GAC4008 Financial Accounting

GAC4008 Financial Accounting Gulf College

WRIT-2

Programme Title: A&F
Module Title: Financial Accounting
Module Code: GAC4008
Assessment Method: Coursework
Level: 4	Block: 1
Module Credits: 20	Weighting: 70%
Due Date: 15th June 2021	Word Count: 2,800
Examiner(s): Ms Juliet Sophia

Version: 1

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Gulf College – Faculty of Business and Management Studies – In academic Affiliation with CARDIFF SCHOOL OF MANAGEMENT

A.            Written work

• A signed declaration that the work is your own (apart from otherwise referenced acknowledgements) must be included after the reference page of your assignment
• Each page must be numbered.
• Where appropriate, a contents page, a list of tables/figures and a list of abbreviations should precede your work.
• All referencing must adhere to School/Institutional requirements.
• A word count must be stated at the end of your work.
• Appendices should be kept to the minimum and be of direct relevance to the content of your work.
• All tables and figures must be correctly numbered and labelled.

B.             Other types of coursework/assignments

• Where coursework involves oral presentations, discussions, poster presentations, etc., specific instructions will be provided by your module leader/team.                                                                   

Rewrite below part just after the References of your assignment.

WORK DECLARATION

I, [Name of Student], hereby declare that the uploaded Assignment through Turnitin is my own work. I affirm that this has been researched and completed in accordance with the college rules and regulations on plagiarism.

I acknowledge the advice given by the module tutors on proper referencing to avoid plagiarism and the rules on the academic unfair practice.

I acknowledge that I read and understand the plagiarism guide written at the end of this assessment. Any academic misconduct will be handled according to the rules and regulations of the university.

[Name of Student]

General instructions

Assignment must be submitted online through Turnitin before due date. An acknowledgement will be given to you by your teacher upon presentation of the finance clearance. This is your receipt, keep it.

The only circumstance in which assignments can be uploaded late via Turnitin is if a Mitigating Circumstances (MC) form is submitted at the same time. In these circumstances work may be submitted within five (5) working days. Make sure to secure MC form and submit the same to the concerned staff.

Write the number of words used, excluding references, at the end of your assignment. Provide the list of sources you used at the last page of your assignment with proper label ‘References’. You may include diagrams, figures etc. without word penalty. The number of words will be + or – 10% of the total words allowed.

A work declaration must be included just after the reference page of your assignment. This ensures that you prepare your work in good faith. Any form of collusion and/or academic unfair practice will be dealt with according to the pertinent rules and regulations of the partner university. Please read carefully the plagiarism guide.

Assessment Details

This Assignment comprises 70% of the total assessments marks. Students should be able to derive following skills:

• Financial skills in understanding the financial needs of business activities.
• Decision making on the basis of accounting records and financial statements.
• Calculations skills.

In addition, the assessment will test the following learning outcomes:

• Demonstrate, apply and explain basic accounting methods, accounting conventions and concepts;
• Demonstrate and explain the uses of key accounting systems and the recording of accounting event;
• Explain the various types of institution and prepare basic accounting statements for each.

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Assessment Task

Seven Seas Co. LLC was established as a Limited Liability Company (LLC) on 1^st January 2020 and became a registered dealer under the Securities Exchange Act. The company objectives include financial activities, activities of financial holding companies, financial and management consulting. The management is responsible for the preparation and fair presentation of financial statements under IFRS. It is necessary to ensure that the financial statements are free from material error, fraud and misstatement. You have been hired as an accountant for the preparation of the financial statements for the company. You need to prepare a report of 2,800 words addressed to the Senior Executives of Seven Seas Co. LLC. The structure of the report should be as follows:

I.  Introduction (500 words)

1. Accounting is based on various concepts and conventions known as accounting principles that have developed over time. These accounting principles have evolved to deal with practical problems experienced by preparers and users. Explain with example the following principles:
   1. Full Disclosure principle
   1. Matching concept
   1. Going concern principle
   1. Materiality Principle
   1. Cost principle (10 marks)

II.  Discussion (1800 words)

The Seven Seas Co. LLC deals with a set of basic business transactions and they run through all of the financial statements such as trial balance, income statement and balance sheet. Each transaction is recorded based on how it effects different parts of financial statements. On this topic, you are required to answer the following tasks:

1. Explain the meaning and purposes of the trial balance, comprehensive income statement and Balance Sheet of Seven Seas Co. LLC. (10 marks)
   1. Explain the elements of financial statements with examples.                                                                                                  (10 marks)
   1. As an accountant of the Seven Seas Co. LLC, prepare the Pro-forma template of trial balance with all financial statement elements as at 31^st December 2020. (15 marks)
   1. Prepare the Income Statement of Seven Seas Co. LLC for the year ended 31^st December 2020.

