ACC5215 Assignment S1 2015 Page 1
ACC5215 Corporate Accounting
Semester 1, 2015
Due Date: Monday, 18 May 2015 Value: 15 %
The course specification requires that your submission is your own work. You are strongly
urged to complete this assignment yourself to receive clear feedback about your level of
understanding of the course material. You will find information regarding plagiarism and
academic misconduct, such as collusion and cheating in the course specification and on the
The course specification also contains information about:
? Assignment late policy
? Assignment extension policy
Please ensure that any ideas or data that you provide in your answer, other than your own
original thoughts are properly referenced using the Harvard referencing style. A link to the
university’s Harvard referencing style page is provided here.
You might also find the following book useful:
Summers, J. & Smith, B. (2010), Communication Skills Handbook, John Wiley & Sons,
Third Edition, Milton Queensland.
Please refer to the following information in relation to assignment lodgement.
Assignment Preparation and Submission
Please read the following points carefully.
? This assignment must be lodged using USQ’s Moodle for Assignment submission
link on StudyDesk.
? You are required to lodge one (1) Microsoft Word file (limit 2MB), using the correct
file naming protocol (see next page).
? Your submission must have a header on every page, which includes your name and
? The assessment is due at 5:00 pm on Monday, 18 May 2015 (USQ time).
Submissions will open on Monday, 4 May 2015.
? Please include a reference page in your assignment.
ACC5215 Assignment S1 2015 Page 2
How do I name the Word file I have to lodge?
? When naming the Word file to be submitted as your assignment, the file name should use
the following naming convention: first name, last name, last 4 digits of student number
and course code (e.g. TeruyOmura7286acc5215.docx).
? For the submission, please read and follow “Instructions for Students: How to Submit
an Assignment” in PDF file below this document in the Assignment section.
? Do not forget to press the “SUBMIT” button to complete the submission process.
Do I need to include the electronic version of the USQ cover sheet?
You do not need to include a USQ coversheet in your assignment.
Do I have to send in a hard copy?
No hard copy is required. The submission system is easy to use and reliable. You can rely on
the system to submit your assignment online.
Technical problems with online submission
? Follow “Instructions for Students: How to Submit an Assignment” for the submission.
? If you need help with your online submission, please email the Course leader
firstname.lastname@example.org and if necessary, a system expert may contact you to provide
assistance. If you leave it until after 4pm on the due date, you might have to bear any
undesirable consequences (late penalties will not be applied in genuine cases of technical
problems but failure to read instructions will be no excuse). In the rare circumstance that
the server is down (e.g. due to a storm), email the assessment file.
Keep your submission details
You need to keep your submission details like date and time of your submission as well as a
back-up copy of your assignment file.
No extensions will be granted after the due date and time for the assignment has passed. All
requests for extension must be addressed to the Course leader email@example.com at
least one day before the due date with supporting documentation (e.g. doctor’s certificate).
Extensions will only be granted in extenuating circumstances. Crashing of computers, too
busy with other assignments, heavy workload, and such reasons are not considered
extenuating circumstances. Requests for extensions due to work commitments will generally
NOT be granted. You must organise your study time around these other commitments.
ACC5215 Assignment S1 2015 Page 3
Marks will be awarded based on the following guidelines. High quality answers should
address the requirements of the questions asked comprehensively with good grammar,
spelling and punctuation. For case study questions, relevant theories should be explained and
applied, citing the contents of the case studies as much as possible.
Student Minimum mark per grade
Question 1 (25 marks) Mark HD A B C F Total
(1) finance lease or an operating lease, Justify 5.00 4.25 3.75 3.25 2.50 2.00
(2) Critical evaluate 10.00 8.50 7.50 6.50 5.00 4.00
(3) the conceptual framework/definitions 10.00 8.50 7.50 6.50 5.00 4.00
Subtotal Question 1 /25
Question 2 (20 marks)
(1) NCI shareholders influence the decision 10.00 8.50 7.50 6.50 5.00 4.00
(2) necessary to show NCI separately? 10.00 8.50 7.50 6.50 5.00 4.00
Subtotal Question 2 /20
Question 3 (15 marks)
BHP Billiton OR Qantas Airways 15.00 12.75 11.25 9.75 7.50 4.00
Subtotal Question 3 /15
Total marks /60
Percentage [total marks /4 = 15%] /15
Assignment Feedback and results
? Feedback will be provided to students after marking is completed using the
Assignment marking rubric shown.
