Evaluation of Qualitative Characteristics of Conceptual Framework in the Context of National Australia Bank

Running head: CORPORATE AND FINANCIAL ACCOUNTING
Corporate and Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1CORPORATE AND FINANCIAL ACCOUNTING
Executive Summary:
The current report would focus on evaluation of the two qualitative characteristics of the
conceptual framework, which include relevance and comparability in the context of ASX listed
organisation. Therefore, National Australia Bank (NAB) has been chosen as the organisation for
this report, which is one of the leading banks operating in the financial services industry of
Australia. It has been assessed that National Australia Bank has ensured the two qualitative
characteristics while representing its financial information so that the users could make relevant
decisions. However, deficiency could be observed in its environmental reporting practices for
which adequate recommendations have been provided to improve disclosures. Finally, the report
has provided adequate answers regarding the business combinations and consolidations.

2CORPORATE AND FINANCIAL ACCOUNTING
Table of Contents
Introduction:....................................................................................................................................3
Part A:..............................................................................................................................................3
Requirement 1a:...........................................................................................................................3
Requirement 1b:...........................................................................................................................4
Requirement 2:.............................................................................................................................5
Requirement 3:.............................................................................................................................6
Part B:..............................................................................................................................................6
Requirement i:.............................................................................................................................6
Requirement ii:............................................................................................................................8
Requirement iii:...........................................................................................................................9
Requirement iv:...........................................................................................................................9
Requirement v:...........................................................................................................................10
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11

3CORPORATE AND FINANCIAL ACCOUNTING
Introduction:
The current report would focus on evaluation of the two qualitative characteristics of the
conceptual framework, which include relevance and comparability in the context of ASX listed
organisation. Therefore, National Australia Bank (NAB) has been chosen as the organisation for
this report, which is one of the leading banks operating in the financial services industry of
Australia (Nab.com.au 2018). Moreover, the significance of environmental reporting could not
be ignored, since it is a major factor for the investors to undertake investment decisions.
Moreover, this report contains certain elements that the business organisations need to take into
consideration various accounting regulations in relation to business acquisition as well as
consolidation.
Part A:
Requirement 1a:
The business organisations need to disclose certain financial information, which would
contain all qualitative features for benefitting the investors. The financial statements contain six
qualitative characteristics, out of which two would be discussed in the context of NAB. They are
relevance and comparability.
Relevance:
If the financial information provided is relevant, it has the ability of making difference
for the users to make decisions. For relevancy of the financial statements, the financial
information needs to contain predictive as well as confirmatory value. This would help the users
to seek feedback from the past evaluation when confirmatory value is present (Beatty and Liao
2014). With the help of predictive value, it is possible for the users to gain accurate financial
information about the organisations. Based on the annual report of NAB in 2017, the financial