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INDIVIDUAL WRITTEN ASSIGNMENT
Due Week 6
(5.00pm Tuesday 7 September 2018)
This assignment is worth 20%
PURPOSE
1. Demonstrate an understanding of the nature of the corporate entity and be
aware of the concepts, statutory requirements and other authoritative
influences that underpin accounting and reporting in the Australian regulatory
environment.
2. Explain the issues su
ounding contemporary accounting controversies.
3. Evaluate solutions for routine accounting problems in diverse contexts using
social, ethical, economic, regulatory and global perspectives.
ASSIGNMENT
Joshua, an employee working in the accounts office of a medium-sized company listed on
the Australian Securities Exchange, was working late one evening during the week. He
ealised he had left his pen in the boardroom at an earlier meeting and, given its value, went
upstairs to look for it. As he walked past a room, he heard the following conversation
etween the Chief Executive Officer, Paul and one of the non-executive director, Alan who
is also a cousin of Paul:
Paul: I am deeply concerned that if this fall in profit figures is disclosed in the next annual
eport, there will be all sorts of problems with the shareholders. We may even lose a number
of big investors.
Alan: Well, I suppose we could always find a way of making them look better.
Paul: How? I can't see it at all.
Alan: Well, we could make them just slightly higher than last year's figures by including the
proceeds of the sales of our tooth
ush division.
Paul: But the sale doesn't go through until October.
Alan: No, but it will … and it doesn't make much difference, we need the money on the
ooks now.
Paul: But when the accounts are signed off, won't that be fraudulent?
Alan: Not really … I don't see why … it's just a manipulation of timing rather than numbers.
Paul: OK. That sounds good to me. Let‟s sort it out now.”
Joshua left and spent the evening wo
ying about what he should do, if anything. He decided
he would anonymously ask the accountant how he could deal with this situation, and
ing
the issue out into the open.
As the accountant, you receive a report from the employee (Joshua) about the conversation.
Write a
ief summary for board members of the corporate governance problems raised by
this employee, and the weaknesses in the company’s corporate governance which are
evident from the conversation which was overheard.
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ASSESSMENT CRITERIA
Your grade will be determined by the following:
Ability to explain what is corporate governance and what is considered as good
corporate governance under the different theories.
Analyse the situation faced by the company and the weaknesses in the company’s
corporate governance;
You need to support your understanding of corporate governance and earnings
management with references/citations from credible sources that you may have read
from academic journals or books.
Coherence and organisation of the paper including referencing, spelling, grammar and
editing.
ADMINISTRATIVE DETAILS
Submit your assignment (in an essay form) through Turnitin>Assignment folder of
Blackboard by 5.00pm Tuesday 7 September 2018. LATE SUBMISSION PENALTY
APPLIES.
This assignment must be typewritten and double-spaced. Student must always keep a
copy of the assignment and the Turnitin receipt. Attach an Assignment Cover Sheet to
your submission.
The Student Manual provides information about the presentation of essays, including
eferencing.
Policies on late submission of assignments and plagiarism are provided in the Course
Outline. Extensions with valid reasons will only be considered if the application is made
48 hours prior to submission.
Length: 2,000 words maximum (excluding references).
Assignment submission is through Turnitin. This program is used by the University to
assist students with writing and referencing. Turnitin reports may also be used by lecturers as
evidence of plagiarism or collusion. All written assignments must be submitted to Turnitin by
the due date through the Assignments area in the Course’s Blackboard website. Students may
submit assignments for self-checking anytime prior to the due date however the final
submission to Turnitin must be the same as the hard copy submitted for assessment.
Information on Turnitin is available at: http:
www.newcastle.edu.au/service/turnitin/. If you
equire assistance with Turnitin, please contact XXXXXXXXXX . If you are unsure
of how to co
ect any plagiarism on Turnitin, refer to the Student Manual or to the Infoskills
website:
http:
www.newcastle.edu.au/service/li
ary/tutorials/infoskills
PowerPoint Presentation
Paul: I am deeply concerned that if this fall in profit figures is disclosed in the next annual report, there will be all sorts of problems with the shareholders. We may even lose a number of big investors.
Alan: Well, I suppose we could always find a way of making them look better.
Paul: How? I can't see it at all.
Alan: Well, we could make them just slightly higher than last year's figures by including the proceeds of the sales of our tooth
ush division.
Can you identify critical information in this conversation.
Paul: But the sale doesn't go through until October.
Alan: No, but it will … and it doesn't make much difference, we need the money on the books now.
Paul: But when the accounts are signed off, won't that be fraudulent?
Alan: Not really … I don't see why … it's just a manipulation of timing rather than numbers.
Paul: OK. That sounds good to me. Let‟s sort it out now.”
Joshua left and spent the evening wo
ying about what he should do, if anything. He decided he would anonymously ask the accountant how he could deal with this situation, and
ing the issue out into the open.
Can you identify critical information in this conversation.
What is your task?
As the accountant, you receive a report from the employee (Joshua) about the conversation. Write a
ief summary for board members of the corporate governance problems raised by this employee and the weaknesses in the company’s corporate governance which are evident from the conversation which was overheard.
There are a couple of corporate governance issues with the company. I hope you could identify.
Conside
Is the management allowed to do this type manipulation.
Under what conditions does accounting standards allow an entity to change its accounting policies.
Is Allan suggestion good accounting practice? You need to explain why you think its good or poor accounting practice.
Decomposition of the task.
Explain what is corporate governance.
What is considered a good corporate governance under different theories.
Analyses the situation faced by the company and the weakness in its corporate governance.
Support your understanding about corporate governance and earnings management with credible reference/citations.
Offer some good academic definitions to your assessor.
Discuss what is good cg under agency theory. Stakeholder theory.
Identify the cg issues in the case and analyze it.
Use peer reviewed papers from quality journals and books to support your analysis.
What are credible sources?
Internet is an open space where a lot of information is available. Is that information credible? No
There is a vast pool of literature available on corporate governance.
Use peer reviewed papers to support your analysis.
You can also refer your books to demonstrate your understanding about corporate governance and key issues in the organization we discussed.