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Accounting Framework and its Fulfillment of Information Needs for Financial Decision Making

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Added on  2019-09-20

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This critical review analyzes whether the current accounting framework meets the needs of users of financial reports and how the inclusion of prudence in the conceptual framework can address the disparity in corporate reporting. It includes a comparison of annual reports of two listed companies, discussion on positive and normative accounting theories, and pros and cons of having regulations. The review also highlights some of the failures of the current framework and suggests improvements to accounting. The analysis considers general purpose financial statements and whether they satisfy the needs of users such as investors and shareholders. The review also discusses issues on over and undervaluation of accounting and whether there is a need to change regulations. The assignment includes an executive summary, table of contents, main contents with suitable headings and subheadings, conclusions and recommendations, and references using Harvard-Anglia style.
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Topic: Does the current accounting framework meet the needs of the users of financialreports as prescribed in the objective of the Conceptual Framework of Accounting?How the conceptual framework revision to include Prudence is likely to addressthe disparity in Corporate Reporting is a requirement in your analysis.It should include recent and relevant academic references (in text and other). It has to show weather accounting is fulfilling its purpose as an information sourcefor financial decision making.It should have consider general purpose financial statements and if this is satisfyingthe needs of users such as investor, shareholders etc.As this is a critical review you should consider where these needs are being met andperhaps where they are not being met – INCLUDING SUGGESTIONS FORIMPROVEMENT TO ACCOUNTING• Task Details: Download the latest annual report of any two listed companies. • Annual Reports are available on the company website or ASX website. • Analyse the conceptual framework with reference to the annual reports of yourchosen companies in light of the reporting requirements imposed on accountants andthose charged with governance of corporations. • Your analysis may include the following: • Are the annual reports in compliance with the conceptual framework and AASBstandard requirements? • You need to use extracts from the annual reports to support your analysis. • Provide screen shots of the relevant sections from the reports in your assignment. • If they are not in compliance, explain the reason. • How the conceptual framework revision to include Prudence is likely to address thedisparity in • Corporate Reporting • You may find the explanations in the notes to the financial statements or in theDirector‟s Report. • Compare and contrast the two annual reports, identify the differences in disclosuresof theseIt should mention about POSITIVE ACCOUNTING THEORIES AND NORMATIVEACCOUNTING THEORIES and INDUCTIVE AND DEDUCTIVE REASONINGAS IT’S ALL ABOUT CONCEPTUAL FRAMEWORL, IT SHOULD MENTION SOME GRAPH ,PIE CHART, OR BAR GRAHP
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