HC2308 Accounting Concepts And Principles

Running head: REPORT 0
HC2308
JANUARY 26, 2020
STUDENT DETAILS:

REPORT 1
Contents
Introduction.................................................................................................................... 2
Background of company.................................................................................................... 2
Reporting entity............................................................................................................... 3
Fundamental qualitative characteristics.................................................................................. 3
Relevance –................................................................................................................ 4
Faithful representation -.................................................................................................. 6
Conclusion..................................................................................................................... 7
References..................................................................................................................... 9

REPORT 2
Introduction
The accounting principles as well as accounting concepts have important role in the business
affairs of entity. It is very essential to follow different fundamental accounting concepts to
prepare financial statements of company. The conceptual framework of entity can be described
as a system to produce reliable and long-lasting set of the legislatures and rules. The requirement
of accounting data through creditors, lenders, and investors encourages fundamental qualitative
characteristics. In the following parts, the factors of reporting entity and fundamental qualitative
characteristics such as relevance and faithful representation of Cochlear Limited is discussed and
examined.
Background of company
Cochlear Limited renders implantable hearing solution. The implant systems of entity contains
the implant that is inserted at the time of operation along with outer sound processor. Three
divisions based on geography operate it. These are Americas, Asia Pacific, and EMEA.
Americas involves Canada, Latin America, and USA. The Asia Pacific covers Asian and
Australasian countries. EMEA covers Middle East, Europe, and Africa. The solutions or
produces of entity involve Cochlear implants. These Cochlear implants involve Nucleus 6
System and Aqua plus, Bone conduction implants (Baha Connect as well as Baha Attract),
Acoustic implant solution (Cochlear Carina System, Cochlear Codacs System along with
Cochlear MET System) and Cochlear True Wireless ranges (like Cochlear Wireless Mini
Microphone 2, , Cochlear Wireless Phone Clips, Cochlear Wireless Mini Microphone 2 plus and
Cochlear Wireless TV Streamer). Cochlear Limited sells goods in more than hundred nations.
The company puts focus on taking customers lifetime value with innovative and excellent

REPORT 3
services or goods that help to develop interaction of recipients with the world. In addition, it also
focusses on continuous service-oriented experiences from start to finish. The company delivers
products and services to fulfil the requirements and preference of customer (Annual report,
2019).
Reporting entity
The reporting entity is considered as entity wherever this is rational to expect that there are users
dependent on the GPFR (general-purpose financial report) to get understanding of the financial
position and performance of organisation, and to take decision based on financial data as well as
other information confined in financial report. The users include members, personnel,
shareholders, creditor, lender, and prospective investor (Oulasvirta, 2016). The factors that can
state that the entity is reporting entity involve financial features of company, political importance
influence, as well as separation of administration from persons with financial interest in
company. From annual report of company, it is analysed that Cochlear Limited is described as
the reporting entity because the company is needed to make general-purpose financial report.
This company applies Australian Accounting Standards at the time of preparation of the financial
report of company. There are advantages along with risks related to the reporting framework.
Cochlear Limited is a corporation domiciled in Australia. Consolidated financial statements of
entity as for year ending 30th June 2019 include organisation as well as controlled organisations
(together denoted as Cochlear or a consolidated entity). It can see that Cochlear Limited is the
for-profit entity. This company runs in implantable hearing device sector (Sampaio and
González, 2017).
Fundamental qualitative characteristics