The turnaround time for marking of assignments is at least 3 weeks. You can expect to
receive your results with feedback in the week beginning 8 June 2015.
ACC5215 Assignment S1 2015 Page 4
Question 1 (25 marks)
Springfield Ltd is a company involved in a diverse range of activities involving power
generation, machinery retailing and agriculture.
The accounting policy note attached to the 2015 financial statements included the following
under the heading ‘Leases’:
During the year the company entered into a refinancing arrangement which involved the
sale of the Lily Mountain power station under a sale and leaseback arrangement. The
difference between the carrying amount of the power station and its original cost has been
included in profit and disclosed as a gain on sale of a non-current asset. Sales proceeds in
excess of the original cost have been treated as deferred income in the statement of
financial position. The amount of deferred income will be systematically amortised over
the term of the lease.
The power station is a unique asset in that the licence to generate power from that station is
held by Springfield Ltd and cannot be transferred. The leaseback period is for the remaining
20 years economic life of the power station and Springfield Ltd has guaranteed its expected
residual value at that time of $55 000.
(1) Does the Springfield Ltd sale and leaseback arrangement involve a finance lease or an
operating lease? Justify your choice.
(2) Critically evaluate the accounting treatment adopted by Springfield Ltd with respect to
the sale and leaseback agreement. Refer, where necessary, to relevant sections of
(3) Compare the resulting deferred income account with the Conceptual
Framework/Framework’s definitions of and recognition criteria for the elements of
ACC5215 Assignment S1 2015 Page 5
Question 2 (20 marks)
Chapter 27 introduces accounting for equity interests in other entities, providing basic
knowledge on the consolidation process, the history of the governing Australian accounting
standards and an understanding of control.
The Qantas Group's main business is the transportation of customers using
two complementary airline brands, Qantas and Jetstar. They also operate
subsidiary businesses including other airlines and businesses in specialist
markets such as Q Catering.
The airline brands operate regional, domestic and international services. The
Group's broad portfolio of subsidiary businesses ranges from Qantas Freight
Enterprises to Qantas Frequent Flyer.
Extract from Qantas 2012 Statement of financial position as at 30 June 2012
Equity attributable to the members of Qantas 5,885
Non-controlling interests 4
Total equity 5,889
(1) The extract from the Qantas 2012 Annual Report shows that overall Qantas holds
the majority shareholding of its subsidiaries with non-controlling interests (NCI)
in the Qantas Group of $4 million. Explain what control, if any, the shareholders
represented in the NCI could use to influence the decision making of Qantas.
(2) AASB 10 defines ‘control’ and ‘subsidiary’. Given that the NCI represents only
$4 million of the $5,889 million why is it necessary for Qantas to show the NCI
ACC5215 Assignment S1 2015 Page 6
Question 3 (15 marks)
Identify 1 Australian listed company (select either BHP Billiton Limited or Qantas
Airways Limited), with balance dates ending on 30th June 2014.
Please use the format of the table for answering each question.
Identify Australian listed companies BHP Billiton Limited OR
Qantas Airways Limited
1. GICS Industry** (1 mark)
Board composition (No 2 - 5):
2. Number of directors (&Gender of directors) (2 marks)
3. Number of board meetings (1 mark)
4. Qualification of directors (2 mark) (expand if necessary)
5. Experience of directors (Whether they are on other
boards) (2 mark) (expend if necessary)
6. Number of Australian and foreign subsidiaries (1 mark)
7. Number of Australian and foreign associates (1 mark)
8. Borrowing costs and estimated interest for company
9. Number of employees (1 mark)
10. Method of reporting comprehensive income (2 mark)
URL to access the annual report and GICS Industry code
1. BHP Billion Limited
2. Qantas Airways limited
GICS Industry code from www.asx.com.au/asx/research/listed Companies.do
END OF Assignment