Conceptual Framework

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Executive Summary

This project provided many important guidelines that are required to be followed by a company in the context of conceptual framework. The conceptual framework requirement its benefits in the long run its strategies in exploring the global markets. The countries have adopted all the policies and requirements of conceptual framework are also mentioned in this below topic. Importance of appointing required professional with ability and integrity has been also discussed in this below topic. The details of the company Lovisa holdings limited there aims and activities how they have implemented the conceptual framework what steps they have taken is also covered by this project topic.

All the necessary requirements and compliance requirements followed by the company to ensure accuracy and correctly without any mistakes is also provided in this below discussion. The accounting standards followed by the company in the context of conceptual framework requirements and its scope and powers are also be given in this below discussion. The conceptual framework and its essential components its functions and in what manner it may help a company in future time is provided and covered in this below topic. 

Table of Contents

Introduction. 3

Discussion. 3

Conclusion. 7

References. 8

Introduction

Lovisa Holding Limited is a fashion jewellery brand having more than 150 new styles delivered each week. The conceptual framework requirement in the report means the body that identifies the goals and objectives of financial statements and helps in achieving required objectives.

Discussion

The company is required to follow the conceptual framework of accounting which has amended laws and new accounting standards from time to time. The accounting standards contain so many details regarding financial statements and rules regarding financial transactions so the accounting standards must be properly followed. The Accounting Standard Board releases many new laws and interpretations related to companies’ operational activities. The conceptual framework is a theoretical method to test the objectivity of practical problems. It is a theoretical structure of assumptions and rules that mainly hold together an idea to cover to compromise a broad concept.

 This method of the conceptual framework ensures there is proper consistency and no mistakes in the process of accounting standards. A company can obtain many advantages from a conceptual framework report as it may provide proper guidance in selecting transactions events and circumstances. The conceptual framework also provided many frameworks to solve new and emerging practical problems in accounting. Lovisa Holding limited mainly operate their business in the retailer of fashion jewellery and it is mainly a brand of females of age between 25 to 45 and carries much broad range of activities

The company is required to follow all the conceptual framework requirements for future growth and development. At the time of preparing financial statements, the board of directors and the managers made many assumptions to create an impact on the accounting policies and also the reported amount of income assets, expenses and many more. The counting standards must cover all the rules and regulations that the company is needed to follow in the long term. The accounting terms and financial report financial statements must contain the true and correct position of the company. .

As to implement a proper conceptual framework all the necessary market conditions are necessary to properly analyse and then steps must be taken. Lovisa Holding Limited has implemented many business models to help the customer with a broad range of quality products. The company develops many new branded products and merchandise to attract customers. The conceptual framework helps a company to analyse the market situation and it also focuses on the accounting statements. It also sets many rules and standards on the income statement of a company as the income statement contains most of the details of the transactions of a company. A general conceptual framework is required to enhance dormancy comprehension (Fadón & Luedeling, 2020). The transactions are an integral part of a business and it is required to be properly analysed and checked.

If the accounting statements and financial statements are checked at a later stage it is almost impossible for a company to rectify. The authenticity of the financial statements must be verified by professionals having required experiences as may be prescribed. There is many much details included in the accounting report of a company. The conceptual framework helps in assessing all the conceptual framework requirements. Some of the details to check in the accounting report to check authenticity and appropriation of transactions, the performance of the auditors and many more 

Figure 1: Conceptual framework of accounting

Source: (Santana et al., 2018)

In the model of a conceptual framework, it is necessary to develop many accounting standards that are enacted and are subject to the political interference of many political parties. It is also important to focus that if there is any conflict of interest between any groups and policies this policy of conceptual framework may face criticism. The conceptual framework requirement may have many disadvantages and limitations that it is difficult because the conceptual framework method makes many tasks of preparing and then implementing standards without a framework this process also describes the importance of cultivating communication Generally accepted accounting principle plays an essential role in modernizing the Conceptual Framework of a company.

The GAAP makes many new rules and techniques regarding accounting policies and standards Appropriate Research is necessary to structure the conceptual framework (Abraham & Vom Brocke, 2019). It is a combination of National company law, National accounting standards and many more. The method of implementing this policy is different and varies from country to country. The conceptual framework system is mainly dependent upon this system of GAAP. In the United Kingdom, GAAP does have any statutory authority but in the United States of America, GAAP has statutory authority. One of the most important among all of the following is FASBs conceptual framework that plays a very useful role in developing the conceptual framework of a company.

The company Lovisa holdings limited also followed the conceptual requirements of the company The Company Lovisa Holding Limited being developed as a leading company has taken many initiatives to identify all the latest trends and techniques in the market .The company also follows all the amended laws and new accounting standards from time to time

The company being in a position of one of the leading company is also appointed many high degree of professional to maintain proper recording of all the accounting activities. If any mistake or dispute is found the company are also be able in a position to check and rectify all the mistakes and taken appropriate steps. The conceptual framework is also affected after the pandemic situation (Zwanka & Buff. 2021).

 All the latest applicable laws and provisions of law is also required to be properly checked and if not applied immediate action is required. The framework of all the laws is according to latest applicable accounting standards and provisions. The company deals with many activities all the separate accounting statements and cash inflow activities are also has been properly maintained The practice of centralised care has a important role in the context conceptual framework.(Santana et al.,2018).

Lovisa Holding Limited also ensures company is earning profits from the last few years and not incurred in any of the year. The guidelines provided in the conceptual framework are assessed properly without making any mistake. So yes the fashion jewellery Lovisa holding Limited has fulfilled and followed the conceptual framework requirement.

Conclusion

So, from the above discussion, it concludes the conceptual framework requirement is necessary to maintain for a company. This may result in many advantages and benefits shortly for the company.

References

Abraham, R., Schneider, J., & Vom Brocke, J. (2019). Data governance: A conceptual framework, structured review, and research agenda. International Journal of Information Management, 49, 424-438. DOI: https://doi.org/10.1016/j.ijinfomgt.2019.07.008 

Fadón, E., Fernandez, E., Behn, H., & Luedeling, E. (2020). A conceptual framework for winter dormancy in deciduous trees. Agronomy, 10(2), 241. DOI: https://doi.org/10.3390/agronomy10020241 

Santana, M. J., Manalili, K., Jolley, R. J., Zelinsky, S., Quan, H., & Lu, M. (2018). How to practice person‐centred care: A conceptual framework. Health Expectations, 21(2), 429-440. DOI: https://doi.org/10.1111/hex.12640 

Zavala-Alcívar, A., Verdecho, M. J., & Alfaro-Saiz, J. J. (2020). A conceptual framework to manage resilience and increase sustainability in the supply chain. Sustainability, 12(16), 6300. DOI:https://doi.org/10.3390/su12166300 

Zwanka, R. J., & Buff, C. (2021). COVID-19 generation: A conceptual framework of the consumer behavioral shifts to be caused by the COVID-19 pandemic. Journal of International Consumer Marketing, 33(1), 58-67. DOI:https://doi.org/10.1080/08961530.2020.1771646