After you have chosen a company please commence your analysis.
You should review the copy of the conceptual framework which is in moodle.
You need to look at the annual report of your company and answer these questions:
1. Has the company complied with the measurement requirements of the conceptual framework?
2. Have they complied with the fundamental qualitative characteristics?
3. Have they complied with the enhancing qualitative characteristics?
4. Are the users of financial reports (investors/potential investors/lenders/other creditors) able to use the report to make decisions.
5. The conceptual framework says users only need a basic knowledge of accounting - do they need more than this to analyse your company.
6. Have they met the requirements for general purpose financial reporting.
You need to use screen prints from the annual report to support your arguments as well as academic arguments etc.
Remember this is a report and must have all the usual requirements. Don't forget
- Academic research
- Referencing
- Grammar Check
- Spell Check
- Use Paragraphs.
- No Footnotes - You need to use Harvard referencing
This is the link of my Company
https://www.praemium.com/media/1201/praemium-annual-report-2018_final.pdf
Compiled Framework (June 2014) Compiled FRAMEWORK Framework for the Preparation and Presentation of Financial Statements This compiled Framework applies to annual reporting periods beginning on or after 1 July 2014. Early application is permitted. It incorporates relevant amendments made up to and including 4 June 2014. Prepared on 15 March 2016 by the staff of the Australian Accounting Standards Board. FRAMEWORK-compiled 2 COPYRIGHT Obtaining Copies of the Framework Compiled versions of the Framework, the original Framework and amending pronouncements (see Compilation Details) are available on the AASB website: www.aasb.gov.au. Australian Accounting Standards Board PO Box 204 Collins Street West Victoria 8007 AUSTRALIA Phone: (03) 9617 7637 E-mail:
[email protected] Website: www.aasb.gov.au Other Enquiries Phone: (03) 9617 7600 E-mail:
[email protected] COPYRIGHT © Commonwealth of Australia 2016 This compiled AASB Framework contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007. All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org. FRAMEWORK-compiled 3 CONTENTS CONTENTS COMPILATION DETAILS COMPARISON WITH IASB FRAMEWORK FRAMEWORK FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS Paragraphs Application Aus1.1 – Aus1.5 Introduction Purpose and Status 1 – 4 Scope 5 Underlying Assumptions Going Concern 23 The Elements of Financial Statements 47 – 48 Financial Position 49 – 52 Assets 53 – 59 Liabilities 60 – 64 Equity 65 – 68 Performance 69 – 73 Income 74 – 77 Expenses 78 – 80 Capital Maintenance Adjustments 81 Recognition of the Elements of Financial Statements 82 – 84 The Probability of Future Economic Benefit 85 Reliability of Measurement 86 – 88 Recognition of Assets 89 – 90 Recognition of Liabilities 91 Recognition of Income 92 – 93 Recognition of Expenses 94 – 98 Measurement of the Elements of Financial Statements 99 – 101 Concepts of Capital and Capital Maintenance Concepts of Capital 102 – 103 Concepts of Capital Maintenance and the Determination of Profit 104 – 110 FRAMEWORK-compiled 4 CONTENTS Appendix: Objective and Qualitative Characteristics Chapter 1: The Objective of General Purpose Financial Reporting OB1 – OB21 Chapter 3: Qualitative Characteristics of Useful Financial Information QC1 – QC39 BASIS FOR CONCLUSIONS ON AASB CF 2013-1 FRAMEWORK-compiled 5 COMPILATION DETAILS COMPILATION DETAILS Framework for the Preparation and Presentation of Financial Statements as amended This compiled Framework applies to annual reporting periods beginning on or after 1 July 2014. It takes into account amendments up to and including 4 June 2014 and was prepared on 15 March 2016 by the staff of the Australian Accounting Standards Board (AASB). This compilation is not a separate Framework issued by the AASB. Instead, it is a representation of the Framework (July 2004) as amended by other pronouncements, which are listed in the Table below. Table of Pronouncements Pronouncement Date made Application date (annual reporting periods … on or after …) Application, saving or transitional provisions Framework 15 Jul 2004 (beginning) 1 Jan 2005 AASB 2007-8 24 Sep 2007 (beginning) 1 Jan 2009 see (a) below AASB 2007-10 13 Dec 2007 (beginning) 1 Jan 2009 see (a) below AASB CF 2013-1 20 Dec 2013 (ending) 20 Dec 2013 see (b) below AASB 2014-1 4 Jun 2014 Pt A (beginning) 1 Jul 2014 see (c) below (a) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that AASB 101 Presentation of Financial Statements (September 2007) is also applied to such periods. (b) Entities may elect to apply this pronouncement to periods beginning on or after 1 January 2005 that end before 20 December 2013. (c) Entities may elect to apply Part A of this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2014. Table of Amendments Paragraph affected How affected By … [paragraph] Aus1.1 amended amended AASB 2007-8 [7] AASB CF 2013-1 [5] Aus1.4 amended AASB CF 2013-1 [6] Aus1.5 amended AASB CF 2013-1 [7] Aus1.6 deleted AASB 2007-10 [10] FRAMEWORK-compiled 6 COMPILATION DETAILS Paragraph affected How affected By … [paragraph] 6-7 amended deleted AASB 2007-10 [11] AASB CF 2013-1 [8] 8-20 