ACC00712 Reflective Learning Journal 2018s3 The purpose of this reflective learning journal is to record and analyses your experiences of learning business accounting as both a process and a product....

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ACC00712 Reflective Learning Journal 2018s3 The purpose of this reflective learning journal is to record and analyses your experiences of learning business accounting as both a process and a product. In your journal you will need to document your thoughts and provide information about what you are learning, how you are learning and your reflections on what you have learned about business accounting concepts and principles. You also need to demonstrateyourunderstandingofthe Australian Conceptual Framework for accounting standard setting and the implementation of accounting standard in business practices. This is an individual assignment. Thisassessmentincludes two parts. Assessment Content Weight Word limit Due date Part 1 Reflective learning journal 15% 1000 words 5pm Friday, 11 January 2019 (week 8) Part 2 Essay 15% 1000 words 5pm Friday, 8 February 2019 (week 12) Part 1 Reflective learning journal (submission date @5pm Friday, 11 January 2019) Assessment criteria: The reflective learning journal will beassessed based on the following criteria: 1.You need to demonstrate critical engagement with the subject matter including (but not limited to): · Progressively build up a list of definitions, equations, formulas etc. that need to be memorised and be aware of which will be helpful when recording day-to-day business operations. You can provide explanations of accounting concepts in your own words. · You can prepare a summary of the knowledge and skills you are developing from topic totopic.Yoursummaryshoulddemonstrateadegreeofsynthesisandintegration rather than being just a list of points. 2. You should demonstrate active engagement in learning experiences and activities undertaken, demonstrating the application of accounting principles to practice and/or reinforcement of technical skills. · Evidenceofself- evaluation through progressive assessment tasks (suchaspracticequiz, weekly exercises or other exercises) completed, how you could have improved your results in quizzes, and in the weekly exercises, and how you plan to make best use of feedback provided for future practices. 3. You can make meaningful reflections on the progressive learning experiences, showing how the results of your reflection on learning in earlier topics improved your learning in later topics. Self-evaluations can be a critical part of your learning journey. It is designed to give you the opportunity to reflect and comment on the way you approach assessments, such as quizzes and other tasks. 4. You thoughts and comments should be integrated and should be expressed clearly and concisely. Content: Youshouldfocusonone week’slearningmaterialsintroducedinweeks2-6.Pleasenote:don’t try to cover every topic. You can choose to reflect on one particular topic that you are interested, such as cash management. The topics covering in thereflectivelearning journal may include, but should not be limited to: · Double entry accounting, accounting equation, accounting cycle, adjusted trial balance, the use of special journals or subsidiary ledgers, sales and purchases transactions, perpetual and periodic inventory system, inventory costing methods, inventory valuation, internal control, cash management and budgeting, receivables and doubtful debts management. A listof thought questions: · What am I learning in this week and why am I learning it? · HowamI learning in this topic and how am I using what I am learning? · How can I overcome my learning weaknesses and build on my strengths in this topic? · What are my greatest challenges as a learner, and why? · How can I improve my learning process? · What different skills are needed fordifferentcomponents of my learning in this topic? · How can I use the feedback from my weekly tasks to improve my learning? · Howaredifferentparts of my learning connected? · How is my learning in this topic affected by my learning (or lack of learning) in earlier topics? · How well am I achieving my goals in this topic? · Howaremy attitudes and ideas changing through the learning process? · What are my strategies for achieving my goals and ambitions, and for overcoming my identified weaknesses in learning this unit? Reference: If there are any references used in the reflective learning journal, the references should follow Harvard Referencing Style. Submission: · PleasesubmityourreflectivelearningjournalonlineviathelinkforTurnitinassignment submission provided on the Blackboard site. · You must use the electronic Assignment Cover Sheet provided, fill in details and then make this sheet the first page of your assignment. Do not send it as a separate document. · Thefilenameshouldinclude(inorder)yourfirstnameinitial,surnameandyour student number. For example: ‘BParker1235456'. · Your assignment must be submitted as a Word document. If you wish to submit in any other file format please discuss this with your lecturer before the assignment submission date. Part2 Essay (submission date @5pm Friday, 8 February 2019) Objective: The objective of this essay is to provide an understanding of the implementation of AASB Conceptual Framework, AASB101PresentationofFinancialStatementsandAASB102Inventory in financial reporting and business practices in Australia. To complete this essay, you should find a 2017/2018 annual report of a listed company on the ASX. Reserve your chosen company on the discussion board. You cannot choose the company if it has been chosen by other students. ‘First come, first serve’ is the policy for selecting your company. You are required to answer the following four (4) questions: 1. Explain and evaluate the measurement of inventory according to relevant accounting standard of the chosen company. 2. Identifytheinventorysystemappliedinthechosencompany.Explaintheadvantageforthe company in choose their selected inventory system. 3. Determinethecostingmethodapplied by thechosencompany andexplain thereasonthat the chosen company prefers this costing method. 4. Estimate the impact of the different costing methods on the company’s financial statements. Assessment criteria: The quality of this essay will be assessed based on the following criteria: · Identify and evaluate the implementation of relevant accounting standards in the chosen company. · Use paragraphs from the Australian Conceptual Framework, AASB 101 Presentation of Financial Statements or AASB 112 Inventory as guidelines to support your discussion if itis necessary. · Demonstrate effective communication, logical presentation and integrated evaluation. Reference: Ifthereareanyreferencesusedintheessay, the reference should follow Harvard Referencing Style. Submission: · Please submit your essay online via the link for Turnitin assignment submission provided on the Blackboard site. · You must use the electronic Assignment Cover Sheet provided, fill in details and then make this sheet the first page of your assignment. Do not send it as a separate document. · Thefilenameshouldinclude(inorder)yourfirstnameinitial,surnameandyour student number. For example: ‘BParker1235456'. · Your assignment must be submitted as a Word document. If you wish to submit in any other file format please discuss this with your lecturer before the assignment submission date.
Answered Same DayDec 13, 2020ACC00712Southern Cross University

Answer To: ACC00712 Reflective Learning Journal 2018s3 The purpose of this reflective learning journal is to...

