Recent Question/Assignment

Financial Reporting Semester 1, 2017
Due Date: Sunday 7th May 2017 at
8.45 am
This assignment will comprise 15% of the overall assessment for this course.
This assignment consists of 2 Questions:
Question 1 50% of marks
Question 2 50% of marks
General Requirements
1. FOR ALL QUESTIONS – you must show any relevant calculations and workings in addition to your answer. Refer to the relevant Accounting Standard wherever it is request ed in the question - do NOT write blocks of text from the Standard, simply quote the paragraph being applied or summarised, e.g. “… as per AASB 136 para 25”.
2. Due date – Lodgement of your assignment is expected prior to the due date and time. If exceptional circumstances lead to the requirement for an extension, this must be applied for prior to the due date via the assignment extension tool on FLO, complete with supporting documentation. Otherwise, a late lodgement penalty applies of 5% of the allocated mark per day or part thereof overdue, up until the return date of the assignment. Assignments submitted after the return date will not be marked.
3. Lodgement – Please lodge a single PDF file of your assignment. You may wish to prepare your assignment in Word, and embed any necessary tables that have been prepared in Excel, prior to conversion to PDF format for submission.
4. Text-matching – Please submit your assignment through the text-matching tab on FLO. This is for your feedback before final submission of the assignment.
5. Presentation – Please note that marks may be deducted for poor presentation, formatting, and written expression (including spelling and grammar).
6. Word limit – The first question has a limit of up to 1,000 words. Word limits specified in any individual questions must be adhered to, or penalties will apply.
7. Academic integrity – Please be aware that you MUST abide by the University policy on academic integrity. For details on academic integrity for students, please refer to:
Question 1
Read the three articles under the readings for week three*:
1. Public losing confidence in capitalism - The Australian Financial Review, 16 Dec 2016, p. 20.
2. Fahour left hanging over pay - The Australian Financial Review, 10 Feb 2017, p. 3.
3. Big exec stakes key for tech stocks - The Australian Financial Review, 30 Jan 2017, p. 20.
*If you are experiencing difficulties accessing these readings, then please search for these articles via FlindIt@Flinders from the library site.
After reading the three articles, select one of them**, and in between 750 – 1,000 words:
1. Identify and briefly explain any theory/ies we have considered in our discussions that are relevant to the case
2. Clearly show how the theory/ies inform or explain the action/s described in the article. Make sure you describe what the actions are.
3. Make sure you use Harvard referencing. All sources must be acknowledged, including the text book and any articles used. See for help with referencing requirements.
**You are free to select a different article that interests you, that is relevant to theories of accounting, and which helps you answer points 1 and 2.
Question 2
Handy Ltd holds an asset that is traded in three different accessible markets, Market A, Market B, and Market C. The valuation premise for the asset is on a stand-alone basis.
Handy Ltd normally trades 60% of such assets in Market C and 40% in Market B.
Some information gathered in relation to these three markets, based on identical assets, is as follows:
Market A Market B Market C
Annual market volume for the asset 60,000 24,000 12000
Price 150,000 146,000 156,000
Transport costs 6,000 6,000 8,000
Transaction costs 2,000 4,000 4,000
Using the above information, explain how Handy Ltd should measure the fair value of the asset it holds and determine the asset’s fair value (show calculations).
In you answer, outline the key principles that Handy Ltd should consider by making reference to AASB 13. You should include as many points that you think are relevant (i.e. be comprehensive). You do not need to quote paragraphs from the standard verbatim or write blocks of text from the standard, but quote the appropriate paragraph number and summarise in your own words.

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