2103AFE Company Accounting 1 2103AFE Company Accounting Group Assignment (20%) Words count: maximum 2,000 words Trimester 2, 2018 This assignment requires students to work in groups of two to four...

2103AFE Company Accounting

1
2103AFE Company Accounting
Group Assignment (20%)
Words count: maximum 2,000 words
Trimester 2, 2018

This assignment requires students to work in groups of two to four people and produce a single
eport for each group.

DUE DATES:
Closing date for joining a group: 17:00 (5pm) 14th September 2018
Group Assignment Submission: 17:00 (5pm) 21st September 2018
SPARKplus ratings: From 22nd September to 30 September 2018 by 5pm

TOTAL WEIGHTING
Part A - Group Work 10% (total marks: 50)
Part B – Self & Peer Assessment 10% (Calculated for each individual student using
SPARKplus, therefore each group member may receive a
different mark in Part B)
Part A – Group Work (10%): The aim of Part A is to apply the knowledge and understanding of
Topics 1 to 4 from lectures and workshops in a practical and detailed manner. The assignment is
to be completed in groups of two to four. Students will sign up in a group on Learning@Griffith
from Week 4. Each group has been allocated an ASX Company on which to prepare this
assessment.

Part B – Self & Peer Assessment (10%). This assignment involves the completion of Self and Peer
Assessment Ratings and feedback using SPARKplus. All information pertaining to SPARKplus is
located in the Learning@Griffith course site under Assessment
SPARKplus Student Resources.
Please see the attached SPARKplus ru
ic for Part B that shows you how the ratings will be
applied. Students who do not rate to their peers (group members) will receive 0% in the Part B.

REQUIREMENTS:
1. Each group requires to prepare a single report by answering all of the questions
(question 1 to 4) related to the company that is assigned to your group. The
following table shows the groups number and the co
esponding ASX Company
assigned to these groups.
Groups number Assigned company Campuses
Group 01 – group 08 CBA Annual Report 2017 Nathan and Gold Coast
Group 09 – group 16 Telstra Annual Report 2017 Nathan and Gold Coast
Group 17 – group 25 Wesfarmers Annual Report 2017 Nathan and Gold Coast
Group 26 – group 33 Woolworths group Annual Report
2017
Nathan and Gold Coast
Group 34 – group 41 CBA Annual Report 2017 Nathan and Gold Coast
Group 42 – group 50 Telstra Annual Report 2017 Nathan and Gold Coast
Group 51 – group 58 Wesfarmers Annual Report 2017 Nathan and Gold Coast
Group 59 – group 66 Woolworths group Annual Report
2017
Nathan and Gold Coast
2
2. Students are required to complete the Assignment in a group of two, three or four
members. Group members are to sign up at learning@Griffith from Week 4 – an
announcement with instructions will be provided.
3. Students must use the ASX Company assigned to their group – no exceptions or
variations will be approved.
4. Students must use their own words to answer all the questions. In other words,
copying directly from the company’s annual report is strictly prohibited.
5. All answers must use proper English expressions and grammar, and be within the total
word count.
6. The group assignment must be properly referenced, with a list of references provided
at the end of the assignment.
7. Students must complete the Self & Peer Assessment Resource Kit (SPARKplus) Ratings
of the group. Final ratings must be completed by the due date shown above, i.e 30
September 2018 by 5 PM or 0% will be awarded for the assessment in Part B.
8. The assignment is to be submitted online by the due date.

SUBMISSION:
1. Detailed instructions on how to submit the assignment is available in the Course Home
Ta
Assignment Submission on Learning@Griffith.
2. The assignment must be word-processed using Microsoft Word, Times New Roman, 12 point
font, double-spaced.
3. Only one group assignment is to be submitted by the group (please appoint a group leader
and he/she will submit the assignment on behalf of the group).
4. Each group member must complete an Academic Integrity Declaration.
5. Marks may be deducted if any of the requirements (1-8) or submission instructions (1-4) are
not complied with.

