This report provides a detailed analysis of Austal Company's 2018 annual report, focusing on the application of the conceptual framework in financial reporting. The report examines the measurement requirements, including historical cost and fair value methods, applied to various assets and liabilities. It also assesses the fundamental and enhancing qualitative characteristics of financial statements, such as relevance, materiality, faithful representation, comparability, verifiability, and understandability. The analysis evaluates the users of financial reports, including investors and creditors, and their need for accounting knowledge to interpret the financial data. Furthermore, the report concludes that the annual report meets the requirements for general purpose financial reporting and provides a comprehensive overview of the company's financial position and performance. The report highlights the importance of accurate financial reporting and the role of auditors in ensuring the reliability of the financial statements.