The present areas of the improvement in the business needs to be considered with the importance pertaining to the conceptual framework in the improvement of the financial statements. The organizations have considered the significant nature of actions combined with doctrines and techniques which are needed to be emphasized with the doctrines and techniques associated to the presentation of the financial statements (Smith 2017). The application of the considerable technique is possible to be resolved with large number of business issues. This is validated with the role to consider dealing with the financial aspects of the business organizations (Epstein 2018).
In 1989 the framework introduced by “International Accounting Standard Board (IASB)” have identified the rationale for financial reporting. The present report has been seen to be focusing on the investigation of the compliance in terms of enhancing the fundamental qualitative features, recognition criteria, fundamental qualitative features and criteria for recognition (Wiedmann, Chen and Barrett 2016). The improvement of the quality of the report needs to be depicted in terms of the report published by AssetOwl Limited which is a pioneering innovative technology company with enterprise software application who provides the real estate owners trusted platform for managing the properties remotely. The combination of the “Geospatial Information Systems (GIS) and Virtual Reality (VR)” is specifically seen with the visualization and interpretation of the data within the four walls of the individual location collectively used across wide range of network (Schaltegger and Burritt 2017).
It needs to be identified that conceptual framework of the financial reporting is important for financial management of the corporate entities. The significant information is considered to be inherent among the financial report of AssetOwl Limited which are in compliance to the CF. In 2017 the annual report of the company is identified with regulations and doctrines of AASB and Corporate Act 2001 which are adopted in relation to the GPFR.
Furthermore, the consolidated financial reporting needs to be adopted with the standards and doctrines of IASB and IFRS. Henceforth, it is worth mentioning that the organization fully complies to the conceptual framework of the IFRS required for financial reporting. Despite of this, it needs to be also discerned that the framework for financial reporting needs to be discerned as per the specific objectives needed to satisfy the objectives set by AssetOwl Limited (Agyemang and Broadbent 2015). The objectives of the organization can be briefly considered as follows:
The conceptual framework pertaining to any business relates to providing meaningful and valuable financial information which will be conducive for aiding the decision making. Post evaluation of the annual report of AssetOwl Limited the crucial information should be considered with the financial statements in a timely manner. Moreover, the financial statements of the ASX listed entities mainly comprise of the cash flow statement, IS and BS. It also includes notes as mentioned in the annual report which assists the users in extracting the useful information (Bird et al. 2014).
The inclusion of the second objective of the financial reporting is stated with the useful information which is conducive for the users in evaluating the uncertainties, timing and amount of the cash flows of an entity. The annual report of AssetOwl Limited has been able to validate the cash flow statement which is prepared in a timely manner and distributed among the users (Lindenmayer et al. 2015).
The third objective clearly reveals about the objective of the conceptual framework of the firms which has revealed the important information of the organizational resources needed for assisting the financial decision-making process. AssetOwl is depicted to be in compliance with the regulations of AASB and disclosed information on the resources of the organization (Sampaio, P.G.V. and González 2017).
The analysis of the study shows various context of objectives associated with the conceptual framework of financial reporting and fulfilling the part of AssetOwl Limited.
The mandated information as per the mandated conceptual framework should be considered with financial reporting of the firms necessary for meeting the recognition criteria of assets, revenues, liabilities, expenses and equity. In other terms the primary requirement is inferred with the following three aspects. These relates to represented with pertinent information, individual financial aspect and beneficiary factor for the users. The facts stated below acts as the main recognition criteria of AssetOwl Limited (Obst and Vardon 2014).
The company have shown that different group of assets such as PPE is disclosed as per deducting the depreciation from the cost of asset (Pope and Wæraas 2016). These costs are depicted to be released as per the future benefits which are transferred to the organizations.
Furthermore, the intangible assets are seen to be realized as per the carrying amount of the specific classes of the assets.
The specific types of the assets present in AssetOwl Limited can be inferred with deferred tax liability, which is considered as the difference between carrying amounts and variations in tax (Bachmann, Gillespie and Priem 2015).
In terms of the contingent liabilities the company had issued more than 5 million ordinary shares to acquire AssetOwl technologies Private Limited as on December 2016. Henceforth, the management of the company states that AssetOwl is not needed to maintain any provision in these matters as the chance of future outflow pertaining to economic benefit cannot be measured in a reliable manner within (Simnett and Huggins 2015).
The equity assessment for the company can be categorised with the subtraction made from the incremental amount pertaining to overall equity.
The revenue recognition of the company mainly considered with group generating sufficient amount of revenue by allowing the retailers to use management platform in performing the execution of software service agreement alongside counterparty. The group further obligates the software service agreements as per the nominal amount of revenue generated.
