While reporting the financial position being taken by the company, it is often observed that companies get indulged in the practices of data manipulation in a way that best suits their interests. These manipulations which are made by the company are influenced by many economic and industrial factors (Beattie & Jones, 2009). As accounting standards being followed by the Boral Limited guarantees a reasonable degree of independence to the management it contributes to increase the chances of manipulations and distortions. This section of the report will try to find out that whether the data which is reflected in financial reports of the company, does truly reflect its reality or not.
The revenues are recorded by the company before the actual commencements of transactions. The practice being followed by the company is not in accordance with the guidelines provided by International Accounting Standards. IFRS clearly states that the company is allowed to report the revenues which are generated by selling products or services when the result of such a deal can be estimated unfailingly and that it is sure enough to expect that company will be able to enjoy the benefits. On the other hand Boral’s goodwill impairment, financial deals, allocation of employee benefits are recorded at the time of profit recognition in profit and loss statement in annual report published by the company. This practice is itself a clear contradiction to the strategy being taken by the firm.