Contemporary Issues in Accounting

This assignment reviews the accounting policies used and evaluated by Anatara Lifescience in accordance with the Australian Accounting Standards. The financial report was prepared in compliance with the conceptual framework and principles. The enhancing and fundamental qualitative characteristics of the financial report helped investors assess the financial performance of the company.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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Executive Summary
The aim of the assignment is to conduct a review of the accounting policies used and evaluated
by the company. The company Anatara Lifescience has prepared the financial report of the
company in respect with the conceptual framework by abiding with the principles and necessary
rules and regulations. The accounting policies prepared by the companies were in accordance
with the Australian Accounting Standards.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Measurement Requirement of the Conceptual Framework.........................................................4
Fundamental Qualitative Characteristics.....................................................................................7
Enhancing Qualitative Characteristics.........................................................................................8
Decisions from Financial Report.................................................................................................9
Financial Knowledge.................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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Introduction
The accounting policies followed by the company were evaluated in the context of the
accounting framework followed by the company. The financial report were prepared in
accordance with the Australian Accounting Standard Bodies. The measurement and costs taken
by the companies and reported were evaluated and taken into consideration for the financial
report. Anatara Lifescience operates as a life science company and has its presence all over the
Australia. The financial report for the company were prepared in accordance with the financial
reporting standards and in accordance with the Corporation Act 2001 and the relevant framework
(Huber 2017). The Australian Accounting Standards were taken into considerations which is
required for profit entities. There were several factors and key points taken into consideration
which includes application of the various kinds of accounting policies as per the transaction and
the nature of adjustments were discussed. The importance of financial data and information’s
given to the users of the company were discussed (Ryan et al. 2014).
Discussion
Measurement Requirement of the Conceptual Framework
The theoretical concepts and structure of assumptions used while preparing the principals
and rules which combines the ideas and discussion used in a broader concept. The measurement
requirement applied by the company is on the accrual basis and the concept of historical costs
has been applied by the company (Newberry 2015). The functional currency in which the
amount were measured and reported in the financial statements of the company were the
Australian Dollars. The assumptions of the management of the company were applied in the
carrying values of the assets and liabilities of the companies which are apparently different from

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other sources. The revenue measurement and recognition concept has been applied by the
company by using the AASB 118. The adoption of the AASB 118 as compared to the AASB 15
would not have much material impact on the financials of the companies (Dunbar and Laing
2017).
The conceptual framework AASB 115 will help the company in better revenue
recognition concept and analysis at a specific time and at a period of time. The measurement of
the financial instruments of the companies were well in accordance with the AASB 9 defines the
classification and measurement and includes the forward looking expected loss and the
impairment model for hedging the account of the same.

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The lease of assets of the Anatara Lifescience company were recognized under the
AASB 16 lease standards, which mandates that all the leases should be recognized on the
balance sheet of the company irrespective of the size and tenure. The leasing of the assets of the
company were discussed in details and the analysis of the same could help the investors get an
overview of the various kind of assets under lease for the company.
The plant and equipment for the company were recognized at cost or at the fair value of
the asset less any accumulated depreciation for the company was calculated. Impairment losses

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were also recognized by the company and depreciation of assets primarily depends on the
economic useful lives of the assets. The company regularly impairs assets where it find when
there is a difference between the carrying values and market values of the asset of the company
(Nobes 2014).
Fundamental Qualitative Characteristics
The fundamental qualitative characteristics shows the various accounting principles,
standards and the concept of the same were applied by the Anatara Lifescience Company in the
preparation of the financial report of the company. The fundamental qualitative characteristics
shows whether the information presented by the company is relevant or not and the faithful
representation of data by the company (Leuz and Wysocki 2016).
1. Relevance: The data and information’s include in the financial report of the company
should be relevant enough so that the same can be accessed by the users of the financial
data of the company. The financial data and information presented by the company were
relevant enough and were useful for the company in making relevant economic decisions.
The information’s and data presented by the companies were relevant enough for making
financial and economic decisions implying the forecast for performance of the company.
2. Faithful Representation: Anatara Lifescience has presented all data and information in
the financial report for the company. The company has followed all the relevant

