BUACC5934 FINANCIAL ACCOUNTING
SEMESTER 2, 2017
This assignment is to be completed in groups of two and comprises 25% of the marks for this course. There are three questions.
Student work will generally be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.
2. Demonstrated understanding - This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues.
3. Evidence of research - This will be evidenced by the references made to books, journal articles and inclusion of a bibliography.
1. All written work must conform with the Federation University General Guide for the Presentation of Academic Work.
2. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
Plagiarism is presenting someone else work as your own and is a serious offence with serious consequences. As set out in the University Regulation 6.1.1, students who are caught plagiarising will, for a first offence, be given a zero mark for that task. A second offence will result in a failing grade for the course(s) involved and any subsequent offence will be referred to the Student Discipline Committee. Student must be aware of the University Regulation 6.1.1 Student Plagiarism.
• fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions;
• acknowledge all direct quotations; and
• not submit work that has been researched and written by another person.
Part A: (7+7=14 Marks)
1. Historical cost
2. Social Accounting
1. HISTORICAL COST
? The historical cost model and its application
? The reasons for the dominance of the historical cost model, and the arguments against the model
? Historical cost valuation issues
? Criticisms of historical cost accounting.
1. What do you understand by ‘stewardship’ in the historical cost model?
2. Why is profit important to the model?
3. How is matching and the concept of costs attaching used in the determination of profit?
4. Why is net worth not an important concept under the historical cost model?
5. What concept of capital is used in historical cost accounting?
6. Although the historical cost model is a cost-based model, there are some valuation issues.
7. Give the main reasons for the dominance of the historical cost model over others that have been proposed.
8. There are many criticisms of historical cost accounting. Which do you think are the most important? Why?
9. Discuss the proposition that ‘historical costs are less subject to manipulation than other cost or valuation alternatives’.
2. SOCIAL ACCOUNTING
? Social and environmental reporting issues
? Issues causing business entities to give greater consideration to social and environmental issues
? A theoretical model that outlines the development of corporate concern for social and environmental issues
? Social and environmental reporting practices
? Accounting and reporting issues that are problematic when considering social and environmental issues.
1. Describe corporate social responsibility.
2. Give examples of the environmental issues affecting accounting.
3. What is meant by social reporting?
4. What are the types of social accounting?
5. Explain the factors that have led to increased corporate accountability.
6. What role has government had in regulating environmental issues?
7. Do many companies comply with social reporting?
Part B: (4 Marks)
The IFRS Framework discusses 2 concepts of capital and capital maintenance: financial and physical.
Part C: (7 Marks)
AASB139 is to be replaced by AASB9 as from 1st January 2018. I am a little confused with understanding Financial Instruments and this new standard. Please explain it to me.
1) Criteria used to grade this task;
The marking rubric attached provides a clear indication as to the grading of the research essay. In addition the structure, coherence and logic of arguments and analysis presented, the demonstration of understanding of the subject matter that is the focus of the research topic and the ability to justify views and any recommendations presented are particularly important. The effectiveness of communication (i.e. readability, legibility, grammar, spelling, neatness, completeness and overall presentation) is also necessary as is the ability to work collegially in a group environment for shared success. Evidence of wide and relevant research and demonstrated understanding of research materials involving searching for and effectively using materials available from a range of sources, including newspapers, business magazines, professional and academic accounting journals and relevant web sites is necessary.