Contemporary Accounting Theory.

Running Head: Contemporary Accounting Theory 1
Contemporary Accounting Theory
Name
Institution
Date

Contemporary Accounting Theory 2
Executive Summary
Conceptual frameworks have played a pivotal role in helping bodies such as IASB and countries
like United Kingdome, Australia and United States to formulate accounting standards. As such,
conceptual frameworks have led to formation of consistent and reliable accounting standards that
serve both international and domestic purpose of companies that engage in financial reporting
practices. It is from these accounting standards that a number of companies are delivering
accurate and reliable reports concerning their undertakings both in the domestic and global
environments. In order to achieve competitive and survival goals, a number of companies such
as MMI Holdings Limited and QBE Insurance Group Limited are also making use of
sustainability and integrated reporting practices across the globe. Information depicted in the
sustainability and integrated reports of these companies are helping the auditors and investors to
make comparisons between these two entities.

Contemporary Accounting Theory 3
Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Part A: Conceptual framework........................................................................................................3
a) Review of the history and development of the Conceptual Framework for Financial
Reporting......................................................................................................................................3
b) Explanation of Australian accounting profession’s concerns regarding the Conceptual
Framework...................................................................................................................................6
c) Discussion of academics’ concerns about the quality (potential benefits and limitations) of
the Conceptual Framework..........................................................................................................7
d) Explanation of how the conceptual framework has been applied by QBE Insurance Group
Limited.........................................................................................................................................8
Part B: Integrated/sustainability reporting.......................................................................................9
a) Comparison of Sustainability Reporting Guidelines and International Integrated Reporting
Framework...................................................................................................................................9
b) Rigor of the conventional accounting, based upon the Conceptual Framework for contents
of sustainability as well as integrated reports............................................................................10
c) Applicability of the theories to explain contents of sustainability as well as integrated
reports.........................................................................................................................................11
d) A table of various components of an integrated report and discussion of whether and how
the selected South African company has disclosed information against each of those
components................................................................................................................................12
e) Comparison of QBE Insurance Group Limited’s reporting practices with the index and the
integrated reporting practices in MMI Holdings Limited..........................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................14

Contemporary Accounting Theory 4
Introduction
A conceptual framework refers to an analytical approach that contains a number of contexts as
well as variations. It serves a major function of combining thoughts and formulating conceptual
differences in a manner that enhances recalling and applicability of a real circumstance. A
conceptual framework can be utilized in art, social sciences, financial reporting as well as
marketing (Iasplus.com, 2019). As such, this report will be based on the use of conceptual
framework in financial reporting. Conceptual framework in financial reporting can be looked at
as a tool that gives definition of objectives and concepts that are essential in enhancing financial
reporting procedures and activities of an organization (Jay, 2010). This report will basically
involve making reports and conducting research on a multiple of elements that are involved in
corporate external reporting practices in the field of accounting. In regards to data collection, this
report will make use of secondary sources such as websites, journal articles, annual reports and
textbooks as far as selected companies are concerned. Also, the data that will be collected will be
analyzed qualitatively so as to deliver meaningful interpretations and meaning about the usage of
conceptual frameworks in financial reporting practices of companies. Therefore, the report will
be presented in two parts A and B as follows.
Part A: Conceptual framework
a) Review of the history and development of the Conceptual Framework for Financial
Reporting
In regards to United States, the crash in the market for stock in 1929 provided a
mandatory opportunity to Securities and Exchange Commission (SEC) to monitor the public
companies under the 1934 Securities and Exchange Act. As a result, SEC developed a body