Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary:
The report focused on evaluating the various aspects of the conceptual framework for AP Eagers
Limited, an ASX listed organisation. The paper has highlighted the adherence to the
measurement requirements of the conceptual framework in the context of the organisation.
Secondly, it has emphasised on analysing the compliance of the company to the qualitative
features of the framework. The next segment depicts the validity of the financial statements of
the firm in order to assist the users in making effective decisions. Finally, the report has
concentrated on evacuating whether more than primary accounting knowledge is needed for the
users to analyse the financial reports.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
Background of AP Eagers Limited:.................................................................................................3
Measurement requirements of the conceptual framework:.............................................................3
Fundamental qualitative characteristics:..........................................................................................7
Enhancing qualitative characteristics:.............................................................................................9
Ability of the users to use the report for making decisions:..........................................................11
Knowledge needed for business analysis:.....................................................................................16
Requirements for general purpose financial reporting:.................................................................16
Conclusion and recommendations:................................................................................................16
References:....................................................................................................................................18

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
The accounting norms are to be complied by all listed entities for performing their
financial reporting initiatives. With the help of such compliance, certain accounting as well as
financial reporting related issues could be avoided. The identical situation could be observed in
case of ASX listed entities, as it is necessary for them to conform to the required guidelines of
the conceptual framework. The conceptual framework for financial reporting could be observed
in Australia, which is provided by IFRS and the standards are to be complied with the business
organisations. The report is prepared with the intent of analysing the extent of conformance to
the different accounting sections of the conceptual framework by AP Eagers Limited.
Background of AP Eagers Limited:
The organisation is one of the oldest listed automotive retail groups in Australia (AP
Eagers 2018). The core business of the entity comprises of the operations and ownerships of
motor vehicle dealerships. It provides facilities including the sale of used and new vehicles,
parts, services along with facilitating allied consumer finance.
Measurement requirements of the conceptual framework:
All ASX listed entities are required to take into account the measurement requirements in
their process of financial reporting for complying with the conceptual framework and AP Eagers
Limited is not an exception to this case as well. According to this framework, the entities require
reporting their liabilities and assets via two bases of measurement and they constitute of
historical cost and fair value (Beattie 2014). Moreover, in this framework, assets are to be treated
as resources for the organisations and they develop due to the future economic benefits and past