Contemporary Issues in Accounting

The report proposes to conduct a study on compliance of Charter Hall Group with the conceptual framework. The study mainly intends to evaluate adherence of the company for recognition of “assets, liabilities, equities, expenses and revenues”. The second part of the study has been further seen to consider compliance of the company for “assets, liabilities, equities, expenses and revenues”. The third part of the study will be considered with the quality of characteristics as per the annual report and the same will be evaluated for the reliability and faithfulness in description of the financial events. The final part of the discourse will be able to evaluate the quality characteristics in terms of depicting the comparability and timeliness of information presented in the financial report.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of Student:
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CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The report proposes to conduct a study on compliance of Charter Hall Group with the conceptual
framework. The study mainly intends to evaluate adherence of the company for recognition of
“assets, liabilities, equities, expenses and revenues”. The second part of the study has been
further seen to consider compliance of the company for “assets, liabilities, equities, expenses and
revenues”. The third part of the study will be considered with the quality of characteristics as per
the annual report and the same will be evaluated for the reliability and faithfulness in description
of the financial events. The final part of the discourse will be able to evaluate the quality
characteristics in terms of depicting the comparability and timeliness of information presented in
the financial report. Based on the findings it has been discerned that conceptual framework
operating in Australia has been seen with “AASB”. The preparation of the financial statements
has been further able to consider the conformity of the IFRS requirements which has been able to
make the necessary judgements for the estimates and assumptions with the accounting policies
amounting to assets, liabilities, income and expenses.

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Table of Contents
Introduction......................................................................................................................................3
Adherence to the objectives of the conceptual framework with its reporting.................................3
Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue and
Expenses..........................................................................................................................................4
Adherence with the qualitative enhancing characteristics of financial reporting............................5
Adherence with enhancing characteristics of financial reporting....................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
List of Appendix..............................................................................................................................9

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Introduction
Charter Hall Group has been established in 1991 to and considered as Australia’s one of
the leading property groups with a total portfolio amounting to $20.4 billion. The total owned
and managed commercial has been further discerned as 329 in Australia itself. This has included
office buildings, supermarket, anchored retail centres and dynamic growth in the industrial assets
as per institutional retail and whole sale investors. The group was listed under “Australian
Securities Exchange (ASX)” in the year 2005, under the ASX code and stapled along with
“Charter Hall Limited (CHL)”.
The main aspects of the study have considered the adherence of conceptual framework
for reporting. The report will be further able to evaluate adherence of the company for
recognition of “assets, liabilities, equities, expenses and revenues”. The second part of the study
has been further seen to consider compliance of the company for “assets, liabilities, equities,
expenses and revenues”. The third part of the study will be considered with the quality of
characteristics as per the annual report and the same will be evaluated for the reliability and
faithfulness in description of the financial events. The final part of the discourse will be able to
evaluate the quality characteristics in terms of depicting the comparability and timeliness of
information presented in the financial report (Rahman 2013).
Adherence to the objectives of the conceptual framework with its reporting
The important conceptual framework operating in Australia has been seen with
“Australian Accounting Standards Board (AASB)”, which is conducive in developing financial
report in both public and private companies. The primary contributing role of the AASB has

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been considered with “Australian securities and investment commission at 2001”. The data given
in December 2013 has been aimed at making significant improvement in “measurement,
presentation, reporting entity and de-recognition”. The main form of the amendments has been
further able to bring the changes which have been able to drive management stewardship
associated to entities (Camfferman and Zeff 2015).
The information as per “Charter Hall Group Limited” annual report, it has been discerned
that the financial statement has been prepared as per “Australian Accounting Standards
(AASBs)” which has been created with “Australian Accounting Standards Board and the
Corporations Act 2001”. The consolidation of the financial statement has been further done with
“International Financial Reporting Standards (IFRS)” and the interpretations of the same are
adopted with “International Accounting Standards Board”. The implementation of new measures
has been seen to be implemented in 17 August 2017 (Howieson et al. 2014).
The new standards which are yet to be adopted and implemented has been further seen to
be taken into consideration based on “AASB 9 Financial Instruments”. Some of the other
standards which are yet to be adopted has been discerned with detailed assessment of the impact
of “AASB 9 and its interaction with AASB 15 Revenue from Contracts with Customers”
(Navarro‐García and Madrid‐Guijarro 2014).
Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue
and Expenses
Based on the depiction of financial statements of foreign operations the assets and
liabilities have been seen to be translated into company’s functional currency at foreign
exchange ratings and the same has been considered for the ruling date as per the date of the

