Accounting Theory and Contemporary Issues †MyAssignmenthelp.com

Question: Discuss about the Accounting Theory and Contemporary Issues. Answer: Introduction: According to the current environment of the business when it comes constructing the financial statement of a firm, then conceptual framework possess immense importance (Alrazi, Villiers and Staden 2015). Nowadays the organisations are delivered with all the noteworthy course of action and in addition to this, with the aid of the solicitation of techniques and canon of the conceptual framework. This complements the importance of conceptual framework under the background of the financial activities of a commercial organisation. During 1989 International Accounting Standard Board (IASB) introduced the conceptual framework for the purpose of financial reporting and since then it is being widely utilised by all the business organisations (Warren 2016). This report is aimed to analyse the compliance criteria of recognition, qualitative features of the said conceptual framework and objective of the same on behalf of the Nine Entertainment, which is one of the well-known TV network in Australia. Nine Entertainment is one of the top ASX listed brand and the ASX code of this brand is NCE (Member.afraccess.com, 2018). Thus, this report is aimed to assess the magnitude of adherence of the Nine Entertainment with large number of requirements attached with the conceptual framework for the financial reporting. From the above details it is clear that conceptual framework connected to the financial reporting is an essential and integral part for financial management of the business. All the information, which are crucial is mentioned in the annual report of the Nine Entertainment regarding the compliance with the various aspects of the conceptual framework. The annual report of the organisation for the year 2017 portrays that all the regulations and doctrines of the Corporations Act 2001 and Australian Accounting Standard Board (AASB) are taken in connection to the common resolution of business reporting (Kogan, Sudit and Vasarhelyi 2018). Moreover, it has been constructed in consolidated financial reports considering the doctrines and standards of International Financial Reporting Standards (IFRS) and International Accounting Standard Board (IASB) (Christensen et al. 2015). Thus, the organisation completely adhere to the rules and the regulation laid down by the IFRS conceptual framework for the financial reporting. Delivering valuable financial information: According to the conceptual framework, it is important for the every business organisation to provide meaningful and useful information regarding their financial status (Macve 2015). Evaluating the Nine Entertainments annual report it can be stated that all the crucial information need to provided are there in the report. According to the conceptual framework of financial reporting, information provided by the organisation are need to be useful for evaluating the timing, amount and the uncertainty of the cash flows of the different entity (Zhang and Andrew 2014). Detailed assessment report of the Nine Entertainment, validates the cash flow statement and it is published in timely manner. The third principal of the conceptual framework depicts that firms need to provide all the essential information regarding their organisational resources in order to aid the customer in decision making (Luciani 2015). Nine Entertainment curate its financial statement is made while keeping itself aligned with the AASB regulation. All the necessary information and details regarding the economic resources are being disclosed by the firm. Thus, from the above details regarding Nine Entertainment it is clear that the firm has fulfilled the requirements of the conceptual framework properly. Considering the case of the Nine Entertainment it can be seen that the firm has fulfilled the Auditors responsibilities for the audit of the financial report section. In addition to this, it has included the procedures framed to respond the Key Audit Matters. Through carrying value of intangible assets, value of programs rights and Stan loan receivable it has managed to address the Key Audit Matters significantly. The major issue faced by the Nine Entertainment while auditing is that same level of discrepancies were faced over the year and the more than 90% of the audit comply with the real situation of the financial position of the firm. Besides this there were no issues faced by the firm (Member.afraccess.com, 2018). Satisfying the acknowledgment criteria of conceptual agenda: As mentioned by the conceptual framework for the financial reporting, all the firm need to comply with the acknowledgement criteria related with the assets, liabilities, equity, revenue, and expenses. Primarily it need to represent financial information with relatable facts. Secondly revelation of the data need to be transparent and thirdly it need to be beneficial for the user (Leung and Morris 2015). There are various kinds of assets for and among them plant, property and equipment are the essential one. The cost of the asset is realised if there is future paybacks and it is relocated to the organisation (Member.afraccess.com, 2018). Intangible assets of an organisation leads to impairment being imposed on them. From the perspective of the Nine Entertainment it can be seen that there is useful lives and hence no amortisation is imposed. There are certain kind of liabilities is present in the Nine Entertainment. For liabilities of deferred tax, realisation is