( ACC705 ) Assessment 1 Assessment Type: Mid-trimester test - individual assessment Purpose: This assessment is designed to allow students to demonstrate an understanding of accounting standards,...

(
ACC705
)
    
Assessment 1
Assessment Type: Mid-trimester test - individual assessment
Purpose: This assessment is designed to allow students to demonstrate an understanding of accounting standards, using them to identify and critically analyse problems as well as issues in the development of solutions. This contributes to learning outcomes a and b.
Value: 20%    Due Date: Week 6
Topic: Covers the material from lectures from Weeks 1-5. Students will be assessed on material covered in tutorial and lectures for weeks 1 -5. The exam will cover both theory and practical type questions.
Task Details: Closed book exam of 60 minutes duration. A non-programmable calculator will be required. No other materials are permitted in the exam. The exam will be based on short theory and questions of the type covered in tutorials and lectures. This test will examine topics from weeks 1 - 5.
Marking guide: 40% theory and 60% calculation - type questions.
Assessment 2
Assessment Type Short report on financial statements and calculations – individual assessment.
Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret how they apply to various corporate groups. It enables students to identify and solve problems relating to accounting for consolidated groups. It allows students to communicate the financial affairs of a company to financial report users. This relates to learning outcomes a, b and c.
Value: 30%    Due Date: Week 10 – Friday 8.00 pm.
Submission: Soft copy uploaded to Moodle via KOI’s Moodle subject homepage. Topic: Consolidated worksheet, consolidated financial statements
Task Details: Consolidation worksheet, concept of realisation
On 1 July 2019, Gilberts Ltd acquired all the issued shares (cum div.) of Potoroo Ltd for $ XXXXXXXXXXAt this date the equity of Potoroo Ltd consisted of:
At this date, Potoroo Ltd had recorded a dividend payable of $7500 which was paid in August 2019. All the identifiable assets and liabilities of Potoroo Ltd were recorded at amounts equal to fair values except for inventory for which the fair value was $1000 greater than ca
ying amount. Only 10% of the inventory on hand at 1 July 2019 remained unsold by 30 June 2020. The tax rate is 30%.
During the 2019–20 period, the following transactions occu
ed.
(a) Gilberts Ltd sold inventory to Potoroo Ltd for $30 000 at a profit before tax of $6000. At 30 June 2020, inventory which was sold to Potoroo Ltd for $12 500 at a profit before tax of $2500 was still on hand in the records of Potoroo Ltd.
(b) On 1 January 2020, Gilberts Ltd sold machinery to Potoroo Ltd at a gain of $5000. The machinery was considered to have a further 5-year life.
(c) During the period Potoroo Ltd rented a warehouse from Gilberts Ltd, paying $1250 in rent to Gilberts Ltd.
(d) During the period Gilberts Ltd recorded gains from revaluation of land, which is measured using the fair value method. These gains increased the asset revaluation surplus by $2000 to give a balance of
$14 000 at 30 June 2020.
(e) In June 2020, an impairment test was conducted on Potoroo Ltd and resulted in the recognition of impairment losses on goodwill of $8000 (recognised in other expenses)
The following financial information was provided by the companies at 30 June 2020:
Required:
(a) Acquisition analysis at 1st July 2019
(b) Prepare consolidation journal entries at 30 June 2020 (Business Combination valuation reserve, pre- acquisition equity and intragroup transactions
(c) Complete a consolidation worksheet (worksheet will be uploaded to Moodle in week 4)
(d) Prepare the consolidated financial statements at 30 June 2020
Marking Guide:    Interpretation and representation    20%
Calculations    50%
Analysis    10%
Assumptions    10%
Communication    10%
Total mark will be scaled to a mark out of 30 subject marks
ACC705
Marking Ru
ic for ACC705 Corporate Accounting Assessment 2
    Criteria
    Fail
(0 – 49%)
    Pass (50 – 64%)
    Credit (65 – 74%)
    Distinction (75 – 84%)
    High Distinction (85 – 100%)
    Interpretation and representation 20%
    Does not provide explanations of information presented in mathematical form.
Does not make appropriate inferences based on that information.
Does not convert relevant information into an insightful mathematical portrayal.
    Provides somewhat accurate explanations of information presented in mathematical forms, but occasionally makes minor e
ors related to computations or units.
Makes some inferences based on that information.
Completes conversion of information but resulting mathematical portrayal is only partially appropriate or accurate.
    Provides mostly accurate explanations of information presented in mathematical form. Makes mostly appropriate inferences based on that information.
Converts relevant information into an insightful mathematical portrayal in a way that contains minimal inaccuracies
    Provides accurate explanations of information presented in mathematical form.
Makes appropriate inferences based on that information.
Competently converts relevant information into an insightful mathematical portrayal in a way that contributes to a further and deeper understanding.
    Provides accurate explanations of information presented in mathematical form.
Makes skilful inferences based on that information.
Skilfully converts relevant information into an insightful mathematical portrayal in a way that contributes to a further or deeper understanding.
    Calculations 50%
    Does not perform accurate calculations.
Formulae and workings either not provided or incomplete. Many e
ors.
    Performs calculations which solve the basic and/or most obvious problem(s). Main formulae and workings only provided.
Some e
ors.
    Performs mostly accurate calculations which are sufficiently comprehensive to solve most (of the) problem(s).
Most formulae and workings provided - some gaps.
Minor e
ors
    Performs mostly accurate calculations which are sufficiently comprehensive to solve the problem(s).
Most/all formulae and workings provided - minimal gaps.
Minimal e
ors
    
