Importance of Conceptual Framework in Alloy Resources Limited

In this study a detailed research is to be conducted on the Alloy Resources limited during the current financial year regarding the financial and organisational activities. Not only that it is also to be stated that the study includes several discussion regarding the financial and accounting concepts of the Alloy Resources limited during the year along with the basis in which the organizational activities and operations are conducted

The study is mainly divided in several section which highlights the parts of the accounting and financial concepts of the Alloy Resources limited along with the application of their strategies and methods of the company conceptual frameworks during the year. Fundamental characteristics along with the financial reports usages are also to be identified and illustrated during the year in order to get the adequate understandings of the Alloy Resources Limited’s accounting concepts.

Evaluation of whether the company complied with the measurement requirements of the conceptual framework

In this section a detailed research is to be conducted on the aspects and factors regarding the Alloy Resources limited are conceptual frameworks that were applied during the year in order to gather and define several accounting frameworks and concepts.

In this context it can be added that the conceptual framework for the Alloy Resources limited is quite important as the company is heavily depending on the methods and aspects provided by the framework during the year in order to maintain and imply their systematic financial activities and operations. In order to discuss the importance and implication of the conceptual framework by the Alloy Resources limited it is important to discuss what conceptual framework is.

Conceptual frameworks are the frameworks provided by the AASB regarding the accounting and financial aspects along with several conceptual basis methods to conduct accounting. The framework provides suitable and adequate methods to conduct various accounting procedures and recording transactions that are quite complicated cannot be identified while preparing trial balances. Thus it can be said that the conceptual frameworks are set frameworks that provides detailed and illustrative methods and strategies to conduct accounting activities and operations.

The Alloy Resources limited needs to bring down he conceptual frameworks to their organisational structures in order to provide the better and smoother experiences to company accounting.  According to the annual reports it is observed that the Alloy Resources limited has obtained some of the frameworks provided by the AASB.

Measurement based cash flows   

Measurement based cash flows

The cash flow statements prepared by the Alloy Resources limited has been structured as per the comments and regulations provided by the AASB frameworks during the year.in this context  it can be added that the cash flows of the Alloy Resources limited has been modified with the implications of the frameworks and thus several assumptions and conditions has been fulfilled in order to get the better utilisations of the implication of the frameworks in the organizational structure of the Alloy Resources limited. The measurements provided by the AASB in order restructures the cash flows of the Alloy Resources limited are as follows

1. Should cash-flow-based measures reflect the uncertainties in the amount and timing of a cash flow (or series of cash flows) or a single possible amount (or series of amounts)?
2. Should the measurement of liabilities reflect the possibility that an entity may not be able to settle its liabilities when they are due (the entity’s ‘own credit’)?
3. Should cash-flow-based measures be discounted and if so, at what rate or rates?
4. Should cash-flow-based measures reflect the amount market participants would charge for bearing the risk embodied in the uncertain cash flows?
5. Should cash-flow-based measures reflect the effects of other factors such as illiquidity premiums or discounts if they are identifiable?
6. Should the estimates and assumptions underlying cash-flow-based measures reflect the reporting entity’s perspective or market participants’ perspectives?
7. Should all the above estimates be current (i.e., updated at each reporting date), or should some or all of them be locked in (i.e., not updated)?

Hence according to the above discussion it can be said that the implications and maintenance of the said conceptual frameworks has been done by the Alloy Resources limited.

Explanation on whether the company complied with the fundamental qualitative characteristics

In this section a detailed research is to be conducted on the aspects and factors regarding the fundamental qualitative characteristics of the Alloy Resources limited are along with the conceptual frameworks that were applied during the year in order to gather and define several accounting frameworks and concepts. In this context it can be added that the conceptual framework along with the implications of the fundamental qualitative characteristics for the

Alloy Resources limited is quite important as the company is heavily depending on the methods and aspects provided by the framework during the year in order to maintain and imply their systematic financial activities and operations. In order to discuss the importance and implication of the conceptual framework and the fundamental qualitative characteristics by the Alloy Resources limited it is important to discuss what conceptual framework is.

In order to provide a brief description and illustration of the conceptual framework in association with the fundamental qualitative characteristics it is important to identify the detailed information of the meaning fundamental qualitative characteristic in the accounting concepts. According to the accounting information and conceptual frameworks provided by the AASB during the year it can be said that the adequate and systematic representation of the accounting information are considered as the fundamental qualitative characteristics of financial reporting information. In this context it is also to be stated that the enhancement of the qualitative characteristics of the organisation and also the inclusion of the understand ability, verifiability, comparability and timeliness are also included in the briefings of the fundamental qualitative characteristics.

The methods two aspects those are important in attaining the fundamental qualitative characteristics which are as follows

1. Relevance

Fundamental Qualitative Characteristics of Financial Reporting Information

As the term reflects the meaning the accounting representations provided by the company should be on the marks of relevance as the information’s and balances of the representation are adequate and relevant. Thus with the implication of the said aspects the Alloy Resources limited the relevance of the accounting information along with the representations of the reports and statements during the year.

