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Task back to top In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients....

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Task

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In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are the senior accountant working for a major firm.

Question1 - 1,500 words

The CEO has forwarded to you an interesting article and requires you to provide her with a deeper theoretical understanding of the issues discussed so that she can fully engage in the lively discourse at an upcoming conference.

You are required to finda newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after the 1st of June 2018. Your article could also come from one of the professional journals. The article should not come from an academic journal. Academic journals generally do not contain news articles or articles of less than one page and are usually only published 2 or 4 times a year. Your article should also relate to a different issue to what you will be investigating in Question 2 (in other words, don't use an article about the exposure draft you will be using in question 2). If you are having a problem ensuring that your article is from an appropriate source contact your subject coordinator.

You then need to explain the article that you have found in your own words and clearly relate the concepts, ideas and facts within the article to one or more of the theories or topics that you have studied this session. Support your analysis of the assumptions and implications of the topic or theory as appropriate with reference to sources in APA 6 style. For example,this articlefrom the Sydney Morning Herald in April 2016 could be linked to the topics of accounting regulation and measurement (and perhaps others). You must provide a copy of the article or web page, with details of the source, date and page number with your answer.

Question 2 - 1,500 words

The Senior Partner of the firm you work for has appointed you to a new role. It is now your responsibility to review upcoming accounting standards and provide a report to the partners on the proposed standard and the opinions of other industry players on the changes.

Firstly, you are required to find acurrent exposure draft or proposal for a new accounting standard which has been opened for public comments. (These can be found on the websites of most standard-setting organisations, such as the IASB, AASB and FASB. Hint: These websites can be quite difficult to navigate, so as a first step try typing “IASB exposure draft and comment letters”/”FASB exposure draft and comment letters” into Google or other search engine of your choice). Read a sample of the comments from a range of respondents. Select four respondents, ideally from different types of organisations for example, from accounting bodies, industry, companies orcorporate bodies. If you are having a problem finding suitable comments letters then contact your subject coordinator.

In your own words, supporting your evaluation with appropriate citations, appropriately referenced in APA 6 style, you are required to include the following information in the report.
  • An outline of the major issues covered in the exposure draft (what is the exposure draft introducing or changing?).
  • An outline of the views presented in the comments letters which highlights the areas of agreement and disagreement with the exposure draft.
  • An assessment as to whether the comments letters can be interpreted as being 'for' or 'against' regulation, which provides relevant examples.
  • An application ofeachof the theories of regulation (public interest, private interest and capture) to the comments letters and a critical evaluation of the effectiveness of each theory is at explaining the comments letters.
Please note: you need to attach the comment letters you selected for your report (there is no need to attach the exposure draft)

Rationale

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This assessment task will assess the following learning outcome/s:

  • be able to critically evaluate selected current financial reporting and management accounting issues.

Marking criteria and standards

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Question 1

High Distinction

Distinction

Credit

Pass


Ability to find and describe an accounting issue.
Inclusion of item of accounting news. (SLO4)

Copy of item included (1 mark)

A link to article is provided (0.5 marks)

1

Description of major issues in article. (SLO4)

Description with in depth discussion and identification of all the key issues.

Clear identification and discussion of all key issues.

Clear coverage of most of the key issues in the article.

Summary provided, with one or two issues identified, but there may be other issues that could have been addressed that have been overlooked.

2

Linkage of major issues in article to one or more topics presented in the subject. (SLO4)

Response identifies a range of relevant topics and theories and is able to deconstruct and evaluate the issues through the use of theories and arrive at a logical position, for example by synthesizing the insights of different theories.

Response identifies a range of relevant topics and theories and is able to evaluate the issue with a discussion of theory containing relevant examples.

Response uses theory to provide a clear explanation and analysis of most of the relevant issues in the article.

Response provides a linkage to the most obvious topic as well as a brief description of the linkage to some of the related accounting theories.

3

Critical Capacity and use of source material:Has the student analysed the underlying assumptions and implications of the accounting theories or topics they have identified? Are the arguments supported? (SLO4)

Response critically evaluates the underlying assumptions and implications of the applied theories or topics. Exemplary use of relevant sources from within prescribed materials and attempts to include sources beyond prescribed material.

Response critically evaluates most of the assumptions in the applied theories or topics. Some may be evaluated with greater depth than others. Correctly refers to an extensive variety of sources to support arguments, including prescribed texts and a broad range of additional readings.

Response provides some critical evaluation of the theories or topics as a whole. Demonstrates use of multiple appropriate sources.

Response provides some summaries of the theories or topics and the underlying assumptions and implications. Limited but appropriate source consultation and background reading.

3







Question 2

High Distinction

Distinction

Credit

Pass


Ability to find comment letters, Inclusion of copies of comment letters. (SLO4)

Copy of comment letters included (1 mark)

Links to comment letters is provided (0.5 marks)

1

Outline of major issues covered in the exposure draft. (SLO4)

Thorough identification and elaboration of all the key issues.

Indepth identification and elaboration of key issues in the exposure draft.

Clear identification and some elaboration on most of the key issues

One or two issues identified, but with various other issues overlooked with only basic elaboration.

