, with notes providing additional detail for most liabilities

  • The four components; outstanding shares, retained earnings, treasurer stock, and paid-capital for the company have been shown with notes for elaboration

3. Company operations and financial statements

  • Statement of Comprehensive Income presented in a number so statements that are detailing profit and other comprehensive income

  • Dividends paid clearly detailed in Statement of Changes in Equity

  • Sales from lending and deposits are clearly shown

  • Accounting policies in compliance with Australian Accounting Standards, comply with IFRS.

  • The expenses are classified by nature or function.

4. Financial statements

  • Four types of financial statements given

  • The cash flow statement is clear with all the necessary cash flows

  • The balance sheet is clear, separating all the components clearly

  • The income statement is well displayed and gives the net income and other break-down explicitly

5. Accounting for income tax

  • The effects of the income tax on the loss and profit after income tax is clearly indicated.

  • The income tax provision is clearly indicated

6. Business combinations

  • Business combinations enumerated. Details on business combinations and the plans laid down to diversify the business and services provides not explained clearly especially in the innovations sector

7. Consolidation

  • Provides the principles of consolidation.

  • The financial statements incorporated the assets and liabilities of all subsidiaries for the financial year.

  • Little notes to explain the consolidation

The company has disclosed almost all the information that the interested parties would like to view before making a decision to invest in the company or not. The financial details, the company operations, the consolidation, the accounting income tax, as well as the accounting principles and compliances that they have use. The company displays a great disclosure principles awareness.

References

Yellow Brick Road. (2016). Annual Report for FY2016. Sydney: Yellow Brick Road.