MA 601 Theory and Current Issues in Accounting XXXXXXXXXXPage 2 of 6 Assessment Details and Submission Guidelines MA601 Theory and Current Issues in Accounting School Business Course Name Master of...

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MA 601 Theory and Current Issues in Accounting Page 2 of 6 Assessment Details and Submission Guidelines MA601 Theory and Current Issues in Accounting School Business Course Name Master of Professional Accounting (MPA) Unit Code MA601 Unit Title Theory and Current Issues in Accounting Trimester Trimester 3, 2020 Assessment Author Dr Jayasinghe Hewa Dulige Assessment Type Report Assessment Title Assessment Task 3 – Individual Unit Learning Outcomes Addressed: The purpose of this assignment is to assess the following Learning Outcomes: a. Explain, describe and demonstrate mastery of the financial accounting standard setting process of Australia. b. Critically analyse and interpret current issues and developments in accounting theory and financial reporting Weight 20% Total Marks 100 Word limit 1250-1500 Release Date Week Three Due Date Week 6 Submission Guidelines · This assignment should be completed individually. · All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page. · The assignment must be in MS Word format, 1.5 spacing, 11-pt Calibri (Body) font and 2 cm margins on all four sides of your page with appropriate section headings. · Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA 6th edition for the School of Business. Extension If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted directly to the School's Administration Officer via your MIT AMS login [https://online.mit.edu.au/ams/default.aspx?ReturnUrl=%2fams%2f]. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at: http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/specialconsiderationdeferment Academic Misconduct Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/Plagiarism-Academic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description. Assessment Cover Sheet Student ID Number/s: Student Last name/s: Student First name/s: Course: School: Unit code: Unit title: Due date: Date submitted: Campus: Lecturer’s Name: Tutor: Student Declaration I/We declare and certify that: 1. the work contained in this assessment is my/our own work/group work, except where acknowledgement of sources is made; 2. this assessment has not been submitted previously for academic credit in this or any other course; 3. I/we have read MIT’s Plagiarism and Academic Misconduct Policy and Procedure, and I/we understand the consequences of engaging in plagiarism, collusion and contract cheating; 4. a copy of the original assignment is retained by me/us and that I/we may be required to submit the original assignment to the Lecturer and/or Unit Co-ordinator upon request; I/we have not plagiarised the work of others or participated in unauthorised collaboration or contract cheating when preparing this assessment. MIT ID Signature Date Assignment Description The basic requirement of the Corporations Act is that the statement of financial position (Balance sheet) and notes should comply with the accounting standards and present a ‘true and fair view” of the financial position of the entity at the end of the reporting period (Corporations Act 2001). Australian Accounting Standard board (AASB) in October 2006 issued AASB 101 ‘Presentation of Financial statements’ which provides authoritative guidance on the format of the statement of financial position. Para 71 AASB 101 states, “This Standard does not prescribe the order or format in which items are to be presented. Paragraph 68 simply provides a list of items that are sufficiently different in nature or function to warrant separate presentation on the face of the balance sheet” AASB101 pp39). Furthermore, para 51 of AASB101 postulates that “An entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications on the face of its balance sheet in accordance with paragraphs 57-67 except when a presentation based on liquidity provides information that is reliable and is more relevant. When that exception applies, all assets and liabilities shall be presented broadly in order of liquidity” AASB 101 pp32). Henderson et al (2017) argue that until 1997 Scheduled 5 of the Corporations Regulations specified in some detail of items to be disclosed in the balance sheet. It specified a standard format, with net assets being equal to total equity. Furthermore, now superseded scheduled 5 format is an example of a fixed format. It is also argued that fixed format assist financial information users to easily locate the required information, and enhances the understandability and comparability of information on financial position between entities operating in same industry. A contrary view is that a flexible format allows the selection of specific entity information rather than the presentation of information that is generally appropriate to all entities (Henderson et al 2017). Required: You are required to critically examine above and provide your opinions and suggestions on the format of statement of financial position stating whether a fixed format statement of financial position is preferable to a flexible format statement of financial position. In your report: 1. Explain the purpose of preparing a statement of financial position. 2. Explain what is meant by a ‘fixed format’ for a statement of financial position. Is this format consistent with the requirements of AASB 101? 3. Select the most recent annual report of a top 100 ASX listed company and assess what presentation format the company uses to prepare its statement of financial position. 4. In your opinion, is a fixed format statement of financial position preferable to a flexible format statement of financial position? Henderson, S., Peirson, G., Herbohn, K., Artiach, T. and Howieson, B. (2017). Issues in Financial Accounting (16th ed.). AU: Pearson Higher Education. Corporations Act 2001. Retrieved from; https://www.legislation.gov.au/Details/C2018C00031 Australian Accounting Standard Board. (2008). Presentation of financial statements, AASB 101. Retrieved from; https://www.legislation.gov.au/Details/F2009C00140 This assignment must be written/structured in the form of a ‘business report’. That is, it must have a/an; (a) Executive summary (between 100 to 150 words), (b) Introduction that; Succinctly summarizes this assignment’s topic and its key issues, controversies, etc. (no more than 200 words), and (c) Body that addresses all the requirements – see above 1-6 (no more 1000 words), (d) Conclusion that sums up the mains issues of this assignment (no more than 200 words), and (e) Reference list containing all cited works. (f) Proper English Grammar, appearance, format, etc. At least 2 recognized journal article should be cited. Marking criteria: MA601 / Theory and Current Issues in Accounting /Semester T3, 2020, Individual Assignment Name: Student Number Assessment Criteria Total Marks Marks awarded Criterion 1 - Structure and Clarity of the Report/Assignment · introductory paragraph · logical flow of clarity and structure of ideas and arguments · appropriate use of paragraph and headings to explain and discuss ideas · appropriate concluding paragraph 3 2 2 3 Total marks for criterion 1 10 Criterion 2 - Body/contents · Explain the purpose of preparing a statement of financial position. · Explain what is meant by a ‘fixed format’ for a statement of financial position. Is this format consistent with the requirements of AASB 101? · Select the most recent annual report of a top 100 ASX listed company and assess what presentation format the company uses to prepare its statement of financial position. · In your opinion, is a fixed format statement of financial position preferable to a flexible format statement of financial position? 10 15 20 15 Total marks for criterion 2 60 Criterion 3 - Research and Analysis · quality of research undertaken · accuracy and depth of analysis · appropriate use of in-text and end text referencing · quality of information sources · appendices 6 6 5 5 3 Total marks for criterion 3 25 Criterion 4 - Presentation · layout · formatting · spelling/grammar · proof read · professional format 1 1 1 1 1 Total marks for criterion 4 5 Total marks 100 Total marks 20 Other Comments Using Technology for Assessment Rationale Activities Technological tools selected · Industry knowledge & skills · reflection on learning · feedback on performance · practice of critical thinking · check for plagiarism · problem-based learning · online forum on Moodle · Turnitin © MIT Lasted Updated: November, 2019T1-2020 Lasted Updated: November, 2019
Answered Same DayDec 18, 2021

