Contemporary Issues in Accounting

This report evaluates the adherence of Cochlear Limited to the recognition criteria for assets, liabilities, equities, expenses and revenues. It also discusses the qualitative enhancing characteristics of financial reporting. The study concludes that Cochlear has complied with Australian Accounting Standards and International Financial Reporting Standards.

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

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CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The study’s main objective has been discerned with the evaluation of conceptual framework
required for Cochlear Limited. The report has shown whether the concern has adhered to the
recognition for “assets, liabilities, equities, expenses and revenues”. The next section of the
learning has been able to discuss acquiescence of the company for “assets, liabilities, equities,
expenses and revenues”. It has been further able to discuss on the different aspect of the study
which is related to the qualitative characteristics depicted in the annual report. This is seen with
the several types of the depictions which are related to the reliability and faithfulness in
description of the financial events. The findings have revealed that the company has complied
with “Australian Accounting Standards (AASBs)” followed by “Australian Accounting
Standards Board and the Corporations Act 2001”. The revenue, assets and the expenses has been
based on recognition of the net GST amount. The impairment asset is further seen with annual
consideration. The fair measurement of the derivative instrument is considered with selling of the
investments. The characteristics of financial reporting is discerned with use of graphical
representation of data.

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Table of Contents
Introduction......................................................................................................................................3
Adherence to the objectives of the conceptual framework with its reporting.................................3
Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue and
Expenses..........................................................................................................................................4
Adherence with the qualitative enhancing characteristics of financial reporting............................5
Adherence with enhancing characteristics of financial reporting....................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
List of Appendix............................................................................................................................10

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Introduction
“Cochlear Limited” was formed in 1981 with taking the finance from Australian
Government and to commercialise the implants based on pioneering done by Dr Graeme Clark.
At present the company is seen to hold more than two third of the worldwide hearing implant.
Company has been further seen to consider more than 250,000 people receiving one of
Cochlear's implants since 1982. The company has been further seen to be given as one of the
most advanced company in 2002 and 2003.The Cochlear is considered as a medical device
which is seen to design, manufacture and supply for the Cochlear implant of the Nucleas, Baha
bone conduction implant and Hybrid electro-acoustic implant.
The main objective of the study has been seen with the evaluation of conceptual
framework required for Cochlear Limited. The report has shown whether the concern has
adhered to the recognition for “assets, liabilities, equities, expenses and revenues”. The next
section of the study has been able to discuss compliance of the company for “assets, liabilities,
equities, expenses and revenues”. It has been further able to discuss on the different aspect of the
study which is related to the qualitative characteristics depicted in the annual report. This has
been seen with the various types of the depictions which are related to the reliability and
authenticity in explanation of the financial events (Karkhanis, Mack and Franklin 2013).
Adherence to the objectives of the conceptual framework with its reporting
The adherence to the Australian framework has been discerned with the compliance with
“Australian Accounting Standards Board (AASB)”. This has been conducive in the discussion of
developing of the financial report in both private and public concerns. The main concern for the

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contributing role of “AASB” is seen to be considered with “Australian securities and investment
commission at 2001”. As per the data issued in December 2013 by AASB the significant
amendment has been brought with “measurement, presentation, reporting entity and de-
recognition”. The important modifications are seen to be related to the facts which are
conducive in driving the main changes in associated to the Stewardship associated to the other
entities (Hammond 2014).
The information brought in by “Cochlear Limited” annual report, has been further able to
state on the varied type of the specific factors which has been considered with the “Australian
Accounting Standards (AASBs)” followed by “Australian Accounting Standards Board and the
Corporations Act 2001”. The financial statement consolidation is seen to be related to varied
types of the factors which is associated to the consolidation of the financial statement as per
“International Financial Reporting Standards (IFRS)” and interpolation done as per
“International Accounting Standards Board”. The implementation of the new measures has been
considered from 17 August 2017 (Australian Institute for Teaching and School Leadership,
2014).
As per the annual report depiction the standards yet to be adopted has been seen with
“AASB 9 Financial Instruments”. The other standards which are yet to be seen with the
assessment has been seen to be considered with effect on “AASB 9 and its interaction with
AASB 15 Revenue from Contracts with Customers” (Robertson 2013).

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Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue
and Expenses
The financial statement depicts of the company has been seen to be conducive in the
discussion of the several types of the facets which are seen to be associated to translation of the
company’s functional currency as per foreign exchange rates and it is considered with the date of
the transaction (Karkhanis, Mack and Franklin 2013). The financial statement adherence is done
as per IFRS necessities. This has been able to take into consideration the necessary judgement
for the assumptions and estimates for the accounting guidelines amounting for the assets,
liabilities, income and expenses. The continuing process for the ongoing process for the revisions
of the accounting estimates is seen to be recognised for the future years. The critical judgement
made for the application of the essential accounting policy has been considered with
consequence on “Employee benefit liabilities, Share based payments, Intangible assets, Business
combinations, contingent liabilities and financial risk management” (Middleton et al. 2014).
The revenue, assets and the expenses has been further seen with the acknowledgement of
the net GST amount. The impairment asset is further seen with annual consideration. The issues
for the monetary liabilities and assets has been further denominated as per foreign exchange rate
dominant on the date of reportage and functional currency at a foreign exchange rate ruling.
Adherence with the qualitative enhancing characteristics of financial reporting
In the financial note 5.6, the main provisions of the balance sheet have been seen to be
discerned with factors which are related to total number of the obligations. As per the board of
Cochlear the primary enhancing characterises of the financial report along with Board and
executive remuneration. This has been further seen to be assed as per reasonable and equitable

