Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary:
The paper intends to analyse the different conceptual framework aspects in the context of Aeeris
Limited. The first section has evaluated the compliance of the organisation with the measurement
needs of the conceptual framework. The second section has emphasised on assessing the
conformity of the organisation to the qualitative characteristics of the framework. The next
section reflects the reliability of the financial statements of the organisation so that the users
could make sound decisions. Finally, the report has shed light on dissecting whether the users
require above the basic accounting knowledge in order to evaluate the financial reports of the
organisation.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
Compliance with measurement needs of the conceptual framework:.............................................3
Compliance with the fundamental qualitative characteristics:........................................................6
Compliance with the enhancing qualitative characteristics:............................................................8
Ability of the users in using the report to undertake decisions:....................................................10
Knowledge required for company analysis:..................................................................................14
Compliance with the requirements for general purpose financial reporting:................................15
Conclusion:....................................................................................................................................15
References:....................................................................................................................................16

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
All business organisations are needed to comply with the accounting regulations when
they carry out their financial reporting activities. In this way, it becomes possible to avoid issues
related to accounting and financial reporting in business operations. The situation is similar for
ASX listed organisations, since they require complying with the necessary guidelines of the
conceptual framework. In Australia, there is presence of conceptual framework for financial
reporting, which is provided on the part of IFRS and all organisations need to adhere to these
standards. The objective of this report is to assess the degree of adherence with various
accounting segments of the conceptual framework by Aeeris Limited, which is an ASX listed
organisation.
Compliance with measurement needs of the conceptual framework:
All organisations need to consider the measurement needs in their financial reporting
process in accordance with the conceptual framework and Aeeris Limited is needed to consider
the same as well. This framework mandates that all organisations are needed to report their assets
and liabilities by using two measurement bases, which include fair value and historical cost
(Macve 2015). The conceptual framework states that assets could be considered in the form of
resources, which are controlled by the business organisations and they form owing to the
historical events and future economic benefits. On the contrary, liabilities could be defined in the
form of current obligations for the organisations owing to historical events resulting in outflow
of resources (Aasb.gov.au 2018). Equity could be taken into account in the form of residual
interest in the assets of the organisation after all liabilities are deducted.