Accounting Standards and Airline Reporting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The report has been able to infer the various types of conceptual framework of airline carrier
“Qantas Airways and Virgin Airlines”. The different depiction of the study has been further
included the aspect whether the financial report complied with the requirement based on the
prescribed standard. The prudence aspect has been further considered with the provision for
delaying the process in recognition of new accounting standards. The important findings of the
report has been further bale discern that the companies has considered conceptual framework
based on AASB and Corporations Act 2001. The investment suitability aspect is seen to be based
on increasing revenue and operating margin.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Conceptual framework of Accounting for both the companies.......................................................4
Criteria followed for financial data..................................................................................................5
Rationale for the shareholders investing in the companies.............................................................6
Conclusion.......................................................................................................................................7
List of Appendix..............................................................................................................................8
References......................................................................................................................................14

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
The two brands “Jetstar” and “Qantas Airways” are identified as economic airline
operating in Australia. Jetstar alone is seen to be accountable for taking 8.5% of the passengers
in Australia. It has been further seen that they have been seen to be operational in the home
network and various types of other international routes operating from the Melbourne Airport
(Qantas.com. 2017).
Virgin Australia Airlines is seen to be placed after Qantas in terms of size. The airline
company has been further seen to be headquartered at Bowen Hills in Brisbane. The company
has been further seen to be set up in 1999 and functions in a single route. Since this time the the
organization has been able to expand itself across 29 cities (Virginatlantic.com. 2017).
The primary aim of the study has been seen to evaluate the existing framework for
accounting and evaluate whether it is able to comply with the requirement prescribed in financial
report of the company. The various implicatiosns of the study has been further bale to focus on
the different types of the other consideration which is seen to be based on prudence and various
considerations from intangible assets and tangible assets.