ACC307 Individual Assignment Unit coordinator: Nathan Zhang Due date: 8pm Friday week 5, 01/02/2019 Question: Write a report of 2000 words to the chairpersons of the Financial Reporting Council and...

Individual Assignment
ACC307 Individual Assignment
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Contents
Introduction    2
Financial Reporting Council and the Australian Accounting Standards Board, commenting on the following argument    2
Reasons for failure of the conceptual framework    4
Conclusion    10
References    11
Introduction
The study will discuss the above reasons and other reasons for the company's resistance to the conceptual framework change. Conversely, a conceptual framework does not properly face the enormous resistance of current practices, but rather legalizes them. When there is no economic and social impact, status quo of stakeholders is not threatened, so the company will not revoke innovation. The study will also discuss the goals that the conceptual framework can achieve without much resistance. This is a paper writing assignment in which the analysis of the failure of the conceptual framework needs to be analyzed in an attempt to bring about fundamental changes. With the introduction of SAC-4 (Accounting Concept Statement); this will allow companies to report more liabilities, lobbying begins to be serious, and the business ensures that any innovation is revoked. An important foundation for discussion in this study; expecting best practices related to the conceptual framework that can legitimize current practices, help maintain the current status of social and economic status, and prevent public sector organizations from controlling accounting Standard practice.
Financial Reporting Council and the Australian Accounting Standards Board, commenting on the following argument
The main aim of this paper is to evaluate and analyze as well as overview the accounting conceptual framework; this can bring a lot of changes to practice of commercial companies, and can also control the public sector firms from trying to control the accounting standards. Please note that a comprehensive understanding of the concept and its meaning can only be obtained when the concept is used in the relevant discourse. The main basis for development of this declaration or statement and the reasons for the conclusions reflected therein are outlined in the association with the statement. A framework can likewise be described as a hypothetical basis, a statement of principles, rationality and guidance. By elaborating extremely basic accounting assumptions, the structure focuses on the path of advancing new accounting standards and it must be noted that a framework or agenda is not an accounting standard moreover that accounting standards are won in the event of a dispute between a framework and the specific arrangements of accounting standards (Ali et al., 2016).
The International Accounting Standards Board is currently updating the conceptual framework. Prepare financial statement statements and provide them to many organizations around the world for external users. Although these financial statements may look similar across countries, various economic, social, and legal conditions, as well as countries at the top of the list of priorities, may be contrasted, with varying needs for users and financial statements when setting national preconditions.
What, conceptual framework and its goals?
In accounting, the conceptual framework has been developed to simply set the standards, rules as well as principles applied in the creation moreover in the interpretation of the financial statements. The financial statements are prepared in the accordance with a framework can effectively communicate with different stakeholders. When generating reports based on the framework, investors can compare financial statements of different companies. The authority of the particular country and region prepares a framework. For instance, in Australia, the Australian Accounting Standards Board, and the Financial Reporting Board moreover Public Sector Accounting Standards Board is responsible for regulating an accounting profession by simply creating a required framework (Chalmers, Clinch and Godfrey, 2008).
Reasons why the community does not accept
While a conceptual framework is properly proposed to bring fundamental improvements to the accounting arena, diverse stakeholders object to any specific changes proposed by a regulator. Given that these changes are beneficial to stakeholders, corporate resistance seems counterintuitive; however, they are some of the factors that lead to strong resistance to innovation. After long-term application of certain guidelines, the company became rigid and therefore resisted the natural impulses of new changes. In some other cases, the proposed changes are often inconsistent with existing accounting standards; this situation raises confusion. Because these standards apply to a wide range of stakeholders, some users may think that these changes will not benefit and the same changes will benefit other users who may become competitors. The costs associated with implementing the proposed changes are usually high, and end-users of innovations believe that costs are not worth the change (Craig, Smieliauskas and Amernic, 2016).
Reasons for failure of the conceptual framework
Disapprove of certain companies
To begin with, the proposed system changes cause distinctive...