Conceptual Framework Accounting: A Detailed Analysis In The Australian Context
Task: Provide a detailed report on the conceptual framework accounting
This report is being drafted to create a thorough awareness regarding the Australian conceptual framework among the readers. The scope of the Australian conceptual framework accounting in the corporate and business environment is being well discussed in this report. The major motive of writing this report on the Australian conceptual framework accounting is to provide the students' thorough knowledge regarding the principles of accounting process implied in the business organizations of Australia. The major objectives of the parameters and guidelines mentioned under this framework the student would increase his practical knowledge of the business whereabouts. The management students could also refer to this report on Australian conceptual framework accounting since the guidelines would help them to draft effective strategic plans in their future careers. The ignorance of the restrictions laid down under the Australian conceptual framework accounting would eventually lead the company is being accused of non-compliance. The person having a detailed knowledge of it could sustain the productive environment in the organization along with following the framework which is based on legal and ethical ground.
It is a sort of analytical tool that the term conceptual framework would signify in the context of accounting. To obtain a better outlook over the accounting concepts, we have also discussed the major principles of International Accounting Standard Boars i.e. IASB in this report. The basic concepts of accounting have been mentioned by IASB relying on a conceptual framework developed by themselves. While preparing the financial statements, these guidelines would turn out to be very handy since they provide the whole framework a very stable and authentic outlook. (Banerjee, Horridge and Vargas, 2016). The business environment in the Australian economy has its features and hence it required a much more customized version of the IASB framework. Taking this issue on ground, the Australian Accounting Standards Board has developed its conceptual framework accounting guidelines. The contribution of Australian Accounting Standard Boards are not only limited to the local scenario, they have significant contributions to the evolution of the global financial reporting standards.
To master the guidelines of Australian conceptual framework accounting, the student should understand and byheart its central concepts and principles. It is through only the study of the basic concepts that the person could move on to the acquirement of the advanced knowledge and hence the student should majorly focus on covering the basic principles of accounting primarily. The student should take the approach of understanding the concepts of double-entry accounting, various accounting equations, the methodology of drafting the financial statements, estimation of accounting cycles, etc. A commerce student would prepare for these sections even in the initial section of his academic program, though he requires the practical space to imply all the relevant theories studied regarding the conceptual framework accounting. It could only by the regular implication of the accounting principles on the practical platform, a person could hold a grip on the important principles. The student of commerce would have to take very crucial decisions by relying on the accounting principles even at the beginning of his career and hence the proper shaping of the knowledge regarding the accounting principles should be done by him. The person could rely on the frameworks of the major companies operating in the Australian market to elaborate his study on the implication of the accounting principles. The study could be further elaborated by referring to online articles and data. For the companies working in the market of Australia, the Australian conceptual framework accounting is a necessity rather than just an obligation or set of restrictions.
All the organizations in Australia are required to draft financial statements on a periodical basis as mandated by Australian conceptual framework accounting standards. The regulation is majorly based on the norms laid down in the Corporation Act of 2001. The guidelines are being implied by the organizations by following two-tier methodology which is mentioned in the below section of this report on conceptual framework accounting.
Tier 1: Australian Accounting Standards
Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements.
The authentic relevancy of these concepts of the tiers mentioned above could be checked in the guidelines provided under section AASB 1053. Whereas these standards are well explained under the section of AASB 1048.
The major aim of a normal commerce student is to attain the job of a financial advisor in a reputed company. Without understanding the concepts and implacability of the guidelines mentioned under Australian conceptual framework accounting, this target could not be achieved by any person. Hence the student should understand the basic principles of the conceptual framework accounting and knowledge regarding its implication even in the earlier period of his academic career. The student should just give nominal importance to the subjective theories and focus much more on its practical implications. For this the case studies of prominent companies should be studied, which would provide the student with the knowledge regarding the actual implacability and risks behind applying various accounting principles. Though the approach should not be saturated to the level that the student would only focus on the practical aspect, it should be noted that the theoretical knowledge would make the foundation of practical knowledge. The major difficulty which is faced by the student in this context is the preparation of the financial statements since it should be made sure that the drafted data comply with numerous accounting principles simultaneously. If any deviance from the guidelines would be detected the whole effort would get sabotaged and the presented documented would be deemed as an inaccurate one. The level of perseverance and concentration should be maintained by the student since if a little gap or misunderstanding happens, it would get very hard to understand the remaining concepts.
