Conceptual Framework for Corporate Reporting

ACCT20074 Contemporary Accounting Theory
Term 1 Assessment 3: Practical report (Major assignment)

Conceptual framework
Executive Summary
The main aim of corporate reporting is to project relevant information to the end-users. To
ensure this, it is essential that the reporting must adhere to the conceptual framework. The
present report revolves around the conceptual framework where detailed analysis regarding the
history of CF and other relevant information about the same is discussed with the help of
Macquarie Group Ltd belongs to Australia while Brait that belongs to South Africa. The second
part of the report is concerned with integrated or sustainability reporting where a comparison of
the respective countries is done as per the GRI framework. The discussion is done concerning
the fact that whether the companies have adhered to the integrated report and the sustainability
report. Further, a distinction between the two has been done to provide a better analysis of the
two adheres to the corporate reporting process.
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Conceptual framework
Contents
Introduction.................................................................................................................................................3
Part A- Conceptual framework....................................................................................................................3
Part B – Integrated reporting.......................................................................................................................9
Strengths and limitations of the conventional accounting based on conceptual framework....................10
Index..........................................................................................................................................................11
Corporate social responsibility & financial performance...........................................................................12
Corporate social responsibility of Brait......................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
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Conceptual framework
Introduction
The conceptual framework plays a pivotal role when it comes to financial reporting. It can be
defined as the basic document that helps in setting up of objectives for GPFR. The conceptual
framework assists in preparing the financial statements in the development of accounting policies
for transactions that are not guided by the standards of existing nature (Weick & Sutcliffe, 2015).
The present report covers the conceptual framework in the USA, UK, and Australia. Moreover,
the concept of the conceptual framework will be dealt with exhaustively in the report.
Furthermore, the report has been prepared with the aid of two different entities that is Macquarie
Group Ltd belongs to Australia while Brait that belongs to South Africa. With the help of both
the companies the Sustainability Reporting and GRI guidelines have been contrasted and
compared. Moreover, the theories concerning the same has been put to discussion followed by
the preparation of index that enables answering of the fact whether the South African company
disclosed information properly.
Part A- Conceptual framework
Literature review
The Financial Accounting Standards Board (FASB) was developed in 1973 to enhance the
financial accounting standards and reporting for stakeholders like public, auditors and other users
of the financial statements. The International Accounting Standards Board (IASB) is an
independent private-sector body that leads to approval of the IFRS (International Financial
Reporting Standards). The CF does not obtain the status of an accounting standard but it is
drafted in such a way to assist the preparers and the related users. It acts as a basis for resolving
accounting disputes and setting down such fundamental principles that are not defined by the
accounting standards. Conceptual framework in financial reporting forms the base upon which
items like assets, liabilities, incomes, and expenses are recognized (Chou Li & Yin, 2010). The
conceptual framework soon started gaining global acceptance as other countries started
borrowing concepts from the same. With the increasing globalization, more and more countries
started convergence towards the IFRS. As a result of the same, the standards-setting boards
started recognizing the U.S GAAP principles and incorporated the same in the conceptual
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