Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary:
For this report, emphasis would be placed on analysing the various aspects of general purpose
financial reporting of Genworth Mortgage, which is a leading provider of lenders mortgage
insurance in Australia. The organisation has conducted accurate application of the fundamental
qualitative characteristics by disclosing the required information regarding various economic
phenomena. Along with this, the organisation has met the enhancing qualitative features related
to financial reporting. The above analysis has made it evident that Genworth Mortgage has
disclosed the needed financial statements in its annual reports so that the users could obtain the
necessary information that would assist them in undertaking significant decisions. Finally, it has
been analysed that Genworth Mortgage has adhered to the guidelines and norms mentioned in
IFRS, IASB, AASB and Corporations Act 2001 for complying with the needs related to general
purpose financial reporting.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
1. Compliance with the measurement requirements of the conceptual framework:........................3
2. Compliance with the fundamental qualitative characteristics:....................................................7
3. Compliance with the enhancing qualitative characteristics:........................................................8
4. Ability of the users of financial reports to use the report in making decisions:........................10
5. Required accounting knowledge of conceptual framework for company analysis:..................12
6. Requirements for general purpose financial reporting:.............................................................13
Conclusion:....................................................................................................................................13
References:....................................................................................................................................15

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
The global companies adopt general purpose financial reporting so that they could deliver
financial information to their main shareholders for assisting them in undertaking decisions.
When these financial reports are prepared, the organisations are liable to adhere to the needed
standards and guidelines of financial reporting so that they could avoid various financial
reporting issues. In Australia, the organisations listed in ASX have to adhere to the financial
reporting standards developed by the “Australian Accounting Standards Board (AASB)” for
preparing and presenting their financial reports. Along with this, they have to adhere to the
AASB conceptual framework standards and “International Financial Reporting Standards
(IFRS)”. For this report, emphasis would be placed on analysing the various aspects of general
purpose financial reporting of Genworth Mortgage, which is a leading provider of mortgage
insurance for the lenders in Australia (Genworth.com.au 2019).
1. Compliance with the measurement requirements of the conceptual framework:
The ASX listed firms are obliged by AASN for adhering to the recognition and
measurement requirements in accordance with the conceptual framework for financial reporting.
As per the AASB conceptual framework, the organisations have to adopt between different bases
of measurement, which include current value and historical cost. The bases of measurement
under current value include value-in-use and fair value (Brouwer, Faramarzi and Hoogendoorn
2014).
Moreover, the organisations bear the liability to adhere to the recognition criteria
mentioned in the AASB conceptual framework in order to recognise their liabilities, assets,