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transaction. The preparation of the financial statements has been further able to consider the
conformity of the IFRS requirements which has been able to make the necessary judgements for
the estimates and assumptions with the accounting policies amounting to assets, liabilities,
income and expenses. It has been also seen that the underlying assumptions are reviewed with
the ingoing progress and the revisions made in the accounting estimates which is recognised with
revisions made in the future years. The critical judgements to apply the necessary accounting
policies has been seen to be having significant effect on Employee benefit liabilities, Share based
payments, Intangible assets, Business combinations, contingent liabilities and financial risk
management (Crawford et al. 2014).
Revenues, expenses and the assets are seen with the recognition of the net amount of
GST. The intangible assets are tested for impairment on an annual basis. The monetary issues in
the assets and liabilities has been denominated as per the foreign currency on the date of
reporting and the same is translated with the functional currency at a foreign exchange rate ruling
at that date. On the other hand, the different types of the Non-monetary assets and liabilities are
seen to be denominated as per the foreign currencies which are stated at fair value (Brown
Preiato and Tarca 2014).
Adherence with the qualitative enhancing characteristics of financial reporting
As per financial notes 5.6 Provisions, the provision in the balance sheet is seen with
reliable estimate which can be made with total amount of the obligations. The board of Charter
Hall Group has been discerned with the main approach to enhancing characteristics of financial
reporting with the Board and executive remuneration is seen to be in balance with fair and
equitable rewards which motivates experienced and successful executive team to deliver ongoing

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business growth which meets the expectation of the shareholders in the long-term. As per the
statement of comprehensive income the company considers the Effective portion of changes in
fair value of cash flow hedges, net of tax. The fair value method of measurement of the derivate
instruments and the same is seen to be available for the selling of the investments. The various
types of the Non-monetary assets and liabilities have been stated as per fair value translation to
the functional currency as per foreign exchange rulings and determination of the fair value. It has
been also discerned that in the assessment of the net changes in the fair value available for the
purpose of selling in the net profit is considered as enhancing characteristics of the financial
report. It has been also seen that in the statement of changes of equity also the qualitative
characteristics is maintained with changes in the fair value of the cash flow hedges and net tax.
Adherence with enhancing characteristics of financial reporting
Charter Hall Group has used enhancing qualitative characteristics in terms of executive
KMP STI against the sales revenue and EBIT. This is depicted with a bar graph and histogram in
the annual report. It has further used stacked horizontal bar graphs for the comparison of fixed,
short term incentives, deferred short term incentives and long-term incentives. The income
statement of the company has been able to present the data with previous year. The timeliness
aspect in the report has been evident with considered with preparation of the report in accordance
with “Australian Accounting Standards (AASBs)” and coloration of the same as on 17th August
2017. As per the notes to financial statement the assets has been considered with assets,
liabilities in both present and previous year. Similarly for a better comparability of the results the
employee benefit has been depicted in both 2017 and 2016. It has been also seen that the fair
value of the options and performance has been depicted with EPS performance based conditions,
TSR based conditions and deferred STI service based conditions. The same has been compared

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on monthly basis (Ordelheide 2016).
Conclusion
The study has been able to reveal that Charter Hall Group annual report has adhered to
the objectives prescribed as per “Australian Accounting Standards (AASBs)” which has been
created with “Australian Accounting Standards Board and the Corporations Act 2001”. The
preparation of the financial statements has been further able to consider the conformity of the
IFRS requirements which has been able to make the necessary judgements for the estimates and
assumptions with the accounting policies amounting to assets, liabilities, income and expenses.
The board of Charter Hall Group has been discerned with the main approach to enhancing
characteristics of financial reporting with the Board and executive remuneration is seen to be in
balance with fair and equitable rewards which motivates experienced and successful executive
team to deliver ongoing business growth which meets the expectation of the shareholders in the
long-term. The comparability of the information has been discerned with histogram and bar
graph. It has been further discerned that the company has compared all the relevant financial data
with the prior year which is discerned as the main qualitative characteristics.

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References
Brown, P., Preiato, J. and Tarca, A., 2014. Measuring country differences in enforcement of
accounting standards: An audit and enforcement proxy. Journal of Business Finance &
Accounting, 41(1-2), pp.1-52.
Camfferman, K. and Zeff, S.A., 2015. Aiming for global accounting standards: the International
Accounting Standards Board, 2001-2011. Oxford University Press, USA.
Crawford, L., Helliar, C., Monk, E. and Veneziani, M., 2014, March. International Accounting
Education Standards Board: Organisational legitimacy within the field of professional
accountancy education. In Accounting Forum (Vol. 38, No. 1, pp. 67-89). Elsevier.
Howieson, B., Hancock, P., Segal, N., Kavanagh, M., Tempone, I. and Kent, J., 2014. Who
should teach what? Australian perceptions of the roles of universities and practice in the
education of professional accountants. Journal of Accounting Education, 32(3), pp.259-275.
Navarro‐García, J.C. and Madrid‐Guijarro, A., 2014. The influence of improvements in
accounting standards on earnings management: The case of IFRS. Australian Accounting
Review, 24(2), pp.154-170.
Ordelheide, D., 2016. Transnational accounting. Springer.
Rahman, A.R., 2013. The Australian Accounting Standards Review Board (RLE Accounting):
The Establishment of Its Participative Review Process. Routledge.

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List of Appendix

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