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Contemporary Accounting Assignment PDF

   

Added on  2021-04-21

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Running head: CONTEMPORARY ACCOUNTINGContemporary AccountingName of the StudentName of the UniversityAuthor’s Note

1CONTEMPORARY ACCOUNTINGExecutive SummaryThis report has aimed to discuss various aspects of framework for financial reporting of Australiaand UK. Australian financial reporting system has concern related with relevance and reliabilityof financial information in the financial statements of the companies. AASB is the majordecision maker in the financial reporting framework of Australia. In the year 2005, 1 January,Australia adopted the standards of International Financial Reporting Standard (IFRS). Thefinancial reporting standard of UK has witnessed major problems on how to respond to the majordevelopment of IFRS. The companies of UK have the option to select between IFRS and UK and Ireland GAAP inorder to prepare the financial reports of their individual parent companies. The motive behind thedevelopment of the board of both AASB and UK FRC is to provide independence to these bodiesso that they can be beneficial. The adoption of IFRS by Australia and UK has broughttransparency, accountability and efficiency in the financial markets all over the world. The boardof AASB, FRC and IFRS consists of people from different fields like private companies,regulators, directors and shareholders can be seen as the acting members

2CONTEMPORARY ACCOUNTINGTable of ContentsIntroduction......................................................................................................................................3Part A: Analysis of the Regulatory Framework for Financial Reporting Framework of Australiaand United Kingdom........................................................................................................................3Australia.......................................................................................................................................3United Kingdom (UK).................................................................................................................5Part B: Analysis of the Selected Environments in Relation to Regulatory Capture Theory...........6Conclusion.....................................................................................................................................10References......................................................................................................................................12

3CONTEMPORARY ACCOUNTINGIntroductionThis report takes an honest attempt towards the analysis of the regulatory framework forfinancial reporting of two countries. It can be seen that most of the developed countries all overthe world have their own regulatory framework for financial reporting. For this report, theregulatory framework for financial reporting of Australia and United Kingdom is taken intoconsideration. There are two major parts of this report. The aim of the first part is to analyse andevaluate the necessary factors related to the financial reporting of the selected countries. The aimof the second part of this report is to make analysis of the selected financial reportingenvironment of the selected countries by relating Regulatory Capture Theory. Lastly, theconclusion will be developed with the help of a critical analysis on these selected financialregulatory environments for getting the idea of the extent of capture.Part A: Analysis of the Regulatory Framework for Financial Reporting Framework ofAustralia and United KingdomAustraliaAustralian Accounting Standard Board (AASB) is an Australian government agencyresponsible for the development of the necessary standards and principles for financial reporting(aasb.gov.au, 2018).Problems: Specific issue can be seen in the standard setting process of AASB. The example of aspecific issue in Australian financial reporting system is the concern related with relevance andreliability of financial information in the financial statements of the companies. In addition,another perceived problems is related with the reduction of cost of the process of financial

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