Conceptual Framework

30 Jul Conceptual Framework

Topic: Does the current accounting framework meet the needs of the users of financial reports as prescribed in the objective of the Conceptual Framework of Accounting? How the conceptual framework revision to include Prudence is likely to address the disparity in Corporate Reporting is a requirement in your analysis.

COMMENT FROM LECTURER:

THE ASSESSMENT FOCUS NEED S TO BE ON WHETHER ACCOUNTING IS FULFILLING ITS PURPOSE AS AN INFORMATION SOURCE FOR FINANCIAL DECISIONMAKING.

YOU MIGHT LIKE TO CONSIDER GENERAL PURPOSE FINANCIAL STATEMENTS AND IF THIS IS SATISFYING THE NEEDS OF USERS SUCH AS INVESTOR, SHAREHOLDERS ETC.

AS THIS IS A CRITICAL REVIEW YOU SHOULD CONSIDER WHERE THESE NEEDS ARE BEING MET AND PERHAPS WHERE THEY ARE NOT BEING MET – INCLUDING SUGGESTIONS FOR IMPROVEMENT TO ACCOUNTING.

Task Details:

· Download the latest annual report of any two listed companies.

· Annual Reports are available on the company website or ASX website.

Based on the annual reports, Analyse the conceptual framework with reference to the annual reports of your chosen companies in light of the reporting requirements imposed on accountants and those charged with governance of corporations. Your analysis may include the following:

Are the annual reports in compliance with the conceptual framework and AASB standard requirements?

You need to use extracts from the annual reports to support your analysis.

Provide screen shots of the relevant sections from the reports in your assignment.

If they are not in compliance, explain the reason. How the conceptual framework revision to include Prudence is likely to address the disparity in Corporate Reporting

You may find the explanations in the notes to the financial statements or in the Director‟s Report.

Compare and contrast the two annual reports, identify the differences in disclosures of these corporations.

Reference to material of the course and a critical analysis of the annual reports is required.

Students are to critically analyse and develop supported recommendations and conclusions, in reference to the relevant accounting framework

Research Requirements:

Students need to support their analysis and recommendations with the text and minimum of 10 recent and relevant academic journal articles. Other sources may also be used but students need to be confident of the academic validity of such sources.

Presentation: Report – 2000 +10% word report

The word count excludes the cover sheet, contents page, references, appendices, and illustrations (e.g. diagrams, graphs and tables).

Students need to stay within the assigned word limits, and indicate the word count on the cover page of the assignment. Marks will be reduced for assignments shorter than or greater than the minimum word count.

The report should be typed double spaced, using Times New Roman font size of either 10 point or 12 point.

Every page should be clearly numbered.

The assignment should include the following parts:

(a) A title / cover page, which indicates basic information such as Subject title, Subject code, Trimester number, Assignment title, group members‟ full names”, word count and name of the tutor;

(b) Executive Summary;

(c) Table of Contents;

(d) Main contents – Introduction, analysis using suitable headings and subheadings, Conclusions and Recommendations, Appendices (if any);

(e) References (using Harvard – Anglia style); and/or

(f) Attachments.

Marking Guide:

Analysis 30%

Research – extent and application 30%

Recommendations/conclusions 20%

Presentation 20%