Question 3 ACC3116 Accounting and Society Semester 1, 2018 Assignment Due Date: Monday, 14 May 2018 Value: 25% Important Information The course specification requires that your submission is your own...

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Question 3 ACC3116 Accounting and Society Semester 1, 2018 Assignment Due Date: Monday, 14 May 2018 Value: 25% Important Information The course specification requires that your submission is your own work. You are strongly urged to complete this assignment yourself to receive clear feedback about your level of understanding of the course material. You will find information regarding plagiarism and academic misconduct, such as collusion and cheating in the course specification and on the USQ website. The course specification also contains information about: o Assignment late policy o Assignment extension policy Please ensure that any ideas or data that you provide in your answer, other than your own original thoughts are properly referenced using the Harvard referencing style. A link to the university’s Harvard referencing style page is provided here. http://www.usq.edu.au/library/referencing/harvard-agps-referencing-guide You might also find the following book useful: Summers, J. & Smith, B. (2010), Communication Skills Handbook, John Wiley & Sons, Third Edition, Milton Queensland Please refer to the following information in relation to assignment lodgement. Assignment Preparation and Submission Please read the following points carefully. o This assignment must be lodged using USQ’s Assignment submission link on Study Desk. o You are required to lodge one (1) Microsoft Word file (limit 2MB), using the correct file naming protocol (see next page). o Your submission must have a footer on every page, which includes your name and student number. o The assignment is due on Monday, 14 May 2018 at 11.55 p.m. (USQ time). Submissions will open on Tuesday, 1 May 2018. o Please include a reference page in your assignment, citing all resources used other than the articles mentioned in this document. http://www.usq.edu.au/library/referencing/harvard-agps-referencing-guide How do I name the Word file I have to lodge? When naming the Word file to be submitted as your assignment, the file name should use the following naming convention: first name, last name, last 4 digits of student number and course code (e.g. JohnTaylor1234acc3116.docx). Remember to press the “SUBMIT” button to complete the submission process. Do I need to include the electronic version of the USQ cover sheet? You do not need to include a USQ coversheet in your assignment. Do I have to send in a hard copy? No hard copy is required. The submission system is easy to use and reliable. You can rely on the system to submit your assignment online. Technical problems with online submission If you need help with your online submission, please email the Course examiner [email protected] and if necessary, a system expert may contact you to provide assistance. If you leave it until after 5pm on the due date, you might have to bear any undesirable consequences (late penalties will not be applied in genuine cases of technical problems but failure to read instructions will be no excuse). In the rare circumstance that the server is down (e.g. due to a storm), email the assessment file. Keep your submission details You need to keep your submission details like date and time of your submission as well as a back-up copy of your assignment file. Extensions No extensions will be granted after the due date and time for submission of the assignment has passed. All requests for extension must be addressed to the Course examiner [email protected] at least one business day before the due date with supporting documentation (e.g. doctor’s certificate). Extensions will only be granted in extenuating circumstances. Crashing of computers, too busy with other assignments, heavy workload, and such reasons are not considered extenuating circumstances. Requests for extensions due to work commitments will generally NOT be granted. You must organise your study time around these other commitments. mailto:[email protected] mailto:[email protected] Marking Guide Marks will be awarded based on the marking rubric (separate document available on Study Desk) and the following general guidelines: High quality answers should address the requirements of the questions asked comprehensively with good grammar, spelling and punctuation. For case study questions, relevant theories should be explained and applied, citing the contents of the case studies as much as possible where appropriate to support your answers. Please use the assigned maximum word limits in each section and the marking rubric guidelines to gauge the extent and quality of work expected in each section to gain good marks. Answers should be typed and in short answers/essay form. Bullet points are not acceptable. Assignment Feedback and results Feedback will be provided to students after marking is completed using the template below: STUDENT NAME: Minimum mark per grade SECTION A MAX HD A B C F+ MIN Total (a) 10 years on … 7.00 5.95 5.25 4.55 3.50 2.80 0.00 (b) Do financial statements still matter? 