Accounting Research and Organization Theory †MyAssignmenthelp.com

Question: Discuss about the Accounting Research and Organization Theory. Answer: Introduction Conceptual framework for the general purpose financial reporting by the public sector companies delivers the International public sector accounting standards board with concepts that will strengthen development of IPSASs (International Public Sector Accounting Standards) and the practice guidelines for future years. it deals with the concepts those are applicable to the general purpose financial reporting as per accrual basis of the accounting. It provides the guidelines for dealing with the issues related to financial reporting that are dealt by the IPSASs. Under the circumstance, the preparers and others may consider and refer to the applicability of definition, measurement principles, recognition criteria and various other concepts recognized under the conceptual framework. Flight centre Travel Group is biggest retail outlet for travel in Australia. It was established in the year 1982 and its headquarter is in Brisbane (Fctgl.com 2018). From the financial statement of the company it is found that the general purpose financial report of the company has been prepared in accordance with the AAS (Australian Accounting Standards) and interpretations released by AASB (Australian Accounting Standards Board) and Corporation Act 2001. The company is a for-profit company for preparing financial statements (Noon, Blyton and Morrell 2013). Further, the consolidated financial statement of entity is complied with the IFRS (International Financial Reporting Standards) released by IASB (International Accounting Standard Board). Main objectives of the financial reporting by the public companies are to deliver useful information regarding the company to the users of GPFRs for the purpose of accountability and making decisions (Bebbington and Larrinaga 2014). As per the requirement of conceptual framework the financial statement shall be presented in such a manner that the amount for each item can be analysed on timely manner. it is observed from the financial statement of the company that the statements are prepared for the period of 1 year and which is closing on 30th June 2017 (Francis, Hasan and Wu 2013). Further, the amount for all the items are separately mentioned in the financial reports and the associated notes disclosed with the statements. As per the requirement of conceptual framework the information presented in financial report must be presented in such manner that will be useful to the users. It is observed that the company presented all the necessary information through the financial statements, graphs, tables and ratio presentation. The users can use this information for analysing the performance of the company for the purpose of decision making (Griffith, Hammersley and Kadous 2015). Therefore, the information is provided in useful manner and can be used by the users for making decisions. Resource of the organization The conceptual framework requires that the financial statement shall clearly provide the information regarding the resources available to the company and the sources through which the resources are obtained (Li 2013). It has been observed from the financial report of the company that all the resources and their sources are properly mentioned in the financial report of the company. Therefore, the financial statement of Flight Centre Travel Group Limited is complying with all the requirements as per conceptual framework regarding the general purpose reporting standard. Recognition of the item is key driver for determining whether information is stated on face of financial statement or is disclosed through notes or anywhere in the GPFRs. Further, the notes for the financial statements disclose the information that supports the achievements of financial reporting objectives (Frias?Aceituno, Rodriguez?Ariza and Garcia?Sanchez 2013). Any item is identified in the financial statement if the cost or value of the item can be measured reliably and it is probable that upcoming economic benefit from the item will be inflow for the company. When it is apparent that the upcoming economic benefits associated with asset will be inflow to the company then the asset is recognized in the companys balance sheet. From the balance sheet of the company for the year ended 30th June 2017 it is observed that the assets are divided as current and non-current assets (Miller and Power 2013.). The assets of the company like building, plant and equipment are transacted at historical cost less depreciation provided on straight line method. Further, the assets carrying amount is immediately impaired to the recoverable amount if the carrying value is more than the expected recoverable amount. Liabilities recognition When it is probable that the company will require the outflow of economic resources to settle down the underlying obligation then the liabilities are recognized in balance sheet. Further, to recognize the liability the amount for the item shall be reliably measured. The company divides their liabilities as current and non-current based on their time period for payment. The company presented the trade and other payables as current asset. These payables are recognized at fair values initially and thereafter are measured at the amortised cost using the method of effective interest. Provisions for the make good obligations and legal claims are recognized when the company has present constructive or legal obligation that will required outflow of economic resources. Further, the