The unit of conceptual framework accounting should be read and understood by the student on a regular basis until he gets sure that all the important laws are by hearted by him. The whole intent of doing these efforts is to get a good hold over the concepts of conceptual framework accounting and thereby achieving the ultimate goal of excellence in the process of accounting. If there is any difficulty faced by the person in commencing this task, he could seek help from his friends, colleagues, teachers, etc. If you require a much authentic and reliable help, the service of totalassignmenthlp.com could also be sought via the online method. You could attend the lectures much more attentively if the basic concepts regarding the topic are covered on an early basis. After attaining the hold over the concepts, the student could conduct secondary research to attain excellence over the topic. The various academic platforms should be utilized later by the students to apply subjective theories he has recited and understood. This systematic approach of the student would help him in attaining excellence and good grades in the academic evaluation.
While pursuing his academic career, the student would come to know that the learning of accounting is not easy and requires a certain set of skills. The first and formal set of skills would be to effectively imply the various principles of accounting like double-entry accounting. If the person holds any doubt in the methodology of implicating the conceptual framework accounting, then it would be very hard for him to carry out his activities in the career. The whole concept of accounting is based on the concept of double-entry and it may seem confusing to a lot of people. Both the methodology of preparing the financial statements via software and the traditional method should be understood by the student. The knowledge regarding software accounting would improve the efficiency of the person and hence the ability to work in a corporate environment rises. Whereas the traditional knowledge of accounting provides a strong foundation for the accounting knowledge which could be implied in any hostile condition or absence of technology. The person should also have the skill to present the financial statement and data systematically and effectively. If said in short, the person should have accumulated skills in presentation, communication, and analytical aspect (Barth, 2015). The whole set of skills is crucial and mandatory in evaluating the crucial financial data like inventories, doubtful debts, managing receivables, the process of budgeting, etc. The financial advisor is required to check and supervise the periodic and perpetual inventory system along with the implication of proper costing methods.
The periodical test in the academic career should be taken very seriously by the student since it would reveal your weak areas and further studies should be done by focussing on the required areas. If the person keeps avoiding the weak area, eventually his ignorance regarding the topic would enlarge which would eventually sabotage the whole effort. You could seek your mentor personally and seek guidance on how the topic should be learned effectively. It would be the most appropriate method to follow the guidelines provided by the tutor to focus on your weak areas.
The subject of accounting could not be just regulated or limited to the scope of individual learning as per the opinion of Macve (2015). It could be only by the exclusive implication of the whole accounting principles that the analyzing body would get the implored results. Hence the link between various theories and aspects of accounting could be authentically stated. The implication of the accounting principles in the business process would help the management in acquiring much more control and hence is critical in the smooth and effective working of the business. The officials should be well versed in the concepts of ethical actions, and business concepts so that the overall idea of the working environment should be created inside his mind even before he enters it. The person should be seeded for providing a valuable contribution to the strategies and policies of the organization. This would help the company in achieving the previously set target. The mention of it could be encountered by the student in various chapters of his academic programs. It is quite possible that the student would face many contextual doubts while studying accounting principles, and most of them could be eradicated by consulting your colleagues. Sometimes the guidance from your colleagues would turn out more effective than the lectures of your tutor. If the approach would be sustained by the student he would move towards the stage of excellence. The principles of accounting should be explored by both the direct and indirect method so that the implacability and scope of it should be understood on a wide basis.
The theories of conceptual framework accounting is not a secluded one is highly linked to the various accounting theories. Hence before approaching the conceptual framework accounting, the student should cover the preceding concepts, otherwise, they would struggle to understand the actual concept behind it. It is on the shoulder of the financial advisor to guide the team in proper drafting of the business process. It is purely on the accounting knowledge retained by the team that an effective, authentic, and error-free financial statement is put forward before the higher officials (Henderson, Herbohn and Howieson, 2015). The student should move on with the application of the accounting theory only after they have mastered the subjective theories. Even after the person has acquired well knowledge regarding accounting, the issue of depreciation and its disclosure remains a headache. For this purpose, the guidelines provided under the section of AASB 116 & AASB 138 9Loyeung, Weber and Wells, 2016).
As mentioned in the above section of this report on conceptual framework accounting, the student should have a thorough knowledge of the accounting concepts so that he could attain his major goal of being appointed as a financial advisor in a reputed company. The above section of this report has elaborately discussed the significance of learning the conceptual framework accounting to attain the same goal. Besides the knowledge regarding the ERP and Saasu software could be would turn out to be very effective for the person in his job career.
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