Advance Accounting Theory Analyses 2022

Running head: ADVANCE ACCOUNTING THEORY
ADVANCE ACCOUNTING THEORY
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ADVANCE ACCOUNTING THEORY1
Table of Contents
In Response to Part 1..............................................................................................................2
In Response to Part 2..............................................................................................................6
References..................................................................................................................................8

ADVANCE ACCOUNTING THEORY2
In Response to Part 1
As a member of the financial analysis team at Big Phore Partners it is needed to
discuss about the implementation of the new conceptual framework (CF) laid in the AASB.
The policies and procedures which are embedded in the framework is not enough. There is
currently an argument regarding the lack in the neutrality and faithful representation in the
norms laid down in the conceptual framework (Kaplan & Atkinson, 2015). The upper level
management of an organization seeks major changes in the IASB framework. The current
framework is not upto the mark which would deliberately ensure the effectiveness in the
business based on the long run objective of the organization. As per the present norms of the
IASB each and every business is facing the same kind of problem and in order to remove
such kind of problems it is needed by the management to implement some of the major
changes in the conceptual framework. Basically, it is needed to update the changes in the
framework so that the organization can comply with the work and the other proceedings
(Duska, Duska & Kury, 2018).
The significant changes of the same must be reflected in the coming framework where
by the following the principles, it will be easier for the firm to manage the operation of the
business. The financial statement of the firm is prepared based on the rules and regulations
laid in the IASB. The update in that case is needed in order to ensure that the financial
statement of the firm is free from the material misstatement and showing true and fair value
of business. It is important to maintain the faithful representation as the potential investors or
rather the shareholders of the firm are seeking to make further investment in the business.
If there is material misstatement ion the financial statement of the company then it
will harm the significant decisions made by the shareholders of the company. The company
in that case needs to make the significant business changes along with the advices made by