HI6025 Accounting Theory and current issues T1 2021
|Assessment Details and Submission Guidelines|
|Unit Title||Accounting Theory and Current Issues|
|Assessment Type||Group Assignment|
|Assessment Title||Conceptual and critical evaluation of theories|
|Purpose of the assessment (with ULO Mapping)||This is a group assignment. Students are required to conduct research and analysis of a theoretical financial reporting issue and present their findings in a written report. Students will have to do research on relevant literature and demonstrate understanding and critical evaluation of key disclosure issues relating to the application of specific accounting standards. Additionally, they will demonstrate understanding and critical evaluation of the Australian financial reporting environment and its current regulatory framework and recommend future directions to the Australian financial reporting regulators. (ULO 1, 2, 4, 7).|
|Weight||40 % of the total assessments|
|Word limit||3,000 words ± 500 words|
|Due Date||Group Formation: Please form the group by self-enrolling in Blackboard. There should be a maximum of 4 members in a group. Email BBHelpdesk@holmes.edu.au for any issues with self-enrolling into groups. Assignment submission: Final Submission of Group Assignment: Week 10, Wednesday, May 26th 2021, at 11:59 pm. Late submission incurs penalties of five (5) % of the assessment per calendar day unless Student Services of your campus have granted an extension and/or special consideration before the assessment deadline.|
|Submission Guidelines||All work must be submitted on Blackboard by the due date, along with a completed Assignment Cover Page. The assignment must be in MS Word format, with no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style.|
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The corporate disclosure practice will help all the stakeholders to understand and measure business operation. Annual financial statement and particularly income statement is one of the most important ones. However, a company’s reported profits will be impacted by different factors, including when particular transactions and events are recognised and how such transactions and events are measured.
1) Using earning management concept, discuss why the timing of recognising events that impact income, revenue or profit or expenses are important for managers?
“Maximum 1000 words.”
ABC Ltd has incorporated a bonus plan that rewards the board of directors (executive members) by providing a bonus of 3 per cent of reported profits. This is an Accounting-based incentive that has the advantage which the accounting results may be based on subunit or divisional performance.
“A well-informed labour market will motivate management to work to maximise the value of its firm. Underperformance might lead to dismissal and, if the labour market is efficient in disseminating data, a ‘failed’ manager might have difficulty attracting a position with comparable pay elsewhere.” (Deegan, 2020)
- Using Positive Accounting Theory (PAT), discuss the bonus theme in general and why the bonus plan (Accounting-based) was put in place in ABC Ltd?
- Explain whether the board of directors could be motivated to try to inflate reported profits.
- Use the opportunistic perspective of PAT to explain the potential for managers to manipulate corporate disclosure.
“Maximum 2000 words.”
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|Content||Demonstrate superior knowledge of the theory and key concepts. Excellent interpretation with extensive elaboration of relevant sub- topics, appropriately weighted and within the prescribed word count. Demonstrated in-depth understanding and application of key concepts and terminology relating to the accounting fundamentals.||A detailed outline of knowledge including the supporting theoretical argument. Providing a thorough understanding of the concepts within the topic. Professional terminology effectively incorporated.||Shows adequate knowledge of the concepts, key points and displays a sound understanding of theories and results. Relevant professional terminology effectively incorporated.||Shows some basic||Inadequate or little|
|Part A||understanding of the topic.||understanding of the theory.|
|Evaluate and discuss||Has managed to cover some of||Lacks the necessary detail and|
|the Government’s||the main points of the case.||expression and displays an|
|decision using 3||Displays sufficient||underdeveloped|
|theories||understanding of concepts.||understanding of the|
|15%||Professional terminology||concepts. Absence of key|
|adequately incorporated.||professional terminology.|
|Content Part B (1) Using the Theory critically analyse the possible motivation for using an alternative measure 5%||Demonstrate superior knowledge of the theory and key concepts. Excellent interpretation with extensive elaboration of relevant sub- topics, appropriately weighted and within the prescribed word count.||A detailed outline of knowledge including the supporting theoretical argument. Providing a thorough understanding of the concepts within the topic. Professional terminology effectively incorporated.||Shows adequate knowledge of the concepts, key points and displays a sound understanding of theories and results. Relevant professional terminology effectively incorporated.||Shows some basic understanding of the topic. Has managed to cover some of the main points of the case. Displays sufficient understanding of concepts. Professional terminology adequately incorporated.||Inadequate or little understanding of the theory. Lacks the necessary detail and expression and displays an underdeveloped understanding of the concepts. Absence of key professional terminology.|
|application of key concepts|
|and terminology relating to|
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|Content Part B (2) If the corporations are allowed to use and disclose this alternative measure? 5%||Superior Interpretation of the questions and underlying key points provided. Outstanding and insightful theoretical discussion with clear empirical evidence provided.||Interpretation of the questions and underlying key points were clearly identified. Demonstrated a strong theoretical discussion and empirical evidences.||Interpretation of questions and underlying key points were partially identified. An effective theoretical response with some empirical evidence provided.||Interpretation of the questions and underlying key points identified. Adequate coherence supported with a basic theoretical approach. Appropriate empirical evidence provided.||Inadequate interpretation of the underlying key points. Inadequate interpretation demonstrating inconsistent and irrelevant thoughts. Inappropriate coherence of the key points.|
|Content Part B (3) Discuss the potential reaction toward such an announcement? 5%||Superior and effective recommendations, solutions, and/or plans of action were provided. Strong use of data or facts to support the analysis and conclusions.||Demonstrates effective recommendations and/or plans of action were partially provided. Effective use of data or facts to support the analysis and conclusions.||Sound recommendations and/or plans of action. Sound use of data or facts to support the analysis and conclusions.||Some recommendations and/or plans of action identified. Some data or facts referred when necessary to support the analysis and conclusions.||Inadequate recommendations and/or plans of action not provided. Specific data or facts necessary to support the conclusions are inadequate.|
|Presentation and Referencing 10%||Superior key points were clearly identified and supported with outstanding references. Excellent grammar, spelling, punctuation, professional writing, and syntax Referencing requirements exceeds expectations and advanced research techniques demonstrated.||Effective key points were identified and supported with excellent references Excellent grammar, spelling, punctuation, professional writing, and syntax. Referencing requirements meet expectations with excellent resources used Advanced research techniques demonstrated.||Adequate key points were identified and supported with sound references Appropriate grammar, spelling, punctuation, professional writing, and syntax. Referencing requirements meet expectations and appropriate resources used. Appropriate research demonstrated, and sound resources used.||Key points were identified and supported with sufficient references. a well thought out rationale based on applying specific concepts in the report. Grammar, spelling, punctuation, professional writing, and syntax needs some improvement. Referencing requirements are met and mostly appropriate resources used.||Key points were poorly identified and not supported with references. Grammar, spelling, punctuation, professional writing, and syntax needs significant improvement. Provides an inadequate critical analysis. Failure to meet referencing requirements and inappropriate resources used.|
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Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches
|Plagiarism||Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.|
|Collusion||Working with one or more other individuals to complete an assignment, in a way that is not authorised.|
|Copying||Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.|
|Impersonation||Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.|
|Contract cheating||Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.|
|Data fabrication and falsification||Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.|
Source: INQAAHE, 2020