Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student
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Author’s Note

1CONTEMPORARY ISSUES IN ACCOUNTING
Abstract
The study aims to analyze the compliance of Conceptual Framework for Financial Reporting of
one of the Australian companies, Amcor Limited. The first part of the report shows that Amcor
develop their financial statements by complying with the objectives of AASB conceptual
framework. After that, second part shows the basis of recognition of the major financial elements
of Amcor. The last part shows the compliance of the qualitative characteristics of AASB
conceptual framework by Amcor Limited.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Adhere to the Objectives of Conceptual Framework......................................................................3
Adhere to the Recognition Criteria..................................................................................................6
Assets...........................................................................................................................................7
Liabilities.....................................................................................................................................8
Equity...........................................................................................................................................8
Revenues......................................................................................................................................9
Expenses......................................................................................................................................9
Adhere to the Qualitative Enhancing Characteristics......................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
Conceptual Framework for Financial Reporting is considered as a major element for the
business organizations. More precisely, Conceptual Framework for Financial Reporting deals
with different kinds of fundaments accounting issues like various objectives of financial
statements, characteristics of financial information, basis of preparation of financial statements
and many others (Barth, 2013). For this reason, it is necessary for the business organizations to
develop their financial statements by taking into consideration all these aspects. The main aim of
this report is to analyze and evaluate the fact that the financial statement of one of the Australian
companies is prepared based on the standards and principles of Conceptual Framework for
Financial Reporting (Horngren et al., 2012). For the preparation of this report, Amcor Limited is
selected. The company was founded in the year of 1860 and got the name ‘Amcor’ in 1986. The
company is headquartered at Melbourne, Victoria, Australia (amcor.com, 2017). In this context,
it needs to be mentioned that Amcor Limited is listed among top hundred companies in
Australian Stock Exchange (ASX) and the code of the company in ASX is ‘AMC’ (asx.com.au,
2017). This particular report analyzes and evaluates various aspects of its financial statements
according to Conceptual Framework for Financial Reporting.
Adhere to the Objectives of Conceptual Framework
The above discussion shows that the conceptual framework for financial reporting is an
important aspect for the Australian companies in the preparation of financial statements. In
Australia, it can be seen that all the Australia companies follow the standards and framework of
the conceptual framework of Australian Accounting standards Board (AASB) that helps in the
preparation of financial statements of both private and public companies. According to 2017