Contemporary Issues in Accounting

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

1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
This report discusses about different aspects of the general purpose financial reporting of
Mayne Pharma Limited (Mayne Pharma). This report sheds light on the measurement as
well as recognition requirements. In addition, it discusses about both the fundamental as well
as enhancing qualitative characteristics of financial reporting. Lastly, the requirements and
objectives of general purpose financial reporting is also considered.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction................................................................................................................................3
Measurement Requirement........................................................................................................3
Fundamental Qualitative Characteristics...................................................................................5
Enhancing Qualitative Characteristics.......................................................................................6
Use of General Purpose Financial Reports................................................................................8
Knowledge Required for Analysing the General Purpose Financial Reports..........................11
Requirements of General Purpose Financial Reporting...........................................................11
Conclusion................................................................................................................................11
References................................................................................................................................13

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
Business organizations develop the General Purpose Financial Reporting with the aim
to provide their key stakeholders with the financial information of their businesses to aid in
the decision-making process. At the time of preparing these general purpose financial reports,
the obligation on the companies is to comply with the required financial reporting standards
and principles for avoiding different financial reporting issues. In Australia, it is required for
the ASX listed companies to comply with the financial reporting standards of the Australian
Accounting Standard Board (AASB) for the preparation and presentation of the general
purpose financial reports. At the same time, it is also needed for these companies to comply
with the standards of the Conceptual Framework of AASB and the International Financial
Reporting Standards (IFRS). This report aims at the analysis of different aspects of general
purpose financial reporting of Mayne Pharma.
Measurement Requirement
The AASB puts the obligation on the ASX listed companies to comply with the
measurement as well as recognition requirements of Conceptual Framework in their financial
reporting. According to the conceptual framework of AASB, the companies are needed to
adopt between the provided measurement bases; they are Historical cost and Current Value.
Two measurement bases under current value are Fair value and Value-in-use (aasb.gov.au,
2019).
In addition, it is also obligation on the companies to comply with the recognition
criteria provided by AASB Conceptual Framework for the recognition of assets, liabilities,
equity, income and expenses. Two specific requirements need to be considered for the
recognition of assets, liabilities and others. First, there is probability that the future economic
benefit associated with the financial item will flow to or from the entity. Second, the item has