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.jardinematheson.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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