HOLMES INSTITUTEFACULTY OF HIGHER EDUCATION TrimesterUnit CodeUnit Title Assessment Type Assessment TitleAssessment Details and Submission GuidelinesT2 2020HA2032Corporate and Financial AccountingIndividual AssignmentCorporate reporting and disclosure requirements in Business Combination Purpose of theassessment ULO Mapping)(with This assignment aims to develop students’ understanding of corporate reporting, disclosure, reporting entity concept and the implication of being classified as a reporting entity. This assignment also develops an understanding of students on accounting and disclosures for business combinationsThe HA2032 Unit Learning outcomes addressed in this assessment are: • Demonstrate an understanding of the role of the Corporations Act, sources of authority, and accounting standards in the governance of companies and requirements for financialreporting;• Critically analyse and interpret the financial statements and otherdisclosures produced by Australian companies and corporate groups; (ULO 1, 3).Weight Total Marks Word limit25 % of the total assessments 253000 words ±300 words Due Date Assignment submission: Final Submission of individual Assignment: 11:59 pm Wednesday, 23 September 2020, Week 10.Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to 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, 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. HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Assignment SpecificationsPurpose:This assignment aims to develop students’ understanding of corporate reporting, disclosure, reporting entity concept and the implication of being classified as a reporting entity. The students will also analyse the disclosure on business combination made by two selected companies.Page 2 of 8Assessment Task:Part AAccounting Standard Setting, Regulation and Disclosure ACCOUNTING STANDARD SETTING(i) Do your own research and critically explain how the Australian Accounting Standards Board take part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? REPORTING ENTITY (ii) Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements?Part BBusiness Combination / Acquisition analysisCollect the latest annual reports of two ASX listed companies. Each of the two companies must have reported Business Combination as per AASB 3 (Many of the ASX 300 Companies report business combinations). Carefully read the note disclosure relating to the Business Combination AASB 3. Answer the following: (i) How many business combinations did the company report?(ii) What was the fair value of consideration paid?(iii) What are the components of acquisition costs, e.g. cash consideration and noncashconsideration?(iv) What was the fair value of net identifiable assets acquired?(v) Recognised value of each class of assets, liabilities and contingent liabilities(vi) Carrying value of each class of assets, liabilities and contingent liabilities(vii) How much goodwill or gain on bargain purchase has been recorded?(viii) Factors that contributed to the recognition of goodwill or gain on bargain purchase (ifdisclosed)(ix) What was the amount of goodwill as percentage of total consideration paid?HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Page 3 of 8(x) What was the amount identifiable intangible assets as a percentage of total consideration paid?(xi) Write a comparative analysis on the two companies’ disclosure on business combination.Assignment Structure should be as the following:The assignment structure must be as follows:Holmes Institute Assignment Cover Sheet – Full Name, Student No., Campus, Session No. Executive Summary The Executive Summary appears as a short paragraph on the first page of the report. The Executive summary should be concise and not involve too much detail. It should be a summary of the main points only, the conclusions and analysis of the report. Write the Executive Summary after the report is completed, and once you have an overviewof the whole report. 50 - 100 words is recommendedTable of Contents Page – This needs to show a logical listing of all the sub-headings of the report’s contents. (Note this is excluded from the total word count.)Introduction – A short paragraph which includes background and/or scope and the main points raised in order of importance. There should be a brief conclusion statement at the end of the Introduction.Main Body Paragraphs with numbered sub-headings – Detailed information which elaborates on the main points raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and /or relevant information (evidence) and finish with a concluding sentence at the end.Conclusion – A logical and coherent evaluation based on a thorough and objective assessment of the work performed.References – Credible Academic sources must be used, such as peer reviewed journals or authoritative textbooks. Any referencing style can be followed, but should be consistent.Academic IntegrityHolmes 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.HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Table 1: Six Categories of Academic Integrity Breaches PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.Page 4 of 8 CopyingReproducing 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 Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Source: INQAAHE, 2020 Marking CriteriaExecutive Summary/AbstractList of content & overall presentation of the assignment Introduction1% (1 mark) 1% (1 mark) 1% (1 mark) Marking criteria Weighting Part A: Accounting Standard Setting, Regulation and Disclosure 5% (5 mark) 5% (5 mark) Do your own research and critically explain how the Australian Accounting Standards Board takes part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements? Part B: Disclosure on Business Combination Collect the latest annual reports of two ASX listed companies. Each of the twocompanies must have reported Business Combination as per AASB 3. Carefully read the note disclosure relating to the Business Combination AASB 3. Answer the following for each of the two companies: (i) How many business combinations did the company report?0.5% (0.5 mark) 0.5% (0.5 mark) 0.5% (0.5 mark)0.5% (0.5 mark) 0.5% (0.5 mark) (ii) What was the fair value of consideration paid? (iii) What are the components of acquisition costs, e.g. cash consideration and noncash consideration? (iv) What was the fair value of net identifiable assets acquired? (v) Recognised value of each class of assets, liabilities and contingent liabilities HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
(vi) Carrying value of each class of assets, liabilities and contingent liabilities(viii) Factors that contributed to the recognition of goodwill or gain on bargain purchase (if disclosed)Page 5 of 8 (vii) How much goodwill or gain on bargain purchase has been recorded? (ix) What was the amount of goodwill as percentage of total consideration paid?(x) What was the amount identifiable intangible assets as a percentage of total consideration paid?(xi) Write a comparative analysis on the two companies’ disclosure on business combination. Conclusion References0.5% (0.5 mark) 0.5% (0.5 mark) 0.5% (0.5 mark)0.5% (0.5 mark) 0.5% (0.5 mark) 5% (5 mark)1% (1 mark) 1% (1 mark) TOTAL Weight 25% (25 marks)Marking Rubric Marking Criteria Excellent Very Good Good Satisfactory Unsatisfactory Executive Summary/Abstract (/1 mark) The abstract / summary is excellent The abstract/summ ary is very good The abstract/sum mary is very good The abstract/sum mary is satisfactory The abstract/sum mary is very poor or unsatisfactory List of content & overall presentation of the assignment (/1 mark) The overall presentatio n of the assignment is excellentThe overall presentation of the assignment is very good The overall presentation of the assignment good The overall presentation of the assignment satisfactory The overall presentation of the assignment is very poor or unsatisfactory Introduction (/1 mark) The introduction is excellent The introduction is very good The introduction is good The introduction is satisfactory The introduction is very poor or unsatisfactory Part A: Regulation and Disclosure Do your own research and critically explain how the Australian Accounting Standards Board takes part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB?(/5 marks) Student has provided an excellent explanation on how Australian Accounting Standards Board Take part in the global accounting standard setting process. Has provided an Student has provided a very good explanation on how Australian Accounting Standards Board Take part in the global accounting standard setting process. Has provided a very good explanation on why the IFRS Student has provided a good explanation on how Australian Accounting Standards Board Take part in the global accounting standard setting process. Has provided an Student has provided an explanation on how Australian Accounting Standards Board Take part in the global accounting standard setting process. Has provided an explanation Student has not been able to correctly explain on how Australian Accounting Standards Board Take part in the global accounting standard setting process. Has not provided a correct HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Page 6 of 8 excellent explanation on why the IFRS are not compulsory for member countries- highlighting the fact that members can adopt the standard without any change or with change as paper local need. are not compulsory for member countries- highlighting the fact that members can adopt the standard without any change or with change as paper local need. Minor scope for improvement remains. explanation on why the IFRS are not compulsory for member countries- highlighting the fact that members can adopt the standard without any change or with change as paper local need. Major scope for improvement remains. on why the IFRS are not compulsory for member countries- highlighting the fact that members can adopt the standard without any change or with change as paper local need. Major errors. Major scope for improvement remains. explanation on why the IFRS are not compulsory for member countries- highlighting the fact that members can adopt the standard without any change or with change as paper local need. Do your own research and critically examine the concepts of small proprietary company, large proprietary company and reporting entity. What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements?(/5 marks) The three concepts have been explained in detail. The implications of being classified as either one of these three types of companies have been explained in detail in terms of compliance with accounting standards, reporting and disclosures requiremen t, and auditing. The three concepts have been explained in detail. The implications of being classified as either one of these three types of companies have been explained in detail in terms of compliance with accounting standards, reporting and disclosures requirement, and auditing. Minor scope for improvement remain. The three concepts have been explained. The implications of being classified as either one of these three types of companies have been explained in terms of compliance with accounting standards, reporting and disclosures requirement, and auditing. Major scope for improvement remains. The three concepts have been explained. The implications of being classified as either one of these three types