ACCT20074 Contemporary Accounting Theory Term 1 Assessment 3: Practical report (Major...

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ACCT20074 Contemporary Accounting Theory Term 1 Assessment 3: Practical report (Major assignment)Basic information: Nature of task Individual Total marks 50 (50% of the unit) Due date Week 12 Friday (7 Jun. 2019) 11:45 pm AEST1 Return date Results will be published with other units university-wide (not before certification date) Word limit 3,000 – 3,500 words including the executive summary, introduction, responses to the requirements in 2 parts & conclusion but excluding the list of references and appendixes. Format Report format as per the marking criteria and guidelines. Prepare MS Word document.Main tasks: This assessment requires to undertake research and report on several aspects of corporate external reporting practices. The assessment has two main parts, Part A and Part B.Part A: Conceptual framework (a) Undertake a review of literature regarding the history and development of the Conceptual Framework for Financial Reporting in the USA, UK, Australia, and globally under the umbrella of the International Accounting Standards Board (IASB).       (4 marks) (b) Discuss the Australian accounting profession’s concerns regarding the application of the (IASB/IFRS) Conceptual Framework for Financial Reporting.     (3 marks) (c) Based upon a review of journal articles, critically discuss academics’ concerns about the quality (potential benefits and limitations) of the Conceptual Framework for Financial Reporting.    (3 marks) (d) Download the annual report of 2018 (or 2017, if not available 2018 annual report) of the selected company listed on the Australian Securities Exchange. Carefully read this report and explain how the conceptual framework has been applied by this company while it prepared its financial statements and notes to the accounts. Present your answer considering the (i) how many statements/reports have been prepared as per the Conceptual Framework and what are their major components, (ii) which recognition principles and measurement bases have been applied for revenue, assets and liabilities, and (iii) what qualitative characteristics of information exhibit in company’s various financial reports.    (10 marks) Part B: Integrated/sustainability reporting (a) Compare and contrast the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI) and the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) for explaining a holistic view (broader view) of corporate social responsibility reporting in addition to reporting of corporate financial performance.    (4 marks) (b) Explain the rigour (strengths and limitations) of the conventional accounting, based upon the Conceptual Framework for Financial Reporting, to explain the contents of sustainability as well as integrated reports.     (3 marks) (c) Discuss the applicability (usefulness or limitations) of the theories you learned to explain the contents of sustainability as well as integrated reports.   (3 marks) (d) Prepare an index (a table or checklist) of various components (criteria) of an integrated report, and then discuss whether and how the selected South African company has disclosed information against each of those components (criteria).      (5 marks) (e) Discuss whether the selected Australian company prepare an integrated report. If not, then what alternative report/s this company prepares for reporting corporate social responsibility in addition to reporting of its financial performance. Compare the contents of Austrian company’s corporate social responsibility reporting in addition to reporting of financial performance with the index and contents of the integrated report of the South African company presented in Part B (d) above.  (5 marks)Required: Prepare a research report as per the template, marking criteria and relevant guidelines.                              1 Please note that because of the time constraint, extension request will not be entertained unless there are competing circumstances supported by required certificates as per the university policies. However, considering the date of release of this assignment and other assignments at the same time, a 3 days extension can be sought from the unit coordinator by emailing a written statement of the reasons for extension.This assignment is prepared by Dr Kazi Islam, Lecturer in Accounting, UC- ACCT20074, T1-2019, CQUTemplate, marking criteria and relevant guidelinesStudent Name:Student Id:Number Specific Requirements Marks Guidelines 1 Executive summary 2 Summarise the overall findings 2. Introduction 1 State what you intend to research, data collection & analysis methods, and how you plan to present in the report  3. Part A  (a) Review of the history and development of the Conceptual Framework for Financial Reporting 4 Refer to the textbook and 5 journal articles. Visit the websites of the IASB, AASB, and FASB. (b) Explanation of Australian accounting profession’s concerns regarding the Conceptual Framework 3 Visit the website of AASB and refer to 3 web/media articles (c) Discussion of academics’ concerns about the quality (potential benefits and limitations) of the Conceptual Framework 3 Refer to 4 journal articles. Search article through CQU Library databases and google scholar (d) Explanation of how the conceptual framework has been applied by the selected Australian company 10 Download the annual report for 2018; if not available for 2017. Explain answers against requirements (i), (ii) & (iii) 4. Part B  (a) Comparison of Sustainability Reporting Guidelines and International Integrated Reporting Framework 4 Visit the websites of GRI and IIRC. Also use the textbook. (b) Rigour (strengths & limitations) of the conventional accounting, based upon the Conceptual Framework for contents of sustainability as well as integrated reports 3 Use the textbook and 2 journal articles searched through CQU Library databases and google scholar (c) Applicability (usefulness or limitations) of the theories to explain contents of sustainability as well as integrated reports 3 Use the textbook and 2 journal articles searched through CQU Library databases and google scholar (d) Preparation of an index (a table or checklist) of various components (criteria) of an integrated report, and discussion of whether and how the selected South African company has disclosed information against each of those components (criteria) 5 Read the international Integrated Reporting Framework of the IIRC in preparing index and explain the integrated reporting practice in the selected South African company listed on Jonesburg Stock Exchange (e) Comparison of Australian company’s reporting practices with the index and the integrated reporting practices in the selected South African company 5 Download Australian company’s annual report and discuss the quality (nature and extent) of its disclosure against the index and SA company’s I/reporting 5. Conclusion 1 Gist of findings and lessens you learned 6. References in the text and in the list at the end as per APA guidelines 4 Use APA referencing guide Overall English grammar & presentation skill 2 Assessed throughout the report Total

