Analysis of Conceptual Framework: A Case Study of AMA Group Limited

AN ANALYSIS OF CONCEPTUAL
FRAMEWORK
A CASE STUDY OF AMA GROUP LIMITED

Executive Summary
Financial accounting is regarded as the language of the business as the same provides an
overview of the financial health of the business after taking into consideration the stakes of all
the stakeholders associated with the business. Therefore, financial accounting plays a crucial role
in corporate reporting. The theory of Conceptual Framework (hereinafter may be referred to as
“CF”) provides the holistic direction on the objectives and goals of such reporting. The given
report delves into the analysis of the theory of CF in the context of a real-world company; AMA
Group Limited (hereinafter may be referred to as “AMA”, or the company or the firm, as the
case may be).
At the outset of the report, the researcher provides an overview of both the organisation and the
theory of CF, in brief, followed by the analysis of the theory in the organisational context. Based
on the evaluation and findings, necessary recommendations are also presented subsequently. The
report is wrapped up finally by the researcher by way of concluding note.
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Table of Contents
1.0 Introduction...........................................................................................................................................4
2.0 Conceptual Framework: An Overview..................................................................................................5
3.0 Organisational Overview.......................................................................................................................6
4.0 Analysis of Organisational Conceptual Framework..............................................................................7
4.1 Compliance Requirements for Conceptual Framework.....................................................................7
4.2 Qualitative Characteristics of Conceptual Framework: Compliance and Enhancement.....................8
4.3 Limitations of Conceptual Framework and Compliance of General Purpose Financial Reporting....9
5.0 Conclusion...........................................................................................................................................11
References.................................................................................................................................................12
Appendices................................................................................................................................................14
Appendix 1: Consolidated Income Statement........................................................................................14
Appendix 2: Consolidated Statement of Financial Position...................................................................15
Appendix 3: Consolidated Statement of Cash Flows.............................................................................16
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1.0 Introduction
Financial accounting and corporate reporting are two important aspects of business studies as
both the elements require consideration of several business-critical aspects. CF, on the other
hand, is considered to be the standards and guidelines for the preparation of financial statements
as per the given norms and principles. Since the financial reporting adds value to the firm’s
brand and market positioning to an extent, it becomes imperative for the management to prepare
the same with utmost efficiency and complying with all the existing and applicable prescribed
guidelines (Herath, McCoy, Lucas, and Mensah, 2011). It may be stated that a successful and
effective adoption and application of theories of enhances the quality of financial statements in
terms of recognition of financial items, their respective treatments in the books of accounts and
also their disclosure in the financial statements (Fasb.org, 2018).
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