Contemporary Issues In Accounting.

Added on - 16 Sep 2019

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Contemporary Issues In Accounting
Executive SummaryThe analysis of annual reports of two listed companies is done which comes under theagricultural sector. The Australian agricultural company serves the beef cattle production in aneffective manner by considering the usage of land and natural resources. The main activities ofthe company include pastoral properties development, marketing of products and services inorder to promote the brand in the eyes of the customers. The Abundant Company engages in thecommercialization of seeds for many types of food crops in Australia, development andacquisition.The analysis of the annual report is done on the main elements of financial statements. Therevised conceptual framework is understood in order to include addressing the prudence incorporate reporting which is followed by the recommendations and conclusion.
Table of ContentsExecutive Summary.........................................................................................................................1Introduction......................................................................................................................................3Annual report analysis.....................................................................................................................3Remuneration structure....................................................................................................................6Proposed conceptual framework......................................................................................................6Reasons of reference to prudence in the conceptual framework.....................................................8Criticism..........................................................................................................................................8Conclusion.......................................................................................................................................9Recommendations............................................................................................................................9References......................................................................................................................................11
IntroductionThe conceptual framework is defined as the concept which was developed for the financialreporting. It is mainly the practical tool which assists the board to make the IFRS standardswhich are based on the concepts which are consistent (Lexicon.ft.com et al., 2016). It also assiststhe analyst in order to interpret the standards. It also supports the policies development ofaccounting policies when the IFRS are not applied to the specific transaction. The main objectiveis to improve the financial reporting through giving the clear, complete and update policies.Annual report analysisThe general purpose financial reports of both the companies are organised according to thecompanies Act, 2001, international financial reporting which is issued by the internationalaccounting standard board, Australian Accounting Standards and its interpretations. The aim ofgeneral purpose financial reports is to give the information regarding the reporting entity to thepotential and current investors, financial decision makers, creditors and lenders.The difference is annual reports is explained below which is done on the basis of main elementsfrom the financial statement:1.Inventory valuationThe inventory valuation of Australian Agriculture Company is done at the lower of cost andthe net realizable value (AACo et al., 2016). The cost is calculated on the basis of averagecost which includes the transportation costs. The net realizable value is calculated bydeducting the estimated cost of consumption from estimated the price of selling in the
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