Contemporary Issues in Accounting: Analysis of CSL Limited's Financial Reports

This study analyzes contemporary issues in accounting by evaluating CSL Limited's financial reports. It examines the efficiency of the corporation in meeting the objectives of the conceptual framework, criteria for recognition, and fundamental and enhancing features of financial reports.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
University Name
Student Name
Authors’ Note

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Table of Contents
Introduction................................................................................................................................2
Analysing whether CSL Limited satisfies objectives of conceptual framework.......................3
Evaluating whether CSL Limited meet the criteria for recognition in the financial report.......3
Evaluation of financial reports concerning relevance and faithful representation.....................5
Critical analysis of elemental qualitative enhancing facets of financial report.........................5
Critical analysis of enhancing qualitative characteristics of financial declaration....................6
Conclusion:................................................................................................................................7
References..................................................................................................................................8

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Introduction
The current study analytically examines the contemporary issues in accounting that indicates
towards the investigation of advanced themes of accounting policies and comprehending an
extensive range of issues with orientation to the functions of CSL Limited. The present study
intends to put forward an logical understanding of efficiency of the corporation in order to
meet the necessities/obligations of the conceptual structure. In particular, the study allows for
the purposes of the conceptual framework, criteria for acknowledgment and recognition of
accounting items. Moving further, this study also studies fundamental and enhancing features
of the guiding principles. For the most part, the study proposes to assess satisfaction of the
aims of the conceptual framework by the corporation, fulfilment of recognition criteria and
analyse both fundamental and enhancing features of reports of CSL Limited.
Analysing whether CSL Limited satisfies objectives of conceptual framework
Analysis of the financial assertion of the firm CSL Limited reflects the fact that financial
statements help in managing diverse intents of financial announcements, diverse qualitative
exclusivity that again aids in instituting the efficiency of financial accounts. As indicated by
Cannon and Bedard (2016), diverse components aid in designing the entire financial
declarations. Even so, the necessary elements of financial declarations of the company
contain assets as well as liabilities (counting current together with non-current) and equity of
the company’s shareholders. Li (2013) suggests that different accounting items of financial
assertions demonstrate overall financial condition of the business concern. Furthermore,
framework of firm’s also aids in the procedures in case if analysis of financial situation of the
corporation from the standpoint of earnings, functional expenditure together with profit.
Besides this, the conceptual framework also exemplifies thoroughly different criterion and
decisive facets for recognition of items in the financial pronouncements of the corporation.

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Evaluating whether CSL Limited meet the criteria for recognition in the financial
report of CSL Limited
Assets and liabilities of CSL Limited: The financial pronouncement registered by the
business concern particularly during the financial year 2016, the total assets of the business
concern stands at $7562m in 2026 up from $6401m recorded during 2015. The total liabilities
of the corporation increased to $4995m in 2016 as compared to the year ago figure of
$3654m during 2015. Over and above this, the assets of the business concern are replicated
with regard to Australian Dollars that are essentially the functional currency of Australia.
Particularly, the carrying value of particularly the financial assets as well as liabilities
remains the fair value (Li 2013). The annual report suggests that the carrying value of cash is
equal to fair value as it is liquid in nature. Again, the carrying value of trade as well as other
receivables or else payables has an outstanding life of less than a year. Further, derivative
financial tools are initially acknowledged at fair value mainly at the date of the agreement
and consequently enumerated at the fair value during the date of reporting (Cascino et al.
2014). However, the profit/loss is detected in the statement of comprehensive earning.
Furthermore, fair value is mainly enumerated founded on the discounted anticipated principal
as well as flow of cash for interest. Liabilities are also identified at the date of reporting at the
fair value. Essentially, the interest bearing liabilities recognized at fair value are founded on
the discounted anticipated principal as well as interest flows of cash.
Revenue: Evaluation of annual report of CSH Limited replicates the fact that revenue is
primarily recognised as well as enumerated at the fair value that is necessarily received by the
company. As such, the group recognizes their revenue at the time when the revenue amount
can be dependably enumerated (Cannon and Bedard 2016). It is probable that the upcoming
economic advantages of the firm might flow to the corporation.

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Inventory: The inventory of the corporation CSL Limited is recorded to be $2152m during
the year 2016 as compared to the year ago figure of $1755m. Analysis of the report replicates
the fact that the level of inventory enhanced during 2016. The financial position of the
business concern CSL Limited together with the degree of efficacy can be analysed from the
inventory level (Bratten et al. 2013). As a part of compliance as well as continuous
enhancement in regulatory and environmental performance, CSL has satisfied its reporting
obligations under particularly Energy Reporting Act (2007), Victorian Government’s
Industrial Waste Management Policy for National Pollutant Inventory.
Accounts Receivables: Trade along with other receivables primarily are primarily recognized
at fair value as per annual report of the corporation CSL Limited
Provision for debt: Debt that are known to be uncollectible that are mainly written off at the
time when recognized. A provision for the purpose of impairment loss is mainly detected at
the time when there is objective substantiation that all the amounts due might not get fully
recovered (Pratt 2016).
Evaluation of financial reports concerning relevance and faithful representation
Critical analysis of elemental qualitative enhancing facets of financial report
The elemental qualitative features of effective pecuniary information in the annual report
include relevance and faithful representation of mainly company’s financial information.
Malik (2015) asserts that relevance of mainly financial information can assist in the process
of knowing the variation in different economic decisions undertaken by different users of the
information. Analysis of the available pecuniary information presented in the annual report
can aid in replicating variation in economic decisions and that has predictive value besides

