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):.....................................................................................................................4
Requirement (d):....................................................................................................................5
Part B: Integrated/Sustainability reporting.................................................................................7
Answer to requirement a)...........................................................................................................7
Answer to requirement b)...........................................................................................................8
Answer to requirement c)...........................................................................................................9
Answer to requirement d).........................................................................................................11
Answer to requirement e).........................................................................................................13
Conclusion:..............................................................................................................................13
References list:.........................................................................................................................15

2CONTEMPORARY ACCOUNTING THEORY
Executive Summary:
This report entails a critical overview of the most important aspects of contemporary
accounting; sustainability or integrated reporting and their conceptual framework. From the
integrated reports of Massmart Holdings Ltd of 2018, it can be noticed that the company has
provided information on sustainability reporting. This report provides information related to
non- financial matters of the organization. The financial information is disclosed separately in
the financial statements. On comparing the corporate social responsibility of
Massmart Holdings Ltd with the above-mentioned index, it is observed that the company has
disclosed vital information related to different aspects. Some of the important aspects include
risk management, business strategies, issues which are material and involvement of various
stakeholders and other non-related parties.
Massmart Holdings Ltd has followed the doctrines related to the new conceptual framework
for the purpose of financial reporting. Major differences exist between integrated and
sustainability reporting framework; however the objective of both forms is to contribute to
the sustainable development of the organization. Massmart Holdings Ltd has adopted a
credible reporting framework with respect to corporate social reporting, while
Asaleo Care Limited has focused more on financial matters. Hence, it can be said that
Massmart Holdings Ltd is better than Asaleo Care Limited in terms of integrated reporting.

3CONTEMPORARY ACCOUNTING THEORY
Introduction:
This report contains an in depth analysis of the two important aspects of
contemporary accounting; integrated or sustainability reporting and their conceptual
framework. This report has been divided into two sections. The first section lays emphasis on
different aspects of the conceptual framework of financial reporting. The second section
analyses various important accounting frameworks, including sustainability reporting as
notified by GRI and integrated reporting suggested by IIRC, Asaleo Care Limited of
Australia and Massmart Holdings Ltd of South Africa have been chosen to conduct a study
on the reporting framework (ASX Announcements., 2019).
Part A: Conceptual framework
Requirement (a):
Nations like Australia, UK and others have a long history with regard to adopting the
financial reporting conceptual framework suggested by IASB. In USA, after the economic
downturn of 1934, the government undertook special measures to improve accounting
practices by adopting a single framework. After which, the responsibility of developing a
conceptual framework for financial reporting was given to FASB by the concerned authority
(Atkins & Maroun, 2015).
In Australia, the main reason for developing a different conceptual framework by
following AASB guidelines was to ensure global competition. This necessitated adopting the
conceptual framework suggested by IASB for financial reporting (Bebbington, Unerman &
O’Dwyer, 2014).