8.00 6.80 6.00 5.20 4.00 3.20 0.00 (c) The push to improve communication … 7.00 5.95 5.25 4.55 3.50 2.80 0.00 SECTION A/22 0.00 SECTION B MAX HD A B C F+ MIN Total (a) Social contract and terms 6.00 5.10 4.50 3.90 3.00 2.40 0.00 (b) Stakeholder groups involved 6.00 5.10 4.50 3.90 3.00 2.40 0.00 (c) Organisational legitimacy and strategies 10.00 8.50 7.50 6.50 5.00 4.00 0.00 (d) Suggestions to improve legitimacy 6.00 5.10 4.50 3.90 3.00 2.40 0.00 SECTION B/28 0.00 TOTAL/50 0.00 Comments: A copy of the suggested solutions to the assignment will be put up for students’ reference after all students have submitted their work for marking. Note: The turnaround time for marking of assignments is 3 weeks. You can expect to receive your results with feedback in the week beginning 4 June 2018. Section A (22 marks) Requirements: (a) Read the article “10 years on, are international standards helping financial reporting?” by Ram Subramaniam. https://www.intheblack.com/articles/2016/10/04/10-years-on-are-international-standards-helping- financial-reporting In 350 words or less, summarise the article citing the reasons on whether IFRS has delivered on its promise of improving financial reporting. What are some of the suggestions made to create a more efficient financial reporting system? (7 marks) (b) Read the article “Do financial statements still matter?” by Jan McCallum. https://www.intheblack.com/articles/2017/12/19/financial-statements-still-matter According to Lev and Gu, in today’s business environment, are financial statements still relevant? Why? What has changed? Explain. According to some Australian researchers, there are differences between the usefulness of financial statements in Australia and the United States. Highlight these differences and explain the reasons for them. (8 marks) (c) Read the article “The push to improve communication in financial reporting” by Ram Subramaniam. https://www.intheblack.com/articles/2017/03/01/improve-communication-financial-reporting The IASB is intent on improving the communication value of financial statements. What are some of the current problems and what strategies are they adopting to address these weaknesses? Explain. (7 marks) The overall word limit for Section A is 1,100 words. Words in excess of this limit will not be marked. https://www.intheblack.com/articles/2016/10/04/10-years-on-are-international-standards-helping-financial-reporting https://www.intheblack.com/articles/2016/10/04/10-years-on-are-international-standards-helping-financial-reporting https://www.intheblack.com/articles/2017/12/19/financial-statements-still-matter https://www.intheblack.com/articles/2017/03/01/improve-communication-financial-reporting Section B (28 marks) Read the following articles and answer the questions asked. 1. ATM fees dropped by the big four banks. http://www.abc.net.au/news/2017-09-24/commonwealth-bank-and-westpac-axe-atm-fees-for- non-customers/8979250 2. Fears big banks will start shutting down ATMs after announcing they’ll lose $500 million by scrapping withdrawal fees. http://www.dailymail.co.uk/news/article-4915888/Fears-banks-cut-ATMs-withdrawal-fees- removed.html#ixzz5916PQ1eZ 3. Scott Morrison warns banks to absorb cost of dumping ATM fees. http://www.afr.com/news/scomo-warns-banks-to-absorb-atm-fee-costs-20170924-gynlxs 4. ATM fee removal comes with a catch. http://www.news.com.au/finance/business/banking/atm-fee-removal-comes-with-a-catch/news- story/d62b3513646d98d24a8cae9a74419163 Requirements: (a) What is a social contract? Is there a social contract between the banks and the community? If so, what are the explicit and implied terms of the contract? Explain. (6 marks) (b) Name the various stakeholder groups involved and explain their roles, motivations, strategies adopted and benefits obtained, if any in this case study. (6 marks) (c) What is meant by organisational legitimacy? Whose legitimacy had been negatively impacted in this case study and what had led to that? What strategies have been used to regain organisational legitimacy and have they been genuinely implemented? Explain with relevant theories, appropriate examples from the case and applications. (10 marks) (d) Are there other strategies that you can suggest to improve organisational legitimacy? Support your answers with reasons. (6 marks) The overall word limit for Section B is 1,400 words. Words in excess of this limit will not be marked. http://www.abc.net.au/news/2017-09-24/commonwealth-bank-and-westpac-axe-atm-fees-for-non-customers/8979250 http://www.abc.net.au/news/2017-09-24/commonwealth-bank-and-westpac-axe-atm-fees-for-non-customers/8979250 http://www.dailymail.co.uk/news/article-4915888/Fears-banks-cut-ATMs-withdrawal-fees-removed.html#ixzz5916PQ1eZ http://www.dailymail.co.uk/news/article-4915888/Fears-banks-cut-ATMs-withdrawal-fees-removed.html#ixzz5916PQ1eZ http://www.afr.com/news/scomo-warns-banks-to-absorb-atm-fee-costs-20170924-gynlxs http://www.news.com.au/finance/business/banking/atm-fee-removal-comes-with-a-catch/news-story/d62b3513646d98d24a8cae9a74419163 http://www.news.com.au/finance/business/banking/atm-fee-removal-comes-with-a-catch/news-story/d62b3513646d98d24a8cae9a74419163
Answered Same DayMay 09, 2020ACC3116

Answer To: Question 3 ACC3116 Accounting and Society Semester 1, 2018 Assignment Due Date: Monday, 14 May 2018...

