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Question: Discuss about the Conceptual Framework Concept. Answer: Introduction: Conceptual framework is just a guideline offered by the IASB and AASB to the professionals and the companies to maintain, present and prepare the final statements of the company. It is not evaluated as a regulation or a guideline about preparation and presentation of final statement of a company. These conceptual framework rules help the company to manage the aspects related to final financial statement and assist them to prepare the bets final statements and present them in a well manner. These frameworks have been set by the IASB/AASB to make it quite easy for the stakeholders to make decision about the performance and position of the company. It ensures the internal and external stakeholder of the company about their reliability, consistency, compliance, relevancy, comparability etc. It has removed the complexity from the earlier set regulations to make it easy for the professionals to prepare the final statements and present them in a good manner. Basically, conceptual framework has been set to offer huge knowledge about the regulations, norms, rules of IASB and AASB standards so that the professionals find it easy to understand and apply it while preparing the final statements. With the help of Conceptual framework, it becomes quite easy for the stakeholders to make decision about the performance and position of the company. Australian Agriculture Company limited: Australian Agricultural Company Limited manufactures and sells beef in Australian market. This company is engaging in possessing, functioning, and developing countrified properties; dealing in beef, including reproduction, feedlot ting, back grounding and processing the cattle and the grass fed beef production, grain fed beef production, and Wagyu beef production. This company functions under many brands such as Wylarah, 1824, Westholme, Welltree and Brunette Downs Grass-fed Beef brands. It functions an incorporated cattle creation system across around 18 owned cattle stations, 7 agisted properties, 2 leased stations, and a beef processing facility, 2 owned feedlots and 2 owned farms which are covering an area of around 7 million hectares of Queensland and around the Northern Territory (Bloomberg, 2017). The Australian agriculture company limited also exports its beef items to around 20 countries. It has been founded in 1824 and currently it is in Newstead, Australia. Final Financial Statement: Australian agriculture limited is an organization that has a main goal of earning the profits and enhances the growth of the company. A registration has been done by this company in the Australian stock exchange so that it could trade into the Australian stock market. Annual report of the company has been analyzed and found that entire aspects of the company which has been shown into the annual report of the company are not according to the IASB and AASB framework. Company has used many aspects which are not ethical such as it somewhere company has used the traditional method and somewhere modern approach has been used by the company according to its benefits (ACCA Global, 2017). It has been analyzed that the final statements of the company has not been prepared according to the IASB and AASB compliances. Extract of annual reports: Annual report of the company has been analyzed to conduct a study over the Australian agriculture company limited. The following extracts have been evaluated further for this study: The final financial statement of the Australian agriculture company limited: Has not been incorporated with entire IASB and AASB guidelines Corporation act has not been considered by the accountant while preparing the statements Historical cost concept as well s fair value accounting, both approaches have been considered AUD currency sign has been used for the data in the annual reports Some data has been misstated in the annual report of the company International regulations of accounting have not been followed (Annual report, 2017) Materiality, going concern and accrued accounting assumptions have been used. Snap shot of annual reports: The annual report evaluation of the company depict that there are huge mistakes which has taken place while preparing and presenting this data. Still, it has been analyzed that the mistakes are of a little level which could not make a huge impact over the reports and opinion of stakeholder of the company about the operations, performance and profitability of the firm (IASB, 2006). It has been analyzed that company have tried to use the entire guideline of conceptual framework while preparing and presenting the final financial statements of the company. It has been analyzed through this study that the entire statement of the company has been prepared in a good manner to depict a good knowledge about the performance, profitability, growth, diversity etc factors of the company. It has been found that every assumption (Accounting assumptions which are going concern, accrual, materiality etc.) has been taken into consideration while preparing the reports. Australian Vintage limited: Australian Vintage Ltd is involved into wine production, marketing, packaging and in distribution activities. This company operates its functions through North America/ Australasia Packaged, Cellar Door, UK/Europe, North America/ Australia Bulk Processing segments and wine grower segments. It provides wine under many brands such as Miranda, McGuigan, Nepenthe, Passion Pop brands and Tempus Two. This company also possesses, administers, and maintains wine grower and offers packaged and mass wines, at the same time, it also offers concentrate over the winery processing services. This company sells its manufacturing items through distributer, wholesaler and retailer channels, as well as it also uses the regional outlets to sell its products (Bloomberg, 2017). This company is situated in Balmain, Australia. Income Statement: Australian vintage limited is an organization that has a main goal of earning the profits and enhances the growth of the company. Annual report of the company has been analyzed and found that entire aspects of the company which has been shown into the annual report of the company are not according to the IASB and AASB framework. Company has used many aspects which are not ethical such as it somewhere company has used the traditional method and somewhere modern approach has been used by the company according to its benefits (Bezemer, 2010). A registration has been done by this company in the Australian stock exchange so that it could trade into the Australian stock market. It has been analyzed that the final statements of the company has not been prepared according to the IASB and AASB compliances. Extract of annual reports: Annual report of the company has been analyzed to conduct a study over the financial data presentation of Australian virgin limited. The following extracts have been evaluated further for this study: The final financial statement of the Australian vintage limited: Has not been incorporated with entire IASB and AASB guidelines Corporation act has not been considered by the accountant while preparing the statements Historical cost concept as well s fair value accounting, both approaches have been considered AUD currency sign has been used for the data in the annual reports Some data has been