The prime purpose of this report is to discuss financial breaches in an Australian Company called Brass State Oil Company Limited(also called the Company or simply BAS), by appraising their financial statements. It is famously enlisted on the stock market index of Australian stocks: ASX 300. This report highlights and discusses various aspects such as accounting policies and procedures and financial policies that is linked to their financial statements such as Income Statement and balance sheet. It also argues and concludes whether the company is pursuing illegal means or abiding to the rules and regulations regulated by the local authorized parties in Australia i.e. the Australian Accounting Standard Board and the International Financing Reporting Standards. Furthermore, it thoroughly examines various accounts and incomprehensible transactions made by the company and the accounting policies of a competitor company: BHP Biliton. INTRODUCTION:Bass Oil Limited is an Australian petroleum producer company listed on the stock exchange. It is currently devising corporate strategies inorder to preserve a competitive advantage in the stock market. The Research and Development department of the company forage for exploration and production opportunities in the regions allocated in Southeast Asia that will perpetuate its growth by expansion. According to their annual report, their management holds 19.6% while another Australian based Cooper energy has 15.8% interest which is comparatively less, hence it accentuates the robust shareholder base of Bass Oil Limited. Through extensive inquiry, inland oil and gas development openings in Australia and its nearby neighbors are distinguished.There is an significant increase of lucrative delivering properties being enlisted for divestment of organizations wishing to support the company’s portfolios. They are advanced to a securing process if they meet the Company’s speculation criteria.The company is paying heed to its contemporary assests inorder to recognise its value and significance by expanding its business by taking up more projects at different exploration and drilling sites. They are currently engaged in an exploration project in Gippsland basin. It is the Principle owner of two investigation sites namely which are adjacent to one another and are located in the north eastern Gippsland bowl . Vic/P41 and Vic/P68 are two permits for petroleum exploration which are found roughly 20 kilometers south of the Victorian drift line. These two grants provides the Company access to an important East drift gas showcase where the gas reserves have a tremendous position in the stock market due to the developments and authorizing of the Liquefied Natural Gas (LNG) plants in north Queensland.OIL VALUE CHAINS AND ACCOUNTING ISSUES:The primary objective of BAS is to explore and locate oil reserves and then extract and refine the oil and petroleum products to the market. Oil reserves and drilling sites require a huge amount of capital and initial investment to locate and extract the fossil fuel and hydrocarbons reserves in challenging sites. Oil reserves are extracted from underground by drilling machines but its resources may not be economically reasonable. These natural resources are beyond the scope of International Accounting Standards (IASB), namely, IAS 16 “Property, Plant and Equipment” which deals with the recognition of plants etc as assets and IAS 38 “Impalpable Assets” which sets the standards for recognizing and measuring assess. The financial statements of oil companies is dependent on the reserves and resources. the financial statement deals with depletion, depreciation and future reserves which are used to analyse engineering and geoscience data. Recognizing and the record maintenance of natural reserves is an arduous task. Therefore, two techniques which have diverse variations have been adopted by the Generally Accepted Accounting Principles (GAAP) to represent E&E and the improvement costs, complete cost and successful ventures.THE REPORT OF 2016:The Executive Director of BASS, Tino Guglielmo, talked about the company’s financial statement in the Gippsland basin in the Annual Report of 2016. This was used along with the data provided on account of the unforeseen and predecided assets given in the ASX discharge. The Company is oblivious of this information that fundamentally affects the data given. The specialized data parameters complementing the conclusion given by the director continues to apply. BASS has hence, applied to the National Offshore Petroleum Administration to dissimilitude their program.ANALYSIS AND EVALUATION:An entity account is sustained to keep record of expenditure and evaluation of natural resources including oil. It is in accordance of IFRS 6 (Exploration for and Evalutation of Natural Resources) that sets the requirement for entities to oblige to, for exploration and evaluation at extraction sites which is under the policy of GAAP. The director’s report of 2016 stated information about The Company’s directors as shareholders, annual income, expenses and its dividents. No dividents were acknowledged or paid by the company thus reducing its shareholder value.TRADE RECEIVABLES AND OTHER REPAYMENTS:Bass Oil Limited follows certain rules as per the Accounting Standard Board of Australia to maintain trade receivables and other prepayments.. Exchange and different receivables, which for the most part have 30-60 day terms, are perceived at first at reasonable esteem and along these lines measured at amortized cost less a recompense for weakness. A hindrance arrangement is perceived