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ACCT6003 FAP Assessment 2 Part A Brief 1 ASSESSMENT BRIEF Subject Code and Title ACCT6003 FINANCIAL ACCOUNTING PROCESS Assessment Major Assessment – Part A Individual/Group Individual Length 600 words...

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ACCT6003 FAP Assessment 2 Part A Brief

1
ASSESSMENT BRIEF
Subject Code and Title ACCT6003 FINANCIAL ACCOUNTING PROCESS
Assessment Major Assessment – Part A
Individual/Group Individual
Length 600 words





Learning outcomes
1. Explain the regulatory framework that governs
financial reporting in Australia with emphasis on the
Conceptual Framework for financial reporting
3. Apply accounting principles and standards when
accounting for non-cu
ent assets, revenue and liabilities
and recognise the judgements required in a range of
diverse business contexts
5. Differentiate between shares and debentures and
apply appropriate accounting procedures
Submission Sunday of Week 4 by 11:55pm AEST/AEDT
Weighting 5% (Part 1 only, Full assessment 30%)
Total Marks 100 marks
Context:
This assignment forms Part A of the major assignment. Students are provided with a business
case in which an entrepreneur, Xiaojing Wu, from China immigrated to Australia and considered
setting up a business in South Australia. Xiaojing decided to start her business as a partnership
with the other two partners but decided to dissolve the partnership and restructure the
usiness.
Subsequently, Xiaojing and the other partners considered forming a company and discussing
with the accountant on accounting regulation and reporting requirements relevant to
companies.


Business Case
Refer to the video of Xiaojing business scenario in Module 1 Accounting Regulation and Revenue
Recognition


ACCT6003 FAP Assessment 2 Part A Brief

2
Instructions
Review the content, the short video in module 1, relevant Accounting Regulations and respond
to the assignment queries raised below:
Xiaojing and other partners decided to form a company.
You are the accountant of Xiaojing and her partners. Advise on the following issues:
 Advantages and disadvantages of a proprietary company compared to a partnership
 How to set up a small proprietary company
 Rights and obligations of company directors
 Funding options for the company
Also address the following future state for Xiaojing’s business to consider being a company
listed on the Australian Stock Exchange:
 Advantages and disadvantages compared to small private companies
 Funding options for the company
 Reporting requirements as per Australian Securities Exchange (ASX)
As the assessment is to be kept around 600 words, a rough guide will be about 350 words to
addressing the first issue, and about 250 words for the second one. Addressing these queries
equire the answers to be in the context of Xiaojing’s specific scenario.
You are strongly encouraged to re-phrase the relevant regulations when referencing it to
ensure your assessment keep to the word limit.
You may refer to the following resources:
 Module 1 video of Xiaojing business scenario
 Textbook, lecture PP presentation, tutorial/workshop questions
 The Australian Securities and Investments Commission (ASIC): www.asic.gov.au
 The Australian Stock Exchange (ASX): www.asx.com.au
 Small business guide in the Corporations Act 2001.The Australian Government’s Attorney-
General’s Department www.comlaw.gov.au
http:
www.asic.gov.au
http:
www.asx.com.au
http:
www.comlaw.gov.au/
Answered Same Day Mar 23, 2021 ACCT6003 Torrens University Australia

Solution

Preeta answered on Mar 24 2021
160 Votes
PART I:
Comparison between a proprietary company and a partnership:
    Basis of Comparison
    Proprietary Company
    Partnership
    Control
    The sole owner is in the full control. Control of one man is often better than control by multiple people.
    The control is in the hand of all the partners.
    Capital Investment
    One person
ings the capital. So, capital investment is limited.
    Capital is contributed by all the partners. So, the capital is more than sole trader.
    Liability
    The sole trader is only liable. All the liability on one person is a disadvantage.
    Liability is shared by all the partners and does not fall on a single person.
    Conflict
    Since one person is in the control of everything, so there is little chance of conflict.
    Conflict might arise between the partners. Some time, even the partnership
eaks between due to conflict.
    Set up
    Proprietorship firm is easier to set up than partnership firm. The regulations are less along with the set up cost.
    Regulations and set up costs are more compared to proprietorship company.
Ways to set up a small proprietary company:
A small proprietary company can be opened by following the steps mentioned below:-
· A proper name for the business needs to be chosen. The name should be unique and not used by any other business.
· The legal obligations of the company need to be understood.
· The rules, regulations and the tax structure...
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