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accounting policies and had complied with the conceptual framework of the Australian
Accounting Standard bodies for complying with the rules and regulations. The company
did not maintain any bias and wee neutral in providing all the data and information’s
related to the company.
Enhancing Qualitative Characteristics
The enhancing qualitative characteristics of a company’ financial report is determined by
the common aspects and norms followed by the company while preparing the financial report for
the company (Schaltegger and Burritt 2017).
 Comparability: The Company has provided comparability features in the annual report
of the company by incorporating various data and information in the common prescribed
way and format so that the investors could compare the financial performance of the
company.
 Verifiability: The Company has presented all the data and information’s which were
related and based on the AASB. The accounting framework were duly verified by the
auditors of the company and certain necessary management disclosures were made in the
context relating to the same.

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 Timeliness: The financial report for the Anatara Lifescience were presented in a timely
manner and they have frequently updated the investors and the stakeholders of the
company with various important facts and information’s so that they can use the same for
assessing the financial information’s by the company (Thompson 2018).
 Understandability: The financial report presented by the company were presented by
the company in accordance with prescribed format and framework policies which the
company adheres i.e., in accordance with the Australian Accounting Standard Bodies.
Decisions from Financial Report
The stakeholders and the investors of the company which are the primary users of the
financial report can be able to assess the report for analyzing the financial performance of the
company. Anatara Lifescience has classified and recorded all the financial information’s of the
company as per the standard rules of accounting and presented the investors with various
relevant data for analyzing (Tschopp and Nastanski 2014).

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Financial Knowledge
The investors for the company were presented with detailed operations and financial
performance of the company. Investors can assess the financial report of the companies in
accordance with the data and information’s provided. Since, the company has provided all the
relevant accounting and financial data within the financial reports, investors with basic
knowledge of accounting can be easily able to assess the financial performance of the company
(Spiceland et al. 2018).
Conclusion
The company has meet all the general purpose of financial reporting and has prepared the
financial report of the company in compliance with the accounting standards of the AASB. The

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financial report of the company has enhancing and fundamental qualitative characteristics which
has helped the investor’s asses the financial performance of the company. The company has
given relevant details of the various account heads and the transactions done by the company.
Verified and faithful representation of data presented by Anatara Lifescience helped the investors
and stakeholders of the company review important aspects about the company.

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Reference
Dunbar, K. and Laing, G.K., 2017. Deconstructing the Accounting Standard AASB 13 Fair
Value: Exit vs Entry Price for Assets. Journal of New Business Ideas & Trends, 15(2).
Huber, W., 2017. Irreconcilable differences? The FASB's conceptual framework and the public
interest. International Journal of Critical Accounting, 9(5/6), pp.514-523.
Leuz, C. and Wysocki, P.D., 2016. The economics of disclosure and financial reporting
regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2),
pp.525-622.
Newberry, S., 2015. Public sector accounting: shifting concepts of accountability. Public Money
& Management, 35(5), pp.371-376.
Nobes, C., 2014. International classification of financial reporting. Routledge.
Ryan, C., Mack, J., Tooley, S. and Irvine, H., 2014. Do Not‐For‐Profits Need Their Own
Conceptual Framework?. Financial Accountability & Management, 30(4), pp.383-402.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Spiceland, D., THOMAS, W., Nelson, M., TAN, P.H.N., Low, B. and LOW, K.Y., 2018.
Intermediate accounting.
Thompson, D., 2018. Contemporary Challenges in Audit. In Contemporary Issues in
Accounting (pp. 125-143). Palgrave Macmillan, Cham.

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Tschopp, D. and Nastanski, M., 2014. The harmonization and convergence of corporate social
responsibility reporting standards. Journal of Business Ethics, 125(1), pp.147-162.