SANJU GIRI (11600117) Executive Summary This report aims to analyze and evaluate various requirements of Conceptual Framework for Boral Limited. In the first part, the compliance of Boral Limited with major objectives of conceptual framework is shown. Second part shows the compliance of recognition criteria by Boral Limited. Last part of the report shows the adherence of the company with major qualitative characteristics of conceptual framework. 2 Table of Contents Introduction 2 Adherence with the Objectives of Conceptual Framework 3 Compliance with the Recognition Criteria 7 Assets 7 Liability 8 Equity 9 Revenue 9 Expenses 9 Compliance with Qualitative Enhancing Characteristics of Conceptual Framework 10 Conclusion and Recommendations 12 References 13 3 Introduction In today’s business world, business organizations have to face carious kinds of issues related to their financial and accounting works. These issues are considered as complex financial and accounting issues based on the complex characteristics of the companies (Weil, Schipper and Francis 2013). For this reason, it is important for the business organizations to comply with the principles and standards of Conceptual Framework for Financial Reporting as it helps the companies to deal with their complex accounting and financial issues. Revolution in the accounting world can be seen in the 1989 when International Accounting Standard Board (IASB) introduced the concept of conceptual framework so that preparation and presentation of financial statements can be done in most appropriate way (Nobes 2014). This particular report takes an honest attempt for examining the adherence of the requirements of conceptual framework by the companies. For this purpose, Boral Limited is taken into consideration. Boral Limited is an Australian company operates in the building and construction material industry. The company was established in 1946 (boral.com 2017). The company is listed among top hundred companies under Australian Stock Exchange (ASX) with the code name of ‘BLD’ (m.asx.com.au 2017). This report examines the compliance of conceptual framework requirements by Boral Limited. Adherence with the Objectives of Conceptual Framework According to the above discussion, it is required for all companies to comply with various requirements of conceptual framework. Boral Limited is well known for their compliance with different accounting legislative requirements. According to the latest annual report of Boral Limited, the general purpose financial statements of the company is prepared 4 based on the conceptual framework of Australian Accounting Standard Board (AASB) and Corporation Act 2001. At the same time, the consolidated financial statements of Boral Limited are prepared in accordance with t.

1. SANJU GIRI (11600117)
Executive Summary
This report aims to analyze and evaluate various requirements
of Conceptual Framework for
Boral Limited. In the first part, the compliance of Boral Limited
with major objectives of
conceptual framework is shown. Second part shows the
compliance of recognition criteria by
Boral Limited. Last part of the report shows the adherence of
the company with major qualitative
characteristics of conceptual framework.
2
Table of Contents
Introduction 2
Adherence with the Objectives of Conceptual Framework 3
Compliance with the Recognition Criteria 7
Assets 7

2. Liability 8
Equity 9
Revenue 9
Expenses 9
Compliance with Qualitative Enhancing Characteristics of
Conceptual Framework 10
Conclusion and Recommendations 12
References 13
3
Introduction
In today’s business world, business organizations have to face
carious kinds of issues
related to their financial and accounting works. These issues are
considered as complex financial
and accounting issues based on the complex characteristics of
the companies (Weil, Schipper and
Francis 2013). For this reason, it is important for the business
organizations to comply with the
principles and standards of Conceptual Framework for Financial
Reporting as it helps the

3. companies to deal with their complex accounting and financial
issues. Revolution in the
accounting world can be seen in the 1989 when International
Accounting Standard Board (IASB)
introduced the concept of conceptual framework so that
preparation and presentation of financial
statements can be done in most appropriate way (Nobes 2014).
This particular report takes an
honest attempt for examining the adherence of the requirements
of conceptual framework by the
companies. For this purpose, Boral Limited is taken into
consideration. Boral Limited is an
Australian company operates in the building and construction
material industry. The company
was established in 1946 (boral.com 2017). The company is
listed among top hundred companies
under Australian Stock Exchange (ASX) with the code name of
‘BLD’ (m.asx.com.au 2017).
This report examines the compliance of conceptual framework
requirements by Boral Limited.
Adherence with the Objectives of Conceptual
Framework
According to the above discussion, it is required for all
companies to comply with

4. various requirements of conceptual framework. Boral Limited is
well known for their
compliance with different accounting legislative requirements.
According to the latest annual
report of Boral Limited, the general purpose financial
statements of the company is prepared
4
based on the conceptual framework of Australian Accounting
Standard Board (AASB) and
Corporation Act 2001. At the same time, the consolidated
financial statements of Boral Limited
are prepared in accordance with the principles of IFRS and
International Accounting Standard
Board (IASB) (boral.com 2017).
According to the conceptual framework of AASB, business
organizations are required to
comply with three major objectives of conceptual framework.
Following discussion shows the
compliance with three objectives of conceptual framework by
Boral Limited.
First Objective: Business organizations are required to give
potential investors and creditors the

