Contemporary Accounting Issues Report: ALACER Gold Corp Analysis

This report provides an in-depth analysis of the accounting practices of ALACER Gold Corp, focusing on its financial reporting, compliance with the conceptual framework, and adherence to IFRS standards. The report examines the company's annual reports, financial statements, and notes to evaluate its performance and the information provided to stakeholders. It assesses the company's compliance with both fundamental and enhancing qualitative characteristics, such as relevance, faithful representation, comparability, understandability, verifiability, and timeliness. The report also explores the general-purpose financial reporting requirements and the importance of accounting knowledge for stakeholders. The conclusion highlights the significance of following accounting guidelines to provide faithful and material financial information, ultimately improving the overall performance of the business. The report is based on the provided assignment brief and the student solution.

Running Head: Contemporary issues in accounting 1
Project Report: Contemporary issues in accounting

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Executive summary
This report focuses on the various accounting guidelines and process in order to
present the proper financial reports. The main focus has been done on ALCIER Gold corp.’s
financial statement and the annual report. The accounting process, guidelines of preparing the
accounting reports etc have been studied. The study has been done on the fact that whether
the proper policies have been followed by the company or how is it helping the stakeholders
of the company. On the basis of the study, proper guidelines have been followed by the
company in order to record and offer the fair financial information to its stakeholders.

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Contents
Introduction.......................................................................................................................4
Company overview...........................................................................................................4
Conceptual framework compliances.................................................................................4
Compliance with fundamental qualitative characteristic..................................................7
Compliance with enhancing qualitative characteristic.....................................................9
Evaluation on financial statement...................................................................................11
Evaluation over accounting knowledge..........................................................................11
General purpose financial reporting requirements.........................................................12
Conclusion......................................................................................................................12
References.......................................................................................................................13

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Introduction:
Accounting is a process which is followed by each of the public company in order to
record, identify and measure the financial performance of an organization. The accounting
reports are prepared by the organizations through adopting the various accounting guidelines
which makes it easier for the business as well as the stakeholders of the business to
understand the business and make better decision about the performance of the company
(Elad, 2016). In the report, the accounting process, guidelines of preparing the accounting
reports etc have been studied of ALACER Gold corp. The report focuses that whether the
proper policies have been followed by the company or how is it helping the stakeholders of
the company.
Company overview:
ALACER Gold corp. is one of the leading gold mining Company. It is recognized as
the low cost gold production company. 80% of the market share of the company is in Turkey
market. Currently, various projects are running and operating by the business. The main focus
of the corporation is to leverage the cornerstone copler mine and maximize the portfolio
value of the company, minimize the project risk and improve the free cash flow so that the
maximum value for the shareholders could be created (Home, 2018).
Conceptual framework compliances:
Conceptual framework could be defined as an idea or the objectives which leads to the
business towards a set of standards in order to prepare the better reports. Conceptual
framework offers the better guidelines to each of the organization imp order to make the
consistent and similar reports so that it became easier for the stakeholders of the company to
understand the annual report of the company and compare it with other competitor
organization to reach over a conclusion (Garrett, Hoitash and Prawitt, 2014).
In case of ALACER Gold corp. it has been found that the company has prepared the
annual reports through focusing on the conceptual framework. Proper accounting standards
and guidelines have been followed by the company to collect, record, identify and measure
the financial performance of the business. The company has prepared the financial statement
on the basis of the IFRS rules. Below are the few examples of accounting and financial
statement of the business which has been prepared on the basis of the conceptual guidelines:

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(Annual report, 2018)

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(Annual report, 2018)
Along with the proper financial statement, financial notes have also been prepared to
make the stakeholders understand about each of the financial aspect. It shows that the each if
the transaction has been recorded and presented on the basis of the IFRS rules and conceptual
framework in order to maintain the uniformity and the performance of the companies. The
statement of board of directors and the auditor’s report of the company has also been studied
in order to measure the performance, opportunities, involved risk etc of the business. The
main conceptual framework of the company has been measured on the basis of the relevancy
and faithful representation factors of the business (Deegan, 2014).
It has been found that the overall recording and presentation factors of the company are
quite satisfied and it would help the business to improve the overall performance in the
market.
Compliance with fundamental qualitative characteristic:

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The fundamental qualitative characteristics of the company have been evaluated
through study over the fundamental qualitative characteristics of the company. On the basis
of the study, it has been measured that the below are the characteristics and their compliance
in the business:
Relevance:
Relevant information is quite able to influence the decisions of the stakeholders.
ALACER’s annual report depicts that the recordings have been presented on better way by
the company in its annual report so that the better decisions could be made by the
stakeholders of the business (Loftus et al, 2015). The annual report describes that all the
relevant information for the stakeholders have been described properly by the managers in
their annual report.
Figure 1: Risk description
(Annual report, 2018)
Faithful representation:
Faithful representation depicts that the financial and non financial performance in the
annual report must be presented with evidence and facts so that stakeholders could found it
faithful. All the information and activities which have taken place in the business must be
evaluated and recorded in the annual report of the business. In case of ALACER, it has been

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found that all the new projects, new operations, changes in the organizations etc have been
described in the annual report of the company briefly.
Compliance with enhancing qualitative characteristic:
Further, the enhancing characteristics of company have been studied in order to
measure the conceptual framework.
Comparability:
The comparable information in the annual report makes it easier for the stakeholders
of the business to understand the changes and the performance of the business. Below are the
example to comparability position of the business.
Figure 2: Comparability
(Annual report, 2018)
Understandability:
Further, the understandability level of the business has been discussed. On the basis of
the study, it has been recognized that all the information has properly described in the annual
report of the business so that the trust level of stakeholders could be improved in the reports
and the organization.

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Figure 3: DTA and DTL
(Annual report, 2018)
Verifiability:
Verifiability ensures that all the details of the business have been faithfully presented
and it has been verified by the business. In case of ALSAR Gold Corp, it has been found that
all the details of the company have been verified before presenting it into the annual report of
the company (Cayanan, 2016). The below details represent about the verifiability level of the
business:

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Figure 4: verifiability
(Annual report, 2018)
Timeliness:
Lastly, the timeliness depicts to provide all the decision making information in time in
order to be capable to influence their decisions. Through evaluation on the annual report of
ALACER, it has been found that all the information has been timely represented in the annual
report of the company in order to record all the relevant information.
Evaluation on financial statement:
Financial reports of the company has been discussed further in order to measure that
whether it is easier for the shareholders, investors, financial institutions and other
stakeholders of the business to recognize and measure the financial reports of the business in
order to make decisions (Abeysekera, 2013). On the basis of overall study on the financial
reports of the business, it has been found that the uniformity and proper guidelines have been
followed by the business while preparing the report so that the comparison could be done by
the stakeholders among the company and other competitors so that the better decisions could
be made.
Evaluation over accounting knowledge:
Most of the people argue that a stakeholder is required to have full knowledge about
the accounting concepts and guidelines. But in reality, most of the stakeholders of the
business are not aware about it and make the decisions on the basis of influence of
stakeholders, profitability level or the stock price of the company. Through the study and

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analysis, it has been recognized that the basic knowledge of accounting is sufficient for most
of the stakeholders (Chand, Patel and White, 2015). It would make it easier for them to
understand the financial items, compare them, recognize them and make better decisions.
Conceptual framework study also represents that if a person has little knowledge
about the accounting concepts and policies than he could easily identify the actual
performance of the business and it would be easier for the user to make decisions.
General purpose financial reporting requirements:
General purpose financial reporting explains that the financial reports must be
prepared in such a way that all the information which has been expected from the users could
be met and the reports must be easy to understand. In case of ALACER limited, it has been
recognized that the overall financial and annual report of the company explains that proper
GPFR rules have also been followed by the company in order to record, prepare, maintain
and present the financial reports of the business.
The financial statement, financial notes and other financial information related to the
business has been described properly in the annual report of the business and in an efficient
way so that the overall position of the business could be improved and the stakeholders of the
business could got uniformity in the financial statement of the business (Zeff, van der Wel
and Camfferman, 2016).
Conclusion:
On the basis of the overall study over the conceptual framework, IFRS rules, GPFR
rules etc, it has been found that the main objectives of all the accounting guidelines and
policies are to provide the faithful, material and proper financial information to the
stakeholders of the business so that they could make better decisions. To conclude, ALACER
Gold Corp limited’s annual report has been prepared through focusing on the proper
guidelines and fact to manage and improve the overall performance of the business.
Conceptual framework policies should be followed by every business to improve the
performance of the business.