Accounting Standard by SGDE with AASB Conceptual Framework

This is a paper that focuses on the Accounting Standard by SGDE with AASB Conceptual Framework. The paper also provides steps and requirements in planning a research study.

Accounting Standard by SGDE with AASB Conceptual Framework

Required
1.      Firstly, to what extent is the Accounting Standard selected by your SGDE group consistent with the AASB Conceptual Framework (2019)?

2.      Secondly, undertake research and provide evidence of the importance or materiality of the issue. Base on a sample of 10 companies from the industry selected by your Group. Note that evidence of a low level of importance is of equal value to the decision as evidence of a high level of importance.

The task will be structured in several steps to provide some direction to your SGDE journey.

Step 1  Planning a research study (for requirement 2)
A.     Firstly, formulate a research question, this will guide the scope of your investigation
·         Select an industry for which it is reasonable to expect that the issue might be relevant. For example, if you were investigating AASB 141, choose an industry that is likely to engage in agricultural activities; if you were investigating AASB 116, banks would not be a good choice because a lot of banks do not report property, plant and equipment in their statement of financial position.

B.      Secondly, design your research – this will include
·         how you will select a sample of firms from your selected industry to provide evidence of the importance of the issue under investigation. Use the Data Premium Analysis database to identify potential for your sample. Please note that you will be required to provide a screen shot to illustrate the selection criteria that you used to search in Data Premium Analysis.
·         how you will measure (quantify) the importance of the issue or item for firms in your sample. E.g., if analysing AASB 102, the relevant item is inventory and its importance could be quantified by the ratio of inventory to total assets

C.      Thirdly, collect the information that will you need
Choose firms to include in your sample (two for each member of the group)
Collect  the most recent annual reports, which includes the financial statements and notes to the financial statements of the firms in your sample
Allocate two companies to each member of the group

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