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):.....................................................................................................................5
Requirement (d):....................................................................................................................6
Question i:..........................................................................................................................6
Question ii:.........................................................................................................................7
Question iii:........................................................................................................................8
Part B: Integrated/sustainability reporting.................................................................................8
Requirement (a):.....................................................................................................................8
Requirement (b):....................................................................................................................9
Requirement (c):...................................................................................................................10
Requirement (d):..................................................................................................................11
References:...............................................................................................................................15

2CONTEMPORARY ACCOUNTING THEORY
Executive Summary:
The report mainly intends to shed lights on important areas related to different areas
of conceptual framework drawing reference to sustainability reporting, integrated report and
financial reporting in the field of corporate social reporting. The findings have suggested that
different countries have adapted conceptual framework for the purpose of financial reporting
in order to follow guidelines from an identical financial reporting system. In addition to
discussing adaption of conceptual framework for financial reporting, the paper also addresses
different concerns raised by Australian professionals related to newly implement conceptual
framework. As claimed by these professional the new framework likely to have some adverse
consequence on financial reporting. The present report has given special attention on
different reporting practices related to financial and non-financial aspects related to an
Australian company named Ooh Media Limited and a South African company named
Mesoblast Limited.
In connection to different findings of the report, various similarities and differences
between sustainable reporting under the guidelines of GRI and that of integrated reporting
under the framework of IIRC needs to be discussed. Financial reporting under traditional
accounting is different from integrated and sustainability reporting in the sense that the
traditional system ignores importance of information related to areas other than financial
reporting of a business while the two other incorporate this. It is necessary for any
organization to consider all the aspect of corporate social reporting to maintain balance in
areas related to both financial and non-financial aspects.

3CONTEMPORARY ACCOUNTING THEORY
Introduction:
In order to accomplish objectives of the report, the discussion has been divided into
two parts. The first part focuses on conceptual framework designed for financial reporting
while the latter part discusses issues related to sustainability and integrated reporting. The
two parts critically discuss various aspects related to two chosen topics. In the first segment,
the conceptual framework that follows the guidelines of IASB has been evaluated critically.
The second segments mainly evaluate various aspects in reference to both sustainability and
integrated reporting. Finally, the report selects Ooh Media Limited and Mesoblast Limited in
order to meet other purpose of the present report.
Part A: Conceptual framework
Requirement (a):
Drawing inference from various literature related to the historical development of
conceptual framework for reporting information related to financial aspects, IASB has come
to the conclusion that there is a uniform factor that encourages adaption of the conceptual
framework to different entities spread globally (Flower, 2018)As these entities aim to follow
an identical framework for financial reporting, a uniform accounting standard has been
developed. In addition to this uniform factor, there are historical evidences supporting
development of conceptual framework by different nations like Australia, UK, USA and
others. Australia focuses to keep its financial reporting standard balanced with the
international standard as designed by IASB. With the objective of accomplishing this goal,
Australia adapted conceptual framework that is based on one uniform set of principles related
to accounting standard for documenting financial details (Henderson et al., 2015). The
economy of US experienced a severe downturn in 1932 which necessitated implementation of