Contemporary Issues in Accounting: Analysis of Coca-Cola Amatil's Financial Reporting Process

Contemporary Issues in Accounting

Executive Summary
The report is undertaken to analyze whether the business corporations listed on ASX are
implementing the conceptual accounting framework for developing their financial reports. Fir the
purpose, the financial reporting process of Coca-Cola Amatil, listed on ASX, is analyzed for
examining the compliance of its different sections with the accounting framework of IASB. It
has been depicted that the company has applied the standard principles of accounting framework
during its overall financial reporting process.

Contents
Introduction......................................................................................................................................4
General Objective of Financial Reporting Met by Coca-Cola Amatil............................................4
Analysis of the Effectiveness of Financial Reports of Coca-Cola Amatil by Target Audience......5
Criteria of recognizing the Financial Statement Elements Used by Coca-Cola Amatil..................5
Fundamental Qualitative Characteristic of Conceptual Accounting Framework Met in Financial
Report of Coca-Cola Amatil............................................................................................................6
Enhancing Qualitative Characteristic of Conceptual Accounting Framework Met in Financial
Report of Coca-Cola Amatil............................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Australian Accounting Standards Board (AASB) is currently placing large emphasis on
implementation of the conceptual accounting framework in the financial reporting process of
business corporations operating within Australia. This is done to ensure that financial reports are
developed as per the needs and requirements of the end-users by providing them all the
necessary information for decision-making. IASB (International Accounting Standards Board)
has developed the standard framework of accounting for providing a clear direction to the
business corporations worldwide regarding the nature of developing financial reports. The
adoption of this conceptual accounting framework will also benefit the business corporations of
Australia by increasing their global competitiveness through achieving the trust and confidence
of investors worldwide (Van der Meulen, Gaeremynck and Willekens, 2007). In this context, the
report provides an analysis of the extent of adoption of conceptual accounting framework by
selected business corporations listed on ASX, that is, one of the largest bottlers of non-alcoholic
ready to drink beverages in the Asia-Pacific region.
General Objective of Financial Reporting Met by Coca-Cola Amatil
The conceptual framework of accounting has described the major objective
behind the development of financial reports by business entities to support the decision-making
process of end-users. The end-users of financial information are present and future investors that
need to gain an analysis of the overall performance of a business entity through examining its
present financial growth and success. The general purpose financial statements developed by a
business corporation provide all the required information to the end-users about its financial
condition that can prove to be useful in decision-making (Conceptual Framework, 2017). Coca-
Cola Amatil has met the objective of developing financial reports through development and
presentation of its financial statements. The financial report of the company has disclosed the
consolidated financial statements that are, income sheet, balance sheet, statement of profit and
loss, statement of change sin equity and cash flow statement. All these general purpose financial
statements are developed in accordance with the AASB standards and Corporations Act 2001 to
comply with the standard principle of conceptual accounting framework (Coca-Cola Amatil:
Annual Report, 2016). The investors can review the general purpose financial statements for