You are required to select a top 100 ASX company and relate their general purpose financial report with conceptual framework. In order to do this you will need to identify material from the GPFR of the company and provide a critical analysis of the companies reporting relative to the conceptual framework need to identify issues that have been wrongly shown to the users or find out misleading information users

Suggestions regarding assignment

USE YOUR INDEX WISELY......

Go to Balance Sheet, Income Statements, NOTE 1 (methods adopted by company) and other notes from the financial reports, Remuneration Report, Auditors Report

Remuneration report - screen shot or take elements from actual report in relation to executive remuneration.   Linked to profit? Share price? Or other - consider how this drives culture with organisations including a desire to obtain profit to receive bonus payments.

ISSUES WITH REMUNERATION can be SELF INTEREST - SHORT TERM DECISION MAKING, TELEOPATHY (unhealthy pursuit of goals), manipulation of accounts, not adhering to the conceptual framework, aasb issues like in leases

In your discussion using examples from annual reports (of many companies) will assist however focus should be on your company(ies)

GPFR - general purpose financial reports - for users to make financial decisions perhaps to affect profit rather than in accordance with AASB or conceptual framework

INVENTORY - OVERSTATE- aasbvalued AT COST OR LOWER OF COST OR MARKET.

ACCOUNTS RECEIVABLE - OVERSTATE - ESTIMATION OF PROVISION FOR BAD AND DOUBTFUL DEBTS - UNDERSTATE YOUR PROVISION

PPE - OVERVALUE - EXCESS VALUATION (PRUDENCE) - DEPRECIATION - CHOOSE METHODS  perhaps to affect profit rather than in accordance with AASB or conceptual framework

LIABILITIES - LEASES - INTANGIBLE ASSETS - NOTES - LOOK FOR EVIDENCE OF ANY LEASING

Contingent legal liabilities - where companies have had to pay out legal obligations due to issues

LEASES HAVE BEEN LEFT OFF BALANCE SHEETS - LIMIT RATIO - ATTRACT INVESTORS

Overstated Revenues, sales returns

Understated expenses

TAXATION

TRANSFER PRICING - FACEBOOK -TAXATION

Eg.TRANSFER PRICING - FACEBOOK -3-5 BN additional tax payments

Discuss prudence - what is proposed for updating the conceptual framework

How you think this will affect the reporting?  Benefits and criticisms (cpaeg)

The inclusion of prudence, then removal and now addition again by accounting.

Or are the issue much more complex than that? Do accountants adhere to the CF?  Perhaps addressing remuneration and other issues would achieve better outcomes?