Compliance of Carsales.com Limited with AASB Conceptual Framework

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

1CONTEMPORARY ISSUES IN ACCOUNTING
Abstract
The objective of this report is to examine the compliance of Carsales.com Limited with the
AASB conceptual framework standards. The results of the analysis of this report state that the
company follows all the principles of conceptual framework for financial reporting.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Conceptual Framework Objectives..................................................................................................3
Target Audience...............................................................................................................................8
Recognition Criteria.........................................................................................................................8
Fundamental Qualitative Characteristics.......................................................................................13
Enhancing Qualitative Characteristics...........................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
At the time of conducting the accounting and financial reporting related operations,
business entities face different types of complex accounting issues. In most of the cases,
companies face accounting issues as they do not fully comply with all the necessary accounting
policies, procedures, standards and principles. These standards and principles have a integral part
to play in the accounting operations of the companies as they help the business entities in
carrying on the accounting operations in the proper way so that the financial statements of them
reflect their true financial position. Most importantly, the investors largely rely upon these
financial statements for their investment decision-making process. This same aspect is also
applicable for the Australian Security Exchange (ASX) listed business entities. In Australia,
Australian Accounting Standard Board (AASB) provides the ASX listed companies the
necessary standards and principles for their accounting and financial reporting after collaborating
with International Accounting Standard Board (IASB). The directory of these accounting
standards and principle is known as AASB Conceptual Framework (aasb.gov.au 2018). The
objective of this report is to examine the compliance of Carsales.com Limited with the AASB
conceptual framework standards. Carsales.com is an Australian ASX listed business entity
involves in the online selling of automotive, motorcycle and marines (carsales.com.au 2018).
Conceptual Framework Objectives
The aim of AASB conceptual framework is to achieve three major objectives through the
financial reporting of each ASX listed company. They are shows below: