Contemporary Issues in Accounting - A Study on CSR Limited

This study aims to predict whether CSR Limited needs the conceptual framework of this reporting and recognises the criteria required for reporting Assets, Liabilities, Equity, Revenue and Expenses. The findings reveal compliance with Australian accounting standards and Corporations Act 2001. The qualitative characteristics have been prominent with using of comparison with previous year’s financial data and bar graphs.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of Student:
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Author’s Note:

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CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The main depictions of the study are intended to predict whether CSR Limited needs the
conceptual framework of this reporting. It further aims to recognise the criteria required for
reporting Assets, Liabilities, Equity, Revenue and Expenses. In addition to this, the fundamental
qualitative and has been characteristic has been seen with relevant and faithful representation.
Some of the other right it has been also identified with recognising qualitative enhancing
characteristics and whether this information is very viable, comparable and understandable. The
main findings have revealed that the company complies with “Australian accounting standards
(AASBs)” and “Corporations Act 2001”. The important elements of the qualitative
characteristics have been evident with using of comparison with previous year’s financial data
and bar graphs.

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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
Conclusions and Recommendations................................................................................................7
References........................................................................................................................................8
List of Appendix............................................................................................................................10

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Introduction
CSR Limited is considered as the major Australian company in terms of building and
producing. Tomago aluminium smelter is further seen to be situated in Newcastle, New South
Wales and responsible for publicly trading of Australian Securities Exchange. In 2012, the
company is seen to be having approximately 3600 employees and total amount of after tax profit
is discerned as $90.7 million. In addition to this, the company is discerned to having diversified
shareholding with predominant Australian fund and retail owners. The building of the products
with the creation of Sucrogen has been identified with the main production activity.
The report intends to identify whether the company needs the conceptual
framework of this reporting. It further aims to recognise the criteria required for reporting Assets,
Liabilities, Equity, Revenue and Expenses. In addition to this, the fundamental qualitative and
has been characteristic has been seen with relevant and faithful representation. Some of the other
right it has been also identified with recognising qualitative enhancing characteristics and
whether this information is very viable, comparable and understandable (Kalkhouran et al.
2015).
Adherence to the objectives of the conceptual framework with its reporting
“Australian Accounting Standards Board (AASB)” is identified as the main Australian
government agency for developing and maintaining financial report and standards applicable to
the entities in private and public sectors of the economy in Australia. AASB has been also seen
with contributing role of financial reporting standards with “Australian securities and investment
commission at 2001”. In December 2013, AASB included several revisions with a view to cover

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more areas in the existing conceptual framework network which has been discerned in form of
better measurement, financial performance, presentation, de-recognition, reporting entity and
disclosure. The information provided is further used to assess for meeting the objectives of
financial reporting which helps in addressing management stewardship of entity resources
(Spraakman and Jackling 2014).
As per the depictions made from financial report published in 2016 CSR Limited has
“consolidated financial statements” prepared for general purpose financial reporting act for
guidelines given by “Australian accounting standards (AASBs) which has been further seen to be
adopted by Australian accounting standards board (AASB)”. The financial reports have further
added to the conceptual framework as per “Corporation Act 2001”. The consideration of the
financial statements has been further seen to comply with “International Financial Reporting
Standards (IASB)”. It has been further depicted that the accounting policies set by the company
are consistent during all periods of the consolidated financial statements and consistently applied
across the group (Richardson et al. 2014). There has been no new revised standard interpretation
which has been issued by AASB and not stated by the company. Some of the standards which
has been issued by AASB but are yet to be adopted by the company includes “Financial
Instruments (Revised AASB 9)”, “Revenue from Contracts with Customers (AASB 15)” and
“Leases (AASB 16)” (Penman 2013).
Adherence with the recognition criteria for reporting Assets, Liabilities, Equity, Revenue
and Expenses
The investment activities of the group comprise of “available for sale financial assets”
which are being treated as a ASX listed securities. It has been further seen that the measurement

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is done “at a fair value and add value” market price. Such assets have been further categorised as
Level I under fair value hierarchy of AASB 7. Revenue expenses and the assets has been further
seen to be recognised with the net amount of the “goods and services tax (GST)” said in cases
where the GST amount has not seen to be recoverable from the taxation authority. In these
circumstances the GST amount is interpreted with cost of acquisition of the assets and the
portion of expense (Ding, Hellmann and De Mello 2017). The various types of receivables and
payable are seen to be stated with the amount of GST included. The net amount of the GST
recoverable from payable is included with the current asset or liability statement of the financial
position. Groups accounting policies and disclosures is determined with fair value for both non-
financial assets and liabilities and financial. The fair value is assessed for measurement and
disclosure of material assets such as PPE, intangible assets and inventory. The fair value of
equity and debt is determined with reference to the quoted closing price paid at the reporting
date. In order to generate a “true and fair view of the group’s financial position” on the
consideration of the financial statements has been set out in pages 35 to 90 which are in
accordance with “Corporations Act 2001”(Susmus and Demirhan 2013).
Adherence with the qualitative enhancing characteristics of financial reporting
Based on the assessment of the information given in the annual report it has been
discerned that the total board and committee meetings held in financial year and the meetings
attended by the directors included relevant committee members. The group has been further able
to attempt to mitigate the risk by a close monitoring of related development and including
relevant regulatory bodies which are in compliance with the existing regulations. The
faithfulness of the information has been further discerned in related interest of each director in
the shares and opinions over such instruments issued by the company within the group and

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different types of other related bodies which has been addressed by the directors to the
Australian Stock Exchange in accordance with “S205G (1)” of the “corporations act 2001”
(Brouwer, Faramarzi and Hoogendoorn 2014).
The various types of costs incurred by the company including the insurance costs has
incurred with relevant officers in defending proceedings which has been seen to be criminal,
civil irrespective of the outcomes (Brouwer, Faramarzi and Hoogendoorn 2014).
The various types of costs excluding the expenditure is directly attributable with the
acquisition of assets. The cost incurred for self-constructed assets has been seen to include cost
of material, initial estimate and direct labour wherever relevant. The share baseband system
disclosed as for performance rights has been seen to reflect fair value of each right identified
with the number of rights granted to the individual shareholders (Schaltegger and Zvezdov
2015).
Adherence with enhancing characteristics of financial reporting
the comparability aspect of the financial information has been depicted with the using of
several types of graphical representation. For instance, the results of operating result have been
clearly segregated into EBITDA, NPAT, EPS, operating cash flow and dividends per share. In
order to compare the date of the respective factors the data along with its unit has been clearly
presented from financial year 2009 financial year 2016. The representation of the data in months
shows that the qualitative characteristics of has been able to maintain the time factor
(Schaltegger and Zvezdov 2015). In order to maintain the qualitative characteristics of reporting
a customer growth factor has been shown on monthly basis using a stacked column chart to
represent the data. As per the depictions given by the company the subscribers have been seen

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with a linear growth from January 2014 2 July 2016. The depictions of the same has been
presented with a pie chart for an easy understanding of the data. As for the review of the
financial results the company has broadly segregated the results of 2016 with prior year under
respective subsections. For instance, the key elements of financial year 2016 has been shown by
revenue increase or decrease in 2016 and compared revenue increase or decrease in 2015 (Ding,
Hellmann and De Mello 2017).
Conclusions and Recommendations
The depiction based on Adherence to the objectives of the conceptual framework with its
reporting has shown that the company complies with “Australian accounting standards (AASBs)
which has been further seen to be adopted by Australian accounting standards board (AASB)”.
The financial reports have further depicted with conceptual framework as per “Corporation Act
2001”. The consideration of the financial statements has been further seen to comply with
“International Financial Reporting Standards (IASB)”. It has been further discerned that the
group recognises assets as per Level I under fair value hierarchy of AASB 7 and revenues with
net amount of the goods and services tax (GST) said in cases where the GST amount has not
seen to be recoverable from the taxation authority. The qualitative characteristics has been
prominent with using of comparison with previous year’s financial data and bar graphs.

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References
Brouwer, A., Faramarzi, A. and Hoogendoorn, M. (2014) ‘Does the New Conceptual Framework
Provide Adequate Concepts for Reporting Relevant Information about Performance?’,
Accounting in Europe, 11(2), pp. 235–257. doi: 10.1080/17449480.2014.967788.
Ding, Y., Hellmann, A. and De Mello, L. (2017) ‘Factors driving memory fallibility: A
conceptual framework for accounting and finance studies’, Journal of Behavioral and
Experimental Finance, 14, pp. 14–22. doi: 10.1016/j.jbef.2017.03.003.
Kalkhouran, A. A. N., Rasid, S. Z. A., Sofian, S. and Nedaei, B. H. N. (2015) ‘A Conceptual
Framework for Assessing the Use of Strategic Management Accounting in Small and Medium
Enterprises’, Global Business and Organizational Excellence, 35(1), pp. 45–54. doi:
10.1002/joe.21644.
Penman, S. (2013) ‘Accounting Standard Setting: Thoughts on Developing a Conceptual
Framework’, China Journal of Accounting Studies, 1(3–4), pp. 157–167. doi:
10.1080/21697221.2013.856256.
Richardson, P., Dellaportas, S., Perera, L. and Richardson, B. (2014) ‘Towards a conceptual
framework on the categorization of stereotypical perceptions in accounting’, Journal of
Accounting Literature, 35, pp. 28–46. doi: 10.1016/j.acclit.2015.09.002.
Schaltegger, S. and Zvezdov, D. (2015) ‘Expanding material flow cost accounting. Framework,
review and potentials’, Journal of Cleaner Production, 108, pp. 1333–1341. doi:
10.1016/j.jclepro.2014.08.040.

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Spraakman, G. and Jackling, B. (2014) ‘A conceptual framework for learning management
accounting’, Accounting Perspectives, 13(1), pp. 61–81. doi: 10.1111/1911-3838.12024.
Susmus, T. and Demirhan, D. (2013) ‘Creative Accounting: A Brief History and Conceptual
Framework’, Akademik Bakis Dergisi, (38), pp. 1–20.

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List of Appendix

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