Accounting Theory and Current Issues

Assessment 2: Group Research Essay

Semester 2, Block 4-2026

Course Code: ACCT3001

Course Title: Accounting Theory and Current Issues

Total Marks: 20

Due Date: Submitted at the start of your seminar in Week 10 (Mt. Helen campus: Monday 12 October 2026; Partner locations: Monday 21 September 2026)

Word Limit: 3000 words (±10%) excluding abstract, tables, figures, and bibliography

Weighting: 20%

Submission: Hard copy at seminar; late penalties apply without approved extension

Unit Learning Outcomes

This assessment task maps to the following ULOs:

• ULO1: Critically evaluate the development and role of conceptual frameworks in accounting theory.
• ULO2: Analyse the application of accounting standards and their impact on financial reporting.
• ULO3: Assess the influence of theoretical frameworks on corporate disclosure practices.
• ULO4: Conduct independent research and collaborate effectively in a team setting.

Rationale

Conceptual frameworks provide a foundation for consistent, high-quality financial reporting. This group research essay develops skills in tracing the evolution of accounting theory, evaluating current frameworks, analysing standards, and assessing their practical impact on corporate reporting. It prepares students for professional practice by emphasising critical analysis, evidence-based arguments, and collaborative research.

Task Description

Prepare a group research essay addressing the evolution of accounting conceptual frameworks, the current IASB framework, analysis of a selected standard, and its influence on a company’s disclosures. The essay must demonstrate extensive research beyond prescribed texts and integrate theoretical concepts with practical examples.

Task Instructions

1. Briefly outline key events in the development of accounting conceptual frameworks over the past 50 years.
2. Discuss the objectives, qualitative characteristics, and elements of the current IASB Conceptual Framework for Financial Reporting.
3. Select one IFRS/IAS standard (e.g., IAS 16 Property, Plant and Equipment or IFRS 15 Revenue from Contracts with Customers) and analyse how the conceptual framework influenced its development, revisions, and key requirements.
4. Choose a company listed on the Australian Securities Exchange (ASX). Download its most recent annual report and evaluate how the conceptual framework impacts its financial statement disclosures, focusing on areas related to your selected standard.

The essay is to be completed in groups of two (or one if class size requires). Include an abstract (150-200 words), introduction, body sections addressing each point, conclusion, and Harvard-referenced bibliography.

Submission Requirements

• Typed, double-spaced, 12-pt Times New Roman font, 2 cm margins.
• Include abstract, introduction, body, conclusion, and bibliography.
• Evidence of research: Minimum 10 sources (at least 5 peer-reviewed journals).
• No extensions without documentation; penalties for late submission.
• Refer to the Research Essay Marking Rubric for word allocation guidance.

Marking Rubric

 The development of accounting conceptual frameworks began in earnest with the Wheat Committee’s 1972 report in the US, leading to the FASB’s Conceptual Framework project in 1973. Australia’s SAC 1-4 statements emerged in the 1990s, aligning with international efforts. The IASB’s 1989 Framework was revised in 2010 and 2018 to enhance qualitative characteristics like faithful representation. For IAS 16, the framework’s asset definition influenced revaluation model options, ensuring relevance and reliability in reporting. In BHP Group’s 2025 annual report, framework-driven disclosures on PPE impairments reflect prudence and verifiability. This integration enhances transparency for stakeholders (Hoogervorst, 2019). Ongoing debates highlight the framework’s role in addressing emerging issues like intangibles.

References

• Barker, R. and Teixeira, A. (2018) ‘Gaps in the IFRS conceptual framework’, Accounting in Europe, 15(2), pp. 153-166. https://doi.org/10.1080/17449480.2018.1476771
• Hoogervorst, H. (2019) ‘What is the purpose of accounting standards?’, Accounting and Business Research, 49(5), pp. 527-535. https://doi.org/10.1080/00014788.2019.1618192
• O’Connell, V. (2020) ‘The IASB conceptual framework: Purpose, status and future challenges’, Accounting in Europe, 17(1), pp. 1-24. https://doi.org/10.1080/17449480.2020.1728966
• Palea, V. (2018) ‘Financial reporting for sustainable development: Critical insights into IFRS implementation in the European Union’, Accounting Forum, 42(3), pp. 248-260. https://doi.org/10.1016/j.accfor.2018.08.001
• Whittington, G. (2021) ‘The conceptual framework: Cornerstone of high quality financial reporting’, Accounting and Business Research, 51(5), pp. 471-486. https://doi.org/10.1080/00014788.2021.1932253