Contemporary Accounting Theory

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary Accounting Theory
Name of the Student
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Author’s Note

1CONTEMPORARY ACCOUNTING THEORY
Executive Summary
This report sheds light on two crucial aspects of accounting and they are Conceptual
Framework for Financial Reporting and Integrated or Sustainability Reporting. As per the
findings of the first part of the report, countries all over the world adopted the conceptual
framework for financial reporting of IFRS under IASB in order to make sure that they have a
single set of accounting standards for the purpose of accounting harmonization. The findings
also shows that Charter Hall Long WALE REIT has complied with the IFRS conceptual
framework for financial reporting along with the recognition and measuring of different
financial substances. According to the findings of the second part of the report, it can be seen
that there are certain differences between the sustainability reporting framework of GRI
Reporting and integrated reporting framework of the IIRC. The findings state that Hyprop
Investments Limited has increased efficiency in social and environmental reporting than
Charter Hall Long WALE REIT because of the adoption of integrated reporting framework.

2CONTEMPORARY ACCOUNTING THEORY
Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................3
Requirement [a]......................................................................................................................3
Requirement [b].....................................................................................................................4
Requirement [c]......................................................................................................................4
Requirement [d].....................................................................................................................5
Answer to i.........................................................................................................................5
Answer to ii........................................................................................................................5
Answer to iii.......................................................................................................................6
Part B..........................................................................................................................................7
Requirement [a]......................................................................................................................7
Requirement [b].....................................................................................................................7
Requirement [c]......................................................................................................................8
Requirement [d].....................................................................................................................9
Requirement [e]....................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

3CONTEMPORARY ACCOUNTING THEORY
Introduction
The main aim of this report is the analysis and evaluation of different aspects of
conceptual framework and integrated or sustainability reporting. There are two parts of the
report. First part of the report undertakes the analysis of different aspects of conceptual
framework such as history and development of conceptual framework, concerns regarding
this and others. The second part of the report undertakes the analysis of
integrated/sustainability reporting such as the comparison between these two reporting
framework, strengths and limitations and others. The companies selected for this report are
Charter Hall Long WALE REIT from Australia and Hyprop Investment Limited from South
Africa.
Part A
Requirement [a]
It needs to be mentioned that there is a long history behind the development of
Conceptual Framework for Financial Reporting under the International Accounting Standard
Board (IASB) (Adibah Wan Ismail et al., 2013). In US, the main aim behind the creation of
the 1933 Securitas Act and 1934 Securities Exchange Act was the restoration of the
investors’ confidence after the sudden market crash of 1992 and the following economic
depression in the US. For this reason, the US Securities and Exchange designated the
Financial Accounting Standard Board (FASB) for the development of the conceptual
framework for financial reporting (Zhang & Andrew, 2014). However, the reason is different
in case of UK. It needs to be mentioned that the main reason behind the introduction of the
conceptual framework for financial reporting in UK was the strategy of the country from
moving to principles-based accounting standard from rules-based accounting standards. For
this reason, UK adopted the IFRS based conceptual framework for financial reporting under
the IASB (Palea 2013). In case of Australia, the Australian FRC took the decision for the
adoption of the complete suite of the standards of IASB in June 2012 with the aim to make
harmonization with the global financial reporting standards. For this reason, Australia
adopted the conceptual framework of financial reporting of the IFRS (Brochet, Jagolinzer and
Riedl 2013). It also needs to be mentioned that the main aim of the global companies’ move
towards the adoption of the conceptual framework for financial reporting of IFRS was to
comply with one single standard for financial reporting. It puts the obligation on the
companies to consider the adoption of the conceptual framework of financial reporting under