ACC201 Research Financial Accounting
|Assignment title||Research assignment|
|Prescribed word limit||Part 1: 600words + Part 2: 1400 words = 2000 words|
|(10% variation is acceptable)|
|Referencing style||Harvard Referencing System Style Guide|
|Assignment weight||25% (The assessment will be marked out of 100 marks)|
|Assignment due date||Part 1: Week 4, Monday 16 April at 8 am (30 Marks)|
|Part 2: Week 9, Monday 21 May at 8 am (70 marks)|
|Submission mode||PIA assignment cover page must be attached and signed|
|before its submitted by due day through MyPIA.|
In Part 2 of this assignment you need to choose an ASX listed company for financial analysis. To make the right choice you need to have a clear understanding of
- Relevant information
- Fair presentation
- Accounting estimates
The following research topics are independent and not related to each other.
Research Topic 1: Relevant information for an investment company (Hint: Chapter 1)
A year ago you bought shares in an investment company. The investment company, in turn buys, holds and sells shares of business enterprises. You want to use the financial statements of the investment company to assess its performance over the past year.
- What financial information about the investment company’s holdings would be most relevant to you?
- The investment company earns profits from appreciation of its investment securities and from dividends received. How would the concepts of recognition in the conceptual framework apply here?
Research Topic 2: Fair presentation (Hint: Chapter 16)
The directors of an Australian company that is required to prepare financial reports under the Corporations Act conclude that applying the requirements of AASB 136/IAS 36 Impairment of Assets would not provide a fair presentation because the resulting $80 000 impairment loss is temporary.
Advise the directors how this problem should be addressed in the financial statements in accordance with AASB 101/IAS 1.
- Polytechnic Institute Australia
- ACC201 – Financial Accounting
Research Topic 3: Accounting estimates (Hint: Chapter 18)
The board of directors has resolved to change its accounting policy for capitalising gains or losses on its cash flow hedges recognised in other comprehensive income. Previously, such gains or losses were capitalised to hedged items but the directors now believe that taking such gains or losses to profit or loss is a more appropriate treatment. Due to a recent computer virus, all data from the non-current asset register, including specific depreciation details from prior periods, has been destroyed.
The board of directors has approached you for advice regarding the disclosures, if any, that are required for this change in accounting policy.
|1||Research Topic 1||10|
|2||Research Topic 2||10|
|3||Research Topic 3||10|
- Please read the “Submission of Assessment Items” on page 14 in unit outline of ACC201.
- Please read the “Academic Misconduct and Plagiarism” on page 17 in unit outline of ACC201 Page 2 | 2