Assessment 3 Information
Subject Code: ACC303
Subject Name: Company Accounting
Assessment Title: Assessment 3
Assessment Type: Statement of Advice
Weighting: 40 %
Total Marks: 40
Submission: Via Turnitin on MyKBS
Due Date: Tuesday of Week 13 at 7:55 pm (AEST)
Your Task
Your task is to analyse client information using the information and questions raised by the CEO, and present the findings in a Statement of Advice with a covering Business Letter.
For each issue, you are expected to:
1) Identify the facts and accounting topic
2) Apply the relevant legislation, accounting standard and/or process
3) Make a recommendation and/or summary of the correct accounting treatment
Learning Objectives
After completing this Individual Assignment, you will be able to:
1) Research information about each issue using legislation and accounting standards
2) Identify the main issues and make recommendations for accounting treatment
3) Provide a clear statement of advice to a potential client
Assessment Description
Assume that you are part of a team of graduate accountants working for Seachange Group Pty Ltd, an independent consulting & accounting firm situated at 58 Kirra Terrace, Brisbane, QLD 4000. The Manager of your firm, Ms Amanda Buchan, has asked you to draft a letter in response to an email received from Mr Mark Privilege, the CEO of Swing Strength Ltd (a public company), raising accounting issues – (please refer to the email on the next page).
The maximum length for the body of the letter is 1,500 words. You should address all the technical issues/discussion in the statement of advice, followed by a Reference List.
• Part A: Technical component 30% - This mark covers the technical content of your advice and the explanation of each of the issues, the calculations, the journal entries and the sources used.
• Part B: Communication Skills 10% - This mark covers the generic skills of writing, layout, clear meaning, structure and organisation, appropriate tone and grammar, spelling, and punctuation, etc. throughout the whole assignment.
ACC303 Assessment 3 – Email from the Client
From: Mark Privilege (mprivilege@swingstrength.com.au)
To: Amanda Buchan (amanda.buchan@seachange.com.au)
Subject: Accounting Issues: Year Ending 30 June 2022 Sent: 30 May 2022
Dear Amanda,
Thank you for your time today.
As discussed, I am reaching out to you to discuss the following issues from our most recent board meeting. Jerry (our outgoing CFO) wasn’t around to answer any of these questions, and therefore it was difficult for me to give an accurate response as I don’t have an accounting background.
Our company is currently reviewing a couple of investment proposals. First, one recommendation is to buy 25% of a Western Australian company (a family business). The family members would still own the remaining 75%. These guys manufacture some fantastic accessories, and they would be a great addition to our existing product lines. We are still negotiating a price. If we make this investment, does it mean we’ll own 25% of all the assets and liabilities of this company? If so, could we sell these assets in the future if a need arise or if we get a favourable price? In the second proposal, we are considering buying another 35% of a New Zealand based company (we already own 15%). Would you be able to please shed some light on how to account for these two investments in our accounting records?
As discussed, most of the board members, including myself, are very confused about the purpose of consolidation entries. Our accountant tells me we must delete certain accounting transactions before preparing the consolidated accounts. Is this true? If it is, I am flabbergasted as to why we are deleting transactions from our records. And more importantly, why are we wasting money recording these transactions in the first place. As I said, I am not an accountant, and therefore I would appreciate it if you could provide a couple of simple examples to support your views on this issue.
The last issue is something that the external auditors raised to our audit committee. The auditors spoke to Jerry just before he left the company and were concerned about Jerry’s lack of knowledge around accounting for goodwill. Jerry told the auditors that goodwill is the value associated with the business name, and therefore the goodwill amount is decided by the Board. He stated that if a business is famous and well-known within the community, the company can recognise goodwill in its books after consulting with some business valuation experts. Could you please clarify this goodwill issue for me? What is goodwill? Is it an asset? How should it be recognised? How do we use this goodwill? Do we need to depreciate it? Could we sell this goodwill?
Would you mind responding by letter (not email) as I would like to present your views to our Board? I look forward to hearing from you shortly.
Regards
Mark Privilege
CEO Swing Strength Ltd
Level 5, 49 Pepper Street,
Brisbane QLD 4000
Assessment Instructions
• The assignment will need to be submitted electronically through the student portal – use the link under “Assessments”.
Referencing
• Any sources that you use need to be acknowledged in order to avoid plagiarism. Information on referencing can be found in the Guidelines for Referencing and Presentation at the Kaplan website using the following address: (https://elearning.kbs.edu.au/mod/page/view.php?id=128881).
