Unit Code: HI6025
Unit Name: Accounting Theory and Current Issues
Assignment: Tutorial Questions Due: Week 13- 26th of Feb Weighting: 50%
Total Assignment Marks: 50 marks
Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit
Unit Learning Outcomes Assessed:
| 1. Examine conceptual issues and the sources of authority for the accounting requirements which apply to reporting by Australian companies, including Company Law, International, and Australian Accounting Standards, and Stock Exchange requirements; |
| 2. Understand and evaluate different theories of accounting such as positive accounting theory, normative accounting theory, stakeholders’ theory, legitimacy theory, institutional theory, and different initiatives of relevant global organizations such as GRI, IR; |
| 3. Apply Australian Accounting Standards and Corporate Legislation to the financial reporting processes; |
| 4. Evaluate advanced level financial accounting problems and select appropriate accounting strategies for the accounting entity; |
| 5. Understand different provisions of accounting standards and the compliance requirements of the professional and legal bodies in Australia; |
| 6. Make judgments about appropriate use of accounting standards and accurately apply appropriate treatments for different advanced level accounting issues; |
Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills, and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions and submit these answers in a single document.
The questions to be answered are:
| Question 1 | Week 2 (7 Marks) |
Discuss the ‘primary users’ of general-purpose financial reports?
| Question 2 | Week 5 (7 Marks) |
An asset having a cost of $200 000 and accumulated depreciation of $40 000 is revalued to $240 000 at the beginning of the year. Depreciation for the year is based on the revalued amount and the remaining useful life of eight years. Shareholders’ equity, before adjusting for the above revaluation and subsequent depreciation, is as follows:
| Share capital | 600 000 |
| Revaluation surplus | 90 000 |
| Capital profits reserve | 170 000 |
| Retained earnings | 140 000 |
| Total | 1 000 000 |
Required:
Prepare journal entries to reflect the revaluation of the asset and the subsequent depreciation of the revalued asset. Which of the equity accounts would be affected directly or indirectly by the revaluation?
| Question 3 | Week 6 (7 Marks) |
ABC Ltd acquires 100 percent of RedCarpet Ltd on 1 July 2021. ABC Ltd pays the shareholders of RedCarpet Ltd the following consideration:
| Cash | 35 000 |
| Plant and equipment | fair value $125 000; carrying amount in the books of ABC Ltd $85 000 |
| Land | fair value $150 000; carrying amount in the books of ABC Ltd $100 000 |
There are also legal fees of $95 000 involved in acquiring RedCarpet Ltd.
On 1 July 2021 RedCarpet Ltd’s statement of financial position shows total assets of $300 000 and liabilities of $150 000. The fair value of the assets is $400 000.
Required:
- Has any goodwill been acquired and, if so, how much?
- And discuss the potential for including associated legal fees into the cost of acquiring RedCarpet using appropriate accounting standards.
| Question 4 | Week 8 (7 Marks) |
Ginger Ltd is marketing a ‘surfing bundle’ in which, for $2200, it provides customers with a surfboard (which retails separately for $1700), a wetsuit (which retails separately for $500), and five lessons (which retail separately for $400). You are required to determine:
- Whether separate performance obligations exist, and to explain why you made this judgment.
- How much of the transaction price to allocate to each performance obligation?
| Question 5 | Week 9 (11 Marks) |
Discuss the inclusion of the expenses incurred in the initial evaluation and exploration stage of a project involved with oil extraction into asset or inventory. Further, when should the organization recognize the expenses related to restoration/rehabilitation at the cessation and conclusion of the mining activities?
| Question 6 | Week 11 (11 Marks) |
Looking at different literature, discuss if there is a unique definition for social responsibility reporting and if social responsibility has a connection with accountability and accounting.
Submission Directions:
The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one.
Academic Integrity
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 Skills link on Blackboard.
Academic Integrity breaches are a serious offense 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 authorized. |
| 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
If any words or ideas used in the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.
In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.
All assessments will be automatically submitted to Self Assign to assess their originality.
Further Information:
For further information and additional learning resources please refer to your Discussion Board for the unit.
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