Adherence to Conceptual Framework of Accounting: A Case Study of Wesfarmers

CONTEMPORARY ISSUES

Wesfarmers
Executive Summary
Conceptual framework is one of the important factors when it comes to the performance of a
company because it stress upon the fact whether it has complied with all the regulations. It
helps the user of the financial statements to make decision in an appropriate manner. For this
report, Wesfarmers has been selected and due consideration has been provided on general
purpose reporting framework, recognition principle, etc. Considering the mentioned factors,
an analysis is done.
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Wesfarmers
Contents
Introduction...........................................................................................................................................3
Adherence to General Purpose financial reporting...............................................................................4
Recognition criteria...............................................................................................................................4
Fundamental qualitative characteristic.................................................................................................6
Recommendation..................................................................................................................................8
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10
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Wesfarmers
Introduction
In the current corporate environment, consideration of conceptual framework objective is
very vital for both users and preparers of financial statements as it allows them to interpret
financial information in a far better way. This can, in turn, assist them in making appropriate
financial decisions based on the information that has been interpreted by them. Furthermore,
consideration of conceptual framework of accounting also assists in enhancing qualitative
characteristics of financial information such as comparability, timeliness, reliability, faithful
representation, etc (Wesfarmers, 2017). This sheds light on the fact that companies who not
prioritize adherence to the conceptual framework of accounting may fail to sustain in such
complicated corporate environment wherein decision-making process on the part of preparers
and users is crucial. This report assists in assessing Wesfarmers’ endeavor in satisfying the
requirements of the conceptual framework of accounting.
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