5. necessary financial information. Provided financial information
are required to be useful to
provide support in different financial decisions (fasb.org 2017).
In case of Boral Limited, AASB
conceptual framework works guide in the preparation of
financial statements. Thus, the adoption
of the principles of AASB and other standards makes it sure that
Boral Limited provides useful
and relevant information to their stakeholders and other users of
financial statements.
Second Objective: Business organizations must provide such
information through their financial
statements that can help the users in the assessment of
company’s cash flows. It implies that the
5
provided information must help the users in assessing
uncertainty, time and amount of cash
flows. The annual report of Boral Limited shows the
consolidated cash flow statement of the
company (fasb.org 2017).
It can be seen that the potential investors and creditors can get
all the necessary

6. information from the above statement of cash flows. In addition,
end notes also helps the users in
the assessment of various elements of cash flows.
6
Third Objective: Business organizations should disclose all the
necessary information about all
economic resources of the company like assets, liabilities and
equities. All these information can
be acquired from the balance sheet of the companies (fasb.org
2017). In case of Boral Limited, it
can be observed that the company prepares their balance sheet
by complying with the regulations
of AASB, IASB, IFRS and Corporations Act 2001 that includes
all the necessary information
about the economic resources of the company.
7
Hence, the above discussion shows that Boral Limited complies
with the three objectives of
conceptual framework.

7. Compliance with the Recognition Criteria
Conceptual framework provides the companies with some
criteria for the recognition of
some major financial aspects like assets, liabilities, equity,
revenue and income. As per the first
8
criteria, financial items are required to meet the definition. As
per the second criteria, economic
benefits related with these aspects needs to flow to or from the
companies. The third criteria
states that the cost values of these financial items can be
measured with reliability. The following
discussion shows the compliance of Boral Limited with the
recognition criteria:
Assets
In the initial stage, Boral Limited recognizes trade receivables
based on their invoice
value and the receivable value is considered. In this case,
interest rate is used under amortized
costs (boral.com 2017).
For inventories, Boral Limited values them at lower cost and
new realizable value. In

8. case of property, plant and machinery (PPE), they are
recognized on their costs after deducting
accumulated depreciation and impairment losses (boral.com
2017).
Intangible assets including goodwill are recognized by
deducting accumulated
impairment losses from their costs.
9
Liability
There are different aspects of liability in Boral Limited. In case
of provisions, they are
recognized in the balance sheet of the company. They are
determined by discounting future cash
flow at a pre-tax rate (boral.com 2017).
In case of loans and borrowings, Boral Limited recognizes them
based on their fair value
by deducting attributed transaction costs. At the same time, they
are stated at amortized costs.
Equity
In Boral Limited, ordinary issued shares are classified as
equity. They are fully paid and

9. do not have any par value. Direct attribution of incremental
costs related to equity is recognized
as deduction from equity (boral.com 2017).
10
Revenue
For Boral Limited, the sources of revenue are products or
services, net of returns,
allowances and discounts. The company recognizes the revenues
at the time of transfer of risks
and rewards to the buyers. Sale of goods includes revenue from
contracting businesses and is
recognized in the stages of completion. Revenue from rendering
services are recognized while
delivering the services (boral.com 2017).
Expenses
In case of expenses, they are recognized at the time of their
occurrence. Boral Limited
uses to mention expenses separately in order to explain their
effects on company performance.

10. 11
In addition, net financial costs or expenses are the interest costs
on borrowings. Boral
Limited recognizes this cost in profit and loss at the time of
their occurrence (boral.com 2017).
Compliance with Qualitative Enhancing Characteristics of
Conceptual Framework
Major qualitative characteristics of conceptual framework help
to increase the quality of
financial reporting for the companies. The following discussion
shows Boral Limited’s
compliance with the qualitative characteristics of conceptual
framework:
Relevance: Information regarding investment, credit and
resource allocation of the companies
must be relevant to the financial decisions (aasb.gov.au 2017).
In case of Boral Limited, it can be
seen that the company provides all relevant financial
information to their investors and creditors
to support their financial decisions.
Faithful Representation: It is the responsibility of the
companies to present their financial
information based on real-world economic phenomena (fasb.org
2017). It is expected that

11. provided financial information is neutral, verifiable and
completed. KPMG is audit partner of
Boral Limited. As per the audit report, Boral Limited has
presented their financial information
faithfully by complying with all the required accounting
standards.
Comparability: The users of financial statements should be able
to identify and understand the
similarities and differences among the financial statements of
the companies (Henderson et al.
2015). With the help of faithful representation, users can
compare the financial information of
the companies. Above discussion shows, that Boral Limited
presents their financial information
12
on faithful basis. The faithful representation ensures that the
users of financial information are
able to identify the differences and similarities among the
financial statements.
Verifiability: Verifiability can be considered as a part of
faithful representation. Verification can
be direct and indirect (ifrs.org 2017). The annual report of

12. Boral Limited shows that that there
are many financial notes providing classification and
justification of various financial aspects.
Thus, the potential creditors and investors can verify the
provided financial information.
Timeliness: Provided financial information by the companies is
needed to be available in timely
manner so that they can be helpful in various financial decision-
making process. Older
information is less helpful for the users. The financial
statements of Boral Limited contain
current financial information for assisting the users in financial
decision-making process (ey.com
2017).
Understandability: Financial information becomes
understandable when they are classified and
justified. Boral Limited provides classification and justification
of various financial aspects
through end notes. In addition, they provide financial
information in simple tabular forms along
with graphs and charts for easy understanding (ey.com 2017).
Conclusion and Recommendations
According to the above discussion, it can be observed that Boral