Pulkit answered on May 13 2020
145 Votes
SECTION A
Part a
Today many countries around the world have adopted International Financial Reporting Standards (IFRS) for the purpose of financial reporting. But still there are of the major countries like US, China, India and Japan who have still not adopted the same.
The main aim of using IFRS is to make the accounts of the company readable and understandable all over the world. Its adoption would provide the details of the transactions in an efficient manner and also
help in lowering the associated cost. After a decade still the adoption of IFRS uniformly around the world is difficult to implement as it is a change in the historical procedures of accounting also there are differences in the economic, political and social environment of various economies around the world.
IFRS is basically concerned with the financial reporting by way of various estimations and judgements. The estimations and judgements by the professionals on the matter concerned differs from person to person depending on the accounting policy adopted by the company and hence making it difficult to compare with the others.
In the process of estimation the determination of the fair value is very important and which is not very easy as it may be difficult to determine the same in some economies due to the non-availability of the relevant data for determining fair value. The jurisdiction environment also affect the uniform implementation of IFRS all around the world.
In order to create more efficient financial reporting framework the infrastructures necessary for implementation of IFRS need to be developed. There had been a tendency of not using the generally accepted principles for implementing the IFRS. Thus there is a need to develop a line of accounting policies and principles to be adopted by various economies in different situation for IFRS implementation. There is also a need to develop a method of estimation to be followed.
Part b
According to Lev and Gu the information depicted by the various financial statements like Balance Sheet, Income Statement and Cash Flow Statements are no longer useful by the investors in taking best investment decisions. The investors need to rely on other sources for obtaining the requisite information and the same may tend to boost the share prices of the company. The traditional accounting system does not always depict the true and fair view of the state of affairs of the company. Lev and Gu argued on using non accounting information rather than accounting information for investment decisions. The non-accounting information which may be useful include the information on the plans, policies and strategies adopted by the enterprises, the changes that have taken place during the year including the changes in the customers, products satisfaction. They argue that the outcomes of the changes in the company’s policies and strategies will take time to be incorporated in the financial statements but the information on other factors like success or failure of the competitor’s product or testing of the implementing of new product will all affect the share prices. The investors now rely more on intangible information/value. But sometimes the intangible value may be understated in comparison to the profitability of the company.
The following are the points of differences in the usefulness of financial statements in Australia and United States.
· In US the US Generally accepted accounting principles are followed for preparing the financial statements where as in Australia IFRS based accounting standards are used for financial reporting.
· In US markets trading is based on the non-accounting information whereas in Australia as the market is not so liquid trading is based on the accounting information
· Australian investors still depend on the financial statements to make investment decisions, while US investors are more concerned about the intangible values and information of the company.
· The information depicted in the financial statements relating to the net worth and equity and not the other information is still of value for the investors in Australia in comparison to the same in United States where the prevailing market condition and other non accounting factor supersedes the information depicted in the financial statements.
Part c
In today’s world the investors and other stakeholders are looking beyond the traditional methods of getting information necessary for investment decisions. Now the investors are more interested in the changes in the share prices of the company over years, the study of the company’s plans and policies adopted are more vital to the investors. The IASB requires the companies to present the information using non accounting measures and also provide information beyond the...
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