In-Text Referencing and the Reference List
• Sources of information must be cited both in the body of the text (in-text referencing) and the end of the assignment (reference list). Failure to do so will result in penalties. Remember that when referencing an Annual Report, it is a corporate document that does not have a particular author but it will still require referencing any time you use information from it. Any other documents or books or other references you use will also require referencing.
Please note • Any work which has been copied or shared between students will result in a Fail grade for all students concerned. Therefore, please make sure that the answer to this assignment is your work and not copied or bought from any source. In completing this assignment make sure you follow the guidelines for assignments especially those relating to the presentation of written work, late assignment policy and academic integrity.
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy.
What is academic integrity and misconduct? What are the penalties for academic misconduct? What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Click here for this information.
ACC303 Assignment Rubrics: 40% Individual Assessment
Components High Distinction
85 – 100%
(Marks 25.5 to 30) Distinction
75 - 84%
(Marks 22.5 to 25.4) Credit
65 – 74%
(Marks 19.5 to 22.4) Pass
50 – 64%
(Marks 15 to 19.4) Fail
0 – 49%
(Marks 0 to 14.9) Mark
Awarded
(Out of 30)
Technical component
Use of regulations,
Explanations of processes,
Clear coverage of all issues
30% It clearly identifies and addresses all the technical issues raised & provides clear, correct & decisive answers displaying an outstanding understanding of each of the technical issues.
It is easy for the client (non-accountants) to understand.
Where applicable and appropriate reference has been correctly made to the AASBs, GAAPs and other legislation It clearly identifies and addresses most of the technical issues raised by the client and provides clear, correct and decisive advice displaying a good understanding of most of the technical issues.
It is easy for the client (non- accountants) to understand.
Where applicable and
appropriate, reference has been correctly made to the AASBs, GAAPs and other legislation It clearly identifies & addresses some of the technical issues raised by the client and provides reasonably clear, correct and decisive advice displaying a reasonably good understanding of some of the technical issues.
It is relatively easy for
the client to understand.
Reference has been made (with gaps) to some of the AASBs, GAAPs and other legislation where applicable It identifies and addresses some of the technical issues raised by the client and provides fairly clear, but not always correct and/or decisive advice. It displays a reasonable understanding of some of the technical issues raised.
It is relatively easy for
the client to understand.
Reference has been made (with gaps) to some of the AASBs, GAAPs and other legislation where applicable and/or appropriate It does not
identify or address the technical issues raised by the client It displays a lack of understanding of some
or most of the technical issues raised.
It is difficult for the client to understand.
It does not give correct clear and/or decisive advice on most of the issues raised and makes little or no reference to the AASBs, GAAPs and other legislation where applicable.
Components High Distinction
85 – 100%
(Marks 8.5 to 10) Distinction
75 - 84%
(Marks 7.5 to 8.4) Credit
65 – 74%
(Marks 6.5 to 7.4) Pass
50 – 64%
(Marks 5.0 to 6.4) Fail
0 – 49%
(Marks 0 to 4.9) Mark
Awarded
(Out of 10)
Communication
Skills/Writing
Written
Business Letter
with letterhead
Overall
Presentation,
Language and
Grammar
10% The Letter includes letterhead with a logo and business name.
Recipient name and address clearly identified.
Date and subject line included.
Presentation, formatting and structure on par with highest professional standards.
Exceptional and eloquent
use of the English language presented clearly, sequentially and without errors in grammar and referencing. The Letter includes letterhead with a logo and business name.
Recipient name and address clearly identified.
Date and subject line included.
Only minor improvements are needed in presentation, formatting and structure for high professional standards to be met.
An excellent use of the English language though minor
improvements
needed in clarity, sequence, grammar and referencing. The Letter includes letterhead with a logo and business name.
Recipient name and address clearly identified.
Date and subject line included.
An inconsistent application of professional standards of presentation, formatting and structure.
A solid use of the English language though obvious inconsistencies exists in terms of clarity, sequence, grammar and referencing. The Letter includes letterhead with a logo and business name.
Recipient name and address clearly identified.
Date and subject line included.
Major improvements are needed in terms of presentation, formatting and structure.
An acceptable level of English with major improvements required
in terms of clarity,
sequence, grammar and referencing. The Letter does not include letterhead and no logo and business name.
Recipient name and address clearly identified.
Date and subject line included.
Unprofessional presentation and formatting with a structure that does not flow.
The application of the English language is difficult to follow and the standard of
clarity, sequence, grammar and referencing is below that which would be acceptable by a professional body.
TOTAL MARKS (out of 40 marks)