Contemporary Issues in Accounting: A Study of Alexium International Group Limited

CONTEMPORARY ISSUES IN ACCOUNTING
DECEMBER 12, 2018

EXECUTIVE SUMMARY
The following work is aimed at shedding light on the conceptual framework of the AASB. In
addition it will analyse the various essential requirements such as the recognition criteria for
the elements of the financial statements. The assessment is based on the financial statements
of the company Alexium International Group Limited. The report backs that
conceptual framework is essential to abide by and brings transparency
and uniformity in the financial statements.

Contents
INTRODUCTION......................................................................................................................2
OVERVIEW OF THE COMPANY...........................................................................................2
CONCEPTUAL FRAMEWORK OBJECTIVE-.......................................................................2
ESSENTIALITY OF FUNDAMENTAL AND ENHANCING GUIDELINES-......................4
RELEVANCE-.......................................................................................................................5
VERIFIABILITY...................................................................................................................5
TIMELESSNESS-..................................................................................................................5
TRUE REPRESENTATION-................................................................................................5
RECOGNITION CRITERIA.....................................................................................................5
RELATIONSHIP BETWEEN ACCOUNTING RESEARCH AND PROFESSIONAL
PRACTICE................................................................................................................................7
CONCLUSION-.........................................................................................................................8

INTRODUCTION
Accounting refers to the process of recording, identifying and measuring the transactions and
the overall financial performance of an organisation. The process has to be compulsory
followed by the public companies, as required by the legal and regulatory framework, in the
interest of the stakeholders (Nobes, 2014). The accounting and financial reports are prepared
by the companies taking into account various guidelines, principles as laid down by the
accounting regulatory body to which the organisation belongs. These are the basic framework
for the preparation and presentation of the financial statements, which enable consistency and
comparability of the data referred therein. The report explores the various facets of the
accounting and financial reporting in relation to the company “Alexium International Group
Limited.” The report will shed light on the objective of the conceptual framework. In
addition, the report will also describe the recognition criteria, and the fundamental and
quality enhancement guidelines. The report will conclude with the description of the
relationship between the accounting research and the professional practice.
OVERVIEW OF THE COMPANY
The company Alexium International Group Limited, is a company engaged in the business of
development of chemical. The headquarters of the company are located in Australia.
Accordingly, the company is required to prepare its financial statements based on the
Australian Accounting Standards as pronounced by the Australian Accounting Standards
Board (AASB) and the Corporations Act 2001 (Cth).
CONCEPTUAL FRAMEWORK OBJECTIVE-
The conceptual framework can be described as the concepts or the purposes that leads to the
business to the set of standards in respect of preparing the good and proper report. The
conceptual framework suggests the better guidelines to every company in respect of making
reliable and comparable reports so that it can be simpler for shareholders of the corporation to
have the knowledge of the annual report of the corporation and relate it with other rival
company to reach over the end (Greenaway, Chan and Crossler, 2015).
In case of Alexium International Group Limited, it is found that this company has made the
annual reports with the help of conceptual framework. The Alexium International Group
Limited has followed proper guidelines and appropriate accounting standards to accumulate,
document, recognise, and evaluate the financial performance of the company. The company