Contemporary Accounting Theory

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary Accounting Theory
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1CONTEMPORARY ACCOUNTING THEORY
Table of Contents
Executive Summary:........................................................................................................................2
Introduction:....................................................................................................................................3
Part A: Conceptual framework........................................................................................................3
Question (a):................................................................................................................................3
Question (b):................................................................................................................................4
Question (c):................................................................................................................................5
Question (d):................................................................................................................................6
Part B: Integrated/sustainability reporting:......................................................................................8
Question (a):................................................................................................................................8
Question (b):................................................................................................................................9
Question (c):..............................................................................................................................10
Question (d):..............................................................................................................................11
Question (e):..............................................................................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

2CONTEMPORARY ACCOUNTING THEORY
Executive Summary:
The primary objective of the report is to represent the vital aspect of the conceptual
framework in relation to integrated or sustainability reporting and financial reporting in corporate
social reporting. It could be observed from the report findings that the implementation of
identical financial reporting guidelines has been the major cause behind the adoption of the
conceptual framework associated with financial reporting. The paper has expressed concern
regarding the accounting profession in Australia about the implementation of the new conceptual
framework of accounting and the factors having negative effect on the new conceptual
framework in relation to financial reporting. The current report has discussed different financial
and non-financial reporting practices associated with ARB Corporation Limited in Australia and
Mr Price Group Limited in South Africa.
Based on the report findings, it is needed to consider the similarities and variations
between integrated reporting in IIRC framework and sustainability reporting under GRI
framework. In addition, it has been found that the traditional accounting reports do not consider
the importance of non-financial business information, which is considered by both integrated
reporting and sustainability reporting. Finally, the report has revealed the requirement for the
organisations to take into account all indices of corporate social reporting in order to strike
balance between financial and non-financial information.

3CONTEMPORARY ACCOUNTING THEORY
Introduction:
The report consists of two parts; the first part is related to the conceptual framework for
financial reporting, while the second part is focused on integrated and sustainability reporting.
The parts provide critical discussion on the important aspects associated with the two topics. The
evaluation of the various parts associated with the conceptual framework of IASB for financial
reporting is the aim of the first segment of the report. After this, the assessment of the main
aspects related to sustainability reporting framework and integrated reporting framework is the
goal of the second segment of the report. The two selected organisations for meeting the purpose
of the report include ARB Corporation Limited in Australia and Mr Price Group Limited in
South Africa.
Part A: Conceptual framework
Question (a):
From the literature associated with the development and history of the financial reporting
conceptual framework, it has been stated by IASB that the presence of a uniform reason
contributed towards the conceptual framework implementation by the global entities. Due to this
reason, a single accounting standard set was the intention for assisting the global entities
(Adams, 2015). Besides such uniform reason, some history has been evident that led to the
adoption of the conceptual framework by nations such as USA, UK, Australia and others.
It needs to be noted that US witnessed significant economic downfall in 1932 and this
drove the nation to implement uniform accounting standards that could take into account all
needed economic as well as other aspects in the financial reporting process (Amran & Keat Ooi,