Importance of Social Accountability in Australia

Running head: FINANCIAL REPORTING
Financial reporting
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1FINANCIAL REPORTING
Executive summary
The purpose of the report is to provide the comments on importance of social accountability
as part of the GPFR objective. Further, the report will focus on the importance of
establishment and development of AASBs or the business practices in Australia. It will
further highlight the types of information provided in the ASX listed company Myer
Holdings Ltd. and the incentives disclosures required by the entity. It will further state the
impact of information provided in annual reports of the company to the investors.

2FINANCIAL REPORTING
Table of Contents
Introduction................................................................................................................................3
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................4
Answer 3....................................................................................................................................5
Answer 4....................................................................................................................................6
Answer 5....................................................................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................11

3FINANCIAL REPORTING
Introduction
Social accountability is an important part of GPFR. Accounting standards used by the
Australian business establishments to prepare and present their financial statement in
accordance with the Corporation law are generally referred as the AASBs prepared by the
AASB (Australian accounting standard board) (Aasb.gov.au 2019).
Answer 1
“Social accountability is considered in the (AASB Conceptual) Framework as part
of the objectives of general purpose financial reports (GPFR)” – comments
The term accountability is regarded as an imprecise concept. Therefore, it is
considered as the separate objective that may require the GPFR (general purpose financial
reports) to provide different types of the information such as reporting for social
responsibility. Whereas it is already established bu AASB that there is an interrelation
between the intended scope for the GPFR and objectives, it shall be directly addressed and
shall not define the term inadvertently through expressing the objectives (Luke 2016). Based
on the suggestions of AASB, the conceptual framework as an inseparable part of the GPFR
shall –
 Include accountability of objectives unambiguously for the purpose of decision
making by depicting the concept of accountability as a responsibility to deliver the
information that will assist the users of financial statement to make informed
decisions. the decisions are taken considering the performance of the entity, its
financial position and the compliance made by it while evaluated and made
decisions regarding allocation of scarce resources. This decision will also include