GROUP MEMBERS:

BONNIE
MARIANA TALEI
JOSEPHINE ST JOHN

ASSIGNMENT 1
ACCOUNTING FOR COMPANIES
Introduction

Kontiki finance is a full services provider to our customers and enterprises. This essay will
elaborate on the date in which the company was established and, nature of the business, types of
business actives undertaken, location of the company in Fiji. In addition, Kontiki finance was
established on the year
And is a secondary oriented business. Moreover, the headquarters of the kontiki branch is located
in Suva and other branches is located in Lautoka, Labasa, Nadi etc. Furthermore, some types of
business activities undertaken in the company are; establish clear responsibilities for board
oversight and promote ethical and responsible decision making. therefore, kontiki finance
provides employment efficiency in the economy.

Share Capital
The company’s par value of a share is $0.09 and authorized capital is $1151395.29 with a
number of shares issued 12793281. Moreover, the numbers of shareholders in the company is
230 whereas the largest the shareholder in the company is Impala Investments Pte Limited which
holds 20% of the shares in the company. Therefore, the types of shares traded on the stock
exchange are; trade payables, Payable to related party and Accrued and other liabilities.

Accounting Information
Consistency concept states the same accounting method is used from one accounting period to the next
for comparison . This accounting concept is shown in the annual report under the principle 1: states that
establish clear responsibilities for board oversight which is, practices and procedures the board must
follow in carrying out its duties.
Monetary concept this transaction states that all accounting transaction must be recorded in money terms
this is shown in the report under statement of financial position, performance and also cash flow
statement. The listed accounting statement is all recorded in money terms. This is done so that auditors
can easily understand.

Going concern concept assumes that the life of the business is going to continue its operation
unless in the verge of liquidation .This concept has been used in the financial statements as stated
in the annual report.
Henceforth, two qualitative characteristics of accounting used in the annual report are; firstly,
understandability states the financial report should be clear and understandable for the users to
make effective decisions. This characteristic is shown in the report under principle 6 (promote
ethical and responsible decision-making) for instance the policy promotes principle of
transparency, accountability and relevant disclosure. Secondly, comparability states the users of
financial statements should be able to compare reports form one year to another to evaluate the
performance of the company hence this characteristic is applied in the annual report because the
profit increased when compared to 2018.

Audit Opinion
Qualified Audit Opinion, is a statement issued in an audits report that compromises a company’s
audited financial statement, its an auditors opinion that suggests the information provided by a
company was limited in scope or there was a material issue with record to the application of
generally accepted accounting provided (GAAP).It can also be issued if a company has
inadequate disclosure in the footnote to the financial statements. Moreover, an unqualified
opinion is an auditors judgement that financial statements are properly in detail with compliance
to generally accepted accounting principles.(GAAP).In Addition, as an investor I would be able
to know which company to invest in to receive a favorable return on my investment, the
company in which I will be investing in will be trustworthy and also due to the auditors opinion
as an investor I will be able to see the amount of debt the company is involved in, thus the
auditors opinion is paramount.

Conclusion
As a result this assignment has taught valuable lessons such as, financial statements should be
clear and understandable, companies must disclose all relevant information and we learn that
transactions recorded in the financial statements are to be recorded in monetary terms to help in
the performance and position of the business so that users can make efficient decisions.
Bibliography
[ CITATION Ann19 \l 1033 ]