MA 601 Theory and Cu
ent Issues in Accounting XXXXXXXXXXPage 6 of 6
Assessment Details and Submission Guidelines
MA601 Theory and Cu
ent Issues in Accounting
Master of Professional Accounting (MPA)
Theory and Cu
ent Issues in Accounting
Trimester 2, 2020
Dr Jayasinghe Hewa Dulige
Assessment Task 3 – Individual
Unit Learning Outcomes Addressed:
The purpose of this assignment is to assess the following Learning Outcomes:
a. Explain, describe and demonstrate mastery of the financial accounting standard setting process of Australia.
. Critically analyse and interpret cu
ent issues and developments in accounting theory and financial reporting
· This assignment should be completed individually.
· All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page.
· The assignment must be in MS Word format, 1.5 spacing, 11-pt Cali
i (Body) font and 2 cm margins on all four sides of your page with appropriate section headings.
· Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA 6th edition for the School of Business.
If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted directly to the School's Administration Officer via your MIT AMS login
online.mit.edu.au/ams/default.aspx?ReturnUrl=%2fams%2f]. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at:
Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http:
www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/Plagiarism-Academic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description.
Assessment Cover Sheet
Student ID Numbe
Student Last name/s:
Student First name/s:
I/We declare and certify that:
1. the work contained in this assessment is my/our own work/group work, except where acknowledgement of sources is made;
2. this assessment has not been submitted previously for academic credit in this or any other course;
3. I/we have read MIT’s Plagiarism and Academic Misconduct Policy and Procedure, and I/we understand the consequences of engaging in plagiarism, collusion and contract cheating;
4. a copy of the original assignment is retained by me/us and that I/we may be required to submit the original assignment to the Lecturer and/or Unit Co-ordinator upon request;
I/we have not plagiarised the work of others or participated in unauthorised collaboration or contract cheating when preparing this assessment.
According to Corporation Act 2001 all reporting entities are required to prepare general purpose financial statements (GPFS), and those statements must be prepared in accordance with AASB standards. It is necessary to determine the objective of GPFS having established that all reporting entities need to prepare GPFS.
It is widely accepted that a considerable effort has been made by Australian accounting profession to effectively address the objective of general purpose financial reporting. Henderson et al XXXXXXXXXXargue that Australian accounting profession has commissioned two studies on this topic. The first was by Kenley and Staubus XXXXXXXXXXand the second study was by Barton XXXXXXXXXXBoth studies argue that objective of financial reporting is to satisfy the needs of users for financial information on the firm’s operations and its resources and obligations. Critics argue that this is merely an aid to accountability based on Stewardship theory.
Australian Accounting Conceptual Framework 2019 revision states that:
“The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity” (Conceptual Framework, 2019 pp 10).
Henderson et al XXXXXXXXXXpostulate that:
“The choice of decision usefulness as the objective for financial reporting is a relatively recent phenomenon and many accountants believe that it cannot be achieved with a measurement basis designed primarily for stewardship or accountability purposes. Therefore, the historical cost measurement basis should be abandoned and replaced by a measurement basis that is specifically designed to meet the decision-usefulness objective” (Henderson et al, 2017 pp41).
You are required to examine as to why an agreed objective for financial reporting is a prerequisite for the resolution of many disputes in financial accounting practice.
In your report:
1. Explain what are financial reporting and general purpose financial statements.
2. Examine the impact of ethical professional behaviour and accountability of accountants on financial reporting using stewardship theory.
3. Describe the objective of general purpose financial reporting in Accounting framework 2019, and explain the financial information that are to be presented in financial statements in order to achieve the objective.
4. Critically evaluate the argument that the preparation of financial statements is merely a support to accountability objective, and they are no use to potential investors.
5. Discuss the arguments that confirmatory and predictive roles as the principle elements of relevance of financial reporting for decision -usefulness objective.
6. Recommend the possible improvements in financial reporting that would meet the needs of financial information users and as to why an agreed objective for financial reporting is a prerequisite for the resolution of many disputes in financial accounting practice.
Henderson, S., Peirson, G., He
ohn, K., Artiach, T. and Howieson, B XXXXXXXXXXIssues in Financial Accounting (16th ed.). AU: Pearson Higher Education.
Kenley, W. J. and Staubus, G.J XXXXXXXXXXObjectives and Concepts of Financial Statements, Accounting Research
Study No. 3, Accountancy Research Foundation, Melbourne.
Barton, A.D. (1982). ‘Objectives and Basic Concepts of Accounting’, Accounting Theory Monograph No. 2, Australian Accounting Research Foundation, Melbourne.
This assignment must be written/structured in the form of a ‘business report’. That is, it must have a/an;
(a) Executive summary (between 100 to 150 words),
(b) Introduction that;
Succinctly summarizes this assignment’s topic and its key issues, controversies, etc. (no more than 200 words), and
(c) Body that addresses all the requirements – see above 1-6 (no more 1500 words),
(d) Conclusion that sums up the mains issues of this assignment (no more than 200 words), and
(e) Reference list containing all cited works.
(f) Proper English Grammar, appearance, format, etc.
At least 2 recognized journal article should be cited.
MA601 / Theory and Cu
ent Issues in Accounting /Semester T2, 2020, Individual Assignment
Criterion 1 - Structure and Clarity of the Report/Assignment
· introductory paragraph
· logical flow of clarity and structure of ideas and arguments
· appropriate use of paragraph and headings to explain and discuss ideas
· appropriate concluding paragraph
Total marks for criterion 1
Criterion 2 - Body/contents
· Explain what are financial reporting and general purpose financial statements.
· Examine the impact of ethical professional behaviour and accountability of accountants on financial reporting using stewardship theory.
· Describe the objective of general purpose financial reporting in Accounting framework 2019, and explain the financial information that are to be presented in financial statements in order to achieve the objective.
· Critically evaluate the argument that the preparation of financial statements is merely a support to accountability objective, and they are no use to potential investors.
· Discuss the arguments that confirmatory and predictive roles as the principle elements of relevance of financial reporting for decision -usefulness objective.
· Recommend the possible improvements in financial reporting that would meet the needs of financial information users and as to why an agreed objective for financial reporting is a prerequisite for the resolution of many disputes in financial accounting practice.
Total marks for criterion 2
Criterion 3 - Research and Analysis
· quality of research undertaken
· accuracy and depth of analysis
· appropriate use of in-text and end text referencing
· quality of information sources
Total marks for criterion 3
Criterion 4 - Presentation
· proof read
· professional format
Total marks for criterion 4
Using Technology for Assessment
Technological tools selected
· Industry knowledge & skills
· reflection on learning
· feedback on performance
· practice of critical thinking
· check for plagiarism
· problem-based learning
· online forum on Moodle
© MIT Lasted Updated: November, 2019 T1-2020
Lasted Updated: November, 2019