Question 1: Accounting for Income Tax (suggested words count: approximately 300)
10 Marks
Please refer to the annual report of the ASX Company that has been allocated to your group.
Based on the annual report and the relevant notes, answer the following:
(a) What is the income tax expense included in the Income Statement? 1 marks
(b) How/where does the Company recognise income tax expense? 2 marks
(c) Identify two items to which the temporary differences in your company’s report can be
attributed XXXXXXXXXXmarks
(d) What is the amount of income tax paid during the year? 1 marks
(e) Show any defe
ed tax asset or defe
ed tax liability (or both) disclosed in the statement of
financial position, including the amount of these balances. 2 marks
(f) Explain why the cu
ent tax liability at the end of the reporting period may not equal the
income tax expense for the period. Make reference to the amounts used in your Company’s
annual report XXXXXXXXXXmarks
3
Question 2: Translation of Foreign Operations (suggested words count: approximately 200
words XXXXXXXXXXmarks

Please refer to the annual report of the ASX Company that has been allocated to your group.
Based on the annual report and the relevant notes, answer the following:
(a) What is the functional cu
ency of the firm? Describe the guidelines the Company will
consider to determine the functional cu
ency of this entity. 3 marks
(b) Explain (in your own words) how the transactions are translated by your Company and
which exchange rates are used ? XXXXXXXXXXmarks
(c) What is foreign cu
ency risk? Identify how your Company takes steps to manage foreign
cu
ency risk XXXXXXXXXXmarks
(d) What is the balance of the Foreign cu
ency translation reserve? Explain what your
company includes in this account XXXXXXXXXXmarks
(e) For part (e) use the following information: XXXXXXXXXXmarks
Onoyoko Ltd, a company operating in Singapore, is a wholly-owned subsidiary of Muscat Ltd, a
company listed in Australia. Muscat Ltd formed Onoyoko Ltd on 1 July 2016 with an investment
of A$310 000. Onoyoko Ltd’s records and financial statements are prepared in Singaporean
dollars (S$). Onoyoko Ltd has prepared the following financial statements at 30 June 2017.

ONOYOKO LTD
Statement of Financial Position
as at 30 June 2017

S$
Cu
ent assets:

Inventory 205 000
Monetary assets 195 000
Total cu
ent assets 400 000
Non-cu
ent assets:

Land – acquired 1/7/15 100 000
Buildings – acquired 1/10/15 120 000
Plant and equipment – acquired 1/11/15 110 000
Accumulated depreciation (10 000)
Defe
ed tax asset 10 000
Total non-cu
ent assets 330 000
Total assets 730 000
Cu
ent liabilities:

Cu
ent tax liability 70 000
Bo
owings 50 000
4
Payables 100 000
Total cu
ent liabilities 220 000
Non-cu
ent liabilities:

Bo
owings 150 000
Total liabilities 370 000
Net assets 360 000
Equity:

Share capital 310 000
Retained earnings 50 000
Total equity 360 000

ONOYOKO LTD
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2017
S$ S$
Sales revenue

1 200 000
Cost of sales:

Purchases 1 020 000

Ending inventory 205  XXXXXXXXXX 000
Gross profit

385 000
Expenses:

Selling 120 000

Depreciation 10 000

Interest 20 000

Other 90  XXXXXXXXXX 000
Profit before income tax

145 000
Income tax expense

60 000
Profit for the period

85 000
The only movement in equity, other than in profit, was a dividend paid during the period of
S$35 000.
Additional information
1. Exchange rates over the period 1 July 2016 to 30 June 2017 were:

S$1.00 = A$
1 July XXXXXXXXXX
1 October XXXXXXXXXX
1 November XXXXXXXXXX
1 January XXXXXXXXXX
1 April XXXXXXXXXX
5
30 June XXXXXXXXXX
Average rate for year 0.85
Average rate for final quarter 0.77
2. Proceeds of long-term bo
owings were received on 1 July 2016 and are payable in four
annual instalments commencing 1 July 2017. Interest expense relates to this loan.
3. The inventory on hand at the end of the reporting period represents approximately the
final 3 months’ purchases.
4. Revenues and expenses are spread evenly throughout the year.
5. Defe
ed tax asset relates to depreciation of the plant and equipment.
6. The dividends were paid on 1 April 2017.
Required: The functional cu
ency is determined to be the Australian dollar. Translate the
financial statements of Onoyoko Ltd into the functional cu
ency.
Question 3: Revaluation and Impairments (suggested words count: XXXXXXXXXX10 Marks

Please refer to the annual report of the ASX Company that has been allocated to your group.
Based on the annual report and the relevant notes, answer the following:
(a) At 30 June 2017, what portion of the total assets is made up of intangible assets? (express
your answer as a percentage, to 2 decimal places). XXXXXXXXXX2 marks