(15 marks)

• Prepare the Balance Sheet of Seven Seas Co. LLC as at 31^st December 2020.                                                                                                  (15 marks)
  • “Once the value of an asset to be depreciated, the business must select a method of allocating this depreciable amount over the useful life of the asset.” You are required to discuss the most common methods used by Seven Seas Co. LLC to allocate depreciation on its assets? Explain your understanding with examples. (15 marks)

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III.  Recommendation (500 words)

1. Explain the importance and method of calculation of following ratios for Seven Seas Co. LLC.
   1. Liquid Ratio
   1. Return on net assets
   1. Debtors collection Period (6 marks)
   1. Based on the above calculations, analyse and interpret the financial performance of the company. (4 marks)

References.

• There should be a minimum of eight (8) references. Use the Harvard Referencing style.

***END OF ASSIGNMENT TASK***

Guidelines to Students:

• Provide a list of minimum five (8) references from different sources including books, e-books, online sources, journals and publications using the proper Harvard referencing system.
• Use Times New Roman or Arial as font style with 12 as font size.
• Use correct capitalisation.
• Complete your report in the acceptable format of Microsoft Word file and submit to the Turnitin.

GAC4008 – Financial Accounting AY: 2020-2021 / 2nd Semester

Marking Scheme

Question No.	Description	Marks Allocated
I	a. Discussion of the accounting concepts and principles with examples – 10 marks	10
	Explaining the meaning and purposes of the financial statements – 10 marksExplaining the elements of financial statements with examples       – 10 marksPreparation of the template of trial balance with adjustments         – 15 marksPreparation of the Income statement of Seven Seas Co. LLC             – 15 marksPreparation of Balance sheet of Seven Seas Co. LLC                              – 15 marksDiscussion of two methods of allocating Depreciation                         – 10 marks Examples for depreciation methods                                                            – 5 marks	10
	10
	15
II	15
	15
	15
III	Calculation of financial ratiosAnalysing and interpretation of ratios	6 marks4 marks	10
Total	100

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Plagiarism

1. Plagiarism, which can be defined as using without acknowledgement another person’s words or ideas and submitting them for assessment as though it were one’s own work, for instance by copying, translating from one language to another or unacknowledged paraphrasing. Further examples of plagiarism are given below:

Use of any quotation(s) from the published or unpublished work of other persons, whether published in textbooks, articles, the Web, or in any other format, which quotations have not been clearly identified as such by being placed in quotation marks and acknowledged.

Use of another person’s words or ideas that have been slightly changed or paraphrased to make it

look different from the original.

Summarising another person’s ideas, judgments, diagrams, figures, or computer programmes without reference to that person in the text and the source in a bibliography or reference list.

Use of services of essay banks and/or any other agencies.

Use of unacknowledged material downloaded from the Internet.

Re-use of one’s own material except as authorised by the department.

• Collusion, which can be defined as when work that has been undertaken by or with others is submitted and passed off as solely as the work of one person. This also applies where the work of one candidate is submitted in the name of another. Where this is done with the knowledge of the originator both parties can be considered to be at fault.

• Fabrication of data, making false claims to have carried out experiments, observations, interviews or other forms of data collection and analysis, or acting dishonestly in any other way.

Plagiarism Detection Software (PDS)

As part of its commitment to quality and the maintenance of academic standards, the University reserves the right to use Plagiarism Detection Software (PDS), including Turnitin. Such software makes no judgment as to whether a piece of work has been plagiarised; it simply highlights sections of text that have been found in other sources.

The use of plagiarism detection software fulfills two functions. The first is to enhance student learning (i.e. as a developmental tool); the second is to guard against and identify unfair practice in assessment.

Further information and guidance can be found in the University’s policy on the Use of Plagiarism Detection Software.

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