This assignment aims to develop students’ understanding of corporate reporting, disclosure,reporting entity concept and the implication of being classified as a reporting entity. The studentswill also...

Executive summary
We have demonstrated an understanding of the role of the Corporations Act, sources of authority, and accounting standards in the governance of companies and requirements for financial reporting. Critically analyzed and interpret the financial statements and other disclosures produced by Australian companies and corporate groups
The companies are required to make financial statements. The reporting of financial statements is an important and necessary procedure. The financial statements are used by the stakeholders who take decisions on the basis of the statements and the information given in those statements. Conceptual framework helps the governance and argument make financial statements that are as per the requirements and predefined standards, policies and framework. There are two frameworks to be followed by reporting entity and the other to be followed by non reporting entity. The reporting entity are those that has the information that as per the governance is o be shown to the stakeholders for fair representation of the transaction, operations and functions of the business and also to provide easy and fair information for their decision making. Business combination is the part f the group the company belongs. It has a part in the assets and liabilities and income and expenses made by the company. The business combinations are required to follow the same policies, standards and framework as been followed by the main company.
It is important to have framework on the bias of which the companies can make their financial stamens. It provided consistency and chance to tacklers to do comparison. Along with that the company can be judged on the basis of the business combinations it has and the investment it has made in it and the reruns being generated for the same.
References:-
(i) (No date a) Com.au. Available at: https:
www.asx.com.au/asxpdf/20200827/pdf/44lyp4x082h1wr.pdf (Accessed: May 31, 2021).
(ii) (No date b) Gov.au. Available at: https:
www.aasb.gov.au/admin/file/content102/c3/4.2_ITC39_M169_NO.pdf (Accessed: May 31, 2021).
(iii) (No date c) Gov.au. Available at: https:
www.aasb.gov.au/admin/file/content102/c3/SAC1_8-90_2001V.pdf (Accessed: May 31, 2021).
Part a Accounting Standard Setting, Regulation and Disclosure
(i)
Conceptual framework is a structure provided by the AASB. It is to be followed by all the companies to which it applies. The conceptual framework provides the companies assistance in financial reporting and is able to help to understand the financial reporting requirements. Basically conceptual framework sets and guides about the disclosure requirements companies are required to follow in maintaining their financial statements. It also provides the objective, concept and purpose of general purpose financial reporting. It serves the purpose to assist the Australian Accounting Standards Board (Board). It helps in developing Australian Accounting Standards (Standards) based on consistent concepts. It also helps in applying and choosing the accounting policy as per the standard and in cases where standard does not applies. It guides to understand standards it is not a Standard and does not ove
ide any standard. Conceptual Framework provides transparency by allowing comparability across national borders. It also provides financial information that is true and fair. It helps in allowing the decision makers make co
ect decisions. It reduces the gap and makes able the parties to make informed decision by sharing co
ect and required information. It helps to make the co
ect prediction of returns and risks. The use of a single trusted accounting language derived from Standards based on the Conceptual Framework lowers the cost of capital and reduces international reporting costs.
Strength and weakness of Conceptual framework:-
Conceptual framework helps in creating the financial statements that are not only true and fair with their representation but also provides the right information to its users. Conceptual framework has various objectives. The entities communicate their information by their financial statements. The right information increases the credibility. The more relevant information provides a faithful representation. The presentation is done as per the guidance given in the standards and policies. Similar items are us together and grouped. The information should not be too precise or to explicit. The conceptual framework gives an idea that how the statements are to be made that provide the required information for the users to make the known decisions. The conceptual framework tries to provide the standards that can be used by various companies belonging to various industries. The framework works for the benefits of all the stakeholders involved. Conceptual framework gives an idea about the things of the financial statements. IT has very well defined that what item is to be considered as an asset or liability or income or and expense. The problem with conceptual framework is that no matter how explicitly it s framed it cannot give an idea about all the industries and companies involved. Conceptual framework cannot have already provided all the solutions t the problems that have not been faced by the corporate. The policies gives guidance that if the standards are not of any use then conceptual framework can be used to get guidance in the matter not already dealt with...