Essay Individual Research Assignment On Corporate Communication

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ACCT3302 Individual research assignment on corporate communication
As companies are keeping searching for more usefulness and effective ways to communicate with investors, analysts and business partners, the use of non-GAAP financial measures is making an answer.
a. Statutory profit means the company states its profit followed GAAP metrics which is calculated by adding one off gains or losses to underlying profit. It is the bottom line of a company’s profit and loss account. It is required by law and accounting standard to include everything that must be added and deducted from revenue. (Lexicon.ft.com, 2015) Comparing to underlying profit which is a term to describe the actual reflection of a company’s profit which is a kind of non-GAAP reporting method. This number is calculated by the company to show what they believe to be an accurate reading of the company 's profit position and may exclude onetime charges or infrequent events. It shows how the business will be performing year after year if all other factors remain same. (Investopedia, 2009)
According to the annual financial report given, the statutory profit for AMP in 2014 is the Profit attributable to shareholders of AMP Limited which is $ 884 million. The underlying profit is $ 1045 million. Regarding to note 3(d) of the financial report,
Underlying profit $1045
Other items (one-off and non-recurring revenues and costs) 7
AMP AAPH integration costs (20)
Business efficiency program costs (100)
Amortisation of AMP…

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