Performs accurate calculations which are sufficiently comprehensive to solve the problem(s).
All formulae and workings provided. No e
ors
    Analysis 10%
    Does not use co
ect and complete quantitative analysis. Does not make relevant and co
ect conclusions.
    Uses basic analysis but uses the quantitative analysis as the basis for tentative, basic judgments, is hesitant or uncertain about drawing conclusions from this work.
    Uses mostly co
ect and complete quantitative analysis.
Makes mostly relevant and co
ect conclusions.
    Uses co
ect and complete quantitative analysis.
Makes mostly relevant and co
ect conclusions.
    Uses co
ect and complete quantitative analysis.
Makes sophisticated, relevant and co
ect conclusions.
    Assumptions 10%
    Does not attempt to describe assumptions or makes inco
ect assumptions.
Limited, inco
ect or no rationale.
    Attempts to describe assumptions and provides limited rationale to explain why each assumption is appropriate. Some e
ors in assumptions or assumptions overlooked
    Describes assumptions and provides rationale to explain each assumption.
Some elements incomplete or semi-accurate assumptions.
    Explicitly describes assumptions and provides strong rationale to explain assumptions.
Minimal e
ors in logic.
    Explicitly describes assumptions and provides comprehensive, compelling and justified rationale to explain assumptions. No e
ors in logic.
    Communication 10%
    Communicates ineffectively. Words do not reflect the problem. May include diagrams which completely misrepresent the problem situation.
May not include important supporting diagrams.
    Has some satisfactory elements but may fail to complete or may omit significant parts of the problem.
Explanation or description may be missing or difficult to follow in places. Includes most but not all important diagram(s) or diagram(s) may be unclear and difficult to interpret.
    Makes significant progress towards completion of the problem, but the explanation or description may be somewhat ambiguous or unclear. May include flawed or unclear diagram(s), or insufficient diagrams.
    Gives a fairly complete response with reasonably clear explanations or descriptions. Includes nearly all complete, appropriate diagram(s).
Generally communicates effectively to the identified audience.
Presents supporting arguments which are logically sound but may
contain some minor gaps.
    Gives a complete response with a clear, unambiguous explanation and/or description.
Includes all appropriate and complete diagram(s). Communicates effectively to the identified audience. Presents strong supporting
arguments which are logically sound and complete.
    Total mark out of 100%
    Comments:
    Assessment mark
     /_30     
    
ACC705 CORPORATE ACCOUNTING AND REPORTING T120 03/03/2020 13:29    PAGE 10 OF 13
(
*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD ©
) (
ABN: XXXXXXXXXX
) (
CRICOS 03171A
) (
Approved by KOI Academic Board for T1 2020
)
(
ACC705 CORPORATE ACCOUNTING AND REPORTING T120 03/03/2020 13:29
) (
PAGE
6

OF

13
CRICOS

03171A
) (
*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD ©
) (
ABN: XXXXXXXXXX
) (
Approved by KOI Academic Board for T1 2020
)

(
ACC705
)
    
Assessment 2
Assessment Type Short report on financial statements and calculations – individual assessment.
Purpose: This assessment is designed to allow students to research and analyse accounting standards and interpret how they apply to various corporate groups. It enables students to identify and solve problems relating to accounting for consolidated groups. It allows students to communicate the financial affairs of a company to financial report users. This relates to learning outcomes a, b and c.
Value: 30%    Due Date: Week 10 – Friday 8.00 pm.
Submission: Soft copy uploaded to Moodle via KOI’s Moodle subject homepage. Topic: Consolidated worksheet, consolidated financial statements
Task Details: Consolidation worksheet, concept of realisation
On 1 July 2019, Gilberts Ltd acquired all the issued shares (cum div.) of Potoroo Ltd for $ XXXXXXXXXXAt this date the equity of Potoroo Ltd consisted of:
At this date, Potoroo Ltd had recorded a dividend payable of $7500 which was paid in August 2019. All the identifiable assets and liabilities of Potoroo Ltd were recorded at amounts equal to fair values except for inventory for which the fair value was $1000 greater than ca
ying amount. Only 10% of the inventory on hand at 1 July 2019 remained unsold by 30 June 2020. The tax rate is 30%.
During the 2019–20 period, the following transactions occu
ed.
(a) Gilberts Ltd sold inventory to Potoroo Ltd for $30 000 at a profit before tax of $6000. At 30 June 2020, inventory which was sold to Potoroo Ltd for $12 500 at a profit before tax of $2500 was still on hand in the records of Potoroo Ltd.
(b) On 1 January 2020, Gilberts Ltd sold machinery to Potoroo Ltd at a gain of $5000. The machinery was considered to have a further 5-year life.
(c) During the period Potoroo Ltd rented a warehouse from Gilberts Ltd, paying $1250 in rent to Gilberts Ltd.
(d) During the period Gilberts Ltd recorded gains from revaluation of land, which is measured using the fair value method. These gains increased the asset revaluation surplus by $2000 to give a balance of
$14 000 at 30 June 2020.
(e) In June 2020, an impairment test was conducted on Potoroo Ltd and resulted in the recognition of impairment losses on goodwill of $8000 (recognised in other expenses)
The following financial information was provided by the companies at 30 June 2020:
Required:
(a) Acquisition analysis at 1st July 2019
(b) Prepare consolidation journal entries at 30 June 2020 (Business Combination valuation reserve, pre- acquisition equity and intragroup transactions
(c) Complete a consolidation worksheet (worksheet will be uploaded to Moodle in week 4)
(d) Prepare the consolidated financial statements at 30 June 2020
Marking Guide:    Interpretation and representation    20%
Calculations    50%
Analysis    10%
Assumptions    10%
Communication    10%
Total mark will be scaled to a mark out of 30 subject marks
ACC705
Marking Ru
ic for ACC705 Corporate Accounting Assessment