Assessing the Application of Conceptual Framework in Brambles Ltd Financial Statements

Running head: ACCOUNTING THEORY AND ISSUES
Accounting Theory and Issues
Name of the Student
Name of the University
Authors Note
Course ID

1ACCOUNTING THEORY AND ISSUES
Executive Summary:
The objective of this report is to assess the financial statements of Brambles Ltd that has its
operation in Australia. The report would consider the IASB reporting framework and
determine whether the company complies with the conceptual reporting framework.
The report would take into the account the application of accounting standards and necessary
concepts which is applied on Brambles Ltd, affecting the overall reporting quality. The
assessment would conclude with the discussion regarding the application of conceptual
reporting framework in Brambles Ltd.
The current report is related with the application of conceptual framework in bookkeeping
process for recognizing and reporting on noteworthy items that are specified in the yearly
report of the business. The chosen corporation for the project is Brambles Ltd.

2ACCOUNTING THEORY AND ISSUES
Table of Contents
Introduction:...............................................................................................................................3
Company Background:...............................................................................................................3
Theory Appropriate for the Brambles Industries Ltd:................................................................4
Brambles Industries Accounting Issues:....................................................................................4
Conceptual Framework Accounting Objectives:.......................................................................5
Recognition Criteria:..................................................................................................................8
Recognition of Expenditure:....................................................................................................11
Qualitative Characteristics of Financial Statements:...............................................................12
Fundamental Qualitative Characteristics:............................................................................12
Enhancing Qualitative Characteristics:....................................................................................12
Sufficient information for Decision Making:...........................................................................13
Recommendations:...................................................................................................................13
Conclusion:..............................................................................................................................14
References:...............................................................................................................................15

3ACCOUNTING THEORY AND ISSUES
Introduction:
The conceptual framework is referred as the system of ideas and objectives that
results in the formation of the reliable set of rules and values. Particularly, in the areas of
accounting, the rule and standards sets down the function, nature and limits of financial
accounting as well as financial statements. The conceptual framework is usually viewed as
the analytical tool carrying numerous variation and contexts (Díaz et al. 2015). The
conceptual framework is useful in making conceptual differences and organization of ideas.
The stronger conceptual framework captures things that are real and it is executed in a
manner which is easy to remember and implement.
The present report is associated with the implementation of conceptual framework in
accounting procedure for identifying and reporting on significant items that are stated in the
annual report of the company. The chosen company for the assignment is Brambles Ltd. The
IASB introduced the conceptual framework to assist the board in developing the new
accounting standards that can enhance the process of reporting. The introduction of
conceptual framework would result in harmonization of the accounting practices of a
business. A qualitative discussion would be presented in this report regarding the Brambles
Ltd financial statements.
Company Background:
Brambles Industries Limited offers both the domestic and international supply chain
logistics solutions. The company provides reusable pallets, containers and crates. Brambles
circular business models continues to the share and reuse as the world’s largest pool of
reusable crates, pallets and containers (Brambles 2018). This allows the company to serve its
customers whereas minimising the effect on the environment and enhancing the efficiency as
well as safety of the supply chains across the world. Brambles Ltd platforms creates an