Part A:
Question 1
Describe the principal activities of the company?
In Australia, the country where many popular companies in the world are placed,
specifically in Gold supplying fields, A1 Consolidated Gold Ltd is one of the best
companies focusing in supplying gold and other minerals exploration projects with 3
mineral expansions and investigations within 120 kilometers area in the North East of
Victoria, Melbourne. A1 Ltd established on 14th February 2011 in New South Wales. This
Company entered the gold market later than other companies. However, they identify their
purpose as becoming the best junior resources company in gold market (Annual Report of
A1 Consolidated Gold Limited 2013).
Question 2
Define the revenue recognition criteria of the company and identify the note (number) that
deals with it.
The revenue of A1 Consolidated Gold Ltd has strongly increased from 30th June 2012 to
30th June 2013 ($119,712 compared with $202,175).
In conclusion, because of the rise in Bank Interest received ($119,712 to $158,165) and the
presence of Fuel Tax Credits received in 2013 ($44,010), based on the criteria of the
company, this is considered a good trend in revenue showing the company potential
profitability (Annual Report of A1 Consolidated Gold Limited 2013).
Question 3
Describe how the company values all classes of property, plant and equipment? Identify
the note (number) this is stated?
According to Annual Report 30th June 2013 (A1 Consolidated Gold Limited 2013), all
classes of property, plant and equipment were valued by listing every item at cost,
followed by their attributes such as accumulated depreciation. There were appearances of
net carrying amount value of every item calculated by subtracting cost value from
accumulated depreciation value. The total value of classes above is calculated by summing
them.
All classes above were staged on note of 8 from page 34 to 35 (Annual Report of A1
Consolidated Gold Limited 2013).
Question 4
Name the Auditor responsible for performing the audit of the financial statements of the
company. Explain why auditor must declare their independence, and also explain why the
financial statements must be audited by an external party.
According to Annual Report 30th June 2013 (A1 Consolidated Gold Limited 2013), the
Auditor named L Di Giallonardo has responsibility of performing the audit of financial
statement of the company. His responsibilities include declaring independence of the
Auditor from A1 Consolidated Gold Limited; reporting on fields including Financial
Report. The responsibilities of Directors on Financial Report and the duties of the Auditor;
at the end he has to confirm for the things he performed in accordance with the