1. Faithful representations

Faithful representations indicates the unchanged and defined presentation of the accounting information and reports during the year. The changes if made should have exact details of the reasons and illustrations of the further adjustments during the year. Not only that the implications of the accounting standards regarding the financial aspects of the Alloy Resources limited should also have the faithful representations in order to fulfil the fundamental qualitative characteristics.

Evaluation on whether the company complied with the enhancing qualitative characteristics

According to the financial statements of the Alloy Resources limited in their current annual report it can be said that the Alloy Resources limited has been optimising with the qualitative characteristics during the year. It is observed that the same of the characteristics has been obtained by the Alloy Resources limited during the year which are as follows

Comparability

The comparability of the Alloy Resources Limited’s financial reports are should be of comparability in regards with the representation of the accounting information and  should be of proper understanding during the year.

Verifiability

 The accounting information and conceptual frameworks implied by the Alloy Resources limited has to be in such a manner that can be easily verified and edited during the year. In this context it is also to be added that the verifiability should also to be included in the organisational structure of the Alloy Resources limited. 

Evaluating on whether are the users of financial reports (investors/potential investors/lenders/other creditors) able to use the report to make decisions

Financial report are prepared by the firm for their stakeholder for that they can assess the following in prominent manner. It can be said that through the annual reported created by Alloy Resources limited the company has tried to increase the overall knowledge which the stakeholders can get through the financial reports. It is important to consider that financial report are made in accordance to giving out financial information based on which user of the financial reports take decision on the financial investment or association within the company in the future days of time.

Enhancing Qualitative Characteristics of Financial Reporting Information

It can be said that through the use of financial report of the company communicates financial information to their shareholder and investors are well hence it will make its annual report in such a manner that is usable easily by the stakeholder. Through the assessment of the company’s annual report it has become very prominent that hat the company has followed a specific format through the use of which it had conveyed different types of information to the stakeholder in particular manner.

It can also be said that through the of effective language and introduction of accounting standards the company has made sure that the user get to know amount the accounting procedure used for such accounting.  Now it can be said that the company has used simple and lucid language within the financial report so that there are no problems for the shareholder or the investors to  make decisions and get information in the subject financial position of the firm information of which is given the reports in fluent way and in an specific manner.

Explanation of whether the users need high knowledge of accounting to know about the company

The argument or statement made states that the stakeholders of the company and uses of the company’s financial report need only basis and minimal accounting information in order to get to understand the financial reports of the firm. Now this implies to general users of the financial reports only the user which only look the financial position of the company such as the company’s profitability and asset value and liabilities of the company.

Hence they can use minimal financial knowledge to look at such aspect which is given within the financial report of an organization. Although people which want to know the in depth on the financial operations, financial position and financial insights of the company it is important that the user have effective accounting and financial information to get on these aspect within the financial information. Hence it can be said that basic and general financial and accounting knowledge can help an user to know the know the financial position of the organization and to use the financial reports created by the organization in an prominent way.

Evaluating on whether the company has complied to the GAAP

In this section a detailed research is to be conducted on the U.S.GAAP standards during the current financial year in accordance with the Alloy Resources limited the standards are to be identified and explained in order to observe the changes and applicability of the standards of the regulation in the operations of the organisation.  The principles and regulations that has been identified and observed are discussed as follows

1. Principle of regularity

Evaluating the Users’ Financial Report

According to the principle provided by the U.S.GAAP it can be said that the Alloy Resources limited in order to proceed its operations and marketing activities must obtain the principle of regularity. The principle provides regulations that requires submission and adhered of accounting information of the company operating in the market. In this context it can be said that the Alloy Resources limited has been operating with the principle of regularity as per provided by the US GAAP during the year.

1. Principle of consistency

According to the principle provided by the U.S.GAAP it can be said that the Alloy Resources limited in order to proceed its operations and marketing activities must obtain the principle of consistency. The principle provides regulations that require complete and detailed explanation of the accounting methods and changes that were done in the accounts of the company during the year. Not only that the company needs to be clear with the reasons that caused the changes in the company accounts. of accounting information of the company operating in the market. In this context it can be said that the Alloy Resources limited been operating with the principle of consistency as per provided by the US GAAP during the year.

Conclusion

The study has been completed with the inclusion of a detailed research on the Alloy Resources limited during the current financial year regarding the financial and organisational activities. Not only that the study also includes several discussion regarding the financial and accounting concepts of the Alloy Resources limited during the year along with the basis in which the organizational activities and operations are conducted.

The study was completed with the inclusion of various divisions in several section which highlights the parts of the accounting and financial concepts of the Alloy Resources limited along with the application of their strategies and methods of the company conceptual frameworks during the year. Fundamental characteristics along with the financial reports usages are identified and illustrated during the year in order to get the adequate understandings of the Alloy Resources Limited’s accounting concepts.

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