Contemporary Accounting Theory

Running head: CONTEMPORARY ACCOUNTING THEORY 1
Contemporary Accounting Theory Part (A&B)
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CONTEMPORARY ACCOUNTING THEORY 2
1. Executive Summary
The ideology behind the establishment of a conceptual framework (CF), in the sector of
accounting is built on the mandate to recognize key issues while studying financial statements.
This framework is made to enable the company to achieve and assess its financial health. Thus,
this paper critically asses the conceptual framework applied in an ASX listed company: Iron
Mountain Incorp and how the company relates this idea in the selecting of financial events,
concerns, and statements. In part B, the paper will link the International Integrated Reporting
System over the Sustainability Reporting Guidelines, which entails and explain the specific
strengths and limitations of accounting based on CF. The paper will compare the assessment of
the framework against a South African Country Globe Trade Centre on an index, Iron Mountain
Incorp against the company’s integrated reportage.

CONTEMPORARY ACCOUNTING THEORY 3
2. Introduction
The certification of the concept is expected to outlay critical financial guidelines that basically
control and underlie the steps to preparing and proposing a company’s financial statement and
economic assessment. In that regard, this financial information is applied by several key
investors in the company to effectively formulate the CF, appropriate for assessing the finances
of a company. Therefore, this paper assesses the concept evaluation of two companies: Iron
Mountain Incorp and the Globe Trade Centre, which are Australian and South African
companies respectively. It is also important to evaluate the IASB in expressing revised and
standardized accounting protocols, which is relevant for financial statement relevant by
companies when supplying financial procedures or handling problems evident in the compliance
activities to particular accounting standards. In that regard, this paper examines the conceptual
framework purposed for financial reporting and its relevance application in an Australian
company i.e. Iron Mountain Incorp. The following paper of this paper will assess the
sustainability and integrated writing framework applicable in South African Company i.e. Globe
Trade Centre.
Part A
a) Review of the history and development of the Conceptual Framework for Financial
Reporting
The Conceptual Framework (CF) improvement in the UK, US and other nations in the world
began in 1976, following its overview by the FASB in the US. The conceptual framework was
generated as a basic structure that crucially outlays accounting procedures, which cordially
sustains accounting reporting concerns. From 1978 to 2010, the governing entity had delivered
eight accounting statements concerning the relevant financial reports applied by various

CONTEMPORARY ACCOUNTING THEORY 4
businesses, including one SFAC No. 4, which indicated the conceptual framework that applies to
non-business enterprises (Prosic, 2015). Moreover, SFACs No. 1, 2 and 3 have already been
changed, which leave only 5 as valid SFAC Nos. The reporting is SFAC No. 4, which symbolize
the conceptual framework considered by the International Accounting Standards Committee
(IASC). This accounting body was recognized in 1973, which characterized a predecessor unit of
the accounting standards body globally.
By 1st April 2010, the accounting unit (IASB) expected the role of IASC obliged to set out the
Conceptual framework, despite the existing standards being mention as the International
Financial Reporting Standards (IFRS) (Timbate & Park, 2018). In 1975, the entity offered its
initial reporting of the IAS, which signified the accounting policy disclosure (Crombie, 2012).
The IASC offered its 28th IAS by April 1989, which represented the financial statements for
investment in the relevant associates. Therefore, the conceptual framework advanced for the
performance and preparation of accounting frameworks had been approved by April 1989 by the
IASC. This writing was therefore published in 1989 and applied by the IASB in 2001, despite its
relevance in expressing and unindustrialized the IAS framework.
For the purpose of late issuance of the standard, the essential purpose of the CF is to assist the
financial entity to formulate International Accounting Standards in the future; and permit the
review of the current Standards paragraphs (IASB, 2010b and B1713) suggesting this framework
(Ehoff, 2010). The accounting body dedicated itself into an agreement with the United States’
FASB, which was referred as the 2nd Norwalk Agreement by 2002; and instructing that two
accounting units would principally consider eliminating its present differences and join on the
basis of the quality conceptual framework (Ehoff, 2010). Succeeding the joint conference in
2004, the accounting bodies (FASB and IASB) decided to include particular key components and