Contemporary Issues in Accounting: Compliance with Qualitative Characteristics and General Purpose Financial Reporting

CONTEMPORARY ISSUES IN ACCOUNTING

Contents
Introduction................................................................................................................................2
Conceptual framework...............................................................................................................2
Compliance with fundamental qualitative characteristic...........................................................2
True and fair representation:..................................................................................................2
Relevance:..............................................................................................................................3
Compliance with enhancing qualitative characteristic:..............................................................3
Comparability:........................................................................................................................3
Understand ability:.................................................................................................................3
Verifiability:...........................................................................................................................3
Annual Reports enable the stakeholders to make the financial decisions..................................4
Knowledge of the users of the financial statements...................................................................5
Requirements of the general purpose financial reporting..........................................................6
References..................................................................................................................................9

Introduction
The financial reports are prepared by the corporations by following the various accounting
guidelines. It makes simple way for the corporation and the stakeholders of the company to
know the business of company. It also helps in making good decisions in respect of the
performance of corporation. In the report, the accounting process, guidelines of preparing the
accounting reports have been studied of Asaleo Care. The report focuses that whether the
relevant approaches have been followed by the corporation or how is it helping the
shareholders of the corporation.
Conceptual framework
The conceptual framework is a systematic tool with various alterations and frameworks. The
conceptual framework may be followed in various types of the effort where the complete
picture is required. This is used to create conceptual differences and manage concepts. The
conceptual framework is described as the ideas and objects that advances the business in the
direction of a set of norms in respect of making the good report. The Conceptual framework
provides the relevant guidelines to every company to prepare the reliable and relevant related
report so that it became simple for the shareholders of an organisation to have the knowledge
of the annual report of corporation and relate it with the challengers or other companies to get
the final decision. In respect of Asaleo care, it is evaluated that the annual report of this
corporation has made as per the conceptual framework. Asaleo care has followed guidelines
and accounting standards to recognise and evaluate the financial performance of the
organisation. The corporation has followed the AASB rules while preparing the financial
statement of the company. It is found that the whole presentation factors of organisation are
contented. These factors will help the business to enhance the whole performance in
marketplace (Garrett, Hoitash and Prawitt, 2014).
Compliance with fundamental qualitative characteristic:
As per study, it is evaluated that following are the characteristics and the compliance in the
company-
True and fair representation:

The true and fair representation states that in the annual report of company, the financial
performance and non-financial performance should be stated with evidence for the faithful
representation in front of the stakeholders (Parker, Guthrie, and Linacre, 2011). The data and
information of the company should be analysed and presented in the annual report of the
company. In respect of the Asaleo Care, it is analysed that all the new assignments, different
procedures and modifications in the corporations have been defined in the company’s annual
report in brief (Elad, 2016).
Relevance:
Relevant information are very useful to affect decision of the shareholders of the company.
The annual report of Asaleo care states that the recording has stated in good manner by the
organisation in the annual report of company so that good decision can take by the
shareholders of the company. It is stated in annual report that all the relevant data for the
shareholders have defined appropriately by the administrators in the company’s annual report
(Deegan, 2014).
Compliance with enhancing qualitative characteristic:
Following are the enhancing characteristics of company in order to measure the conceptual
framework-
Comparability:
The comparable data stated in annual report creates it simple for the shareholders of the
company to understand the changes related to the business of company.
Understand ability:
Further, the level of understandability for the business is also required to be discussed.
According to the study, it is identified that all the data has properly described in the annual
report of the company so that the confidence level of shareholders can be increased in the
report and the company.
Verifiability: