Contemporary Issues in Accounting: QUBE Holdings Limited Report

This report provides a comprehensive analysis of QUBE Holdings Limited's financial statements, addressing key contemporary accounting issues. The report evaluates the company's compliance with the conceptual framework, including measurement requirements, fundamental and enhancing qualitative characteristics, and the requirements for general purpose financial reporting. It assesses whether the company's financial statements provide useful information for investors, potential investors, lenders, and other creditors, and discusses the level of accounting knowledge required by users to effectively analyze the financial data. The analysis incorporates screen prints from the company's annual report to support the arguments, alongside academic research and proper referencing. The report concludes with an assessment of whether QUBE Holdings Limited has met the requirements for general purpose financial reporting.

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

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CONTEMPORARY ISSUES IN ACCOUNTING

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CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Answer to question 1..................................................................................................................3
Answer to question 2..................................................................................................................3
Answer to question 3..................................................................................................................5
Answer to question 4..................................................................................................................8
Answer to question 5................................................................................................................13
Answers to question 6..............................................................................................................14
References................................................................................................................................15

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CONTEMPORARY ISSUES IN ACCOUNTING
Answer to question 1
The conceptual framework explain the conception that involves in the creation of the
financial statement. The objective of the framework is to:
 Help in the creation of the books of Account in line with the Australian accounting
standards (Macve, 2015).
 Support the auditors in forming a view as to whether business statement follow
Australian accounting standard.
 Help the users of the financial statement in understanding the information included in
financial statement created in conformism with Australian accounting standards.
 The framework proclaimed the following
o The purpose of the financial statement
o The qualitative features
o The acknowledgement and quantification of the component from which the
financial statement are made.
o The conception of capital and capital maintenance.
The company QUBE holding limited has followed all the rules and guidelines of the AASB
in the preparation of its financial statement which is as per the requirement of the conceptual
framework (Henderson, et.al 2015).
Answer to question 2
As per the conceptual framework, the business information is beneficial when it is relevant
and represents faithfully what it indicates to signify. The fundamental qualitative
characteristics are as follow (Francis Pinnuck, and Watanabe 2013).

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CONTEMPORARY ISSUES IN ACCOUNTING
Relevance
Relevant information is useful of making a difference in the choice made by the users.
Relevance needs financial information to be associated to an economic conclusion. Financial
information is considered to be important if it has predictive value and confirmatory value.
Predictive value supports users in forecasting or anticipating future result. Confirmatory
value helps users to evaluate and approve earlier predictions or appraisals (CHIMDESSA,
2014).
Faithful representation
The financial data in the business report should signify what it indicate to epitomize. There
are three features of faithful representation.
 Completeness (sufficient or full disclosure of all required data),
 Neutrality (truthfulness and independence from Bias ),
 Free from mistake or error (no erroneousness and inadvertences).
From the analysis of the financial statement it can referred that the company has complied
with the fundamental qualitative characteristic (Karğın, 2013).
The books of account are complete in all respect i.e. the company has provided adequate
disclosure in the footnotes for the necessary transactions.
The financial statement which are prepared by the management of the entity represent
truthfulness. They have been prepared as per the relevant accounting standard and standard
on auditing.

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CONTEMPORARY ISSUES IN ACCOUNTING
The books of account prepared are free from mistake or error. Which imply entity is having a
proper internal control existing within the system which filter the inaccurate and inadvertent
transactions.
The transaction of the entity are implemented in agreement with the management general or
precise authorization.
 Entire transaction are readily recorded in the accurate volume in the suitable accounts
and in the accounting period.
 Assets are protected from the unauthorized admittance, usage.
 The verified assets are matched with the prevailing assets at a judicious interval and
necessary steps is engaged with respects to any variances (Henderson, et.al 2015).
Answer to question 3
Enhancing qualitative characteristics
1. Comparability
This features of the financial statement help the stakeholder of the company like
investor, trader, lenders, and other financial institution to compare the financial
statement of across the entity. For example investor can compare the income
statement of the entity for the different period say 2017 and 2018 to know the
financial performance of the entity (Kieso, eygandt, and Warfield, 2016).

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CONTEMPORARY ISSUES IN ACCOUNTING
Statement showing the comprehensive Income
2. Verifiability
This qualitative characteristic of the financial statement, provide assurance to the
users of that the books of account of the company that the information is verifiable
that is it can examined and investigated about its truthfulness (Kieso, eygandt, and
Warfield, 2016).

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CONTEMPORARY ISSUES IN ACCOUNTING
Verification can be done on the financial statement through the notes to account.
3. Timeliness
This qualitative characteristic of the financial statement represents that the decision
maker or the users of the financial statement should be offered the useful information
on a timely basis. There should not be any delay in the delivery of information.
4. Understandability
This features of the financial statement says that the financial statement of the
enterprise should be comprehensible that is the information or company performance
data must be presented clearly and concisely. There should be a proper explanation of
each of the complex items.

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CONTEMPORARY ISSUES IN ACCOUNTING
From the analysis of the above data of the QUBE holding limited. It can be said that the
company financial statement, are supportive of the enhancing qualitative features of the
company like comparability, verifiability, Timeliness, understandability (Siad, 2018).
Answer to question 4.
The users of the financial statement of the QUBE holding uses the different statement of
account of the company to make their investment decision (Murphy and Connell, 2013). Such
statement includes
 Income statement of the company
This is also known as the profit and loss account of the company, this shows the
revenue, expenses and net income or loss for the period. This displays the profit or
Expenses for a specific period of time.

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CONTEMPORARY ISSUES IN ACCOUNTING
Statement showing the comparative Income Statement of the company.
 Balance-sheet of the company
It is the important part of the financial statement of an entity which incorporate assets,
liabilities, total borrowing and shareholder fund. Balance sheet is like snapshot of the
company financial position at some particular point of time, which is generally
computed after each six months or one year (Weil, Schipper and Francis, 2013).

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CONTEMPORARY ISSUES IN ACCOUNTING
Statement showing the comparative balance sheet of the company.
 Cash flow statement of the company
A company cash flow statement signify the company total cash inflows and total cash
outflows. From analysis point of view it shows the sources where the entity is making
money for its business and sources where entity is expending more. This is important
for evaluating the liquidity position of the company. Bank and other financial
institution assess the company cash flow statement in order to examine the entity
credit worthiness.

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CONTEMPORARY ISSUES IN ACCOUNTING
Statement showing the cash flow statement of the QUBE holding.
 Financial ratios
These ratio play an important part in the evaluating the company performance and
equating with the related business of the industry. Different ratio shows different
position of the company performance. An investor before making such decision, will
always do ratio analysis of the company in order to assess their performance.