ACC 303 - Contemporary Issues in Accounting: An Anaysis

This report provides an evaluation of the accounting processes and techniques employed by Anatara Lifesciences Ltd in preparing its financial statements, in accordance with ACC 303 requirements. It assesses the company's compliance with the measurement requirements and fundamental qualitative characteristics as defined by the Australian Accounting Standards Board (AASB) conceptual framework and International Financial Reporting Standards (IFRS). The report examines whether the company's financial reporting adheres to relevance, faithful representation, comparability, verifiability, timeliness, and understandability. Furthermore, it discusses the usability of the financial reports by investors and stakeholders, considering their level of accounting knowledge. The analysis utilizes information from the company's annual report to support its findings, ultimately concluding whether Anatara Lifesciences Ltd provides adequate and transparent financial information in line with regulatory requirements and best practices, with the goal of assessing and forecasting the company's financial performance.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The aim of the assignment is to conduct evaluation of the accounting process and techniques
applied by the company in the preparation of the financial statement of the company. The various
fundamental concept behind the preparation of such reports were evaluated and the implications
of the same were analyzed.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Measurement Requirement of Conceptual Framework...............................................................3
Fundamental Qualitative Characteristics.....................................................................................5
Enhancing Qualitative Characteristics.........................................................................................6
Users of Financial Report............................................................................................................8
Knowledge of Accounting...........................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................11

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Introduction
The financial evaluation of the annual report presented by the company for the year were
evaluated and the various accounting policy in relation to the same were taken into account for
the same. The accounting policies principles used by the company and the measurement concepts
applied by the company in the measurement of the various assets and liabilities of the companies
were evaluated. Various aspects including the fundamental qualitative characteristics and and
enhancing qualitative characteristics were evaluated for the company. The usefulness of the
financial report in the application of the informations and data presented by the company were
evaluated and analyzed according to the usage of the same by the investors and stakeholders of
the company. The company has well complied with the Australian Accounting Standards and
prepared the financial statements of the company in accordance with the International Financial
Reporting Standards (Byrne 2018).
Discussion
Measurement Requirement of Conceptual Framework
The different measurement base with relation to the assets and liabilities of the
companies should be disclosed and measured according to the policies and the concepts
underlying the Australian Accounting Standards (Schaltegger and Burritt 2017). The financial
report for the company has been prepared based on the historical cost and the cost reported on
the financial report is based on the fair value assumptions applicable in exchange of assets of the
company. The measurement of the asset is based on the estimated cash flows from the assets and
assessing the fair market value of the asset of the company with respect to the same. The
company has compiled with the measurement requirement with identifying the assets of the

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company. The AASB framework is to assess the appropriateness of the IFRS Standards in the
Australia Context. The Conceptual framework requires that a company should meet the
following objectives:
 Abide by the objective of the general purpose of financial reporting.
 Assessing the qualitative characteristics of the financial informations presented by the
company.
 Information for the reporting entities
 Assets and liabilities of the companies should be recorded and shown as per the
qualitative characteristics.
The company has followed and complied with the AASB 9, which introduces new
classification tools and methods for the analysis. The company has reported the financial
assets of the company at the amortized cost. Other financial assets and instruments are
classified and measured at fair value through profit/loss. The financial liabilities of the

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companies are reported in the Other Comprehensive Income portion when the change in
value of liability is reported by the company.
Fundamental Qualitative Characteristics
The fundamental qualitative characteristics of the company shows the application of the
relevant accounting principles and the relevance of the same in the context of the applying for
decision-making. The companies should faithfully represent the information and data and should
be complete and neutral (Conway 2018).
 Relevance: The accounting informations and data presented by the company is relevant
enough for making economic decisions and assessing the financial performance of the
companies. The information presented by the company were found to relevant enough for
the application and assessing the financial performance of the company (Thompson
2018). The information’s and data presented by the companies were material enough in

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the context of the classification of various accounts heads and the information’s
underlying the same (Hoque 2018).
 Faithful Representation: The financial information’s presented by the company shows
that the company has faithfully represented the financial statements of the companies.
The financial statements presented by the companies were complete which had all
information’s and data related to the same. The accounting policy used by the company
were neutral and biased enough. The information presented by the company were neutral
and there were no fraud and error detected by the auditors of the company during the time
of the evaluation of the financial report by the company (Moore 2017).
Enhancing Qualitative Characteristics
The enhancing qualitative characteristics should be available within the company’s
financial report so that the various aspect of the financial reports could be applied by the
company (Johal 2018). The common features provided by the company in analyzing the financial
statements of the companies are:

