"Conceptual frameworkbe recognize an amount of an asset a value higher than its real value that can be covered fromits product sale. The main argument against prudence is the concern about the transparency and comparabilityof financial statements. For example: sometimes company wants staff to give the actual reportsin a valuable manner which is not partial but transparent to both good and bad times. The basicprinciple of the revenue measurement requires the need to have providedbefore profits to berecognized. In measurement terms the retention of the historical cost for most of the item willgive prudence to assets values. Prudence should be considered in taken into care each andeverything (Scapens, 2012)Company Chosen: i. Acaacia Coal Ltd.ii. A-Cap Resource Ltd.The Australian Accounting Standards Board (AASB) is an Australian Government thatcreatesfinancial company policies mandatory to companyin the both sectors of the columns ofthe Australian company (Bums. 2013). Detailed Analysis of Annual ReportThe companies used to analyze the conceptual framework with reference to the annual reportsare:1. Acaacia Coal Ltd.6 Conceptual framework2. A-Cap Resources Ltd.Following are the detailed analysis of both the companies.Annual reports of both the companies are in registeredwith the conceptual as The AASB makesAustralianStandards for accounting, including some changes like:(a) companies needed to make financial statements;(b) laws in making thefinancial reports of government and the central Government fields (CGS);andIn the report of the director both the company all main three points are taken care of.AASB Application of Tiers of Australian Accounting Standards begins a different phase ofaccountingwhich comprise of mainly 2phases of reports which needed to preparefor generalreason financial reports:(a) Tier 1: Australian standards for accounting; and(b) Tier 2: Australian standards ofAccounting – Disclosure reductionTier 1 needs International Financial Reporting Standards (IFRSs), including Interpretations,make by the International Accounting Standards Board (IASB),Tier 2 requirements consist the generations, measures and presentation of Tier 1 butrequirements has been short. Since 2002, the AASB has taken the wide trick goal from the Australian Financial ReportingCouncil (FRC) to take International Accounting Standards Board (IASB) standards for financial7 Conceptual frameworkst preparations periods beginning on or after 1 Jan 2005. In the month of July 2004, the AASBgave a number of company standards, including:? Australian Accounting statements that collaborates with the IASB Standards? Other AASB Standardshas support the Australian Accounting Standards that exists withIASB StandardsFrom the extract of above Directors report of A-Cap Resources Ltd, it is Cleary shown thatthe company had done the working of Financial Statements, stocks, etc., which incorporatebeing the Standards are issued by the IASC which was one step before to the IASB standard.The other AASB policies add the Australian Accounting policies which collaborates IASBStandards consists of:8 "