Students are provided with six business-related news articles and a list of theories taught in lectures 1- 5. Students must choose TWO of the articles to evaluate. For each article you are required to evaluate the article by selecting and applying an appropriate accounting theory, citing at least three scholarly sources in relation to each article analysis. Therefore, a total of six scholarly sources should be cited. Use of academic literature is a key aspect of the assignment. Students are to apply a different theory to each article, so for example, if you select legitimacy theory for one article you cannot use legitimacy theory for the second chosen article.
Page 1 of 16 DEPARTMENT OF ACCOUNTING, FINANCE & ECONOMICS 3101AFE Accounting Theory and Practice Individual Assignment DUE: 2pm on 9 September 2020 WEIGHT: 30% MARKS: WORDS: 30 1500 SUBMISSION: Submit (in MS Word) through the ‘Assignment Final Submission Point’ link in the Assessment folder. DESCRIPTION OF ASSIGNMENT Students are provided with six business-related news articles and a list of theories taught in lectures 1- 5. Students must choose TWO of the articles to evaluate. For each article you are required to evaluate the article by selecting and applying an appropriate accounting theory, citing at least three scholarly sources in relation to each article analysis. Therefore, a total of six scholarly sources should be cited. Use of academic literature is a key aspect of the assignment. Students are to apply a different theory to each article, so for example, if you select legitimacy theory for one article you cannot use legitimacy theory for the second chosen article. Page 2 of 16 ASSIGNMENT STRUCTURE The assignment must follow this structure: 1. Cover sheet 2. For each article: a) Article [Type number and headline of article here] Summarise the article you have chosen, being sure to introduce points you will discuss in more depth in your analysis. Hint: Do not mention your theory in this section (Guide: 2 x 150 words). b) Theory [Type name of your chosen theory here] Identify and describe your chosen theory using high quality and appropriate academic sources to support your discussion. Be sure to identify aspects of your theory that you will discuss in more depth in your analysis. Hint: Do not mention your article in this section (Guide: 2 x 250 words). c) Analysis Apply your chosen theory to your article. Demonstrate specific application of the theory with examples from the article. Hint: You should not need to introduce new material/sources in this section as you are applying/synthesising what you have already introduced in the previous two sections. This is critical thinking (Guide: 2 x 300 words). d) Conclusion Briefly conclude. Keep this to only one or two sentences. 3. Reference list SUBMISSION 1. Submit the assignment electronically via Safe Assign on the 3101AFE L@G site in the assessment tab as a ‘Word’ document. 2. Late penalties are strictly applied in accordance with university guidelines. 3. Complete the electronic ‘Individual Assignment Cover Sheet’. All students must complete this online declaration that the work they are submitting is original work. This is in the form of a test you will see in the assignment submission area of the L@G site. Marks are not released until this declaration is completed. Page 3 of 16 FORMATTING AND OTHER REQUIREMENTS 1. Typed cover sheet should include your name, student number and total word count. 2. Do not exceed the maximum word limit (1500 words +10%) 3. The assignment should have a professional and easy to follow presentation. Style throughout the document should be consistent. 4. Use Times New Roman font size 12 and 1.5 line spacing. 5. Put word count under each section/heading. 6. Students must use their own words as this demonstrates your understanding. Small quotes placed within quotation marks are acceptable. 7. Your assignment should include at least six scholarly sources, three for each article evaluated. Do not use any text-book or the lecture slides as a source (scholarly or otherwise). Only use published research articles, academic books, and conference papers (note that published research articles rank highest for quality and credibility as they are peer reviewed). 8. The assignment must be properly referenced using APA in-text referencing (also see point 9 below), with a list of references provided at the end of the assignment. A university guide to using the words and ideas of others, which includes a referencing guide, is included with the assignment documentation. 9. Include document page number in ALL in-text citations (e.g. Smith & Jones, 1997 p.16) 10. Do not include the article with your submission. Page 4 of 16 PLAGIARISM This course uses the Safe Assign text matching tools in L@G. You can submit a draft version of your assignment prior to submitting your final version to allow you to view your matching report and make any corrections in relation to referencing and cited work. When you submit the final version of your assignment, a final text matching report is generated for the Course Convenor. Please note that Safe Assign is a software tool and you should not rely on it to detect all plagiarism. You are responsible for knowing what does and does not constitute plagiarism. The Course Convenor will use methods in addition to Safe Assign to identify plagiarism. The university provides information for students in relation to academic dishonesty and plagiarism here: https://intranet.secure.griffith.edu.au/student/academic-integrity OTHER RESOURCES 1. Use word processing software to check your spelling and grammar before submitting. Use English spelling (not American). 