when there is target proving that the Group won’t have the capacity to gather the receivable. The measure of the weakness misfortune is the receivable conveying sum contrasted with the present estimation of evaluated future money streams, marked down at the first powerful loan cost. All these policies are set in accordance with the Australian Accounting StandardBoard.BUSINESS STRADEGY OF BASS OIL:Cash generating position from present operations and from new resources throughout Australia, keeping record of financial statements and development of oil business in East Australia are the three fundamental policies of the Company with the aim of increasing its profit. This will paves way to fulfill central , business and specialized criteria while maintaining security, its workers and the environment. The financial report is produced daily in order to analyse its assests and progress.BHT BILLIGTON PETROLEUM:It is an Australian based company and is competitive rival of BASS Oil Limited. It is universal research company that its purpose is to create long term share holder value through natural resources, they value sustainability of the environment, integrity, performance, simplicity, performance and accountability. They follow the rules of AASB. The planning of the Consolidated Financial Statements expects the administration to make judgments, gauges and frame presumptions that influence the measures of benefits, liabilities,unforeseen liabilities, incomes and costs. The continuous premise HI6025 Accounting Theory and Current Issues 10 of the company, administration assesses its judgments and gauges in connection with the areas mentioned before. They follow critical accounting policies for estimation which can affect financial results of the company. Real outcomes may vary from these appraisals under various suppositions and conditions.ACCOUNTING POLICIES:According to IFRs, the company is required to draft its Financial Statements by incorporate data concerning nature of the appraisals, judgement and potential effect on our money related outcomes or budgetory position. The RAC judges and makes proposals to the Board about the prosperity of bookkeeping arrangements and regions of judgement consistent with the Accounting Standards, stock trade and lawful prerequisite and the outer effects the outer review. The financial statement of BHP Billiton was approved by the CFO which shows that their results are in accordance with the requirements set out, are properly managed with true share value. The book keeping arrangements have been reliably connected by all substances incorporated into the company merged monetary explanations and are reliable with those connected in the previous years.ANALYSIS OF FINANCIAL INFORMATION:The loss of the company increased drastically due to issuance of shares resulting in an increase in share holders and debt payments.As per the annual report, Brass Strait Oil Limited, it suffered a loss of of $4,030,740 in the fiscal year of 2016 and loss of $836,252 in the fiscal year of 2015. In the current year, the company has received a majority of the new Standards and Interpretations issued by the Australian HI6025 Accounting theory and current Issues 11 AASB that are germane to its operations and powerful for the current fiscal year which had no progressions to bookkeeping arrangements, acknowledgment and estimation.The revenue generated by the company in 2016 is $41,307 and in 2015 it was $246,660. It is an alarming revelation as they are not generating enough income to meet their expenses. Different Standards and Interpretations were not compelling at the date of authorization of the financial report. The issues of these Standards and Interpretations does not influence the Group’s display and operations. The Directors suspect that the selection of these Standards and Interpretations in future periods will not affect the sums perceived in the money related articulations of the Group. However, they may change the divulge by and by putting forth in the money related expressions of the Group.AUDITOR REPORT: In an Auditor report, it was stated that the financial statements that represented all aspects of the financial status of a company are in accordance with the clauses stated in the section 307C Corporation act of 2001 which states that the company is maintaining its financial records by abiding to the AASB act. (There is no contravention of any applicable code of conduct of the company in relation to the audit. The Company will look to raise facilitate capital, if required, as and when important to meet its anticipated operations) Future methods adopted to raise capital will depend on the economic conditions encompassing the company as well as external factors such as shareholding. On 30th June 2016, according to the Directors, the exercises practiced in all aspects has not reached a stage where it can be evaluated regarding its financial recovery.ANALYSIS:The Bass Oil Stat Limited is working vigorously on its expansive policy as it is a significant strategy, Its affiliation with the Indonesian creation resources gave investors a fresh start. It reports an elevated underway at the Tangai-1 well, consequent to the expulsion of scale limitation in the Tangai-1 flow line as a major aspect of the field enhancement program. The oil flow rate will enhance from 50 to 150 bopd after the well finishes the coming month. Generation amid the period of August 2017 proceeded with which emphatically mirrors the field enhancement work being embraced this quarter.Creation totaled 18,590 barrels of oil (100% JV Share) or 10,225 barrels.