Contemporary Issues in Accounting: Analysis of Crown Resorts Compliance with Conceptual Framework

Running head: ACCOUNTING THEORIES AND ISSUES
Contemporary issues in accounting
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1ACCOUNTING THEORIES AND ISSUES
Executive summary
Main objective of the report is to analyse the conceptual framework requirement of the
financial statements and to find out whether Crown Resorts is complying with all the
requirements of GPFR (general purpose financial reporting).
Conceptual framework assists in assuring that standard are conceptually consistent and
similar type of transactions are considered in same way for providing useful information to
the lenders, investors and various other creditors.
Crown Resorts is one of the largest entertainment groups in Australia that majorly contributes
to the Australian tourism, training, programs related to social responsibility and employment.
Core investments and business of the company is in the sector of integrated sectors. It can be
identified from the annual statement of the company for the year ended 2018 that the
company records the assets, liabilities, expenses and incomes in its balance sheet and income
only when its value can be measured reliably. Further, it complies with the qualitative
characteristics of conceptual framework.

2ACCOUNTING THEORIES AND ISSUES
Table of Contents
Introduction................................................................................................................................3
Conceptual framework...............................................................................................................3
Critical analysis and discussion.................................................................................................4
Theory appropriate to the company.......................................................................................4
Measurement requirement......................................................................................................5
Compliance with fundamental qualitative characteristics......................................................9
Compliance with enhancing qualitative characteristics.......................................................12
Users of financial reports.....................................................................................................14
Requirement of basic knowledge.........................................................................................15
Requirement of GPFR (general purpose financial reporting)..............................................15
Recommendation......................................................................................................................15
Conclusion................................................................................................................................16
Reference..................................................................................................................................17

3ACCOUNTING THEORIES AND ISSUES
Introduction
Crown Resorts Limited, the ASX listed company operates in entertainment industry
of Australia. It conducts its operation through 4 segments – Crown Perth, Crown Melbourne,
Wagering and online and Crown Aspinalls. It is one of the largest entertainment groups in
Australia that majorly contributes to the Australian tourism, training, programs related to
social responsibility and employment. Core investments and business of the company is in
the sector of integrated sectors. The development projects of the company include Crown
Sydney Hotel Resort at Barangaroo and are proposed One queens bridge project in
Melbourne (Crownresorts.com.au 2018).
Conceptual framework
Revised Conceptual framework that is issued on March 2018 and is effective
immediately are used for the purpose of preparing the financial reports sets out fundamental
concepts for the purpose of financial reporting provides guidance to the board for developing
the IFRS standards. It assists in assuring that standard are conceptually consistent and similar
type of transactions are considered in same way for providing useful information to the
lenders, investors and various other creditors. It also assists in developing the accounting
policies when IFRS standards are not applicable to particular transactions and more
specifically, it helps the shareholders in understanding as well as interpreting the standards
(Mca.gov.in 2018).
Main objectives of conceptual framework is to deliver the financial information those
are useful to the users for making decisions related to providing the resources to the
company. Decision of the users involve selling, buying or holding the debt or equity
instruments, settling or providing loans and credit in any other forms, voting or influencing