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Critical Evaluation on the Effectiveness of the Australian Business

   

Added on  2020-05-16

5 Pages1273 Words47 Views
Name : ________________________________________________Student ID : ____________________________________________Proposed Research Title: Critical evaluation on the effectiveness of the Australianbusiness entities listed on ASX to meet the obligations of the conceptual framework ofaccounting Research Background The conceptual framework as set the International Accounting Standard Broad (IASB)aims to provide the fundamental concepts in relation to the financial reporting that helps theaccounting board in different countries in developing the International Financial ReportingStandards (IFRS). The main purpose of developing the conceptual framework is to ensure thataccounting standards are conceptually consistent and similar type of accounting transaction aretreated in the same way globally in order to provide the required information to the investors, andother stakeholders. The Australian Accounting Standard Board has successfully adopted theconceptual framework developed by the IASB and developed their own accounting standardsknown as Australian Accounting Standards (AAS). The accounting standards are applicable onall the listed entities and also unlisted entities with some minor changes (Macve, 2015). During the past few years issues related with conceptual framework has attracted lots ofresearchers to take the consistent research in order to find and discuss the issues so that betterunderstanding between the conceptual framework and accounting standard can be developed. Asper conceptual framework all the listed entities are required to meet the objectives that aredefined for the General Purpose Financial Reporting. It is essential for the listed entities to makesure that target audience of the General Purpose Financial Reporting can be able to understandthe financial report adequately and can able to make comparison with another financial reports1 | Page

easily. The target audience uses the information in the financial report to gather the requiredinformation so that they can satisfy their needs. The main target audience of the General PurposeFinancial Report is investors who use the financial information to make the investment decisions.So it is critical to provide such information the financial reports that are easily understandable,comparable and easy to derive. There are many fundamental qualitative characteristics offinancial reporting that is defined under conceptual framework and it is expected that all the listedentities must exhibit all such fundamental qualitative characteristics of the financial reporting intheir financial report. Listed entities are required to satisfy the recognition criteria for the variouselements of financial statements in notes to accounts so that investors can easily measure thevalue of financial item and make their decision accordingly (Christian and Lüdenbach, 2013). So to highlight the effectiveness of Australian Corporations to meet the obligation of theconceptual framework so to satisfy the needs of users of financial report, this research has beentaken up. Research Problem / Research QuestionDoes the Australian Corporation have been successful in meeting the requirement ofconceptual framework to satisfy the needs of users of financial reports?Research Aim and ObjectivesThe main aim of research is to develop an understanding of the conceptual accountingframework and its role in improving the quality of financial reporting in Australian BusinessEntities. In regards to this research aim, following are the research objectives:To analyse and examine whether the Australian Listed Entities has been successful inmeeting the objectives of the General Purpose Financial ReportingTo find out that the target audience or users of the General Purpose Financial Reports aresuccessfully able to use the financial reports to gather the information in order to satisfytheir needsTo find out whether the Australian Listed Entities have been doing well to satisfy therecognition criteria for the various elements of the financial statementsTo discuss whether the listed entities in Australia have successfully exhibited thefundamental qualitative characteristics of the financial reporting2 | Page

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