Theory and Progression in the Field
Added on 2020-05-16
8 Pages1879 Words56 Views
1
ContentsIntroduction.................................................................................................................................................3Summary of Theory and Progression in the Field........................................................................................3Common Themes/Findings across the Four Articles....................................................................................4Different Themes/Findings across the Four Articles....................................................................................5Managerial implication of the four articles.................................................................................................6Study limitations and future research direction proposed in the four articles............................................6References...................................................................................................................................................82
IntroductionThe present literature review is undertaken to develop an in-depth understanding of theconceptual accounting framework developed by IASB. IASB has developed and implementedthe conceptual accounting framework determining the standard accounting principles andprocedures to be followed by business entities across the world during their financial reportingprocess. The conceptual accounting framework is developed to improve the quality of financialreporting and to promote standardization of accounting principles and procedures. AustralianAccounting Standard Board (AASB) is also complying with the IASB standards and thereforealso need to comply with the standard framework of accounting proposed by the Board (Macve,2015). In this context, the literature review examines and analyses the effectiveness of ASXlisted entities in complying with the conceptual accounting framework.Summary of Theory and Progression in the FieldIASB purpose is to develop the conceptual accounting framework is to provide assistanceto the business entities to implement consistent accounting policies relating to the areas that arenot yet covered by IFRS standards of IASB. The qualitative characteristics of the conceptualaccounting framework proposed by IASB help preparers to improve reliability and relevancy infinancial reporting. The framework has defined the main purpose of financial reporting to meetthe interests of end-users by disclosing them all the relevant information. The conceptualaccounting framework has also stated the qualitative characteristics of financial reporting arereliability, faithful presentation, verifiability, comparability, understandability and timeliness.The accounting professionals need to place emphasis on all these qualitative characteristicsduring preparation and development of their general purpose financial statements ConceptualFramework for Financial Reporting 2010, 2017).The qualitative characteristics of the conceptual accounting framework are based on thenormative theory of accounting. The normative accounting theory provided a subjectiveexplanation of the accounting practices and therefore leads to introduction of morality intoaccounting. The theory provided an explanation of the ways of carrying out accounting processesthat leads to development of qualitative characteristic of accounting framework (Jones, 2015).IASB is issuing exposure draft to gain the views and opinion of different stakeholders in relation3
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
11 Current Development in Accounting Thoughts Introductionlg...
|11
|3397
|54
Critical Analysis of Wesfarmers' Compliance with Conceptual Framework of Accountinglg...
|7
|1507
|400
Conceptual Framework of Accountinglg...
|8
|2342
|325
Current Development In Accounting Thought | ACC518lg...
|9
|2342
|140
ACC307 Accounting Theory : Assignmentlg...
|12
|2592
|140
Analysis of Annual Report of Stockland Corporation Limitedlg...
|9
|2395
|56