Answer To: MA 601 Theory and Current Issues in Accounting XXXXXXXXXXPage 2 of 6 Assessment Details and...

Pallavi answered on Dec 23 2021
142 Votes
Theory and Current Issues in Accounting    
Executive Summary
The report has provided an introduction about the key matters that are covered in this report- i.e. comparison of fixed and flexible formats for preparation of statement of financial position. The report has provid
ed explanation of purpose of statement of financial position which is accountability, useful information for decision making and control. It has explained about the requirements of AASB 101 in relation to the presentation of financial statements. It has included a discussion on fixed format of preparation of financial statements, and whether this format is in consonance with the requirements for presentation of financial statements laid down by AASB 101. The report has referred to the Annual Report for the year 2020 prepared by Coles Group Limited, which is one of the top 100 ASX listed companies, and has provided an assessment of the format used in the preparation of its statement of financial position.
Contents
Introduction    3
Purpose of preparing statement of financial position    4
Requirements of AASB 101    4
Fixed Format of preparation of financial statements and its acceptability as per AASB 101    5
Format followed by Coles Group Limited in its Annual report for 2020    5
Conclusion: Preferable format- Fixed or flexible    6
References    7
Introduction
The AASB 101, “Presentation of Financial Statements” provides the basis for preparation of financial statements by the entities and provides directions on the rules for consideration and presentation of items in the financial statements. The fixed and flexible formats are two ways of presentation of items in the statement of financial position. Both these methods are different from each other and have their own merits and demerits. This report purports to throw light on the purpose of preparation of statement of financial position as well the requirements laid down by AASB 101. The report also provides a comparison of both the methods and evaluates whether the fixed format is in accordance with requirements provided by AASB 101.
Purpose of preparing statement of financial position
The main purpose of preparing general purpose financial statements is to give information about the financial position, financial performance and cash flow position of the company which would help the various users of financial statements in their decision making related to investment in the company (Warschauer, 2019). Apart from this main purpose, the statement of financial position is prepared so as to portray how the management of the company is using its resources. All the information provided in the financial statements and the notes that form part of the financial statements help the users in making...
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