1

Description of issues where there is agreement/disagreement between the parties who have written comment letters. (SLO4)

All of the key areas of conjecture are described in depth and this is supported by evidence from comment letters.

All of the key areas of conjecture are described in depth

Most of the areas of conjecture are described.

The most obvious area of conjecture is briefly described.

1

Assessment as to whether the authors of the comments letters are utilising the arguments 'for' or 'against' regulation in their views. (SLO4)

Response identifies a range of appropriate examples of comments letters are thoroughly justified as being for or against the existence of accounting regulation.

Response identifies several examples of comments letters which are appropriately justified as being for or against the existence of accounting regulation.

Response identifies some appropriate examples of comments letters which are adequately justified as being for or against the existence of accounting regulation.

Response identifies one or two examples of comments letters with limited justification as to whether they are for or against the existence of regulation.

1.5

Application of each of the theories of regulation (public interest, private interest and capture) to the comments letters and a justification as to which theory best explains the comments. (SLO4).

Response clearly applies all of the theories to the various issues in the comment letters and provides a well developed justification that critically evaluates the relevance of the theories to the issue.

Response applies all of the theories to the various issues, and provides a clear justification for the chosen theories.

Response applies most of the theories to various issues in the comment letters and provides a clear justification for the chosen theory/theories.

Response briefly applies some of the theories to one issue in the comment letters and provides a basic justification for the most obvious theory.

2.5

Critical Capacity: Has the student deeply analysed the underlying assumptions of the accounting theories and perspectives utilised in their response? (SLO4)

Response critically evaluates all the underlying assumptions of the theories and perspectives of regulation. Exemplary use of relevant sources from within prescribed materials and attempts to include sources beyond prescribed material.

Response critically evaluates most of the underlying assumptions of the theories and perspectives of regulation. Correctly refers to an extensive variety of sources to support arguments, including prescribed texts and additional readings.

Response provides some critical evaluation of the theories and perspectives of regulation as a whole. Demonstrates use of multiple appropriate sources.

Response provides some summaries of the theories and perspectives of regulation and the underlying assumptions. Limited but appropriate source consultation and background reading.

3

Academic Writing: Is the answer well written, easy to follow and understand?

Accurate use of syntax, spelling and punctuation. A sophisticated vocabulary is appropriately used. Answer is logically structured with arguments coherently developed and supported.

Accurate use of syntax, spelling and punctuation; succinct and effective use of vocabulary.Clear expression and structure.

Accurate use of syntax, vocabulary,spellingand punctuation. Writing is easy to follow and understand.

Mostly accurate syntax, spelling and punctuation, language is simplistic but appropriate.

4

Adherence to referencing guidelines

Reference list included with correct adherence to referencing guidelines. Correct in-text referencing is provided.

Reference list and in-text referencing performed in accordance with APA guidelines.

Reference list and in-text referencing performed largely in accordance with the APA guidelines.

Reference list provided, formatted in APA style with minor errors. Some in-text referencing provided with minor errors

2






25



Presentation

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The following points are a general guide for presenting assessment items.

  • Assessment items should be typed.
  • Use 1.5 spacing.
  • Use a wide left margin. Markers need space to be able to include their comments.
  • Use a standard 12pt font such as Times New Roman, Calibri or Arial.
  • Left- justify body text.
  • Include a separate title page with your name, student number, subject code, assessment number and assessment question. Include class time and tutor’s name if applicable.
  • Number your pages (except the cover page).
  • Use a header or footer with your name and student number on each page.
  • Always keep a copy of your assessments. Both a hard copy and an electronic copy.
  • Most importantly, always use your spelling and grammar checker, but remember that this does not pick up all errors. You must still manually and carefully edit your work.

Requirements

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For this assessment you are required to use APA 6 referencing to acknowledge the sources that you have used in preparing your assessment. Please refer to the CSU referencing guide http://student.csu.edu.au/study/referencing-at-csu. In addition a very useful tool for you to use that demonstrates how to correctly use in text referencing and the correct way to cite the reference in your reference list can be found athttps://apps.csu.edu.au/reftool/apa-6

This assignment must be submitted through Turnitin.

