ACCY200 Financial Accounting IIA
Special Question 1 (due in week 2 tutorial)
Go to http://www.smh.com.au/business/penalty-rates-kick-farewell-to-sunday-theday-of-rest-20170224-gukh2l.html Read the article and answer the questions below. Expected approximate word length is noted for each.
a) Briefly discuss whether you believe the decision to cut Sunday rates will have an impact on an entity’s profit and explain why/why not (150 words).
b) Discuss how an entity must record the value of employees in the general purpose financial reports according to AASB The Framework for the Preparation and Presentation of Financial Statements (Conceptual Framework/CF). Do not give journal entries; this must be a discussion using the definitions, recognition criteria and measurement bases set out in the CF (250 words).
c) Discuss whether employees could be recorded as ASSETS. Justify your answer using the CF definition and recognition criteria (250 words).
d) Assume that employees could be recorded as assets. Briefly explain how this would affect reported profits (100 words)