ISSUES IN CONTEMPORARY ACCOUNTING THEORY.
Added on -2019-09-22
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Running head: ISSUES IN CONTEMPORARY ACCOUNTING THEORYIssues in Contemporary Accounting TheoryName of the Student:Name of the University:Author Note
1ISSUES IN CONTEMPORARY ACCOUNTING THEORYTable of ContentsIntroduction......................................................................................................................................3Objectives of the general purpose financial reporting.....................................................................3Have the target audience adequately used the report?.....................................................................5Recognition criteria for the elements of the financial statements....................................................6Fundamental qualitative characteristics of financial reporting........................................................6Enhancing qualitative characteristic of the firm..............................................................................7Conclusion.......................................................................................................................................7References and Bibliography...........................................................................................................8
2ISSUES IN CONTEMPORARY ACCOUNTING THEORYExecutive SummaryThis particular study focuses upon the Australian corporate entity, REA Group Limited.The annual report of this particular entity for the financial year of 2017 has been evaluated inorder to find out the fact that whether financial statements satisfy the required objectives offinancial reporting, whether the company has satisfied the criteria of recognition in regards tothe particulars of the accounting statements and other associated factors. It has been found out that the management of the company has prepared the accountingstatements of the corporate firms in regards to the issued standards of the regulatory bodies likethe Australian Accounting Standards Board.
3ISSUES IN CONTEMPORARY ACCOUNTING THEORYIntroductionThe issue that has been presented in the question is that the annual report of a listedorganization has been analyzed in order to examine the objectivity the regulatory standards thathave been applied in order to prepare the accounting statements. It should be noted here that theAustralian Accounting Standards Board has essentially established the particular accountingstandards that are applied for the preparation of the accounting statements of an organization inAustralia. This particular study focuses upon the Australian corporate entity, REA Group Limited.The annual report of this particular entity for the financial year of 2017 has been evaluated inorder to find out the fact that whether financial statements satisfy the required objectives offinancial reporting, whether the company has satisfied the criteria in regards to recognition forthe particulars of the accounting statements and other associated factors. Objectives of the financial reporting that is prepared for general purposeThe objectives of financial reporting that is mandatorily carried out by the corporateentities have been as follows:The objective of the general purpose financial reporting is primarily regulated around theprovidence of financial information in regards to the financial entity that can be useful tothe third party investors, debtors and creditors for making the investment decisions. Decisions in regards to the potential and existing potential investors for dealing in thedebt instruments are also facilitated by analyzing the financial statements. It must be noted here that the general purpose financial reports cannot provide the all thefinancial information that is required by the investors in order to make the requiredfinancial decisions (Ali, Akbar & Ormrod, 2016)The financial statements of REA Group Limited reflect the fact that the accountingstatements have been created by referring to the regulatry standards as established by AASB.This means that the accounting statements lead to satisfy the objectives of the financial reportingcarried out by financial entities sufficiently. This can be further evidenced from the fact that the
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