13. Limited prepare their
general purpose financial statements by complying with the
principles of AASB, IFRS, IASB
and Corporations Act 2001. In case of the objectives of
conceptual framework, Boral Limited
has satisfied them in an appropriate manner by complying with
the required accounting
standards. After that, the above discussion shows that Boral
Limited follows the standards of
AASB for recognizing their assets, liabilities, equity, revenues
and expenses. Lastly, Boral
13
Limited develop their financial statements by complying with
the qualitative characteristics of
conceptual framework so that quality of financial reporting can
be enhanced. However, it is
recommended that Boral Limited should put more graphs and
charts in order to make their
financial statements more acceptable and understandable for the
users.
14

14. References
Aasb.gov.au. (2017). Conceptual Framework for Financial
Reporting. [online] Available at:
http://www.aasb.gov.au/admin/file/content105/c9/ACCED264_0
6-15.pdf [Accessed 6 Dec.
2017].
Australian Securities Exchange - www.asx.com.au. (2017).
Company details - BLD - ASX -
Australian Securities Exchange. [online] Available at:
http://m.asx.com.au/m/company-
info.xhtml?issuerCode=BLD [Accessed 6 Dec. 2017].
Boral. (2017). About Boral. [online] Available at:
https://www.boral.com/about [Accessed 6
Dec. 2017].
Boral.com. (2017). Annual Report 2017. [online] Available at:
https://www.boral.com/sites/corporate/files/media/field_docume
nt/Boral-Annual-Report-
2017.pdf [Accessed 6 Dec. 2017].
Ey.com. (2017). Conceptual Framework: Objectives and
Qualitative Characteristics. [online]
Available at:

15. http://www.ey.com/Publication/vwLUAssets/Supplement_86_G
L_IFRS/$FILE/Supplement_86_
GL_IFRS.pdf [Accessed 3 Dec. 2017].
Fasb.org. (2017). Conceptual Framework for Financial
Reporting: Objective of Financial
Reporting and Qualitative Characteristics of Decision-Useful
Financial Reporting Information.
[online] Available at:
http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid
=1218220340119&acceptedDis
claimer=true [Accessed 3 Dec. 2017].
15
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B.,
2015. Issues in financial accounting.
Pearson Higher Education AU.
Ifrs.org. (2017). IFRS . [online] Available at:
http://www.ifrs.org/issued-standards/list-of-
standards/conceptual-framework/ [Accessed 3 Dec. 2017].
Nobes, C., 2014. International Classification of Financial
Reporting 3e. Routledge.
Weil, R.L., Schipper, K. and Francis, J., 2013. Financial

16. accounting: an introduction to
concepts, methods and uses. Cengage Learning.
16
Topic: This assignment covers the in-depth theoretical concepts
with practical accounting task application based on the topics
from the subject.
Task Details: Students are required to prepare a comprehensive
report directed to one Australian ASX Top 100 listed
corporation detailing a critical analysis of the effectiveness of
the corporation to meet the obligations of the conceptual
framework of accounting.
Consideration of the Conceptual Framework Objective,
Recognition Criteria, Fundamental and Enhancing Guidelines is
essential. The relationship between accounting research and
professional practice is essential. This article needs to inform
your arguments.
The analysis and supported recommendations need to be
formatted into a professional report as would be expected in a
modern organisation by management and clients. It should
include an abstract, introduction, body, conclusion and
bibliography. Maximum word count is 2500 words not including
the abstract or bibliography.
Research Requirements: Students need to support their analysis
and recommendations with the text and minimum of 10

17. recent(not older then 2008) and relevant academic journal
articles. Other sources may also be used but students need to be
confident of the academic validity of such sources.
Presentation: Report – 2000 +10% word report. The word count
excludes the cover sheet, contents page, references, appendices,
and illustrations (e.g. diagrams, graphs and tables). Students
need to stay within the assigned word limits, and indicate the
word count on the cover page of the assignment. Marks will be
reduced for assignments shorter than or greater than the
minimum word count.
o The report should be typed double spaced, using Times New
Roman font size of either 10 point or 12 point.
o Every page should be clearly numbered.
o The assignment should include the following parts:
o A title / cover page, which indicates basic information such as
Subject title, Subject code, Trimester number, Assignment title,
group members’ full names and student numbers, word count
and name of the tutor;
o Executive Summary;
o Table of Contents;
o Main contents – Introduction, analysis using suitable headings
and subheadings, Conclusions and Recommendations,
Appendices (if any);
o References (using Harvard – Anglia style); and/or
o Attachments.
Marking Guide: Analysis 30%
Research – extent and application 30%
Recommendations/conclusions 20%
Presentation 20%
This mark will be scaled to a mark out of 20 subject marks.