Contemporary Issues in Accounting

This report discusses the contemporary issues in accounting and their impact on Reliance Worldwide Company. It covers topics such as the conceptual framework, measurement of financial statements, fundamental and enhancing qualitative characteristics, and the requirement of financial statements for users. The report also provides an overview of Reliance Worldwide Company and its general purpose financial statements.

Running head: REPORT 0
CONTEMPORARY ISSUES IN ACCOUNTING
APRIL 15, 2019
student details:

REPORT 1
Executive Summary
The conceptual framework is very essential in respect of the financial reporting. The
conceptual framework creates the basis at that the accounting standards can be established
such as liabilities, expenses and incomes can be identified. This report states the
contemporary issues related to the Reliance Worldwide Company.

REPORT 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Company Overview- Reliance Worldwide Company................................................................3
Conceptual framework- measurement of financial statement....................................................3
Fundamental qualitative characteristics.....................................................................................4
Enhancing qualitative characteristics.........................................................................................4
Requirement of financial statements for the users of company.................................................5
General purpose financial statements.........................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

REPORT 3
Introduction
The accounting is constantly advancing, significantly affected by exterior elements in the
markets globally. The contemporary issues are the issues, which are faced by the
professionals of accounting. This report directs the Reliance Worldwide Company to handle
the contemporary issues of accounting. In the following parts, the contemporary issues like
compliance with enhancing qualitative characteristics, compliance with fundamental
qualitative characteristics, use of financial statements by the users of company, requirements
by the users to make decisions, assessment of need of the conceptual framework, and
requirements of general purpose financial statements (GPFSs), are evaluated to support
informed debate.
Company Overview- Reliance Worldwide Company
Reliance Worldwide Company is the provider of water control system at international level.
This company provides the plumbing solution for local application, industrial application and
corporate applications. This Reliance Worldwide Company is established in year 1949; the
family of Reliance Worldwide Company of brands has frequently developed to go above
industrial standards at international level with varied operations related to the manufacturing
and distribution diagonally 3 continents. Reliance Worldwide Company has devoted more
than sixty years to the production, brand and product. This company promises to make
innovation through making investment in high-value mechanization to stay competitive in the
international atmosphere. Various product lines are truthfully the entire package of water
control solution, and achieved something on the global stage with the smooth approaches of
functions and local centres of superiority across the portfolio of corporation. The capacities of
production and distribution are the drivers of product lines of the leading market everywhere

REPORT 4
in the world, involving Reliance Water Controls, RMC, Ryemetal and Titon (Annual report,
2018).
Conceptual framework- measurement of financial statement
The major purpose of the conceptual framework is that the conceptual framework gives
the framework to establish the accounting standards, the reasons to solve the disputes related
the accounting and finance, and the fundamental principles that don’t have to be taking place
in the accounting standards (Ridker, et. al, 2017). The conceptual framework’s measurement
requirements include the general purpose financial reporting; the financial reporting’s aims,
fundamental qualitative characteristics related to accounting data, the measurements of
financial statement, and the financial statement’s fundamental features.
The annual report of the Reliance Worldwide Company has been made and presented the
financial statements as per the requirements of the Corporation Act 2001, the announcement
of AASB, and the of Australian Accounting standards. The financial statements of entity are
complied with the Australian IFRS issued by IASB and Australian Accounting Standards. In
addition, the financial statements of company comply with and the accounting standards and
the Corporations Regulations 2001. Considering the director’s resolution of the Reliance
Worldwide Company, it can be stated that the financial statements are prepared as per the
Corporation Act 2001. The financial statements of corporation give true and fair view of
financial positions and corporation’s performances (Kelley and Knowles, 2016). Reliance
Worldwide Company follows accounting policies to make basis for valuation of assets,
liabilities, income, equity and expenses. It can be observed from the annual report of
company-

REPORT 5
Fundamental qualitative characteristics
The fundamental qualitative characteristics contain the relevance and faithful representation.
As per this, the information should be relevant to requirements of users this is a case while
the information influences the financial decision of the user. It can include reporting
particularly related information whose blunders and errors can affect the financial decisions
of user (Leuz and Wysocki, 2016).
The faithful representation refers to the method that financial statements are made that
accurately present the financial position of the company. The annual report of Reliance
Worldwide Company explores that financial statements of company provide relevant and
faithful presentation. The entity faithfully states the transactions and different incidents,
shows the underlying cases of the occurrences, and cautiously states approximation and

REPORT 6
uncertainties through the relevant disclosures. This is assessed from the annual report of
company is that the financial data in specific manner that an individual with great knowledge
and understanding of business, and willingness to review information, should be able to
comprehend it (Christiaens, et. al, 2015). For an example, it can observe that company makes
faithful representation of assets.

