Conformance of Anchor Resources Limited with the Conceptual Framework for Financial Reporting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary:
For this report, the conformance of an ASX listed organisation with the different needs of the
conceptual framework is taken into consideration. More specifically, Anchor Resources Limited
is considered for this report, which is a leading mineral explorer having expanded portfolio of
highly prospective projects across Queensland and New South Wales (NSW) in Australia. The
organisation has assured conformance to the various qualitative characteristics of the conceptual
framework, which include fundamental qualitative characteristics and enhancing qualitative
characteristics. Moreover, by adhering to the needs of the general purpose financial reporting,
Anchor Resources Limited has disclosed all needed financial statements like the income
statement, cash flow statement, statement of change in equity and cash flow statement.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
1. Conformance to measurement requirements:..............................................................................3
2. Conformance to fundamental qualitative characteristics:............................................................6
3. Conformance to enhancing qualitative characteristics:...............................................................9
4. Ability of the users of the financial reports in using the statements for decision-making:.......12
5. Needed basic knowledge of accounting:...................................................................................13
6. General purpose financial reporting requirements:...................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
The conceptual framework for financial reporting provides the organisations with the
necessary guidelines, principles and standards so that the financial statements could be presented
and prepared accurately. The reason is to assist the users in extracting the necessary information
about the organisations in order to undertake decisions (Beattie 2014). For this report, the
conformance of an ASX listed organisation with the different needs of the conceptual framework
is taken into consideration. More specifically, Anchor Resources Limited is considered for this
report, which is a leading mineral explorer having expanded portfolio of highly prospective
projects across Queensland and New South Wales (NSW) in Australia (Anchorresources.com
2018). Various aspects are taken into account in this paper and they include the requirements for
general purpose financial reporting, measurement needs associated with the conceptual
framework, knowledge needs for analysing the financial statements and qualitative features
related to financial reporting.
1. Conformance to measurement requirements:
In accordance with IASB, measurement could be deemed as the method of ascertaining
the amounts, which are needed to be incorporated in the financial statements of the organisations.
Therefore, the measurement of liabilities and assets has direct effect on the realisation of
expenses and income as well as profit. Based on the IASB conceptual framework, the business
organisations need not adopt a single mechanism of measurement in order to gauge their
liabilities and assets. This is because the implementation of a single approach in relation to assets
and liabilities does not provide pertinent information for undertaking decisions (Aasb.gov.au
2018). Moreover, according to the framework, assets and liabilities could be gauged by using