Contemporary Accounting

Running Head: Contemporary Accounting 1
Contemporary Accounting
Name
Institution
Date

Contemporary Accounting 2
Executive Summary
The conceptual framework for financial reporting has been an important analytical tool in many
aspects. The concept has been used in many countries and it has helped standardizes the
accounting procedures. Australia, UK, and the US all have used the conceptual framework
among other boards like the IASB to formulate a consistent and accurate reporting. The
framework is used by domestic and international corporations because of it benefits in the
financial reporting. Although the system has benefits, there are also limitations with the
framework. The financial professionals have had concerns about the conceptual framework.
However many organizations engage in sustainability reporting so that they can they can survive
and compete in this competitive environment.

Contemporary Accounting 3
Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Part A: Conceptual framework....................................................................................................................5
Review of the history and development of the Conceptual Framework for Financial Reporting.............5
Explanation of Australian accounting profession’s concerns regarding the Conceptual Framework.......6
Discussion of academics’ concerns about the quality (potential benefits and limitations) of the
Conceptual Framework............................................................................................................................7
Explanation of how the conceptual framework has been applied by the Spotless Group Holdings
Limited....................................................................................................................................................7
Part B: Integrated/sustainability reporting...................................................................................................8
Comparison of Sustainability Reporting Guidelines and International Integrated Reporting Framework.
.................................................................................................................................................................8
Rigour (strengths & limitations) of the conventional accounting, based upon the Conceptual
Framework for contents of sustainability as well as integrated reports....................................................9
Applicability (usefulness or limitations) of the theories to explain contents of sustainability as well as
integrated reports...................................................................................................................................10
A table of various components of an integrated report and discussion of whether and how the selected
South African company has disclosed information against each of those components..........................10
Comparison of Spotless’ reporting practices with the index and the integrated reporting practices in
Sibanye- Stillwaters Ltd........................................................................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

Contemporary Accounting 4
Introduction
A conceptual framework is a tool that is applied in very many different categories of work.
(Patrick, 2015). It is a way of declaring or reporting the overall picture of a phenomenon while
following the accepted guidelines. So a conceptual framework for financial reporting is a system
of objectives aimed at creating standards throughout the sector. This paper will focus on the
evolution of the conceptual framework and also how it is applied in financial reporting. The
research will also examine whether corporate organizations have adopted and applied it in their
financial reporting. Many different journals and text books will used as secondary data to
facilitate the research to reach a conclusion. Qualitative data analysis will be used in order to
present a meaningful interpretation of the findings.
Part A: Conceptual framework
Review of the history and development of the Conceptual Framework for Financial
Reporting
A conceptual framework is a way of declaring or reporting the overall picture of a
phenomenon while following the accepted guidelines. (Becker, 2013). So a conceptual
framework for financial reporting can be regarded as an integrated system of comparable
objectives and basics that should result into conformable standards that prescribe the function,
nature of financial statements. The international Accounting Standards Committee (IASC) which
is now a board, was established in the year 1973 by the different professional accounting bodies
from Australia, Germany, United Kingdom, United States and others. The main objectives why
the IASB was formed was to set an accounting standards framework, to form standard guidelines
for resolving disputes in accounting and also to form internationally acceptable principles for
financial reporting.