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apart from confirmatory value. Annual report of CSL Limited mentions that there are notes
for materiality as well as relevance and delivered supplementary information where it can be
useful to comprehend the performance of the group.
Faithful representation mentions and replicates about different economic events expressed in
writing as well as numbers. Nevertheless, in a bid to be efficient, financial information need
to be applicable and simultaneously have faithful representation (Grant 2016). Detailed
evaluation of financial pronouncements of the firm CSL Limited markedly mentions about
economic dimensions of Australia, global partners and collaborators, specific factors
contributing towards growth along with important information on the worldwide forces
driving the nation and at the same time affecting the workings of the corporation.
Critical analysis of enhancing qualitative characteristics of financial declaration
The enhancing qualitative features of financial reporting mainly comprise of comparability,
understandability, verifiability and timeliness.
Comparability indicates towards specific information regarding reporting business entity that
can essentially help different users to recognize and realize diverse similarities and
dissimilarities that exist among different items in accounting. In fact, the numeral for
different dimensions specifically for operating margin, amplification of revenue and global
potential among many others for different periods of time helps in comparability of
information (Best 2017).
Verifiability: As rightly indicated by McCombs (2017), verifiability helps in assuming users
that specific information represents faithfully specific economic events that necessarily
declare to reflect. Further, pecuniary information of the business concern predictably adheres
to the rules of the Corporation Act of particularly the year 2001 along with the Listing Rules

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mentioned under ASX. In particular, information on finances of the firm presented in the
annual report helps in reflecting selection as well as implementation of strategies of
presenting important disclosures that can subsequently aid investors of the business concern
CSL Limited (Deegan 2013). In essence, the disclosures (the market disclosure, Securities
and Market Disclosure, Environment Disclosures, Statutory Remuneration Disclosures, Key
Management Personnel Disclosures and many others) can hereby help in augmentation of
confidence of the financiers. This mainly occurs by means of enhancement of integrity,
transparency along with the dependability of the business concern’s functionalities together
with the financial declarations of the business concern.
Timeliness: DesJardins and McCall (2014) suggests that timeliness of firm’s pecuniary
information indicates towards the necessity of presenting and making available the
information to different decision makers at the right time for the purpose of influencing their
economic decisions.
Understandability: The procedure of classifying, typifying, preparing and presenting
pecuniary information noticeably and briefly can in turn help in enhancing the
understandability of the information. Evaluation of the financial pronouncements aid in the
process of suitably reflecting the notes to the financial declarations, important stratagems of
accounting that can subsequently help in augmentation of understandability. Analysis of the
report reveals that the preparers of the reports follow the stipulation of the conceptual
framework of mainly Australian Accounting Standards Board (Rankin et al. 2012). This in
turn helps in comprehending definitions, objectives and recognition principles. These way
investors can help in examining efficacy of functions by using specific and obligatory
standards of accounting of AASB for financial pronouncements.

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Conclusion:
The above mentioned study hereby has helped us to comprehend diverse issues that are
associated to the process of enumeration in the present context of the standards as well as
framework of AASB. Thus, in conclusion it can be said that financial statements aid in
evaluating different accounting aspects of the firm CSL Limited and delivers different
notions of financial aspects. Apart from this, the current study also helps in comprehending
issues with regard to enumeration, recognition of financial assertions from the standpoint of
AASB. Furthermore, this above mentioned study also helps in gaining deep insight and
profound understanding regarding the system of enumeration implemented in the corporation
and specific provisions of the economic decisions.

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References
Best, J., 2017. Images of issues: Typifying contemporary social problems. Routledge.
Bratten, B., Choudhary, P. and Schipper, K., 2013. Evidence that market participants assess
recognized and disclosed items similarly when reliability is not an issue. The Accounting
Review, 88(4), pp.1179-1210.
Cannon, N.H. and Bedard, J.C., 2016. Auditing challenging fair value measurements:
Evidence from the field. The Accounting Review, 92(4), pp.81-114.
Cascino, S., Clatworthy, M., García Osma, B., Gassen, J., Imam, S. and Jeanjean, T., 2014.
Who uses financial reports and for what purpose? Evidence from capital
providers. Accounting in Europe, 11(2), pp.185-209.
Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Li, J., 2013. Accounting conservatism and debt contracts: Efficient liquidation and covenant
renegotiation. Contemporary Accounting Research, 30(3), pp.1082-1098.
Malik, M., 2015. Value-enhancing capabilities of CSR: A brief review of contemporary
literature. Journal of Business Ethics, 127(2), pp.419-438.
McCombs, M., 2017. Contemporary public opinion: Issues and the news. Routledge.
Pratt, J., 2016. Financial accounting in an economic context. John Wiley & Sons.

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Rankin, M., Stanton, P.A., McGowan, S.C., Ferlauto, K. and Tilling, M.,
2012. Contemporary issues in accounting. Milton, Australia: Wiley.