Using the consolidated financial statements and notes to financial statements section:

Company are Yancoal australia limited and horizon oil limited

Explain and compare the choice of measurement and valuation model which the selected companies use for their accounts regarding the two below fundamental qualitative characteristics of Conceptual Framework (1200 words). Please choose Conceptual Framework, AASB 116 and four academic articles to support your explanations.

a. Relevance

b. Faithful representation

Critically comment on comparability of information regarding Conceptual Framework, AASB 116 and 136 in the selected companies' annual reports with particular focus on the methods of depreciation and impairment of Property, Plant and Equipment(500 words).

Helpful Hints:

You would need to conduct extended personal research and self-directed learning to complete this assignment.

Read relevant 'notes to financial statements in the annual report, financial statement section.

Contemplating the following questions would help.

What information in Conceptual Framework, AASB 116 and 136 standards have we discussed in the first four weeks, which could be compared in selected companies?

What method of depreciation/impairment have both the companies used?

Whether the valuation methods, depreciation and impairment of property, plant and equipment are comparable from users' point of view?

Published research explains why companies (in Australia or globally) may prefer Historical Cost Accounting (HCA) method or Revaluation of PPE.