Compliance of Myer with Conceptual Framework for Financial Reporting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student
Name of the University
Author’s Note

1Introduction
CONTEMPORARY ISSUES IN ACCOUNTING
Abstract
This study aims to analyze the compliance of Myer with various requirements of conceptual
framework. First part of this report shows the compliance of Myer with the objectives of
conceptual framework. The second part indicates the adherence of Myer with the recognition
criteria of assets, liabilities, equity, expenses and revenue. The last part of the report shows the
compliance of Myer with the qualitative enhancing characteristic of conceptual framework.

2Introduction
CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Meeting Conceptual Framework Objectives...................................................................................3
Meeting the Recognition Criteria of Conceptual Framework.........................................................6
Assets...........................................................................................................................................7
Liabilities.....................................................................................................................................8
Equity...........................................................................................................................................8
Revenue.......................................................................................................................................9
Expenses......................................................................................................................................9
Satisfaction of Qualitative Characteristic of Conceptual Framework...........................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3Introduction
CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
Conceptual Framework for Financial Reporting provides great assistance to the business
organizations in the preparation of financial statements. It provides the businesses with necessary
outline along with principles and standards in order to prepare the financial statements
(Abeysekera 2013). Apart from this, many organizational issues regarding financial reporting
can be solved by applying the principles and standards of conceptual framework. Thus, it is
evident that conceptual framework has many roles to play in the financial aspects of the
companies. In the year 1989, International Accounting Standard Board (IASB) introduced the
framework of conceptual framework of financial reporting (Cheng et al. 2014). Thus, this
particular study aims to examine the adherence with the objectives, recognition criteria and
qualitative characteristics of conceptual framework by the companies. For the effective
completion of this report, Myer is taken into consideration. Myer is considered as a major
departmental store of Australia established in the year of 1900. The company is headquarter at
Melbourne, Sydney. The company operates in the retail industry of Australia (myer.com.au
2017). It needs to be mentioned that Myer is listed among the top hundred companies in
Australia Stock Exchange (ASX) with code name of MYR (m.asx.com.au 2017). The report
analyzes Myer’s compliance with various requirements of conceptual framework for financial
reporting.
Meeting Conceptual Framework Objectives
According to the above discussion, it can be observed that conceptual framework for
financial reporting is an essential element for financial reporting of the business organizations.
The annual report of Myer contains essential information regarding the adherence with various