Case 3- 1 Jardine Matheson Group (Part 1)

The Jardine Matheson Group is a major conglomerate within the Asian region. Its business interests

include large companies, which are market leaders in many fields, including engineering and

construction, transport services, motor trading, property, retailing, and insurance broking. Jardine

Matheson was incorporated in Bermuda; it has its primary share listing in London and secondary

listings in Singapore and Bermuda; and it operates from Hong Kong and provides management

services to other companies in the Group, which aims to produce sustained growth in shareholder

value.

Jardine Matheson uses IFRS in preparing its financial statements and has done so for a number of

years.

Required:

Q. Access Jardine Matheson’s most recent annual report on the company’s website (www.jardine-

matheson.com). Review the company’s consolidated financial statements to evaluate whether the

financial statements presented comply with the presentation requirements in IAS 1, Presentation of

Financial Statements. Document your evaluation.

A. Jardine presents a consolidated profit and loss account, consolidated statement of comprehensive

income, consolidated balance sheet, and consolidated statement of changes in equity, all of which

are in accordance to IAS 1.

Regarding the presentation of the consolidated profit and loss account, Jardine uses the “function of

expenses” format in its financial reporting, however the expenses are not presented in the financial

statements but are instead split out into items found in the notes to the financial statements.

Regarding the presentation of consolidated balance sheet, Jardine presents the minimum items

required by IAS 1 in its balance sheet. Jardine does however combine its retained earnings and other

reserves into a singular item named “revenue and other reserves”. Jardine also employed some

terminologies which are different from the IAS 1, such as ‘stocks and work in progress’ instead of

inventories, ‘bank balance and other liquid funds’ instead of cash and cash equivalents, ‘tangible

assets’ instead of property, plant and equipment, and ‘creditors and accruals’ instead of trade and

other payables.

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Case 3-1

Jardine Matheson Group (Part 1)

The Jardine Matheson Group is a major conglomerate within the Asian region. Its business interests

include large companies, which are market leaders in many fields, including engineering and

construction, transport services, motor trading, property, retailing, and insurance broking. Jardine

Matheson was incorporated in Bermuda; it has its primary share listing in London and secondary listings

in Singapore and Bermuda; and it operates from Hong Kong and provides management services to other

companies in the Group, which aims to produce sustained growth in shareholder value.

Jardine Matheson uses IFRS in preparing its financial statements and has done so for a number of years.

Required:

Access Jardine Matheson’s most recent annual report on the company’s website (www.jardine-

matheson.com). Review the company’s consolidated financial statements to evaluate whether the

financial statements presented comply with the presentation requirements in IAS 1, Presentation of

Financial Statements. Document your evaluation.

Financial statement’s fairness of Jardine: comply with the requirements of IAS 1. The financial

statement is presented fairly with financial positions, financial performance and cash flows of an entity.

It meets the requirements for faithful representation of the effects of transactions, other events and

conditions in accordance with the definitions and recognition criteria for assets and liabilities

Basic principles and assumptions of Jardine.: comply with the requirements of IAS 1. Jardine follows the

accrual basis, going-concern assumptions, the consistency and comparative information principles. The

assets and liabilities are reported at net amount.

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Structure and content of financial statements of Jardine:

Balance Sheet: comply.

Profit and Loss Account: comply

Statement of Changes in Equity: comply

Cash Flow Statement: comply

There is a distinct on current and noncurrent assets and liabilities (balance sheet). Items are presented

on the face of financial statements and certain items can be find in the financial notes.

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