Accounting Concepts and Framework: A Case Study of Lend Lease Group

Running head: REPORT 1
Advance Financial Accounting
STUDENT DETAILS:
5/24/2019

REPORT 2
Contents
Introduction......................................................................................................................................3
Company Profile..............................................................................................................................3
Description of accounting concepts.................................................................................................4
Conceptual framework and measurement related issues.................................................................4
Fundamental qualitative characteristics: understanding of representational faithfulness and
relevance..........................................................................................................................................4
1. Representational Faithfulness...............................................................................................4
2. Relevance..............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
The description of the accounting fundamentals states some basic accounting concepts, the
principles related to accounting, and the accounting terminologies. The accounting concepts are
considered as the fundamental principles, basic rules, as well as basic assumptions, which work
as the basis of recording the business related transactions (Schulze, et. al, 2016). The accounting
concept supposes that, for accounting, the business owners and business entity are two separate
independent entities. The accounting concepts and the accounting principles have significant
role in business affairs of corporation. For preparing the financial statements of corporation, this
is very significant to adhere to various basic accounting concepts. A conceptual framework
of accounting explains the fundamental assumption related to going concern. Additionally,
the accrual concept, concept of accounting entity, concept of monetary unit, and time period are
very significant in making and understanding financial statements of organisation (Kanodia and
Sapra, 2016).
The conceptual framework of organisation may be described as the system of concept as well as
the purposes that may result into production of the constant and invariable set of the regulations,
laws and rules. A key motive for developing the agreed conceptual framework is for setting
accounting standards. The conceptual framework of the organisation is very helpful in solving
the problems of accounting. The conceptual framework of entity also addresses the useful
fundamental principles. The main aim for developing the agreed conceptual framework is that it
renders basis for the solution of severe disputes, and framework to define accounting standards.
The following parts state the accounting concepts followed by Lend Lease Group. In this report,

REPORT 4
the conceptual framework of organisation, measurement related issues, and fundamental
qualitative characteristics such as relevance as well as faithful representation is discussed and
examined.
Company Profile
Lend Lease Group is the incorporated worldwide property as well as infrastructure organization.
Lend Lease Group contains the Lend Lease Corporation Limited and other corporations
controlled by it, such as the Lend Lease Trust. The divisions of this company cover the
Construction as well as Investment Management, Infrastructure Development and Property
Development. Lend Lease Group is involved within establishing, designing, building, owning,
financing, co-investing, working and handling the infrastructure assets and properties. The
Infrastructure Development business makes handles and makes investment in the private
partnership projects and public partnership project. Further, the Construction business includes
the project administration, services related to engineering as well as services of construction.
Furthermore, the Property Development business includes establishment of internal urban
development and external urban development, commercial office, retailing center, apartments,
and services related to health, and retirement rural communities. The Investment Management
business includes the property administration, asset’s management and property and
infrastructure investment management.
Lend Lease Group and its businesses have been delegated with various developments, which
have become the foundation stone of towns and the groups projects such as the Athletes’
Villages in London, September 11 museums or memorials in New York, Petronas Towers in
Kuala Lumpur, significant infrastructure, opera house in Sydney, stadium as well as amusement