misstated in the annual report of the company (Annual report, 2017) International regulations of accounting have not been followed Materiality, going concern and accrued accounting assumptions have been used. Snap shot of annual reports: The annual report evaluation of the company depict that there accountant of the company has prepared and presented the financial data with a good understanding and knowledge. Still, it has been analyzed that the mistakes which are of a little level that could not make a huge impact over the reports and opinion of stakeholder of the company about the operations, performance and profitability of the firm. It has been analyzed that company have tried to use the entire guideline of conceptual framework while preparing and presenting the final financial statements of the company (IASB, 2007). It has been analyzed through this study that the entire statement of the company has been prepared in a good manner to depict a good knowledge about the performance, profitability, growth, diversity etc factors of the company. It has been found that every assumption (Accounting assumptions which are going concern, accrual, materiality etc.) has been taken into consideration while preparing the reports Concept of prudence: It is an accounting concept which signifies about the final statements presentation of a firm. This concept describes about the final statements that it should record entire liabilities, expenses and other factors of the firm at the time of occurring it or it also depict that if any expectation for future expenses has taken place than the data must be recorded even before taking that transaction a place (IASB Framework, 2001). While preparing and presenting transactions with prudence concept consideration, it has been evaluated from the professionals to not to overstate or understate the figures of the statements. Through analyzing the annual report of Australian agriculture company Ltd, it has been evaluated that the business is successively following the concept of conceptual framework. Accountants of the company have prepared a good statement to depict a better knowledge about the financial report of the company. Through analyzing the annual report of Australia virgin limited, same outcome has been found (Chorafas, 2006). But at the same time, it has been found that both the firms have made the changes in their annual reports according to the prudence concept and it has also been mentioned that any exploitation have not been made in the financial reports to influence the stakeholders. Disclosure of differences: It has been analyzed that both companies have prepared and presented the figures according to AASB, IASB and IFRS concepts. Corporation act, 2001 has been followed by both the companies to manage the figures (IFRS, 2008). The Australian agriculture company limited has also considered the UK corporation act to manage the figures in the annual reports of the company so that some difference could take place in disclosing the entire figures because of different corporation act. This difference can also take place due to various different functioning of both the companies (ACCA Global, 2017). Segment reporting: Segment reporting offers depth knowledge about the turnover, revenue and other related aspect of the financial figures of the company. More the nature, business functioning of both the companies may be classified through many aspects such as the companies where they are diversifying their market, business functioning, their customers etc (Vollmer, Mennicken and Preda, 2009). It has been analyzed that the products of both the companies are different and thus the differences could take place in their annual reports (Jones, 2006). Fixed assets: It has been analyzed that both the firms have evaluated the fixed assets according to the historical cost concept. The method of depreciation of both the companies is also same. Still figures of the company have been presented in a different way in both the firms (ISAB Framework, 2001). Current assets: It has been analyzed that both the firms have evaluated the current assets according to the going concern concept. The method of inventory management technique of both the companies is also same. Conclusion: Through this report, it has been analyzed that conceptual framework rules help the company to manage the aspects related to final financial statement and assist them to prepare the bets final statements and present them in a well manner. These frameworks have been set by the IASB/AASB to make it quite easy for the stakeholders to make decision about the performance and position of the company. Thus it is recommended to both the companies to manage the framework and present the data accordingly. It is also suggested to the internal and external stakeholder of the company to make some changes into the accounting policy to make their final reports better. Thus it could be concluded that both companies have prepared and presented the figures according to AASB, IASB and IFRS concepts. Corporation act, 2001 has been followed by both the companies to manage the figures. Some changes have taken place due to different nature, business functioning, products, different diversified countries etc. It has also been concluded that reliability, consistency, compliance, relevancy, comparability etc enhances due to conceptual framework. References: ACCA Global, 2017. Conceptual framework for financing activities. Retrieved as on 5 April 2017 from https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/iasb-conceptual-framework-financial-reporting.html Annual reports. 2016. Australia Agriculture company limited. Retrieved as on 18 august 2017 from https://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_AAC_2016.pdf Annual reports. 2016. Australia Virgin limited. Retrieved as on 18 august 2017 from https://www.australianvintage.com.au/wp-content/uploads/2016/10/AVL-2016-Annual-Report-Website.pdf Bezemer, D. J., 2010. Understanding financial crisis through accounting models. Accounting, Organizations and Society, 35(7), 676-688. Bloomberg. 2017. Australia agriculture company Ltd. Retrieved as on 18 August 2017 from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=8745402 Bloomberg. 2017. Australia virgin Ltd. Retrieved as on 18 August 2017 from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=879165 Chorafas, D.N. 2006. IGRS, Fair Value and Corporate Governance: The Impact on Budgets, Balance Sheets and Management Accounts. Oxford: Elsevier Publishing IASB. 2006. Summary of International Accounting Standards. International Accounting Standard Boards. Retrieved 20 January 2007 fromhttps://www.iasb.org/Home.htm IASB. 2007. Fair Value Measurement. Part 2: SFA's 157 Fair Value Measurements: Comments to be submitted. London: IASB IFRS. 2008. International Financial Reporting Standards. London: IASB ISAB Framework. 2001. Framework for the preparation and presentation of Financial Statements. International Standards Accounting Board Jones, M. 2006. Financial Accounting. Chichester: John Wiley Sons McGregor, W., and Street, D. L., 2007. IASB and FASB face challenges in pursuit of joint conceptual framework. Journal of International Financial Management and Accounting, 18(1), 39-51. Vollmer, H., Mennicken, A., and Preda, A., 2009. Tracking the numbers: Across accounting and finance, organizations and markets. Accounting, Organizations and Society, 34(5), 619-637