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
Requirement (a):.....................................................................................................................3
Requirement (b):....................................................................................................................4
Requirement (c):.....................................................................................................................5
Requirement (d):....................................................................................................................5
Part B: Integrated/sustainability reporting.................................................................................7
Requirement (a):.....................................................................................................................7
Requirement (b):....................................................................................................................8
Requirement (c):.....................................................................................................................9
Requirement (d):..................................................................................................................10
Requirement (e):...................................................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................14

2CONTEMPORARY ACCOUNTING THEORY
Executive Summary:
The current report entails critical overview of the two necessary aspects related to
contemporary accounting, which include integrated or sustainability reporting and conceptual
framework. It could be observed from the integrated report of Exxaro Resources Limited in
2018 that the organisation has disclosed information on sustainability reporting in its different
pages of the integrated report. This report is prepared only for providing non-financial
information to the stakeholders of the organisation. Moreover, it has disclosed its financial
information separately by publishing other financial statements. By comparing the corporate
social responsibility reporting of Exxaro Resources Limited with the index above, it could be
witnessed that the organisation has disclosed different vital information and other aspects.
Some significant aspects include material issues, business strategy, risk management,
stakeholder involvement and others.
Exxaro Resources Limited has implemented the doctrines of the new conceptual
framework for financial reporting purpose. Certain major differences could be found between
integrated reporting framework and sustainability reporting framework; however, the
common objective is the overall sustainability-related development of the organisations.
Moreover, Exxaro Resources has adopted sound reporting framework for corporate social
reporting, while Sensex Energy limited is observed to place more emphasis on financial
aspects. Hence, in terms of comparison, integrated reporting is followed better by Exxaro
Resources Limited than Sensex Energy Limited.

3CONTEMPORARY ACCOUNTING THEORY
Introduction:
The current report entails critical overview of the two necessary aspects related to
contemporary accounting, which include integrated or sustainability reporting and conceptual
framework. The report is segregated into two sections. The objective of the first section is to
emphasise on the different aspects of the conceptual framework in relation to financial
reporting. The second part of the report analyses the significant accounting frameworks,
which include sustainability reporting in accordance with the GRI Framework as well as
Integrated Reporting under IIRC. The chosen two organisations are Sensex Energy Limited
from Australia and Exxaro Resources Limited from South Africa.
Part A: Conceptual framework
Requirement (a):
There has been long historical background associated with the nations such as
Australia, UK and others towards the adoption of the conceptual framework in relation to
financial reporting in accordance with IASB (Adams, 2017). In USA, the investors lost their
confidence after the occurrence of the economic downturn in 1934 and therefore, the
government adopted measures to boost the financial accounting practices by implementing a
single conceptual framework. As a result, the concerned authority provided responsibility to
FASB so that conceptual framework for financial reporting could be developed accordingly
(Adams, 2015).
In Australia, the reason has been different for developing conceptual framework of
financial reporting in accordance with AASB. The reason was the decision of the respective
authority to ensure global competition, which mandated the requirement of adopting the