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Accounting Report Evaluation: REA Group Limited

   

Added on  2019-10-18

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Running head: ISSUES IN CONTEMPORARY ACCOUNTING THEORYIssues in Contemporary Accounting TheoryName of the Student:Name of the University:Author Note
Accounting Report Evaluation: REA Group Limited_1

1ISSUES IN CONTEMPORARY ACCOUNTING THEORYTable of ContentsIntroduction......................................................................................................................................3Objectives of the general purpose accounting report......................................................................3Have the target audience adequately used the report?.....................................................................5Recognition criteria for the elements of the accounting statements................................................6Fundamental qualitative characteristics of accounting report.........................................................6Enhancing qualitative characteristic of the firm..............................................................................7Conclusion.......................................................................................................................................7References and Bibliography...........................................................................................................8
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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 accounting year of 2017 has been evaluated inorder to find out the fact that whether accounting statements satisfy the required objectives ofaccounting report, whether the company has satisfied the recognition criteria for the elements ofthe accounting statements and other associated factors. It has been found out that the management of the company has prepared the accountingstatements of the companies in regards to the issued standards of the regulatory bodies like theAustralian Accounting Standards Board.
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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 for the objective behind the preparation of the accounting statements. It mustbe noted here that the Australian Accounting Standards Board has essentially established theparticular accounting standards that are applied for the preparation of the accounting statementsof an organization in Australia. This particular study focuses upon the Australian corporate entity, REA Group Limited.The annual report of this particular entity for the accounting year of 2017 has been evaluated inorder to find out the fact that whether accounting statements satisfy the required objectives ofaccounting report, whether the company has satisfied the criteria of recognition for the elementsof the accounting statements and other associated factors. Objectives of the accounting reportThe objectives of the accounting report have been as follows:The objective of the general purpose accounting report is primarily regulated around theprovidence of accounting information in regards to the accounting entity that can beuseful to the third party investors, lenders and creditors for making the investmentdecisions. Decisions in regards to the potential and existing potential investors for dealing in thedebt instruments are also facilitated by analyzing the accounting statements. It must be noted here that the general purpose accounting reports cannot provide all theaccounting information that is required by the investors in order to make the requiredaccounting decisions (Ali, Akbar & Ormrod, 2016)The accounting statements of REA Group Limited reflect the fact that the accountingreports have been prepared in accordance to the financial accounting standards as prescribed byAASB. This means that the accounting statements satisfy the requirements of the accountingreport sufficiently. This can be further evidenced from the fact that the Australian Accounting
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