deleted AASB CF 2013-1 [8] 21 amended deleted AASB 2007-10 [12] AASB CF 2013-1 [8] 22 deleted AASB CF 2013-1 [8] 23 amended AASB 2007-10 [12] 24-46 deleted AASB CF 2013-1 [9] 72 amended AASB CF 2013-1 [10] 83 amended AASB CF 2013-1 [11] 84 amended AASB CF 2013-1 [12] 86 amended AASB 2014-1A [31] 88 amended AASB 2007-10 [13] Appendix added AASB CF 2013-1 [13] General Terminology Amendments References to ‘financial report(s)’ that were amended to ‘financial statements’ by AASB 2007-10, paragraph 14, are not shown in the above Table of Amendments. FRAMEWORK-compiled 7 COMPARISON COMPARISON WITH IASB FRAMEWORK The AASB Framework and the IASB Framework This Framework for the Preparation and Presentation of Financial Statements as amended incorporates the Conceptual Framework for Financial Reporting as issued by the International Accounting Standards Board (IASB). Paragraphs that have been added to this Framework (and do not appear in the text of the IASB Framework) are identified with the prefix “Aus”, followed by decimal numbering. FRAMEWORK-compiled 8 FRAMEWORK FRAMEWORK The Australian Accounting Standards Board issued the Framework for the Preparation and Presentation of Financial Statements on 15 July 2004. This compiled version of the Framework applies to annual reporting periods beginning on or after 1 July 2014. It incorporates relevant amendments contained in other AASB pronouncements up to and including 4 June 2014 (see Compilation Details). FRAMEWORK FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS Application Aus1.1 The concepts in this Framework are not set out as requirements for the purpose of preparing general purpose financial statements. This is consistent with the: (a) [deleted] (b) [deleted] (c) Australian Securities and Investments Commission Act 2001, section 227(1). Aus1.2 This Framework applies to periods beginning on or after 1 January 2005. [Note: For application dates of paragraphs changed or added by an amending pronouncement, see Compilation Details.] Aus1.3 This Framework shall not be applied to annual reporting periods beginning before 1 January 2005. Aus1.4 When applicable, this Framework supersedes: (a) Statement of Accounting Concepts SAC 2 Objective of General Purpose Financial Reporting as issued in August 1990; (b) Statement of Accounting Concepts SAC 3 Qualitative Characteristics of Financial Information as issued in August 1990; and FRAMEWORK-compiled 9 FRAMEWORK (c) Statement of Accounting Concepts SAC 4 Definition and Recognition of the Elements of Financial Statements as issued in March 1995. Aus1.5 SAC 2, SAC 3 and SAC 4 remain applicable until superseded by this Framework. Introduction Purpose and Status 1 This Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. The purpose of the Framework is to: (a) assist the AASB in the development of future Australian Accounting Standards and in its review of existing Australian Accounting Standards, including evaluating proposed International Accounting Standards Board pronouncements; (b) assist the AASB in promoting harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by Australian Accounting Standards; (c) [deleted by the AASB]; (d) assist preparers of financial statements in applying Australian Accounting Standards and in dealing with topics that have yet to form the subject of an Australian Accounting Standard; (e) assist auditors in forming an opinion as to whether financial statements conform with Australian Accounting Standards; (f) assist users of financial statements in interpreting the information contained in financial statements prepared in conformity with Australian Accounting Standards; and (g) provide those who are interested in the work of the AASB with information about its approach to the formulation of Australian Accounting Standards. 2 This Framework is not an Australian Accounting Standard and hence does not define standards for any particular measurement or disclosure FRAMEWORK-compiled 10 FRAMEWORK issue. Nothing in this Framework overrides any specific Australian Accounting Standard. 3 The AASB recognises that in a limited number of cases there may be a conflict between the Framework and an Australian Accounting Standard. In those cases where there is a conflict, the requirements of the Australian Accounting Standard prevail over those of the Framework. As, however, the AASB will be guided by the Framework in the development of future Standards and in its review of existing Standards, the number of cases of conflict between the Framework and Australian Accounting Standards will diminish through time. 4 The Framework will be revised from time to time on the basis of the Board’s experience of working with it. Scope 5 The Framework deals with: (a) the objective of financial statements; (b) the qualitative characteristics that determine the usefulness of information in financial statements; (c) the definition, recognition and measurement of the elements from which financial statements are constructed; and (d) concepts of capital and capital maintenance. 6-8 [Deleted – replaced by concepts in the Appendix, Chapter 1] Users and Their Information Needs 9-11 [Deleted – replaced by concepts in the Appendix, Chapter 1] The Objective of Financial Statements 12-21 [Deleted – replaced by concepts in the Appendix, Chapter 1] Underlying Assumptions Accrual Basis 22 [Deleted]