Business Research and Communication Boral Multinational Corporation

Question: Describe about the Business Research and Communication for Boral Multinational Corporation. Answer: The Background of Boral Limited and its activities related to PPE Boral is a multinational corporation that specializes in building as well as construction materials. It started in Australia but currently it operates in Asia and the United States. It has more than 12000 employees working in more than 600 sites. During the year 2013 alone, it made sales around A$5.29 billion. Initially, it was referred to as the Bitumen and Oil Refineries Australia Limited until the year 2000 when it changed to Boral. During the process of changing its name, the energy assets changed to Origin Energy. It should be noted that the Origin Energy and the Boral Limited are registered separately on Australian Stock Exchange ("Building Construction Materials Boral," n.d.). Its activities related to PPE A careful analysis of the Boral Limited shows that it follows the principles of faithful representation. This is due to the fact all financial information are error free and very correct. It is always necessary to provide all the financial information in clear and concise manner. The Boral Limited is, therefore, compliant with PPE. Extent on the disclosure on PPE Boral Limited has for a long time gave their reports concerning property, plant, and equipment. Some of the things that they disclose include the land they own, buildings, office equipment, machinery, vehicles, and the fixture (Laux, 2007). The properties disclosed on PPE are always long-lived. They are tangible assets. Disclosing the information on PPE is very useful when it comes to financial information. It allows the use of two valuation models namely the revaluation model and the cost model. The cost model always needs the PPE to be done on depreciation that is less accumulative. The revaluation model implies that the assets are carried at a highly revaluated amount. For this to happen, then the assets fair value at its date of revaluation should be less when compared to any accumulated depreciation (Hlaing Pourjalali, 2012). As well as any other subsequent accumulated impairment. Fair value can be described as the amount of money for which any asset can be changed between parties. Each of the above models is always applied consistently in all the PPE found within the same class. A class of assets, in this case, refers to the assets that are similar or those that perform similar functions within the business (Laux, 2007). Despite the fact that the IAS 16 lacks clarity on how each and every asset should be revaluated, the Boral Limited always tries to provide all the needed financial information in a clear and concise manner. The objectives of providing accurate financial information are to help during the decision-making process. Providing wrong information means that inappropriate decisions will be made. The finance department within the Boral has always provided the right information (Hlaing Pourjalali, 2012). The information provided has helped in knowing what is missing and what is available. The market value of the assets has however never been indicated on plant, property, and equipment. Recommendation After a careful analysis of the Boral Limited PPE, it is clear that certain things or elements should be changed. It is important that all the market value of the assets should be provided. Providing the market value helps in comparing the current market prices thus aiding in making the right decision. Including the market value also helps in knowing the valuation prices. References Highlights of the Collective Insights Recommendations for DoD's Valuation of General Property Plant Equipment' 2015, Armed Forces Comptroller, 60, 4, pp. 26-30, Business Hlaing, K, Pourjalali, H 2012, 'Economic Reasons for Reporting Property, Plant, and Equipment at Fair Market Value by Foreign Cross-Listed Firms in the United States', Journal Of Accounting, Auditing Finance, 27, 4, pp. 557-576 Laux, J 2007, 'Accounting Issues: An Essay Series Part IV--Property, Plant, Equipment', Journal of College Teaching Learning, 4, 11, pp. 41-46 Building Construction Materials Boral. (n.d.). Retrieved from https://www.boral.com.au