Subject Code and Title ACCT6003 Financial Accounting Process
Assessment Major Assignment – Part 1
Length 600 words
Learning Outcomes 1. Explain the regulatory framework that governs financial reporting in Australia with emphasis on the Conceptual Framework for financial reporting
3. Apply accounting principles and standards when accounting for non-current assets, revenue and liabilities and recognise the judgements required in a range of diverse business contexts
5. Differentiate between shares and debentures and apply appropriate accounting procedures
Submission Sunday 22nd October of Week 5 by, 11:55pm AEST/AEDT,
Weighting Part 1: 5% (Full assignment: 30%)
Total Marks 100 marks
This assignment forms Part 1 of the major assignment. Students are provided with a business case in which an entrepreneur, Xiaojing Wu, from China immigrated to Australia and considered setting up a small business in South Australia. Xiaojing decided to start her business as a partnership but decided to dissolve the partnership after one of the partners was dismissed for conducting an unauthorised transaction. Subsequently, Xiaojing considered forming a company and discussing with the accountant and remaining partner on accounting regulation and reporting requirements relevant to companies.
Refer to the video of Xiaojing business scenario in Module 1 Accounting Regulation and Revenue Recognition
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Review the content of Module 1, Part 2 on Accounting Regulation and Revenue Recognition, and respond to assignment questions below.
In your opinion:
1) Explain why Xiaojing decided to dissolve the partnership?
2) Consider forming a company instead. You are the accountant of Xiaojing’s small proprietary company advise on the following issues:
a. how to set up a small proprietary company
b. rights and obligations of a company’s directors
c. funding options for the company
3) Discuss reasons why Xiaojing may prefer to list the company on the Australian Stock Exchange instead of remaining as a proprietary limited company.
Note: Three (3) reasons are required for each of the above Parts 1 & 3.
Word limit: 600 words Suggested resources for completing Part 1 of the assignment include:
1) Module 1 video of Xiaojing business scenario
2) textbook, lecture PP presentation, tutorial/workshop questions 3) The Australian Securities and Investments Commission (ASIC): www.asic.gov.au
4) The Australian Stock Exchange (ASX): www.asx.com.au
5) Small business guide in the Corporations Act 2001.The Australian
Government’s Attorney-General’s Department www.comlaw.gov.au
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