borrowings are recognized at the fair value initially after deducting the transaction cost and are measured at the amortised cost subsequently. The equity of the company includes the contributed equity and treasury shares. Movements in the contributed equity are related to the shares that are issues under ESP. Further, the the company presented the details regarding the opening balances, closing balances and purchase details of the shares through the disclosure notes. When increase in the upcoming economic benefits related with the item taken place in the financial year for which the amount can be measured reliable, the item is recognized as revenue in the income statement of company. It is observed that Flight centre Travel Group Limited recognizes the revenues when amount of revenue can be reliably measured and particular requirement met for each activity. The company recognizes its expenses if the company has to spend the economic resources for obtaining economic benefits and that are associated with the reduction in assets or increase in the liability and can be reliably measured. It is observed that the company segregated its expenses under various heads like finance costs, other expenses. Further, the heads are subdivided under various other heads. Therefore, the company is complying with all the requirements of conceptual framework for recognising the items under the financial statement of the company. Qualitative characteristics Qualitative characteristics of the useful financial reporting recognizes the information types, that are expected as most crucial to the users for making decisions regarding the reporting company based on the financial statement information The financial information shall be presented in such a way that the information shall be relevant to the users for making useful decisions. It is observed that the financial information of the company reported in such a way that it is relevant to the users for the purpose of decision making. The items are properly segregated under appropriate head with their respective amounts. Information presented in the financial statement will be regarded as material if the omission or misstatement can have an impact on the decision of the users. It is observed that the company has included all the material information in the disclosure notes associated with the financial report of the company. Further, as per the report of the auditors there were no material misstatement found in the financial report of the company. As per the qualitative characteristics of the conceptual framework the report shall allow the users to compare the financial performances of the company with the previous years as well as with the industry peers (Deegan 2013). It is observed that the company presents the information for previous year also along with the current year. Further, the key information is presented for last 5 years. Moreover the data are presented through graphs, table and ratio to enable the users to compare the performances. Finance related information shall be presented with the time to which it relates so that the users can evaluate the performances for the particular period of time. It is observed that the company issue their reports annually as well as for half-year period. Further, the annual report is presented for the period ended 30th June 2017 (Cheng et al. 2014). The requirement of conceptual framework is that the items presented under the financial statements shall verifiable with the supporting notes. It can be observed that the companys financial information are segregated under appropriate heads and can be verified with the disclosed notes (Chen et al. 2013). Conclusion From the above analysis it can be concluded that Flight Centre Travel Group Limited is complying with all the requirements stated under the conceptual framework for GPRSs. The company presented its financial information in such a way that it can be used by the users effectively for decision making purpose. Further all the items like expenses, revenues, assets, equities and liabilities have been recognized as per the requirement of recognition criteria mentioned in conceptual framework. Moreover, all the fundamental qualitative characteristics requirements are fulfilled by the company while prepared the financial statement. References Bebbington, J. and Larrinaga, C., 2014. Accounting and sustainable development: An exploration.Accounting, Organizations and Society,39(6), pp.395-413. Chen, L.H., Folsom, D.M., Paek, W. and Sami, H., 2013. Accounting conservatism, earnings persistence, and pricing multiples on earnings.Accounting Horizons,28(2), pp.233-260. Cheng, M., Green, W., Conradie, P., Konishi, N. and Romi, A., 2014. The international integrated reporting framework: key issues and future research opportunities.Journal of International Financial Management Accounting,25(1), pp.90-119. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Fctgl.com., 2018. [online] Available at: https://www.fctgl.com/wp-content/uploads/2017/09/Flight-Centre-Travel-Group-Annual-Report-2017.pdf [Accessed 17 Apr. 2018]. Francis, B., Hasan, I. and Wu, Q., 2013. The benefits of conservative accounting to shareholders: Evidence from the financial crisis.Accounting Horizons,27(2), pp.319-346. Frias?Aceituno, J.V., Rodriguez?Ariza, L. and Garcia?Sanchez, I.M., 2013. The role of the board in the dissemination of integrated corporate social reporting.Corporate Social Responsibility and Environmental Management,20(4), pp.219-233. Griffith, E.E., Hammersley, J.S. and Kadous, K., 2015. 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