Contemporary Issues in Accounting: Analysis of Fairfax Media Limited's Compliance with AASB and IASB Conceptual Framework

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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Author’s Note

1CONTEMPORARY ISSUES IN ACCOUNTING
Abstract
This aim of this report is to analyse the extent of satisfying the rules and regulations of
conceptual framework of AASB and IASB by Fairfax Media Limited. The first part of the
report examines the objectives of conceptual framework. The second part of the report analyses
the recognition criteria of various financial elements. The third part of the report analyses the
fundamental and enhancing qualitative characteristics of financial information.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Conceptual Framework Objectives..................................................................................................3
Recognition Criteria.........................................................................................................................8
Fundamental Qualitative Characteristics.......................................................................................12
Enhancing Qualitative Characteristics...........................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
In the twenty-first century, business organizations all over the world face different kinds
if complex issues and Accounting Issues are considered as one of the major problems among all
of them. It is the obligation on the business organizations to prepare and present their financial
statements accordance with the required accounting rules and regulations. Non-compliance with
these rules and regulations poses accounting and financial reporting related threats for the
companies. The same problems can be seen for the Australian companies. In order to avoid these
assorting issues, both International Accounting Standard Board (IASB) and Australian
Accounting Standard Board (AASB) has developed conceptual framework for financial reporting
(aasb.gov.au 2018). It is highly required for the business entities of Australia to follow the rules
and regulations of conceptual framework. This report takes an honest attempt to analyse the
extent of satisfying the rules and regulations of conceptual framework of AASB and IASB. For
the purpose of this report, Fairfax Media Limited is taken into consideration as the company is
listed among the top 100 companies in Australian Stock Exchange (ASX) (fairfaxmedia.com.au
2018).
Conceptual Framework Objectives
The above discussion states that the business entities of Australia are required to comply
with the rules and regulations of accounting conceptual framework. In this context, it need to be
mentioned that there are three major objectives of the conceptual framework of IASB and
Fairfax Media Limited is required to prepare their financial reports after considering these
objectives.