Compliance of Woodside Petroleum with AASB Conceptual Framework

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
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Author’s Note

1CONTEMPORARY ISSUES IN ACCOUNTING
Abstract
The aim of the report is to analyse the compliance of Woodside Petroleum with the AASB
conceptual framework. It can be observed that Woodside Petroleum complies with all the
required standards and principles of AASB conceptual framework for the purpose of their
financial reporting.

2CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Conceptual Framework Objectives..................................................................................................3
Recognition Criteria.........................................................................................................................8
Fundamental Qualitative Characteristics.......................................................................................10
Enhancing Qualitative Characteristics...........................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3CONTEMPORARY ISSUES IN ACCOUNTING
Introduction
The main purpose of this report is to analyse and evaluate different financial standards
and principles of conceptual framework for accounting. In the recent years, business
organizations all over the work is facing different types of issues related to their financial
accounting due to the non-compliance with required accounting standards and principles. In
order to avoid these issues, business entities are needed to follow the regulations and standards of
accounting conceptual framework. In Australia, the Australian Accounting Standard Board
(AASB) has provided the necessary financial standards and regulations through the release of
accounting conceptual framework with the assistance of International Accounting Standard
Board (IASB) (aasb.gov.au 2018). All the business entities listed under Australian Stock
Exchange (ASX) must comply with these regulations and standards for the accurate preparation
and presentation of financial reports. For the purpose of this study, Woodside Petroleum Limited
is taken into consideration. Woodside Petroleum is a major Australian oil and gas company
having global presence and the company is renowned for their world-class capabilities. It need to
be mentioned that the company is listed under ASX in the name of ‘WPL’ (woodside.com.au
2018).
Conceptual Framework Objectives
As per the above discussion, AASB and IASB have developed the accounting conceptual
framework for bringing accuracy in the process of financial reporting for the Australian business
entities. In order to achieve this objective, AASB has introduced three objectives of its
conceptual framework that the companies are required to achieve through their financial
reporting. They are mentioned below: