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

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.