Contemporary Accounting Theory

Contemporary Accounting Theory

Executive summary
Financial reporting is the disclosure of economic consequences and related statistics to
management and outside stakeholders about how an employer is performing over a particular
time period. Financial reporting is the disclosure of monetary outcomes and associated facts to
management and external stakeholders about how a business enterprise is performing over a
particular time period. This is seen here that there are various problems that are faced by the
accounting professionals in Australia due to which the reporting of the financial accounts are not
done more prominently. While the global reporting initiative and the IIRC has been done so as to
achieve the objective of maximising the goal of the company. Also the company Metcash in
relation to financial reporting is defined. This also relates to the performance of the accounting
standards and its impact on the quality and significance of the company.

Contents
Executive summary.......................................................................................................................2
Contents...........................................................................................................................................3
Introduction......................................................................................................................................4
Part A...............................................................................................................................................5
Information related to History and development of the Conceptual Framework for Financial
Reporting in the USA, UK, Australia, and globally under IASB................................................5
Concern of Australian accounting professionals regarding the application of IASB..................6
Discussion on concern about the quality of the conceptual framework for financial reporting..7
Annual report...............................................................................................................................8
Part B.............................................................................................................................................10
Comparison between the sustainability reporting guidelines of GRI and IIRC for the corporate
social reporting..........................................................................................................................10
Strengths and limitation of the conventional accounting based upon the conceptual framework
reporting.....................................................................................................................................11
The limitations and usefulness of the theories related to sustainability as well as the integrated
reports........................................................................................................................................12
Criteria of integrated report and whether the company has followed the components
significantly...............................................................................................................................13
Discussion on the integrated report of Australian company and the comparison of this with the
South African company.............................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................17

Introduction
The term financial reporting is characterised as the reporting of the financial data to the company
which helps the company to identify and report the financial transaction within the company to
the stakeholders of the company. The IASB is the main organisation in the world which defines
the structure of the financial reporting in the world and how the financial reporting would take
place in an organisation. This is the organisation which helps in defining various accounting
standard that are to be followed by the company so as to achieve the objective of giving true and
fair disclosure to the stakeholders of the company (Bedford & Ziegler, 2016). While the Global
reporting initiative is considered as the non-profit organisation which has the initiative to help
the business and the government of the country to understand and communicate the impact on
the critical sustainability of the climate change on the stakeholders of the company as well as the
society as a whole. Also for the purpose of this assignment the company that is taken is the
Metcash which is considered as one of the Australian stock exchange listed company and is
working in the industry of conglomerate. This report is divided into two parts where in the first
part the conceptual framework of the accounting theories and its impact would be considered
while on the second part the sustainability reporting would be done for the purpose.