Accounting Theory and Contemporary Issues

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Accounting Theory and Contemporary Issues
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1ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Executive Summary:
All ASX listed organisations are obliged to adhere to the conceptual framework requirements for
developing and presenting financial statements. However, they need to abide by the
measurement needs of the conceptual framework. The current report evaluates the different
aspects of the compliance of JB Hi-Fi with conceptual framework needs. Moreover, the report
has considered the analysis of an issue associated with an organisation. Along with this, the
report has analysed the adherence of the organisation with the qualitative features of conceptual
framework. Finally, it covers various accounting theories with reference to the concerned
organisation.

2ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Table of Contents
Introduction:....................................................................................................................................3
Critical analysis/discussion:.............................................................................................................4
Accounting issues/problems:.......................................................................................................4
Detailed accounting requirements:..............................................................................................5
Accounting theories and their themes in relation to the identified problems:.............................7
Recommendations:..........................................................................................................................8
Conclusion:......................................................................................................................................8
References:....................................................................................................................................10

3ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Introduction:
The primary intention of the report is to analyse a particular accounting issue in one of
the leading ASX organisations and thus, JB Hi-Fi is taken into consideration. The report shows
analysis of a news article regarding the chosen organisation revealing depicting the fall in its
share price.
JB Hi-Fi is a retailer of consumer products specialising in Ultra HD Blu-rays, DVDs,
CDS, hardware, electronics, video games, mobile phones, electrical home appliances and variety
of Telstra services. In August 2018, it has been the seventh biggest consumer electronics and
home appliance retailer in the world (Annualreports.com 2018).
In this regard, one significant issue for the organisation is the adherence of JB Hi-Fi to
the principles of the AASB conceptual framework for preparing and presenting the accounting
statements accurately. There might be rise in financial errors and frauds, if the organisations do
not comply with the AASB and conceptual framework requirements (Aasb.gov.au 2018).
In the current years, a significant accounting issue is the compliance with the needed
accounting principles and standards for financial reporting. This aspect formulates opportunities
for financial frauds and even the closure of the organisations. For avoiding the same, it is
necessary for JB Hi-Fi to adhere to the pertinent accounting standards. In addition, it needs to
abide by the necessary elements of the conceptual framework in AASB.