Deakin's Bachelor of Commerce and MBA are internationally EPAS accredited. Deakin Business School is accredited by AACSB. MAA725 – Advanced Accounting Principles and Practice Trimester T1, 2020...

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Deakin's Bachelor of Commerce and MBA are internationally EPAS accredited. Deakin Business School is accredited by AACSB. MAA725 – Advanced Accounting Principles and Practice Trimester T1, 2020 Assessment 2 DUE DATE AND TIME: 15 May 2020, 11:59 PM PERCENTAGE OF FINAL GRADE: 20% HURDLE DETAILS: N/A Learning Outcome Details Unit Learning Outcome (ULO) Graduate Learning Outcome (GLO) ULO 1: Explain, evaluate and apply a range of advanced accounting theories and standards. GLO 1 ULO 2: Identify, define and integrate to construct explanations that can inform solutions to relevant accounting issues. GLO 2 Assessment Feedback: Feedback on assignments will be provided via CloudDeakin by 15 Deakin University business days from the due date or the approved extension date, whichever is later. Failure to submit your work on time will affect the assessment process for your assessment and your final result for the unit. Description / Requirements This assignment is an individual assignment and consists of two tasks. Please complete each task by using tables and/or spaces provided in another document titled “Answer sheet for Assessment 2” under the folder “Assignment 2” on clouddeakin. https://www.efmd.org/index.php/accreditation-main/epas http://www.aacsb.edu/ Page 2 of 5 Task One It is stated under AASB 2 ‘Share based payment’ that companies must value and record as an expense any options granted to employees in exchange for their services. Previously Australian companies recorded share-based payments in the notes to the financial statements, arguing that share-based payments did not cost the company anything. Required a) Explain the reasoning that led to the development of AASB 2 ‘Share based payment’. b) Discuss briefly the possible economic implications of AASB 2. (10 marks) Task Two Sampras Ltd issued $20 million of convertible notes on 1 July 2020. The notes have a life of 6 years and a face value of $20 each. Annual interest of 5% is payable at the end of each year. The notes were issued at their face value and each note can be converted into one ordinary share in Sampras Ltd at any time over their lives. Organisations with a similar risk profile to Sampras Ltd have issued debt with similar terms but without the option to convert at the rate of 7% per annum. Required a) Identify the present value of the notes and calculate the equity component of the convertible notes; b) Provide the appropriate accounting entries to record i) the issue of the convertible notes; ii) the first payment of interest; iii) the conversion of convertible notes into shares on 30 June 2021. (10 marks) Submission Instructions This assignment must be submitted electronically by the due date as a Microsoft Word document by uploading all documents to the respective assignment dropbox, via the MAA725 site on CloudDeakin. Each student has to submit their own individual assignment 2, into assignment 2 dropbox. Specifically, when uploading your assignment 2, the document must be given a name using the following syntax: _MAA725.doc (or ‘.docx’) (for example, 123456789_MAA725.doc). Submitting a hard copy of this assignment is not required. Students who anticipate possible difficulty in lodging this assignment online (for example, being in a remote place on the due date with no computer access) must contact the Unit Chair at least one week prior to the due date in order to make alternative arrangements for submission. Page 3 of 5 Extensions can be granted for unexpected circumstances such as serious illness or for compassionate reasons under special circumstances. Extensions can only be approved by the Unit Chair. Requests for time extensions should be emailed to the Unit Chair AT LEAST ONE BUSINESS DAY BEFORE (24 business hours before) the due date of submission. You will need to provide evidence to support your request (for example, medical certificate) and a draft of the work completed to date. No extension exists until such time as it is approved in writing by the Unit Chair. For requests after the due date please submit your request to Special Consideration https://www.deakin.edu.au/students/studying/assessment-and-results/special-onsideration Work or holidays or other assignments are NOT grounds for an extension – you are expected to manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of any length. Please note, assignments that are submitted late (including those that have extension approved by the unit chair) will still be able to be submitted through the Dropbox. However, the system will show the submission date/time in red. It is important that students familiarize themselves with the online submission procedures well before the due date for this assignment. The most common problem when submitting an assignment electronically is an improperly configured Internet browser. Students can test if their browsers are properly configured. This can be done from the CloudDeakin homepage. The Unit Chair does not accept excuses for late, incorrect or incomplete submissions of assignments due to problems with uploading them to Turnitin. Check your ability to submit electronically at the outset of this trimester and advise staff via CloudDeakin if you are having a problem. It is the responsibility of each student to keep backup copies (both soft and hard) of their assignments. The Unit Chair will not accept excuses for late submissions due to computer-related matters (e.g., lost documents, virus infected documents, hardware failure, stolen computers, etc.). Back up your draft copies of your assignment in progress often and to a remote device for safe-keeping. You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy. Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism. When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment dropbox folder after upload, and check for, and keep, the email receipt for the submission. https://www.deakin.edu.au/students/studying/assessment-and-results/special-onsideration Page 4 of 5 Notes  Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% of the total available mark will be deducted from the final mark achieved for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date.  For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site.  Building evidence of your experiences, skills and knowledge (Portfolio) - Building a portfolio that evidences your skills, knowledge and experience will provide you with a valuable tool to help you prepare for interviews and to showcase to potential employers. There are a number of tools that you can use to build a portfolio. You are provided with cloud space through OneDrive, or through the Portfolio tool in the Cloud Unit Site, but you can use any storage repository system that you like. Remember that a Portfolio is YOUR tool. You should be able to store your assessment work, reflections, achievements and artefacts in YOUR Portfolio. Once you have completed this assessment piece, add it to your personal Portfolio to use and showcase your learning later, when applying for jobs, or further studies. Curate your work by adding meaningful tags to your artefacts that describe what the artefact represents. Page 5 of 5 Marking rubrics Criteria Poor Needs Improvement Satisfactory Good Very Good Excellent The reasoning of development and Economic implication of AASB 2 GLO1 GLO2 ULO1 ULO2 (10 marks) 1.5 marks Discussion is inappropriate and/or irrelevant, and presents an unacceptable exposition of complex knowledge and ideas. (0 – 2.9 marks) 4 marks Discussion is inappropriate and/or irrelevant, and presents an unclear exposition of complex knowledge and ideas (3 – 4.9 marks) 5.5 marks Discussion is moderately appropriate and relevant, and presents an acceptable level of clear exposition of complex knowledge and ideas (5 – 5.9 marks) 6.5 marks Most Discussion is appropriate and relevant, and presents a good level of clear exposition of complex knowledge and ideas (6-6.9 marks) 7.5 marks Discussion is appropriate and relevant, and presents a very good level of clear exposition of complex knowledge and ideas (7-7.9 marks) 10 marks Discussion is appropriate and relevant, and presents an excellent level of clear exposition of complex knowledge and ideas (8 - 10 marks) Calculate the equity component and Prepare the journal entries GLO1 ULO1 (10 marks) 1.5 marks Required journal entry is omitted. (0 – 2.9 marks) 4 marks Limited number of journal entries are presented with either correct account names or with correct amounts. (3 – 4.9 marks) 5.5 marks Required journal entries are reasonably presented with either