Accounting Theory & Contemporary Issues: Performance Analysis of Stockland Group

Running Head: ACCOUNTING THEORY & CONTEMPORARY ISSUES
ACCOUNTING THEORY & CONTEMPORARY ISSUES
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1ACCOUNTING THEORY & CONTEMPORARY ISSUES
Executive Summary:
Comparison of the financial performances of two companies presents the different ways, of
gauging their potential in providing returns to their shareholders, creditworthiness and many
other essential characteristics of the organisation concerned. This comparison might arise
from the dividend paid out to the shareholders, share prices of the companies or the other
assets, liabilities and expenses of the organisation concerned. With this in mind, this report
has been prepared with the objective of gauging the performance of one of Australia’s
reputed real estate builders in the form of Stockland Group. Its performances across various
parameters have been judged and compared , along with the highlight of the importance of
conceptual framework, general purpose financial statement, remuneration policies etc.

2ACCOUNTING THEORY & CONTEMPORARY ISSUES
Table of Contents
Introduction:...............................................................................................................................2
Company’s Profile:....................................................................................................................2
Conceptual Framework:.............................................................................................................3
General Purpose Financial Reporting:.......................................................................................5
Remuneration Report:................................................................................................................5
Critical Analysis with FY16:.....................................................................................................7
Comparison with Investa:..........................................................................................................9
Investment Decision.................................................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................12

3ACCOUNTING THEORY & CONTEMPORARY ISSUES
Introduction:
Conceptual framework refers to the principles and the different kinds of rules and
regulations which holds a business entity together. It can be defined as a group of principles,
ideas, rules which is basically used for planning or deciding on something. Conceptual
framework helps in ensuring the development of the accounting standards and in the
preparation of the different financial statements namely the balance sheet, profit and loss
accounts and cash flow statement of the business organisation. In the case of the sub-
continent of Australia, Australian Accounting Standards Board (AASB), issues all the
necessary and relevant principles and rules for all the business entities operating there. All the
companies which have been registered under the Australian Securities exchange, are required
to comply with each and every [provision of the AASB. This is done for ensuring that all the
financial statements are prepared in a true and fair manner, without any scope of material
misstatement.
This report aims to explain the background of the company, the general purpose financial
reporting. In association with this, critical analysis has also been presented on various topic
consisting of depreciation, share price, dividend, and contingent liability.
Company’s Profile:
Stockland is one of the largest and one of the most diversified real estate groups in
Australia, with a staggering $18.2 billion of real estate assets. It is also the largest community
creator of Australia, which covers a whole range of housing solutions (stockland.com.au
2018). The group owns, manages, and develops retail town centres, workplace as well as
logistics assets. In addition to this the group also focuses on residential and retirement living
communities.