PART BACCT20073 Term 1 2019Assessment task 2: Part AAssignment Due date: Wednesdayof Week 4...

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PART BACCT20073 Term 1 2019Assessment task 2: Part AAssignment    Due date:    Wednesdayof Week 4 [11:45pm  [AEST] 3 April 2019]    ASSESSMENT    Weighting:    15%    2ObjectivesThis assessment item relates to learning outcomes1 to 3.Details and instructionsThis is the first part of assessment task 2. You can choose to do Part A either as an individual or you can pair up with another student who is cuently enrolled in the unit. For administration purposes, you must email the Unit Coordinator (UC) about your intention to work in a pair by 4pm on Wednesday27March. Please provide the following information in your notification email: both student names, student ID numbers and the campus both are enrolled at. The UCwill then grant you permission to work in a pair. Please do not work in a pair unless you have received permission to do so. If you fail to email the UC by this due time and date, you will not be allowed to work in a pair. If you choose to work in a pair without the UC's permission, you will share the mark 50/50 with the student you paired with (thus you will only receive 50% of the mark awarded).Some questions of this assignment may have a word count limit. You should make every effort and attempt to stay within the prescribed limit. Academic Learning CentreTo ensure you understand the questions, instructions and expectations, it is highly recommended to seek help and guidance from the Academic Learning Centre (ALC). The ALC can help you with your writing skills and check your naative answers for grammatical coectness and that your arguments and explanations are clear and logical. The ALC will also help you to ensure that you have actually answered the questions.FormattingPlease be mindful that assignments are marked in electronic format. To assist with making the marking process efficient, effective and not time-consuming, you must comply with the following formatting requirements:· Font: Times New Roman, 12 point, 1.5 line spacing· Document type: Your answer for all questions must be in Word format. This will allow the marker to use track-changes to indicate where you received marks. Please do not submit a pdf document as this will not be marked. Also, please do not submit an excel file for your figures and calculations or copy and paste a table from an excel spreadsheet for any calculations into your Word document. Use the“insert table” function within Word andtype all figures into the table. Show all calculations below the table. Ensure the marker will be able to use the track-changes function in Word to indicate in your table where you received or lost marks for your figures.· Page: Portrait orientation· Footer: Your full name(s) and student ID(s), page number and number of pages (e.g. Cat Bird s0123456, page 1 of 3)· Marking criteria sheet: Ensure you type in your name(s) and student ID(s) in the marking criteria sheet and ensure itis the first page of your submitted assignment.· File saving convention: Include your student name(s) in the name of the file when you save the document, and ensure that you include the appropriate .doc or .docx at the end. For example, save your file as: Cat Bird.docx Please note that 3marks are allocated for complyingwith the above requirements, including attaching the marking criteria sheet as the first page.PlagiarismWork submitted by a student that is the work of another person with no referencing or acknowledgement, is considered to be plagiarism. Turnitin will compare the similarities of your assignment when you submit it on Moodle. If the turnitin score is high, your assignment will be investigated for possible plagiarism. Such investigation may take a considerable amount of time and hence your assignment will not be returned within the expected timeframe. Furthermore, if there is evidence of plagiarism, a Plagiarism Incident Report (PIR) will be lodged. You will then receive notification from the University with details of the necessary course of action.You can check the turnitin score of your assignment when submitting it. Please note: if you choose to redo and resubmit your assignment in the hope of reducing the turnitin score, it will take 24 hours before turnitin will give you another score. Also,be aware that the turnitin scores keep on changing as and when more students submit their assignments. Consequently, as similarities between assignments increase, the turnitin score of your assignment that the UC will get in Moodle may be different as to the score you received initially. It is therefore possible that your assignment may be investigated for plagiarism even though you may believe that your turnitin score is low. To avoid any concern, anxiety and stress about the turnitin score, do your own work.Submission requirementsYou must submit your assignment electronically through the secure upload facility in the Moodle system. Please ensure that the marking criteria sheet (page 4 of this document) is the first page of your assignment and that you completed the required information.If you do the assignment in a pair, only upload the file once in one student’s Moodle account. The marked assignment will be returned to that student’s account. Therefore, please contact the student who uploaded the pair file to get a copy of the marked assignment.Be mindful that there is a 5% penalty per day for late submission. You will be penalised immediately with a full day’s penalty if you submit your assignment after the due time, even though you may only be a few hours late. The penalty is not proportioned to the number of hours you submit your assignment late.Assignment QuestionPart A – Revaluations and impairment testing of non-cuent assets                                                    15 MarksQuestion 1    Word limit: 250 words    One of the board of directors of Simba Ltd has proposed that the company adopt the revaluation model for fixed assets. Some of these assets are hard to obtain and certain items have increased in value in the cuent period, however it is difficult to know what their fair value is. The director is arguing that fair value will improve the ‘look’ of the company’s Statement of Financial Position, and may eliminate the need for depreciation. RequiredDiscuss whether the board should adopt the director’s proposal.                 (5 marks)Question 2    Word limit: 250 words‘Impairment is only relevant to assets caied under the cost model. For assets caied under the revaluation model, such as our land and buildings, increases and decreases in fair value dictate whether caying amounts are adjusted up or down. We don’t bother testing land and buildings for impairment’.RequiredCritically evaluate the above statement.                            (5 marks)Question 3    Word limit: 1 500 words                        32 MarksFind the Annual Report Medibank for 2018 on the Australian Securities Exchange (www.as.com.au). Evaluate this Annual Report consistent with the requirements of AASB 13/IFRS 13 Fair value Measurement, AASB 116/IAS 16 Property Plant and Equipment, and AASB 136/IAS 39 Impairment of Assets.Required:(a) Which assets are caied at fair value?                        (2 marks)(b) State where and what disclosures regarding the fair value measurement of assets have been made.                                        (15 marks)(c) Which assets are tested for impairment?                        (2 marks)(d) State where and what disclosures regarding the impairment of assets have been made.                                                (13 marks)Include the marking criteria sheet provided on page 4 of this assignment as the first page to your submitted assignment. Please fill in your student name(s) and ID(s).Marking criteria sheet    Student name(s)    Student ID(s)    Part A Marking Criteria Sheet    Marks available    Marks awarded        15 marks        Question 1    5        Question 2    5        Question 3 (a)    2        Question 3 (b)    15        Question 3 (c)    2        Question 3 (d)    13        Formatting, word count and marking criteria sheet    3        Part A Assignment Total    45 marks        Part A Assignment: 15% weighting    15 marks        Less: Late penalty (5% per day)            Part A Assignment: Final mark    15 marks    Additional comments from marke2