constructed based on the variation of the tax rate. For the contingent liabilities income tax matter of AASB is considered as primary item (Jin, Shan and Taylor 2015). Nine Entertainment entails that since there is low profitability regarding the future outflow benefit the amount is not measureable and it does not require the same. For revenue management, Nine Entertainment depends on the point of sale post subtraction of tax. In addition to this, provision couples to sale are realised based on the overall evaluation (Member.afraccess.com, 2018). Thus the sale figure comprise of the revenue generated from selling the products of the brand. From the above revenue figures it can be seen that the firm has faced sustainable amount of growth over the year, however, total revenue has felled by 45 million dollar from 2016 to 2017. When it comes to the expense of the Nine Entertainment, then realisation has been made on the various categories. Major share of expense goes to the programs rights and as employee salary. Considering the above analysis, it can be stated that the Nine Entertainment has complied with the norms related to the conceptual framework. Nourishing the qualitative characteristics of the conceptual background: There are various qualitative characteristics which are being provided by the conceptual framework in order to improve the general value allied to the financial reporting (Nobes and Stadler 2015). For Nine Entertainment it is essential to meet all of them for aiding their customers to take decisions. It depicts that relevance need to be ensured through the financial information and it should be there to enable decision making mechanism of the organisation. Nine Entertainment complies with all the doctrines and regulations from AASB, Corporations Act 2001 and IFRS (Member.afraccess.com, 2018). In addition to this, the brand consider the depreciation, others and tax that makes the financial information provided by the Nine Entertainment is pertinent with the conceptual framework. Depending upon this feature, it can be stated that it is highly important for the business organisations to provide fair information to obtain trust of the stakeholders (Beattie 2014). Considering the financial report of the Nine Entertainment it can be stated that the brand has provided all the information faithfully and adequately while complying with the conceptual frameworks idea. Conceptual framework argues that it is important for the business houses to provide the financial information in such a way that it can be easily be compared and noteworthy. It is essential to mention that the Nine Entertainment has provided its financial information with the help of tables and graphs that has aided the customers to understand the same in better way (Padgett 2016). According to this norm, financial reports of the firms need to be able of verify the revealed financial information by the business organisation in order to achieve transparency of the same (Gebhardt, Mora and Wagenhofer 2014). To comply with the verifiability norm, Nine Entertainment has provided categorisation of each facet of its accounting in the notes of financial statements that has allowed it to become transparent with its financial statement. For timely availability of the financial report from the firm conceptual framework has introduced the timeliness norm. It would help the stakeholder to determine the performance of the brand in frequent interval. Considering the case of Nine Entertainment it can be mentioned that it has disclosed its financial reports in annually and quarterly interval that makes it comply with the timeliness norm of the conceptual framework. Providing financial statement in a jibe able manner is essential for the business houses. It makes the financial statement understandable and transparency factor get aggravated by the same (Henderson et al. 2015). Nine Entertainment has published its financial statements in prcised manner that can easily be understood by the user. Thus it confronts with the understand ability norm of the conceptual framework. Conclusion: From the above analysis it can be perceived that Nine Entertainment has aligned itself with the conceptual framework of the AASB for its financial reporting. In addition to this the organisation has conformed to the guidelines and policies of IFRS, Corporations Act 201 and IASB for developing its consolidated financial statement. Besides this, it can also be found that Nine Entertainment has fulfilled all the three basic objectives of the conceptual framework and it has obeyed the acknowledgment criteria of conceptual framework provided by the AASB. Lastly the qualitative characteristics of the conceptual framework are met in order to conform to the general value of financial reporting. This validates the purpose of the conceptual framework under the purview of the financial activities by the business organisation. Reference: Alrazi, B., De Villiers, C. and Van Staden, C.J., 2015. A comprehensive literature review on, and the construction of a framework for, environmental legitimacy, accountability and proactivity.Journal of Cleaner Production,102, pp.44-57. Beattie, V., 2014. Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework.The British Accounting Review,46(2), pp.111-134. Christensen, H.B., Lee, E., Walker, M. and Zeng, C., 2015. Incentives or standards: What determines accounting quality changes around IFRS adoption?.European Accounting Review,24(1), pp.31-61. Gebhardt, G., Mora, A. and Wagenhofer, A., 2014. 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