Answered Same Day Sep 21, 2020

Solution

Pulkit answered on Sep 25 2020
151 Votes
Question 1
INTRODUCTION
The following report presented represents an explanation to an article “Check the Numbers: Accounting Information still matters to you, me and investors around the world” which was presented by Ann Tarca by way of discussion organised by CPA Australia at University of Western Australia and Curtin Business School, Perth, Australia. The discussion laid down by Ann Tarca focussed on the impact of the accounting information on the capital markets, whether the role of accounting information is diminished by the changes in the economy and the cu
ent accounting practices and also how the International Accounting Standards Board (Board) has handled the issue of whether accounting has lost its relevance. Then the theories are linked to various measurement in accountings, normative accounting theories, standard-setting process, and international accounting ("Check the numbers", 2018b)
Figure 1: IASB member discusses the relevance of accounting information ("IASB discusses accounting information", 2018).
KEY ISSUES OF THE ARTICLE
· BACKGROUND—BALL & BROWN 1968
Philip Brown and Ray Ball investigated about the impact of the accounting information in the form of accounting earnings on the capital market affecting the stock prices. The main idea behind such research was to find a relationship exists in between the market returns and company’s earnings. It
ought out that there was an unexpected increase in the company’s earnings before the announcement of the same made publicly. On the other hand adverse was the reaction for fall in return. Thus the findings of the investigation ca
ied out by Brown & Ball
ought out that there exists a relationships between accounting information and capital market by their linking with the prices of the shares of the company and market returns. And also the market prices reflects the trends in the accounting information of a company. ("Who we are", 2018c)
· LOSS OF VALUE RELEVANCE—LEV AND OTHER RESEARCH
In December 2017 Professor Baruch Lev through his presentation pointed that there was a growing gap in the capital market and the earnings made by the company which
ought dissatisfaction among the investors as it did not support in the investing decisions. ("How we set IFRS Standards", 2018d)
· RESEARCH THAT PROVIDES ANOTHER VIEW
There are recent researches made which provides a light on the presence of importance of accounting information. In 2014 through an article Dechow, Sloan and Zha throw light on the facts the B&B still exists that means the changes in the share prices are reflected by the accounting information.
A new approach was used by Professor Mary Barth from Stanford University to find out the fall in the importance of the accounting information. For conducting the same the author considered the impact of intangible assets and all the measures relevant to the growth and performance of the company in the new economic environment and found that there was a vital impact of all the measures of accounting information on the market share price of the company. ("Post-Implementation Reviews", 2018f)
As per the study undertaken by Davern, Gyles, Hanlon and Pinnuck concludes that for the purpose of investment decision there is a important role of both shareholders’ equity and net income. The audited financial statement plays a vital role in investor’s decision making. The researchers found that the EBIT and EBITDA are very useful and complements the decision makers in predicting the company’s future performance.
The learned speaker alongwith Marvin Wee, Greg Clinch for the purpose of measuring the performance by companies following IFRS studied the disclosures by various firms in different companies between 2005 and 2013 and found that the disclosure matched with the respective prices of the shares of the company and other adjusting items are not significant.
· STANDARD-SETTER RESPONSE—LEV 1: BALANCE SHEET FOCUS/IFRS 3/CONCEPTUAL FRAMEWORK
Professor Lev claim that standard set up have misguided the importance of the asset valuation and does not take into account the matching of revenue and costs.
As per the requisite of the Board’s Primary Financial Statements project the entities are required to present detailed information by way of changes to the Statement of Financial Performance to ensure the availability of more meaningful and detailed information.
· STANDARD-SETTER RESPONSE—LEV 2: RECOGNITION OF INTANGIBLE ASSETS
The second criticism by Lev laid down that the asset recognition rules as laid down above do not take the effect of the changes in the economy by recognising the intangible assets on the balance sheet date. As per the research conducted by Lev of IFRS reporting companies the development costs are co
elated with market values of the shares of the company.
· ANALYST RESPONSE TO LEV—NICK ANDERSON
Nick who is a Board member with 30 years’ experience recognised that with the changing environment and the needs of the operations of the company the information other than the financial information is also important for decision making alongwith the audited financial statements. (IFRS, 2017a, p.xxx) Accordingly the learned speaker is of the view that we need to update ourself for the purpose of the reporting on the financial statements incorporating the changes in the economy and also the company’s business model and strategies.
· CONCLUSION
Ann Tarca concluding her talk by refe
ing the importance of the accounting information to the entity, auditors, analyst, investors and also the regulating authority and calling the same as ‘the life-blood of capital markets’.
MAJOR ISSUES LINK TO THEORIES
The link of the article to various theories of management accounting, normative accounting, standard setters, International Accounting is discussed in the following paras:
The objective of the accounting standards is to provide relevant and meaningful information for the true and fair view of the financial statements. In case of acquisition of assets the assets are recorded at their historical cost and amortised over the useful life of the assets as per the requirements of the accounting principle. Some analysts do not favour this view as the comparison among the companies is not easy under this requirement of the accounting principle and the earnings need to be adjusted. In case of companies tend to grow fast show higher cost of goods sold and amortisation expenses in comparison to companies growing slowly which generates more intangible assets through ca
ying the business activities. ("How we develop IFRS Standards", 2018e)    
As per IFRS 3 fair value measurement is required to be adopted relevant and faithful representation of the financial information.
The revised Conceptual Framework for Financial Reporting was issued by the Board in 2018 which requires not to focus only on the fair value of the asset but to focus on the measurement base that maximise the qualitative characteristics that is the relevancy and efficiency by way of true and fair view of financial information
Also as per the Conceptual Framework the Statement showing the Financial Position and the Statement showing Financial Performance are vital for presentation of true and fair view. It clearly lays down both income and expenses are also important just as the assets and liabilities. ("Post-implementation Review IFRS13", 2018a)
Standard-setters have spent considerable time and effort attempting to define ‘profit’, but without success. This suggests that we would be unable to build a conceptual framework from the definition of profit.
The Conceptual Framework requires an analysis of all the income and expenditure but also point out the importance of performance measures within...
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