logo

Contemporary Accounting Theory Assignment

   

Added on  2021-02-20

14 Pages4207 Words31 Views
 | 
 | 
 | 
ContemporaryAccounting Theory
Contemporary Accounting Theory Assignment_1

Table of ContentsINTRODUCTION...........................................................................................................................1Part A: .............................................................................................................................................1a) History and development of conceptual framework for financial reporting at globally ........1b) Australian accounting profession’s concerns regarding the Conceptual Framework ............2c) Academics concerns about the quality of conceptual frame work..........................................3d) Explanation of how the conceptual framework has been applied by the selected Australiancompany......................................................................................................................................4Part B...............................................................................................................................................5a) Comparison and contrast the sustainability reporting guidelines Global reporting initiativeand international integrated reporting framework.......................................................................5b)Strengths & limitations of the conventional accounting, based upon the ConceptualFramework for contents of sustainability as well as integrated reports......................................6c) Usefulness and Limitations of theories that explain the contents of integrated andsustainability reports...................................................................................................................7(d) Checklist of Mediclini International PLC's Integrated Report..............................................8(e) Comparison of Australian company’s reporting practices with the index and the integratedreporting practices in the selected South African company .......................................................9CONCLUSION..............................................................................................................................10REFERENCES................................................................................................................................1
Contemporary Accounting Theory Assignment_2

INTRODUCTIONAccounting theory refers logical reasoning in the form of set of board principles whichprovide a general framework of reference by which accounting calculation can be analysis orevaluated. Accounting is the part of any business organisation. It is given by Prof. Hendriksenwho tells that accounting theory is most useful in every business organisation whether small,large and medium size of industry (Alim, 2014). The main aim of accounting theory is tomaintain the records and transaction within organisation and increase the profit margin.Additionally, it help to evaluates the accounting practices which help to guide and developmentof new practices and procedures. The present report will emphasis on Mesoblast Limited that isAustralian based regenerative medicine enterprise. It provides treatment for inflammatory ailments, cardiovascular diseases and back pain.Mesoblast was founded in 2004 by Silviu ltescu. It has highly experienced management teamwho focused on accounting theory in order to maintain the profitability position of company. Thecurrent report will considered different questions such as history and development of conceptualframe work of financial reporting, Australian accounting profession's concern, sustainabilityreporting guidelines initiatives and international international integrated reporting frame work ofIIRC and the strength and weakness of conventional accounting. Part A: a) History and development of conceptual framework for financial reporting at globally Accounting theory is important in every organisation which is used to maintain theaccounts properly and give accurate results in business organisation. The conceptual frameworkis more effective for annual reporting periods that help to give information about number ofbusiness activities. According to IASB (international accounting standard board) financialreporting is the standard which states that how organisation must maintain and report theiraccounts by defining the types of transaction and other events with financial impacts. Theconceptual framework assist business organisation to prepare financial statement in developingaccounting policies for transaction or events which is not covered by existing standards(Chambers, 2014). History and development of conceptual framework reportingApril 1989 April 1989 Framework for the preparation and presentation of1
Contemporary Accounting Theory Assignment_3

financial statement which was approved by the IASC boardJuly 1989Framework publishedApril 2001Frame adopted by International Accounting Standard BoardSeptember 2010Conceptual Framework for Financial Reporting 2010 permitted by IASBMarch 2018Conceptual Framework for Financial Reporting 2018Development of Financial Reporting Financial reporting is helpful to meet with respective stakeholder needs. It provideshistorical financial data which allow interpretation by stakeholders of their operating results. Themain purpose of financial reporting is to records the financial transaction and provide optimumresults for developing the financial data in order to increase the business activity globally. Suchas Mesoblast is multinational company who prepares financial statement and built a report Iorder to get effective financial results. The Conceptual Framework sets out the key concepts for financial reporting that suggestsor guide the board in developing IFRS standards. It help Mesoblast in order to provide usefuldata for stake holders, investors, lenders and creditors (Davison, 2015).b) Australian accounting profession’s concerns regarding the Conceptual Framework A conceptual framework of accounting can be defined as normative theory of accountingthat help to maintain records properly. Within Australia and US, the conceptual framework isdefined as coherent system of interrelated objectives and fundamental which is expected to leadstowards consistent standards. In Mesoblast, it help to describe the nature, functions, benefits andlimits of financial accounting and reporting. Accounting profession refers professional accounting activity that performs accountingfunctions like as audits or financial statement analysis. It help to set up a business plan which isused in organisation in order to set individual practices. Mesoblast is international company whodeals in medicine and health care issues is preparing accounting reports. The auditors of theorganisation perform various function within business enterprise such as to review the financialreports, auditing, tax reports and net profits of the organisation. According to IASB Accountingprofession are also helpful to define the key issues such as legitimacy, perspective and exactresults that needs conceptual framework. It has been stated that Conceptual framework alsoassists industry in developing accounting policies when no IFRS standard applicable to a specific2
Contemporary Accounting Theory Assignment_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Contemporary Accounting Theory
|20
|3796
|249

Towards Conceptual Framework for Financial Reporting
|12
|4133
|265

Analysis of Corporate External Reporting Practices
|21
|4361
|326

Contemporary accounting theory : Assignment
|18
|5052
|61

Accounting Theory
|14
|3538
|172

Conceptual Framework and Sustainability Reporting
|18
|3593
|328