2. There are links to the student support module and GBS resources bank on the L@G site. 3. Examples of previous highly rated assignments are posted in the assignment tab. https://intranet.secure.griffith.edu.au/student/academic-integrity Page 5 of 16 ARTICLES Six news articles are attached below. Select TWO articles only. THEORIES Select TWO different theories/hypotheses from the following and apply ONE to each of the chosen articles. Please do not combine theories. To be clear, you are to apply only one theory to each article. For example, if you select legitimacy theory for one article you cannot use legitimacy theory for the second chosen article. Theories of regulation • Public interest theory • Capture theory • Private interest theory (economic theory) Political economy or systems-based theories • Legitimacy theory • Stakeholder theory (select one branch) o Ethical (moral) branch o Managerial branch Economics or market-based theories • Efficient market hypothesis together with Capital market research • Agency theory • Positive accounting theory (plus select one hypothesis) o Political cost hypothesis o Bonus hypothesis o Debt hypothesis Page 6 of 16 Article 1 – AMP flags half-year profit of up to $150m amid virus uncertainty The Australian, July 31, 2020 https://www.theaustralian.com.au/business/financial-services/amp-flags-halfyear-profit-of-up-to-150m-amid- virus-uncertainty/news-story/2a791659bfb70a0b5f6b41f6400246da The prospect of windfall returns for AMP shareholders has diminished, as the group warned of a more than 50 per cent collapse in first half profits alongside further pressure on its wealth management arm due to heavy outflows. The Morrison government’s early access super scheme has served a blow to the already under pressure wealth manager, with almost $1bn of outflows from customers looking to dip into their retirement savings in the past six months. In an earnings update AMP said its wealth management arm, once the major source of profit for the company, had trebled its outflows over the past two years to $4.4bn in the first half alone. The previously-flagged loss of corporate mandates, including Australia Post, accounted for $1.3bn of withdrawals, along with $900m associated with the early access to super scheme for those affected by the COVID-19 pandemic. Average assets under management had fallen by 6 per cent to $126bn, AMP said as the wealth manager was hit by market volatility. The update, released ahead of the group’s first half results announcement in two weeks, also included a $25m writedown in its banking arm, due to credit losses from the pandemic, in line with similar moves by the major banks. AMP said it expected to report underlying profit of between $140m to $150m for the first half, a drop of more than half from its $309m profit at the same time last year. The updated figures, subject to audit review, triggered a 12.8 per cent share slide to $1.46 on Friday, the stock’s biggest drop in four months, wiping $740m off its market capitalisation. Investors had been hoping for the resumption of dividends after the $2.5bn sale of AMP Life to Resolution Life passed the final hurdle in June. AMP was coy on the proceeds of the sale, saying only that it had “successfully completed the complex sale” and would update the market on its capital management strategy come the release of its first half results on August 13. “The hope for investors lies in the cost reduction program which has been delayed, as well as any future capital return,” Shaw and Partners senior banking analyst Brett Le Mesurier said. In its update, AMP said it had “prioritised servicing clients” over the period, temporarily increasing resources and consequently costs although it remained committed to delivering $300m of annual cost savings. Meanwhile, AMP said provisions from bad loans related to the coronavirus pandemic were set to hit its banking arm by $25m, pulling earnings for that unit down to $50m, even as its loan book grew 3.5 per cent to $20.9bn over the first half. At AMP Capital, assets under management had fallen 2 per cent to $198bn, with performance and transaction fees slated to drop by 40 per cent compared to the same time last year “due to market impacts”. https://www.theaustralian.com.au/business/financial-services/amp-flags-halfyear-profit-of-up-to-150m-amid-virus-uncertainty/news-story/2a791659bfb70a0b5f6b41f6400246da https://www.theaustralian.com.au/business/financial-services/amp-flags-halfyear-profit-of-up-to-150m-amid-virus-uncertainty/news-story/2a791659bfb70a0b5f6b41f6400246da Page 7 of 16 “AMP Capital has recently been the hope within AMP, but even that was damaged in Friday’s warning,” Mr Le Mesurier noted. “The drop in operating earnings is particularly disturbing considering the first half usually delivers higher operating performance, and the recent promotion of Boe Pahari to lead the unit raises further questions given the negative market reaction.” It comes as the unit faces an exodus of management, most markedly its property chief Carmel Hourigan, who last week left the group to head Charter Hall’s office unit. AMP hinted at a new strategy to come for the capital arm, also to be unveiled at its interim results. “The pandemic has presented many challenges but has not distracted us from our mission to transform AMP into a simpler, client-led, growth orientated business,” chief Francesco De Ferrari said in a statement. “In the first half, we have made significant progress in delivering our strategy including completing the highly complex sale of AMP