Contemporary Accounting Theory : Pioneer Food Group
Added on 2021-02-19
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Contemporary Accounting Theory
Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1A) History and development of Conceptual frameworks of financial reporting in USA, UK,Australia and globally under International Accounting Standard Boards...................................1B) Discussing concerns of various Australian professions in context to application of IASBand IFRS for financial reporting purpose. ..................................................................................3C) Discussing academic's concerns about quality of financial reporting as per the reviews ofJournal articles.............................................................................................................................4D) Explaining adoption of conceptual accounting frameworks by Synlait Milk LimitedForeign Exempt NZX for preparing various financial reports of the company..........................5PART B............................................................................................................................................7A) Comparing and contrasting sustainability reporting of global reporting initiative andinternational integrated reporting frameworks of international reporting council for reportingcorporate social responsibility ....................................................................................................7B) Explaining rigour of conventional accounting for conceptual framework for financialreporting in context to sustainability and integrated reports........................................................7C) Discussing applicability of theories of sustainability as well as integrated reports................8D) Preparing index of various components of integrated reports and adoption of thesecomponents in Pioneer Food Group Ltd. For disclosing information.........................................9E) Discussing preparation of integrated reports by Synlait Milk Limited Foreign Exempt NZXfor reporting corporate social responsibilities along with comparison of Pioneer Food GroupLtd.'s adoption of integrated reports ........................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONAccounting theories are combination of a range of assumptions, guidelines andmethodologies that are needed to be adopted by each companies of a country on which thesetheories are applicable (GABIE, 2018) . Further, contemporary accounting theories are thoseassumptions and methodologies that are being used by the organisations for the purpose ofdetermining the values of assets and liabilities of business. In the present assignment, a briefreview of the history and development of conceptual framework for financial reporting of indifferent countries and at global level has been shown. It provides a brief discussion aboutconcerns of different Australian accounting professionals regarding application of IASB andIFRS over various companies for developing their financial reporting. It provides informationabout how Synlait Milk Limited Foreign Exempt NZX uses IASB and IFRS for the purpose ofpreparing its financial statements and several notes to the accounts. Furthermore, the study provides information about a comparison and contrast of sustainabilityreporting guidelines of Global reporting initiative and along with rigour of the conventional accountingand major contents of sustainability and integrates reports. Moreover, it provides a brief discussion aboutapplicability of different accounting theories. At the end of report it also shows how Pioneer Food GroupLtd. Adopts accounting theories and principles of IASB and IFRS for preparing its integrated reports forthe purpose of reporting the corporate social responsibilities fulfilled by it.PART AA) History and development of Conceptual frameworks of financial reporting in USA, UK,Australia and globally under International Accounting Standard BoardsAccounting reports developed by the companies before 1929, when no accountingreporting frameworks was in existence, the business units were not able to develop effectiveaccounting statements. In addition, the reports developed by the companies were unable to becompared. In the earliest time the concept and principles of conceptual frameworks wasdeveloped in USA (Zeelie, 2018) . It was combination of a range of basic assumptions offinancial reporting. The assumptions were about valuation of numerous assets, and liabilities onthe basis of their life and forecasting of company. In USA some regulations were developed in this regard. Securities and Exchange Act1934 was one of the major standards developed by the USA accounting committee. The key goalof this Act was to develop controlling measures and accounting standards regarding reporting of1
various financial activities of business. Further, between 1940 and 1950, Accounting institute'scommittee and staff of SEC' committee put various controversial issues regarding existingaccounting theories and frameworks regarding development of unusual income statements andbalance sheets due to ineffectiveness of the conceptual accounting theories and frameworks. Itresulted in development of effective conceptual frameworks by financial accounting statendardboards (FASB) of USA. A range of conceptual accounting standards were developed by FASBwith a aim to improve efficiency in the accounting reports developed by all the firms of thecountry and developing Qualitative characteristics in them as well.After development of conceptual frameworks in USA, UK also take various steps fordeveloping accounting theories for providing effective guidelines to the companies of UK. Acommittee council of various accounting professionals was framed by the Government of UKwith the name Financial reporting Council (FRC) the major objective behind development of thiscouncil was to promote all the accounting theories and their importance with the view of qualityin company's financial reports (The Conceptual Framework in the United Kingdom and theIntroduction of the Statement of Principles, 2018). In between 1995 and 1999, the Accountingstandard board developed various conceptual accounting frameworks on the basis of working ofthe Financial Accounting standards Boards (FASB). It results in development of more effectiveframeworks for financial reporting of UK's company. All these standards and accountingframeworks helped in development of same mindset of each company towards preparation ofaccounting their financial reports so as ti improve comparability of the income statements.Analysing the interest of stakeholders towards more effective and comparable accountingreports, the Australian government also realized the need of developing conceptual accountingframeworks. In order to this, Australian Accounting standard board (AASB) was givenresponsibility to derive effective frameworks, guidelines and methodologies for improvingsustainability, comparability and other qualitative characteristics of accounting reports generatedby numerous companies (Garba, and Oviosa, 2019). After realizing improvement in the quality of accounting frameworks, the Internationalaccounting standard board realized the need of development of the conceptual framework in theaccounting theories at international level so as to developing comparability in the financialstatements of the companies working at global market. Development of global level accountingstandards helped international companies in maintenance of sustainability in the financial2
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