Sweta · Accepted Answer

Financial Analysis of BHP Billiton
                                                                                                                                                  June 1, 2019
 
Student Name:
Student ID:
Table of Contents
1. Executive Summary	3
2. Introduction	3
3. Part A	3
a) Review of the history and development of conceptual framework for financial reporting	3
b) Australian accounting profession’s concerns regarding the conceptual framework	4
c) Academics’ concern about the quality of the conceptual framework	4
d) The application of conceptual framework to Infratil limited Foreign exempt nzx	4
4. Part B	6
a) comparison of sustainability reporting guidelines and international integrated reporting framework	6
b) strength and limitation of conventional accounting based on conceptual framework and contents of sustainability and integrated reports	6
c) applicability of theories to explain contents of sustainability and integrated reports	6
d) index of various components of integrated reports and the disclosure of Montauk holdings ltd against the components	6
e) Comparison of infratil Limited’s reporting practices with the index and integrated reporting practices of Montauk Holdings	7
5. CONCLUSION	7
6. REFERENCE LIST	7
1. Executive Summary
The report summarizes the history and development of conceptual framework where in due to the stock market crash in 1929, the process of regulating accounting standards of public companies began through introduction of SEC which introduced FASB which laid down the General Accounting Framework. Countries like UK and Australia have adopted the IASB conceptual framework in its reporting and IASB has issued the conceptual framework which states the guidelines based on which the academics will develop the accounting standards and the accountants will prepare the financial statements. We have analyzed the application of conceptual framework on Infratil limited which is listed on both NSX and ASX and the reports have been prepared in accordance with the conceptual framework and the accounting standards issued by IASB. We analyzed the components of International Integrated Reporting standards and the sustainability reports and the various accounting theories like the theory of stakeholder’s maximization and the sustainable reporting.
2. Introduction
Conceptual Framework issued by IASB is the basic guiding factor based on which the International Accounting standards Board (IASB) has issued the International Financial Reporting standards. Due to enhanced globalization of companies, the uniformity of accounting principles and standards have been realized so that the comparison of performances of financial reports is facilitated. The countries across the globe have integrated their accounting framework and standards in order to bring more accounting harmony and comparability.
3. Part A
a) Review of the history and development of conceptual framework for financial reporting
Before 1929 no group was responsible for publishing the accounting standards. When the stock market crashed, the Securities and Exchange Act 1934 was passed in US and hence Securities and Exchange Commission (SEC) became responsible for supervision of public companies. SEC set up FASB (Financial Accounting Standards Board) in 1973 to create and public accounting standards and guide on reporting and educating public for use of financial statements. The FASB issued 8 concept statements till 2010 including the objectives, qualitative characteristics, elements, recognition and measurement, using cash flow statements of financial reporting. (Lumenlearning, n.d.)
In 1975 in UK, the Committee on Corporate Report resolved that specific financial accounting traits should be followed by all organizations. 
In Australia, the accounting concepts were developed into Australian Conceptual Framework known as Statement of Accounting Concepts (SACs) and four SACs have been issued. (Myers, 2001)
The IASB Board published the ‘Framework for preparation and presentation of Financial statements (the Framework) in 1989 and adopted the framework in 2001. ‘The Conceptual Framework For Financial Reporting 2010’ was a result of joint project of IASB and FASB (AASB, 2015) and was approved in 2010 by IASB and in March 2018 IASB published Conceptual Framework for Financial Reporting 2018 (the Framework). (iasplus, n.d.)
The FASB described The Conceptual framework as a comprehensible system of objectives and concepts whose purpose is to define the traits, purpose and limitations of financial accounting and reporting. Accounting standards are framed in accordance with the conceptual framework and all the heads in the financial statements like assets, liabilities, revenues and expenditures are accounted accordingly. The prevalent standards are evaluated and new standards are framed within the ambit of conceptual framework ensuring that the set standards do not oppose each other. (cpaaustralia, n.d.) Hence, the Conceptual Framework serves as a tool helping the Standard setting board in developing Standards, framers of financial statements in framing consistent accounting policies and users in comprehending and analyising standards. (KPMG International Cooperative NL, 2018)
b) Australian accounting profession’s concerns regarding the conceptual framework
The conceptual framework address the fundamental issue like
a) the objective of financial reporting
b) the qualities of useful financial information
c) describes the report entity and its scope
d) defines the assets, liabilities, equity , revenues and expenditures
e) the criterias for recognition and derecognition of assets
f) the measurement bases and the conditions when they are used
g) the guidance issued on presentation and disclosure
h)concepts of capital and maintenance of capital.
The conceptual framework developed by IASB needs to be be followed by managers in case an appropriate accounting standard is not present for the same. 
However, IASB has not left much scope for the managers to apply the framework as it has prescribed standards to be followed in accounting of almost all class of assets and liabilities to be accounted. 
 Different methods of valuation for different class of assets and liabilities and different methods for determing costs, fair values and realisable values have been developed. The conceptual framework provides three measurements of current value 
a) fair value- price of transaction between different buyers and sellers in the market
b) Value in use-The present value of the cash expected cash flows from the use of asset
c) current cost- the cost at which the asset would be acquired or liability settled by the business.

ACCT20074 Contemporary Accounting Theory Term 1 Assessment 3: Practical report (Major assignment)Basic information: Nature of task Individual Total marks 50 (50% of the unit) Due date Week 12 Friday...

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