The consideration of expenses at AssetOwl Limited can be inferred under various categories. The primary expenses mainly constitute of the research and development tax benefit incentive which is payable annually.
In addition to this, some of the other expenses can be clearly referred with accounting and audit expenses, legal expenses, research expenses, employee benefit expenses, exploration expenditure, depreciation and amortization.
The varied aspects of qualitative framework of the conceptual study are inherited in form of enhancing the quality related information in the financial report. Therefore, it is important for the company to meet all the quality objectives. The discourse of information presented below represents the conformance of such a qualitative information on part of organisation.
This feature represents that financial information is conducive in decision making process. Therefore, in case of AssetOwl it may be clearly inferred that the company conforms with the present regulations of “IFRS, AASB and Corporations Act 2001”. Moreover, the organization also ensures relevant treatment of depreciation and other taxable assets.
The depiction of this feature shows that the business firms are able to represent financial information in a transparent and fair manner. This suggests that obtaining of trust from the stakeholder is of utmost importance. Based on the audit report prepared by BDO (Australia) Limited, the true and fair view of the financial position of the group can be inferred in FY 2018. Moreover, based on the report published by the independent auditor companies complying with relevant accounting standards and corporation regulations. Therefore, AssetOwl is clearly meeting the relevant accounting standards and publish the information in a faithful and adequate manner.
The use of this feature is evident in the conceptual framework used in the financial report. This information clearly shows that the stakeholders have gained a considerable insight on the variations and similarities for different financial statements. It is also worth mentioning that the company has interpreted this information with the use of graphs and tables so that the users can easily interpret the results.
This suggests that the financial reports are essential for verifying the disclosed financial results on part of AssetOwl Limited. Therefore, in order to adhere to the purpose of categorization of individual accounting aspect the notes to the financial statement have provided all the relevant data associated to this.
The concept of timeliness as per the company is denoted with the fact that financial information should be provided in a specific schedule. For instance, in case of AssetOwl Limited it is depicted to disclose its financial results both annually and quarterly basis. In addition to this, it can be also seen that users are able to opt in financial information within a specific time schedule.
By contrasting the features of financial statements of the company users are able to get a better understanding of the present standings. Therefore, AssetOwl have shown a precise format for the financial statements which can be easily referred by the users.
Conclusion:
As per the discussions of the study can be inferred that AssetOwl Limited has been able to validate the cash flow statement which is prepared in a timely manner and distributed among the users. Moreover, it is compliance with the regulations of AASB and disclosed information on the resources of the organization. It has been also depicted that the company have shown that different group of assets such as PPE is disclosed as per deducting the depreciation from the cost of asset. These costs are depicted to be released as per the future benefits which are transferred to the organizations.
References
Agyemang, G. and Broadbent, J., 2015. Management control systems and research management in universities: An empirical and conceptual exploration. Accounting, Auditing & Accountability Journal, 28(7), pp.1018-1046.
Bachmann, R., Gillespie, N. and Priem, R., 2015. Repairing trust in organizations and institutions: Toward a conceptual framework. Organization Studies, 36(9), pp.1123-1142.
Bird, V., Leamy, M., Tew, J., Le Boutillier, C., Williams, J. and Slade, M., 2014. Fit for purpose? Validation of a conceptual framework for personal recovery with current mental health consumers. Australian & New Zealand Journal of Psychiatry, 48(7), pp.644-653.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Lindenmayer, D.B., Burns, E.L., Tennant, P., Dickman, C.R., Green, P.T., Keith, D.A., Metcalfe, D.J., Russell?Smith, J., Wardle, G.M., Williams, D. and Bossard, K., 2015. Contemplating the future: Acting now on long?term monitoring to answer 2050’s questions. Austral Ecology, 40(3), pp.213-224.
Obst, C. and Vardon, M., 2014. Recording environmental assets in the national accounts. Oxford Review of Economic Policy, 30(1), pp.126-144.
Pope, S. and Wæraas, A., 2016. CSR-washing is rare: A conceptual framework, literature review, and critique. Journal of Business Ethics, 137(1), pp.173-193.
Sampaio, P.G.V. and González, M.O.A., 2017. Photovoltaic solar energy: Conceptual framework. Renewable and Sustainable Energy Reviews, 74, pp.590-601.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and practice. Routledge.
Simnett, R. and Huggins, A.L., 2015. Integrated reporting and assurance: where can research add value?. Sustainability Accounting, Management and Policy Journal, 6(1), pp.29-53.
Smith, M., 2017. Research methods in accounting. Sage.
Wiedmann, T.O., Chen, G. and Barrett, J., 2016. The concept of city carbon maps: a case study of Melbourne, Australia. Journal of Industrial Ecology, 20(4), pp.676-691.
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