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 Comparability: The Comparability feature provided by the company shows the
measurement of the performance of the company’s financial performance over the trend
period say last year data. The comparability features allows the investors to assess the
performance of the company with respect to the similarities and dissimilarities observed
(Craig and Amernic 2015).
 Verifiability: The verifiability of the financial report presented by the company were well
evaluated by the auditors of the company with respect to following the accounting
standards and norms. The financial information presented by the company were justified
and given a strong support. The data presented with the company should be free from
errors and misreporting so that the users of the financial report can make relevant
decisions based on the same effectively (DesJardins and McCall 2014).
 Timeliness: The financial report and information’s are well reported by the company
within the stipulated time period and frame so that the investors and the stakeholders of
the company are able to make better usage of the same. The financial information’s are
very crucial in the investment decision process followed by the investors which involves

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forecasting and evaluating the performance of the company. The company has provided
the financial statements of the companies on times and certain other relevant quarterly
and annual reports so that the potential investors can make relevant decisions from the
same.
 Understandability: The financial report of the company were clear and precise and had
provided several information’s and data given in easy and simpler terms so that the same
can be better assessed by the investors. The financial report presented by the company
included all accounts and the relevant footnotes and details in the footnotes of the
company so that the potential investors can make decision and derive better material
information from the same for the purpose of investment (Kim, Shi and Zhou 2014).

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Users of Financial Report
The users of the financial report for the company were able to better evaluate the
financial statements presented by the company as the same were presented by the company
following the conceptual framework guidelines. The financial report for the company presented
the important data and information related to the company and the same is applied by the
investors for making relevant investment decisions. The company has classified and presented
the various group of accounts and the relevant data relating to the same are present in the notes to
financial statements of the company. The notes to financial statements has provided adequate
information about the report presented in the form of the year wise comparison of the data and
the account figures. The measurement cost and the management decisions regarding the specific
accounts were clearly mentioned. The financial report of the company were properly audited
which helped them evaluate the various kinds of accounts and transactions reported by the
company. The standards adopted and applied by the company and the implications of the same
were discussed properly by the users of the financial reports for the company.
Knowledge of Accounting
Investors needs various kinds of accounting tools and techniques and relevant details for
assessing the performance of the company. The same can be also done if the investor have a
basic accounting knowledge and apply the basics of accounting to assess the transaction done by
the company and the reporting of the same as per the financial statements of the company.
Investors can perform ratio analysis to assess the financial performance of the company and use
the trend analysis for analyzing the financial conditions and performance of the companies (Leuz
and Wysocki 2016).

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Conclusion
The company Aruma Resources Limited has provided all relevant facts and data and
information as per the regulatory requirement. The different measurement costs applied by the
company and the application of the same in the context of the conceptual framework of the
Australian Accounting Standard Bodies were applied by the company. The company has
followed with the fundamental qualitative characteristics of the conceptual framework of the
accounting bodies. The enhancing qualitative characteristics were found in the financial
statements of the companies and the same helped the users of the financial report for assessing
and evaluating the performance of the company. Finally it was concluded with the fact that the
investors and the users of the financial report should evaluate various ways and tools for
assessing and forecasting te financials and financial performance of the company.

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Reference
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Conway, E., 2018. The Future of Accountancy—Beyond the Numbers. In Contemporary Issues
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Hoque, Z., 2018. Methodological issues in accounting research. Spiramus Press Ltd.
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Accounting (pp. 105-123). Palgrave Macmillan, Cham.
Kim, J.B., Shi, H. and Zhou, J., 2014. International Financial Reporting Standards, institutional
infrastructures, and implied cost of equity capital around the world. Review of Quantitative
Finance and Accounting, 42(3), pp.469-507.
Leuz, C. and Wysocki, P.D., 2016. The economics of disclosure and financial reporting
regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2),
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Moore, A., 2017. Intellectual property and information control: philosophic foundations and
contemporary issues. Routledge.