Inspect the BHP Billiton Annual Report for 2016, particularly the part pertaining to its Financial Statements (pp.156-225). Identify the relevant portions where the Company used Accounting Standards/Reporting Requirements consistent with those that we have discussed in class (example: Segment Reporting, Intangible Assets, Income Tax, Related Parties). Identify as many items as you can.
1.Explain how the Company applied the standards in presenting its Financial Statements.
2.When referring to the annual report, cite the actual page that you are referring to and the section. You may access the 2016 annual report of BHP Billiton using this link: http://www.bhpbilliton.com/-/media/bhp/documents/investors/annual-reports/2016/bhpbillitonannualreport2016_interactive.pdf
3.Only use the Deegan Financial Accounting Book as reference for the relevant accounting standards. Cite the page being referred to in the book.
For Example: Consolidation Procedure – As stated by the Annual Report of BHP Billiton in p. 160 in principles of consolidation, the effect of intragroup balances and transactions have been eliminated. This is consistent with AASB 10 (Deegan, p. 925) which states that Consolidated financial statements eliminate in full intra group assets and liabilities, equity, income and expenses and cash flows relating to transactions between entities of the group.
You may also present it in a tabular or bulleted format by stating the item cited in the annual report, the relevant accounting standards with their respective citation and a brief explanation.