of companies have not been explained in terms of compliance with accounting standards, reporting and disclosures requirement, and auditing. The three concepts have not been explained. The implications of being classified as either one of these three types of companies have not been explained in terms of compliance with accounting standards, reporting and disclosures requirement, and auditing. HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Part B: Disclosure on Business CombinationPage 7 of 8 How many business combinations did the company report? (/0.5 marks)Student has correctly identified the number of business combination the company has reported during the period. A company may report one business combination during the period or may report more than 1 business combination. Students are expected to identify and write the number of business combination that the company has reported during the period. Give 0 marks if did not understand the question. What was the fair value of consideration paid? (/0.5 marks)Students are expected to identify and mention the total fair value of considerations paid for the acquisition. Give zero marks for not understanding the question or for incorrect answer. What are the components of acquisition costs, e.g. cash consideration andnon-cash consideration?(/0.5 marks)Students are expected to identify and mention different components of consideration paid (such as cash, share based payment, exchange of assets, etc.) and their fair values. The summation of fair value of each components of consideration paid should be equal to the total fair value of considerations paid for the acquisition. What was the fair value of net identifiable assets acquired? (/0.5 marks)Students are expected to be determine the fair value of net identifiable assets acquired. Fair value of net identifiable assets acquired is calculated as (fair value of all identifiable assets acquired – fair value of all identifiable liabilities and contingent liabilities assumed). In this part of the question the student will mention the net amount. If the student confuses with carrying value of assets and liabilities with fair value or does not demonstrate an understanding of what ‘the fair value of net identifiable assets acquired’ mean, give 0 mark. Recognised value of each class of assets, liabilities and contingent liabilities (/0.5 marks)Student has correctly identified each class of assets, liabilities and contingent liabilities acquired and their fair values. If the student confuses with carrying value of assets and liabilities with fair value, give zero marks. In this question we are interested about identifying each component. Carrying value of each class of assets, liabilities and contingent liabilities (/0.5 marks)Student has correctly identified the carrying value each class of assets, liabilities and contingent liabilities acquired. List of assets and liabilities mentioned in this question may be (but not always) different from the list of assets and liabilities mentioned to answer the previous question, because while recording business combination the acquirer must identify and value as many intangible assets as possible even though they were not recognised by the acquiree. If the student confuses with carrying value of assets and liabilities with fair value, give (0) zero mark How much goodwill or gain on bargain purchase has been recorded?(/0.5 marks)Student has been able to identify the amount of goodwill or gain on bargain purchase arising out of the acquisition. If cannot specifically identify and mention the amount of goodwill or gain on bargain purchase (can be zero consideration paid and net assets acquired are equal) give (0) zero mark. Factors that contributed to the recognition of goodwill or gain on bargainpurchase (if disclosed) (/0.5 marks)Students are expected to identify and explain the factors that contributed to the recognition of goodwill or gain or bargain purchase. If the company did not make any disclosure in this regard, the student must answer ‘not disclosed’. HA2032 Corporate and Financial Accounting Individual Assignment T2 2020
Page 8 of 8 What was the amount of goodwill or gain on bargain purchase as the percentage of total consideration paid? (/0.5 marks)Student has calculated the goodwill or gain on bargain purchase as the percentage of total consideration paid. Give zero marks if not answered or answered incorrectly. Write a comparative analysis on the two companies’ disclosure on business combination(/5 marks)Student has made an excellent comparison between the two companies regarding the disclosure on business combinatio n. Has highlighted any differences in the disclosure pattern.Student has made a very good comparison between the two companies regarding the disclosure on business combination. An effort was made to highlight the differences in the disclosure pattern of the two companiesStudent has summarised the key disclosures of the two companies on business combination. No comparison was made between the disclosures of the two companies.Student has summarised the key disclosures of the two companies on business combination with minor errors. No comparison was made between the disclosures of the two companies.Student has summarised the key disclosures of the two companies on business combination with major errors. No comparison was made between the disclosures of the two companies. Conclusion (/1 mark)The conclusion is excellentThe conclusion is very goodThe conclusion is goodThe conclusion is satisfactoryThe conclusion is poor or unsatisfactory References Give one marks for correct/consistent referencing. With minor mistakes 0.5 (/ 1 mark) marks, with gross mistakes 0 marks