REPORT 7
Enhancing qualitative characteristics
. The enhancing qualitative characteristics are describes as follows-
1. Understand ability- The Understand ability requires financial information to be
apparent or clear to the users, who have relevant knowledge related to the
financial functions and the business. For great understanding, it is needed that the
data should be described evidently and rapidly. However, it is unfortunate to ban
tricky things only for making the reports easy and logical.
2. Comparability- As per this enhancing qualitative characteristic, the comparable
data makes capable the comparison between the corporation and across
corporations. When comparison is conducted in an entity, data are compared from
one accounting period to other accounting period (Epstein, et. al, 2016).
3. Verifiability- The accounting result of company is verifiable at the time of
reproduction. For providing the same data and expectation, the independent

REPORT 8
accountant might get same results the organisation did (Ahmed, Mahmood and
Islam, 2016). The verifiability is helpful in helping that data faithfully states the
financial phenomena it purports to state. In different terms, it can say that the
specialists may receive the consents that the precise representations are the
faithful representation.
4. Timeliness- The timeliness of accounting data is provision of information to use
rapidly sufficient for them to take step. The data become out-dated and
impractical in the case where this is not reported in prescribed period.
In this way, the company has followed these enhancing qualitative characteristics.
Requirement of financial statements for the users of company
The financial statements are very useful and helpful for various users of the company. These
users of company are the investors, lenders, potential investors and creditors. These financial
statements can be helpful for investors, lenders, potential investors and creditors to take quick
and relevant decisions. By considering the annual report of the Reliance Worldwide
Company, it can be said that the financial data are required by the shareholders and investors
to take financial decision and more relevant decisions. In addition, the bank’s lenders or
financial institution’s lenders are desired to have the knowledge of ability of the corporation
to pay liabilities at the time of maturity. Besides this, the financial data are required by the
creditors to have the ability to make pay the obligations by company at a time when they
become payable (Sampaio and González, 2017). The annual report of company discovers that
the financial statements do not only give basic knowledge of accounting but also the
knowledge of advanced features and practices of the accounting. The company’s users will be
able to know the IFRS and International Accounting Standards from company’s financial
statements. In this way, they can handle or manage the transactions according to the
Australian Accounting Standards.

REPORT 9
General purpose financial statements
The general-purpose financial statements are very useful for the investors, lenders, potential
investors and creditors and lenders in a procedure related to the decisions taking. The income
statement, balance sheet, the statement of equity of owner or statement of retained earnings,
and cash flow statement are considered as general-purpose financial statements. These
financial statements are considered as general purpose financial statements, prepared by the
for-profit entity, as per the requirements of the Corporations Act 2001, the Accounting
Standards of Australia and the reliable pronouncements of Accounting Standard Australian
Board. Reliance Worldwide Company prepares and presents the income statement, balance
sheet, the statement of equity, the retained earnings statement, and statement of cash flow
(Leuz and Wysocki, 2016).
1. Historical cost principle- The financial statements of company have prepared as
per the historical cost except the land & building and derivative financial
instruments that measured at the fair value.
2. Terminologies utilised in the financial statements of company- In the financial
statements, reference to we, us, brands, RWC family, all are considered as the
Reliance Worldwide Company.
3. Compliance with IFRS- The financial statements of Reliance Worldwide
Company comply with IFRS issued by International Accounting Standard Board.
4. Required accounting estimates- to make the financial statements, numerous
significant accounting estimates are needed. It also requires the management to
use the judgements in an application’s procedure and the accounting policies of
entities (Henderson, et. al, 2015). It can be observed from annual report of
company that the general purpose financial statements comply with the

REPORT 10
Corporation Act 2001 and AASBs. The consolidation financial statements comply
with IFRS and IASB.
Conclusion
In the conclusion, it is stated that the conceptual framework is very essential for the
companies. Otherwise, the accounting system prepared on the basis of rules, may be made
having the objective that a treatment of each transaction of accounting must be dealt with by
proper particular rules, or the provisions. The accounting system made on the basis of rules,
is very rigid and inflexible; though has the magnetism of financial statements being same and
reliable. Therefore, it is recommended to utilise the conceptual framework to give the
fundamental principles to enhance the setting of standards for the finance and accounting.

REPORT 11
References
Ahmed, M., Mahmood, A.N. and Islam, M.R. (2016) A survey of anomaly detection
techniques in financial domain. Future Generation Computer Systems, 55, pp.278-288.
Annual Report (2018) Reliance Worldwide Company. [Online] Available at:
https://www.rwc.com/sites/g/files/rgohfh266/files/2019-02/2017%20Annual
%20Report_0.pdf [Accessed 16/4/2019]
Christiaens, J., Vanhee, C., Manes-Rossi, F., Aversano, N. and Van Cauwenberge, P.,(2015.
0The effect of IPSAS on reforming governmental financial reporting: An international
comparison. International Review of Administrative Sciences, 81(1), pp.158-177.
Epstein, J.I., Zelefsky, M.J., Sjoberg, D.D., Nelson, J.B., Egevad, L., Magi-Galluzzi, C.,
Vickers, A.J., Parwani, A.V., Reuter, V.E., Fine, S.W. and Eastham, J.A. (2016) A
contemporary prostate cancer grading system: a validated alternative to the Gleason
score. European urology, 69(3), pp.428-435.
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., (2015) Issues in financial
accounting. Pearson Higher Education AU.
Kelley, T.R. and Knowles, J.G. (2016) A conceptual framework for integrated STEM
education. International Journal of STEM Education, 3(1), p.11.
Leuz, C. and Wysocki, P.D. (2016) The economics of disclosure and financial reporting
regulation: Evidence and suggestions for future research. Journal of Accounting
Research, 54(2), pp.525-622.

REPORT 12
Ridker, P.M., Lonn, E., Paynter, N.P., Glynn, R. and Yusuf, S. (2017) Primary prevention
with statin therapy in the elderly: new meta-analyses from the contemporary JUPITER and
HOPE-3 randomized trials. Circulation, 135(20), pp.1979-1981.
Sampaio, P.G.V. and González, M.O.A. (2017) Photovoltaic solar energy: Conceptual
framework. Renewable and Sustainable Energy Reviews, 74, pp.590-601.