ACC303: Contemporary Issues in Accounting

Contemporary Issues in Accounting

Executive Summary
The current framework meets the requirements of various users of financial statements as stated
in the main motive behind the framework of accounting. Recent study shows that AGL Energy
and Alinta Gas both the organization are providing relevant information to their users in order to
take right decisions. This report will assess revision of framework of accounting to include
Prudence in order to recognize inequality in financial reporting.

Contents
Executive Summary................................................................................................... 2
Introduction................................................................................................................ 4
How framework of accounting meets the requirements of various stakeholders with
the help of financial statements-................................................................................4
Analyzing the conceptual framework with reference to the annual reports of AGL
Energy and Alinta Gas-............................................................................................... 7
Analysis of framework of accounting in order to analyze prudence in the financial
statements –............................................................................................................... 8
Analysis of conceptual framework revision to include Prudence with reference to the
annual reports of AGL Energy and Alinta Gas-............................................................9
Conclusion and Recommendation............................................................................11
References............................................................................................................... 12

Introduction
The organizations which are being analysed are AGL Energy and Alinta Gas from Australia. The
major objective of this study is to evaluate the financial performance and operation performance
in order to report various stakeholders like shareholders, lenders and creditors with the AASB
guidelines. The assignment also focuses on conceptual framework designed to make sure that the
organizations should help in analyzing true value of the organization. Both AGL Energy and
Alinta Gas are recognized organizations in Australia. Disparity in Corporate Reporting will also
be analyzed in this assignment.
How framework of accounting meets the requirements of
various stakeholders with the help of financial statements-
The conceptual framework is a new concept. This conceptual framework in Australia has
resulted in evolution of even accounting standards which is majorly a n issue in daily life which
is more reactive in approach. The deficiency in financial statements had increased the risk that
accounting policies are not consistent with each other. This risk of inconsistency in the financial
statements will not be able to meet the need of various users of financial statements (Cheng et.
al., 2014). But, conceptual framework brings consistency in the financial reports which meet the
requirements of various users of financial statements as stated.
A financial statement has included a design which increases the reliability of reliability
consistency, and helps the users of financial statements in the advance of standards for future.
The current accounting framework helps the users in interpretation of information associated
with financial statements as it provides an understanding on the principles on which financial