Aarti J answered on Jan 04 2021
141 Votes

Wesfarmers – Analysis
AASB102 Inventory in the financial reporting and business practices
Course Name
Course Date
Student’s Name
Wesfarmers Analysis
Introduction
AASB 102 is the inventory valuation method that has been issued by the International Accounting Standards board. As per the standard, the registered and the listed companies are required to report for its inventories. The companies are required to report for its inventories and the companies are required to report its inventories at the net realisable value which is usually valued at the lower of cost and net realisable value (AASB, 102)
In this report we will be analysing the inve
ntory valuation of Wesfarmers company. Wesfarmers is one of the biggest departmental store which focus on different segments. The major segments of the company includes the departmental stores, liquor market, super markets, coal mining, office supplies, home improvement items, energy and fertilizers and other segments. Some of the major segments of Wesfarmers are Kmart, Office works, Coles, Industrial and safety and chemicals and other companies.
Explain and evaluate the measurement of inventory according to the relevant accounting standards
As per AASB 102, inventories are the assets which fulfil the following requirements:
(a) held for sale in the ordinary course of business;
(b) in the process of production for such sale; or
(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services. (AASB, 102)
As per AASB 102, reports about the accounting of the inventories. As per the standard the inventories needs to be measured at the net realisable value. Net realisable value is referred as the net amount that the company plans to sell its inventory at.
Some inventories can also be valued at the fair value price, fair value price is the price that the company is expected to receive on the sale of the inventory. Usually the net realisable value and the fair value measurement methods are the methods that are used by the companies to evaluate their inventory.
As per the AASB 102, the inventories needs to be valued at net realisable value or lower of the cost. The cost of the inventories includes the cost of the purchase of the inventory, its conversion costs and the costs that are incurred to convert and bring the inventory to the current place or position.
Identify the inventory system applied in the chosen company. Explain the advantage for the company in choose their selected inventory system.
Wesfarmers reports inventories under three categories. These includes the raw materials, work in process and finished goods. Wesfarmers values its inventories at the lower of the cost and the net realisable value. The net realisable value of the inventory is the estimated selling price of the inventory by the company.
By choosing the lower of the cost or the net realisable value method, the company is able to evaluate and value its inventory as per the market trend and the market price. With the help of this method the company is able to prevent its inventory to be overvalued. It also helps in proper assignment of the inventory by the company.
Determine the costing method applied by the chosen company and explain the reason that the chosen company prefers this costing method
The company chose net realisable method of inventory costing as that method helps in evaluating the inventory as per the cost and the expected sale value.
The company uses the assumptions and the variables that are used to bring the inventory to their location and the condition of sale. The company includes the costs that are incurred by the company which includes the purchase cost of the raw materials which is evaluated on the weighted average cost of the materials purchased. The manufacturing finished goods and work in process includes the cost of direct materials as well as labor which is calculated on the basis of the overhead costs and the actual cost of the manufacturing.
The retail and wholesale merchandising finished goods are valued on the purchase cost on the weighted average basis. The weighted average cost is calculated after deducting all the discounts and the rebates that the company gets from the suppliers.
Estimate the impact of the different costing methods on the company’s financial statements.
The costing methods can be applied to the periodic methods as well as the perpetual methods of inventory valuation. In the periodic method, usually the inventory is valued at the end of the period which is usually a month, while in the perpetual inventory method, the inventory is valued at every sale transaction.
The average cost of the inventory is calculated as the total cost of the goods available for sale divided by the total quantity of the goods available for sale. This is the average cost of the inventory which is used in the weighted average method in the periodic method while in the perpetual method, this formula is used after every sale and purchase transaction.
In the weighted average method, the weighted sum of the inventory purchased is taken and is considered to calculate the cost of goods sold and ending inventory. The weighted average method is usually used for the manufacturing companies as there are different raw inventories which are mixed together and cannot be differentiated, so the weighted costs are taken for these inventories.
For the Last in first out method, the inventory that is purchased in last is sold first and the ending inventory usually consists of the first purchased lot.
In the first in first out method, the company sells the inventory that was first purchased by the company and the ending inventory is made of the inventory purchased at last.
As the first in first out method sells the inventory first purchased, the cost of goods sold is low which results in high net income for the company and the ending inventory is valued at high costs. So the value of assets are more under FIFO method.
Under the LIFO method, the cost of goods sold is high which results in low net income and lower taxes, while the ending inventory is reported at low cost, thus undervaluing the assets.
References
Annual Report, 2018, Wesfarmers, available at: https://www.wesfarmers.com.au/docs/default-source/reports/wes18-044-2018-annual-report.pdf?sfvrsn=4
AASB 101, Presentation of financial statements, https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf
AASB 102, Inventories, https://www.aasb.gov.au/admin/file/content105/c9/AASB102_07-15.pdf
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