Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The main purpose of this assignment is to analyse the financial statement of a company. The
company which is selected for this assignment is Downer Edi ltd. The assignment will be
analysing whether the company follows the general purpose financial reporting framework. The
second part of the report will be containing various reporting criteria which is followed by the
company and recognize the fundamental qualitative characteristic as well as enhancing
qualitative characteristic as per the analysis of the financial statement of the company.

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CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Discussions......................................................................................................................................3
Objectives of General Purpose Financial Reporting...................................................................3
Recognition Criteria.....................................................................................................................6
Fundamental Qualitative Characteristics.....................................................................................8
Enhancing Qualitative Characteristics.........................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
General Purpose financial reporting provides a framework which every organization must
follow for effective preparation and representation of the annual reports of the company. The
reporting framework is quite crucial as it is used for the preparation of the financial statements
on the basis of which the performance of the business is judged (Henderson et al. 2015). The
framework was introduced by International Accounting Standard Board (IASB) for the ease of
fair representation of the financial reports of the company. The general purpose financial
reporting framework normally comprises of accounting standards which are used and accounting
policies which the business follows.
The company which is selected for this assignment is Downer Edi ltd which operates in
Australia. The company is engaged in designing and building sustain assets for its customers.
The company also has operations in New Zealand and employees more than 56000 employee
across its operational sites (Downer Corporate Site. 2018).
Discussions
Objectives of General Purpose Financial Reporting
The preparation of financial reports of the company requires the company to adhere to all
relevant standards, principles and convention which are applicable. The main objectives of
General Purpose Financial Reporting framework are given below:
1. The main objective of the General financial reporting framework is that the financial
reports of the company needs to be prepared such that all relevant financial information
are available to the stakeholders of the company (May 2013). In addition to this the
information should be fairly represented so that the information can be used by the
potential investors of the company at making decisions about investments. In the case of