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rewards which is able to motivate successful and experienced and ongoing business to deliver the
growth meeting the expectation of the shareholders in long-term. The comprehensive statement
of income of the company has been further seen to be taken into consideration with the various
factors motivating successful team delivering the required business growth for long-term
(Karkhanis, Mack and Franklin 2015). As per the statement of comprehensive income it has been
determined that the actual portion of the changes in the fair value of net assets and cash flow
hedges. The fair measurement of the derivative instrument is considered with marketing of the
investments. It has further depicted the changes in the fair value available for selling in net profit.
This has been considered as the main form of the enhancing characteristics of the financial
report. The statement of variations of equity has been further seen to considered with the
qualitative characteristics and changes with the fair value of the cash flow hedges and net tax
(Edmonds, Cashin and Heartfield 2016).
Adherence with enhancing characteristics of financial reporting
The enhancing qualitative characteristics of Cohclear Limited has been taken into
account with the various kinds of the depiction of “KMP STI against the sales revenue and
EBIT”. The bar graph and histogram used for the comparison of “fixed, short term incentives,
deferred short term incentives and long-term incentives” has been seen as the chief form of
qualitative characteristics of learning (Food Standards Australia New Zealand 2016). As per the
income statement of the company it has been discerned that the company has been able to
present the various aspects of the data with the comparison of the earlier year. The statement of
comprehensive income released by the company has been further able to depict that the total
profit has amounted to $ 223,616 in 2017 and $ 188921 in 2016. The consideration for the
timeliness aspect has been considered with coloration and compliance as per “Australian

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Accounting Standards (AASBs)” on 17th August 2017 (Lagakos et al. 2014). The notes as per
financial statement has been able to consider “assets, liabilities in both present and previous
year”. For an enhanced comparison of results and employee benefit has been interpreted in 2016
and 2017. Performance and fair value has been considered with the depicted with “EPS
performance based conditions, TSR based conditions and deferred STI service based
conditions”. This comparison has been seen to be done on monthly (Groeller et al. 2015).
Conclusion
The study has inferred that the Cochlear has been able to comply with “Australian
Accounting Standards (AASBs)” followed by “Australian Accounting Standards Board and the
Corporations Act 2001”. The financial statement consolidation has been further seen to be
related to varied types of the factors which is associated to the consolidation of the financial
statement as per “International Financial Reporting Standards (IFRS)”. It has been further
discerned that “Assets, Liabilities, Equity, Revenue and Expenses” of the company has been
discerned with translation of the company’s functional currency as per foreign exchange rates
and it is considered with the date of the transaction. Qualitative enhancing characteristics of
financial reporting has been depicted in terms of fair measurement of the derivative instrument
for selling of the investments. Enhancing characteristics of financial reporting has been discerned
with bar graph and histogram used for the comparison of “fixed, short term incentives, deferred
short term incentives and long-term incentives”.

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References
Australian Institute for Teaching and School Leadership, Teaching, A. and Leadership, S. (2014)
‘Australian Professional Standards for Teachers’, Education Services Australia, pp. 1–28. doi:
10.1177/002248715901000125.
Edmonds, L., Cashin, A. and Heartfield, M. (2016) ‘Comparison of Australian specialty nurse
standards with registered nurse standards’, International Nursing Review, 63(2), pp. 162–179.
doi: 10.1111/inr.12235.
Food Standards Australia New Zealand (2016) Food standards code, Food Standards Australia
New Zealand. Available at: http://www.foodstandards.gov.au/code/Pages/default.aspx
%0Ahttp://www.foodstandards.gov.au/code/Pages/default.aspx
%5Cnwww.foodstandards.gov.au.
Groeller, H., Fullagar, H. H. K., Sampson, J. A., Mott, B. J. and Taylor, N. A. S. (2015)
‘Employment Standards for Australian Urban Firefighters’, Journal of Occupational and
Environmental Medicine, 57(10), pp. 1083–1091. doi: 10.1097/JOM.0000000000000527.
Hammond, J. (2014) ‘An Australian perspective on standards-based education, teacher
knowledge, and students of english as an additional language’, TESOL Quarterly, 48(3), pp.
507–532. doi: 10.1002/tesq.173.

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Karkhanis, S., Mack, P. and Franklin, D. (2013) ‘Age estimation standards for a Western
Australian population using the coronal pulp cavity index’, Forensic Science International,
231(1–3). doi: 10.1016/j.forsciint.2013.04.004.
Karkhanis, S., Mack, P. and Franklin, D. (2015) ‘Dental age estimation standards for a Western
Australian population’, Forensic Science International, 257, p. 509.e1-509.e9. doi:
10.1016/j.forsciint.2015.06.021.
Lagakos, B. D., Moll, B., Porzio, T. and Qian, N. (2014) ‘Experience Matters: Human Capital
and Development Accouting’, NBER Working Paper Series, Working Pa. doi: 10.3386/w18602.
Middleton, P. G., Wagenaar, M., Matson, A. G., Craig, M. E., Holmes-Walker, D. J., Katz, T.
and Hameed, S. (2014) ‘Australian standards of care for cystic fibrosis-related diabetes’,
Respirology, 19(2), pp. 185–192. doi: 10.1111/resp.12227.
Robertson, J. (2013) ‘Australian forensic science reaches new standards!’, Australian Journal of
Forensic Sciences, pp. 345–346. doi: 10.1080/00450618.2013.859730.

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List of Appendix

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