Assignment 1
Introduction
According to AASB, the financial reporting about a reporting entity that provide to users who lack knowledge about information and the it also reflect an entity perspective focussing on the needs of all capital provides, not just equity investors. The financial statement must truly reflect the qualitative characteristics of information (Leo et al, 2009). However, IASB and FASB try to develop a new conceptual framework recently. The project's objective is tried to create a new sound foundation for future accounting standards that are principles-based, internally consistent and also internationally converged. This assignment is about if Australia accepted the financial reporting that proposed in ITC 17, will it affect AASB and is there any inconsistency with the AASB?

Discussion
As mentioned earlier, in accounting, the separate entity concept treats a business as separate from its owners. In other words, the business is separate with the owners as economic unit (Financial Accounting Series, 2008). It is important for business has separate transactions with the owner’s personal transactions. Under SAC 1 Definition of the reporting entity is ‘general purpose financial report" means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (Board, 2008) .’ Both IASB and FASB published documents that seek public comment on two of the eight phases of their joint project to develop an improved conceptual framework (Financial Accounting Series, 2008). The first and second documents is an exposure draft of chapters 1 and 2 of the framework and it about how to improved the financial reporting and qualitative characteristics and at the same time the constraints on the provision of that information(Financial