ACC303- The Present Accounting Framework of Virgin Australia Airlines | Report

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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1CONTEMPORARY ISSUES IN ACCOUNTING
Executive Summary
The main implementations of the report have been seen in terms of evaluation of the present
accounting framework of Virgin Australia Airlines and Qantas Airways. The main
considerations of the study have been able to evaluate check whether the associated standard has
been able to comply with the standard requirement. The main assumptions of the study have
been further able to introduce the prudence concept to make access for the possible disparity in
the reporting standards. The main considerations of the report have been considered based on
the report pertaining to annual general meeting, tangible and intangible asset. Based on the
evaluations, Jetstar and Virgin Australia Airlines have been seen to associate the
conceptualisation of prudence in their respective financial reports. The main rationale for the
investors to invest is due to the increasing nature of revenue and operating margin for both the
companies.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Conceptual framework of Accounting for both the companies.......................................................4
Prudence theory applied in both the companies..............................................................................4
Criteria followed for financial data..................................................................................................5
Rationale for the shareholders investing in the companies.............................................................7
Conclusion.......................................................................................................................................8
List of Appendix..............................................................................................................................9
References......................................................................................................................................15

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
JetStar is recognised as a brand under Qantas Airways and is recognised as one of the
most low-cost Airline operator in Australia. JetStar as an individual is responsible to carry 8.5%
passengers in Australia. It has been further seen that the main operations of the airline company
is based on the extensive home and international network operating from Melbourne. The main
fleet of the operator is further identified with Airbus A320 and Boeing 787 Dreamliner
(Qantas.com. 2017).
Virgin Australia Airlines is considered as the next largest to Qantas Airways. The airline
operator is further seen to be considered in Bowen Hills in Brisbane. The company has been seen
to be established in 1999 and considered to operate on a single route. Since this, the airline
carrier is able to expand itself in 29 cities operating in areas mainly in Brisbane, Adelaide,
Melbourne and Sydney (Virginatlantic.com. 2017).
The main purpose of the study has been seen in terms of depicting the appropriate
accounting framework and check whether the associated standard has been able to comply with
the standard requirement. The main assumptions of the study have been further able to introduce
the prudence concept to make access for the possible disparity in the reporting standards. The
main considerations of the report have been considered based on the report pertaining to annual
general meeting, tangible and intangible asset. The latter part of the report has been further able
to focus on the different types of the reasons for the investors to decide on the investment
decisions in the respective companies.