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REVALUATIONS AND IMPAIRMENT TESTING OF NON-CURRENT ASSETS
REVALUATIONS AND IMPAIRMENT TESTING OF NON-CURRENT ASSETS
STUDENT NAME –
STUDENT ID –
Question 1:
Revaluation of fixed asset refers to changing value of fixed assets. The value of a fixed asset can be revalued to reflect the true value of the capital assets. Fixed assets are hold in the normal course of business to produce some goods and service and not for resale. The revaluation can be done as per the market value of the asset. There can be various reasons for revaluation of the fixed assets. The account standards also permit the revaluation of the asset (Paik, 2009). 
As in this case, the directors of Simba Ltd, were of the opinion that values of some of the fixed asset of their company have increased over the time and it is also not possible to assess their values. So, the directors think that it will be beneficial for the company to revalue its assets. 
The company can proceed with the revaluation. Often with the revaluation process, the accumulated depreciation is set off with the profit of revaluation. So, the depreciation can be totally set of against the newly revalued asset (Hu, Percy & Yao, 2015). But this does not mean that the depreciation has to be set off necessarily. 
The other reason stated by the directors of the company is that they want to make the financial statement look better. Revaluation is permissible for the better representation of the financial statement as per AASB 116. The company only has to comply with the requirements and compliances of the standard and make the necessary changes.
Question 2:
Impairment is reducing the value of a fixed asset permanently. While impairing an asset several aspects are considered like total profit from the asset and the yearly cash flow or any other benefit expected from the asset. Generally this accounting method is applied on the assets which are valued at cost method. When it is found that the benefit from the asset is less than the book value of the asset then the value of the asset is permanently reduced which is known as impairment. Generally impairment is done on the intangible assets like goodwill, patent, etc (Ji, 2013). As per Australian Accounting Standard, AASB 136 permits impairment of assets.
As per the given case, it has been mentioned that impairment of those assets are done which is under the cost model. Assets under revaluation model, like land and building the carrying amount of the assets are increased or decreased against the fair value of the asset. So, land and building need not to be tested for impairment. This statement is not totally correct. 
Even though an asset is revalued with its fair value yet an asset need to be test for impairment to understand if the book value of the asset is as per the market value that is that amount will be recovered from that asset (Goex & Wagenhofer, 2009). Difference might arise even in case of revalued asset, so it is always advisable for the companies to have a test on its entire set of assets for impairment.
Question 3:
(a) Following are the list of assets that are carried at fair value in the financial statement of the company.
 Land and building is shown in fair value. Depreciation is charged to the building. 
The financial assets of the company have been measured at fair value. 
The grants of the company have been measured at fair value. Professionals were hired to arrive at the fair value of the grants.
Premium revenue and the financial assets of the group companies have been measured in fair value method.
Investments of the company have also been measured under the fair value method.
Trade and other receivables are initially recognized at fair value. 
Cash and cash equivalents of the company are measured at fair value.
The acquisition among the group companies are recorded in fair value.

PART B ACCT20073 Term 1 2019 Assessment task 2: Part AAssignment Due date: Wednesdayof Week 4 [11:45pm [AEST] 3 April 2019] ASSESSMENT Weighting: 15% 2 Objectives This assessment item relates to...

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