Please submit it by due time and I need proper references & citations
Final alternate assessment – seven questions (6 short answer questions and 1 case study question) Please create a word document and answer the six short answer questions (20 marks) and one case study question (10 marks). Upload your word document in the canvas shell for ACC80019. Question 1 (4 marks) The board of directors has resolved to change the accounting policy for treatment of advertising expenditure. Previously, advertising expenditure had been expensed as incurred. Following extensive market research, the board has taken the view that benefits from advertising expenditure in the form of product awareness and increased sales will be received by the company over a 3-year period following the expenditure. Due to a recent fire and water damage to the company’s accounting records, details of advertising expenditure in prior years have been destroyed. Required The board of directors has approached you for advice regarding the disclosures, if any, which are required for this change in accounting policy. Question 2 (4 marks) An accounting postgraduate student’s presentation slide pack for Positive Accounting Theory includes the statement ‘It is possible to put in place mechanisms to reduce all opportunistic action’. Required Critically evaluate the above statement. In your evaluation ensure you explain agency costs of equity and debt and whether you agree or disagree with the statement, including reasons for your position. Question 3 (3 marks) ‘An entity that is performing its responsibilities under a contract to a customer in a manner where the performance obligations are being satisfied ‘over time’ (rather than at a ‘point in time’) can use alternative approaches to measure the level of progress that depicts the transfer of goods and services to the customer.’. Required Explain the meaning of the above statement. Question 4 (3 marks) ‘A temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax.’. Required Critically evaluate the above statement. Question 5 (3 marks) A student has been presented with the following fact pattern. A Ltd and B Ltd combine by creating C Ltd which acquires all the shares in A Ltd and B Ltd and issues its own shares in exchange. The student knows it is important to identify an acquirer in a business combination. However, they do not understand why or the consequences of wrongly applying that process. They ask you for an explanation. Required Explain to the student why it is important and the consequences of wrongly applying the process. Question 6 (3 marks) Would it be possible for an entity to be required to consolidate another entity in which it has no equity interest? Required State your position and explain your reasons for the position. Question 7 (10 marks) In its latest annual report, business platform Xero (XRO) has made its first full-year profit, but warned that COVID-19 will impact its bottom line in the 2021 financial year. The New Zealand company made a NZ$3.3 million (roughly A$3.07 million) net profit in the financial year ending on March 31 2020 — a huge turnaround from the NZ$27.14 million (approximately A$25.23 million) loss in FY19. The ASX-200 lister also enjoyed a 30 per cent spike in its revenue for the full year to March in the year-on-year statistics. Revenue for the 12 months through to March hit NZ$718.2 million (roughly A$667.69 million), a sharp increase from NZ$552.8 million (approximately A$513.92 million) the year before. Additionally, Xero also saw its annualised monthly recurring revenue grow 29 per cent to NZ$820.6 million (roughly A$762.88 million). But despite the growth, the company says the coronavirus' impact on its bottom line is imminent. “While COVID-19 brings uncertainty, our long-term strategic ambitions are unchanged ... now more than ever, small businesses are recognising the benefit of being able to use the cloud to run their businesses and manage their finances,” the company said in a market statement. Further, in a 26 per cent subscriber spike, the company added 467,000 subscribers over the year and now has a total of 2.285 million subscribers. However, CEO Steve Vamos said many of Xero's customers and partners are having to adapt the way they operate during these current market conditions and difficult times. "While COVID-19 brings uncertainty, our long-term strategic ambitions are unchanged and we remain committed to our three strategic priorities: to drive cloud accounting around the world, grow the small business platform, and to continue to build for global scale and innovation," he said. "Now more than ever, small businesses are recognising the benefit of being able to use the cloud to run their businesses and manage their finances," he added. While Xero has performed strongly in the 2020 financial year, it has admitted that trading in the early stages of FY21 has been impacted by the pandemic. Xero is down 5.78 per cent on the market this morning, trading for $78.93 per share at 10:26 am AEST. {“Xero (ASX:XRO) achieves first full-year profit, warns of virus impact in FY21”, Lisa Simcock, Market Herald, 14 May 2020) Required After reading the above extract explain the fall in Xero share price referring to capital markets research. (Maximum word limit: 500 words. You are required to provide a reference whenever you include information from other sources in your work. Both in-text citations, as well as a reference list, is required if you are using others’ work. The reference list is excluded from the maximum word count. Referencing convention required for this unit is the Swinburne Harvard System. Helpful information on referencing using the Swinburne Harvard System can be found at: http://www.swinburne.edu.au/lib/studyhelp/harvard_style.html )