Contemporary Issues in Accounting: Evaluation of Altura Mining Limited's Compliance with Conceptual Framework and Qualitative Characteristics

CONTEMPORARY ISSUES IN ACCOUNTING

Table of contents
Introduction..............................................................................................................................................3
Evaluation of whether the company complied with the measurement requirements of the conceptual framework..................................................3
Explanation on whether the company complied with the fundamental qualitative characteristics.................................................................3
Evaluation on whether the company complied with the enhancing qualitative characteristics....................................................................4
Evaluating on whether are the users of financial reports (investors/potential investors/lenders/other creditors) able to use the report to make decisions...............4
Explanation of whether the users need high knowledge of accounting to know about the company...............................................................5
Evaluating on whether the company has complied to the GAAP..............................................................................................5
Conclusion...............................................................................................................................................5
References...............................................................................................................................................7
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Introduction
Accounting has been a major process and major element within a business operational activity accounting relates to the recording and reporting of financial data as the
elements which have happened within the company in a period of time generally year. Through the development of business operations the developments of accounting
have also occurred companies have now used accounting for various activities and the operational area of accounting has diversified in and very evident manner. in the
current assessment there will be discussion over the issues which are faced in accounting process what are the measurement requirements under the conceptual
accounting framework what are the different types of qualitative characteristics which organization report of a company should comply to and in what ways a company
can make their accounting annual report and efficient one that can be used by stakeholder for making for the decisions. The company has been chosen of annual report
analysis is Altura Mining Limited.
Evaluation of whether the company complied with the measurement requirements of the conceptual framework
It is to be mentioned that in the annual report of the company it has been stated that the company has followed the AASB as well as IFRS to report their accounting
data to the stakeholders and user hen the conceptual framework which the company has followed to report their financial data. Now the as the standard have been
follow the presentation of data and treatment of accounting disclosure will also be made in the same manner ( Liu et al. 2016). The use of IFRS is done by a company
which wants to create Universal annual report and report their financial data to report the financial findings and activities with the following have conducted in an
accounting year. It is to be mentioned that the company has followed the IFRS format in and very evident manner because the format used for laying down the value of
Asset and inventory the company has used the appropriate valuation method as prescribed under IFRS format ( Muda et al. 2017). The company has followed
Australian accounting standard board principles in order to lay down their financial report in an evident manner. This shows that the company has been focused on
creating the financial report which compiles to the standard and conceptual framework of both domestic accounting standard as well as International financial reporting
standards. The accounting disclosures made by the company are in compliance to the principles and rules stated by the standards which makes it very effective to say
that the company has complied with the conceptual framework of accounting value putting their financial data to their stakeholders (Feuerriegel et al. 2016).
Explanation on whether the company complied with the fundamental qualitative characteristics
The qualitative characteristics of financial reports are relevance and faithful representation. As compared to Gold Fields Limited In the financial report of Altura
Mining Limited it has been seen that the information report are relevant financial information which show the profitability and financial position of the firm and the
auditor’s report show the faith full representations of the financial data (Nazlioglu et al. 2015).
Relevance:
Relevance is a Fundamental qualitative characteristic which every financial report should have in order to be specific and correct. Relevance means the importance of
the information and relevancy of the information which has been provided with in the financial report to the end user's. The financial report should be relevant and
should have effective information which would have an effect on the decision making process on the stakeholders by using the financial information reported in the
financial report company. It can be said that the financial report should be relevant to the information that is needed by the user for making future distance ( Crowther,
2018).
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