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Microsoft Word - ACCT 3011 individual assignment sem 2 2018 with marking guide ACCT3011 Financial Accounting B Semester 2, 2018 Individual Assignment Instructions and information Completion of all parts of this assignment is compulsory. Each assignment should be submitted using the ‘turnitin’ function on Canvas (included within the Assessment folder) Due date: 4pm 9 October 2018. If you submit after the due date, a late penalty of 10% per day, or part thereof, including weekends, will be applied. Furthermore, as noted in your unit of study outline, any assignment submitted beyond the closing date of 4pm 19 October 2018, will result in a mark of zero. Your assignment will be marked out of 50 and scaled back to a mark out of 10. The format for your submission must be as follows: o 12 point font, Times New Roman, paragraphs formatted with 1.5 line spacing, and with margins of 2.5cm. This assignment must be done on ‘Word’ or other text format program. Do not use ‘Excel’ or other non- text programs to do this assignment. Do not submit a PDF file. o Your submission must not exceed 5 pages in total, including any appendices you may choose to attach. Any work after the allowed 5 pages will not be marked. A bibliography/reference list is not included in the 5-page count and should be on a separate page (for example, if you have a 5 page submission, the bibliography should be on a 6th page). Failure to comply with these requirements will incur penalties. Your referencing in this assignment should draw from the Business School Referencing Guide (see reference guide under ‘student policies’) or the APA style. 2 In the header of your word document you must show your SID. For example, ‘123456789’. Other guidance on how to submit using Turnitin is provided in the assessment folder on Canvas. Turnitin will also be utilised to review for plagiarism. That review allows an assessment of whether unreferenced slabs of your work are identical to any other narrative accessible anywhere through the internet, including any submission of another student for the same assignment. If necessary, students are advised to refer to the special consideration advice contained in the Administration Manual for Students on the Faculty website: http://www.econ.usyd.edu.au/currentstudents/student_information. 3 Grade Descriptors: Due to the specific nature of this assignment, students are advised generic submissions will not score high marks as the assignment requirements will not be met. The following can at best be considered as a general indication, assuming consistency in quality of component parts. High Distinction The attempted solution substantially exceeds minimal requirements, and is consistent and coherent. It excels in substantive content and demonstrates professional communication skills. It reflects consideration of your own well developed perspectives and is framed in your own words. Distinction The attempted solution substantially exceeds minimal requirements across most tasks and through effective communication demonstrates a strong understanding of the accounting issues and relevant accounting requirements. Good development of your own perspectives. Credit The attempted solution exceeds minimal requirements across most tasks, but is less well developed, less framing in your own words (e.g. dull reproduction of slabs of text from others), some errors or omissions in application. Pass A minimal standard is reached across various aspects of the task. Fail The task is not completed. The solution does not reflect an appropriate understanding of the question/assigned task. Poorly developed responses. Questions about the Assignment: All assignment queries must be posted to the specially assigned ‘Assignment’ discussion forum on Canvas. This provides an opportunity for all students to have access to the same information. 4 Analysis and interpretation of Qantas Limited and Virgin Australia Holding Limited Group 2017 Annual Reports In this assignment you will analyse, interpret and explain equity accounting and non- controlling interest disclosures provided by Qantas Limited and Virgin Australia Holdings Limited Group in their 2017 Annual Reports. A copy of the related resources is provided in the Assessment folder on Canvas for you to refer to: - Qantas Annual Report 2017 (Qantas Annual Reports are also available at: http://investor.qantas.com/investors/?page=annual-reports; - Virgin Australia Group Annual Financial Report 2017 (Virgin Annual Reports are also available at: https://www.virginaustralia.com/au/en/about- us/company-overview/investor-information/annual-reports/) In preparing your responses you may need to search broadly across Qantas Limited’s entire 2017 Annual Report and Virgin Australia Group 2017 Annual Report to inform your response. We will determine your mark out of 50 as follows: Part Mark 1 /8 2 /8 3 /5 4 /8 5 /6 6 /7 Are all written sections of the assignment prepared in a professional, neat style with minimal grammatical and spelling errors? /4 Additional contributions. This might include relevant reference to other media analysis of the 2017 Qantas results, or academic papers or other examples. /4 Preliminary mark /50 Penalties/ deductions Final mark /50 5 QUESTIONS Non-controlling interest 1. Explain all of the disclosures provided in the consolidated financial statements as well as in the notes to the consolidated financial statements in the Qantas Limited Annual Report for the year ended 30 June 2017 in relation to the non- controlling interest in the group. Explain what each of these disclosures is communicating. (8 marks) 2. Explain what we learn from the Qantas Limited Annual Report about the group’s structure, and about the names of the subsidiaries in the group. Can you determine the names of the subsidiaries to which the non-controlling interest applies and the percentage of non-controlling interest in each case? Contrast what is or is not disclosed about those less than wholly owned subsidiaries, to the disclosure requirements of AASB12 and explain your perspective on whether the Qantas group has adequately complied with AASB12. In answering question 2, explain what you find in the Qantas Limited Annual Report, where it is disclosed, and your perspectives on the adequacy or shortcomings of the information disclosed. (8 marks) 3. Imagine you are an external investor in one of those subsidiaries which are less than 100% owned by Qantas group entities (that is, you are a part of the Qantas group non-controlling interest). Explain your perspective on the utility to you of the Qantas Limited Annual Report in general, and specifically on the non- controlling interest disclosures provided. (5 marks) Equity Accounting disclosures 4. Identify and explain disclosures provided in the consolidated financial statements as well as in the notes to the consolidated financial statements in the Qantas Limited Annual Report for the year ended 30 June 2017 in relation to its investments in associates and joint ventures. In your explanation, include an explanation of how the line item, ‘investments accounted for under the equity 6 method’ in the Consolidated Balance Sheet would have been measured. (8 marks) 5. Explain what we learn about Virgin Australia Group’s structure from the Section F in the notes of the Virgin Australia Group 2017 Annual Report. Comparing to Qantas Limited 2017 Annual Report, what additional information did Virgin Australia Group 2017 Annual Report provide on its controlled entities, joint ventures, associates, and non-controlling interests? Again, you should relate this to the relevant disclosure requirements set in AASB12, providing your perspective on whether Virgin Australia has adequately complied with these requirements. (6 marks) 6. According to Section F2 in Virgin Australia Group 2017 Annual Report, the Group holds a 49% interest in Virgin Samoa Limited, a company incorporated in Samoa and accounted for as an associate. Virgin Australia Group defines an associate as an entity over which the Group has significant influence. Contrast the indicators of ‘significant influence’ and ‘control’ included in AASB 10 and 128. How would you describe the difference between ‘strong significant influence’ and ‘weak control’? Assuming Virgin Australia has adequately complied with these accounting standards, what sorts of facts are likely to have led to the conclusion that Virgin Samoa Limited is an associate and not a subsidiary? (7 marks) Microsoft Word - Annual Report 2017-15 ASX-ND.docx P O S I T I O N I N G F O R S U S TA I N A B I L I T Y A N D G R O W T H Q A N T A S A N N U A L R E P O R T