MAA725 – Advanced Accounting Principles and Practice Trimester T2, 2019 Assessment 2 DUE DATE AND TIME: 10 September 2019, 11:59 PM PERCENTAGE OF FINAL GRADE:20% HURDLE DETAILS: N/A Learning Outcome...

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MAA725 – Advanced Accounting Principles and Practice Trimester T2, 2019 Assessment 2 DUE DATE AND TIME:10 September 2019, 11:59 PM PERCENTAGE OF FINAL GRADE:20% HURDLE DETAILS:N/A Learning Outcome Details Unit Learning Outcome (ULO) Graduate Learning Outcome (GLO) ULO 1: Explain, evaluate and apply a range of advanced accounting theories and standards. GLO 1 ULO 2: Identify, define and integrate to construct explanations that can inform solutions to relevant accounting issues. GLO 2 Assessment Feedback: Students who submit their work by the due date will receive their marks and feedback on CloudDeakin on 1 October 2019, 11:59 PM. Description / Requirements This assignment is an individual assignment and consists of two tasks. Please complete each task by using tables and/or spaces provided in another document titled “Answer sheet for Assessment 2” under the folder “Assignment 2” on clouddeakin. Task One You just joined an Australian travel company working as a CFO. The travel company arranges package tours in overseas destinations. The manager of the Accounting Department states: ‘When we arrange accommodation in foreign hotels we recognise a liability at the spot rate. Then when we pay for the accommodation any exchange gain or loss is included in the profit or loss. We believe that we are complying with AASB 121/IAS 21 ’The Effect of Changes in Foreign Exchange Rates’. Required Do you agree with the manager’s position? Explain why. (5 marks) Task Two On 1 June 2020 Pacific Ltd. ordered inventories to the value of US$500, 000 on FOB destination terms. On 30 September 2020, the inventories were delivered. On 31 October 2020, the invoice for the inventories was paid. On 1 June 2020, Pacific Ltd. also entered into a forward exchange contract to buy US$500 000 with a settlement date of 31 October 2020 to hedge against the foreign exchange risk attaching to the purchase of and payment for the invoice. Pacific Ltd. has a financial year ending 30 June. Relevant exchange rates are as follows Date Spot rate Forward rate 1 June 2020 A$1= US$1.00 A$1= US$0.95 30 June 2020 A$1= US$0.90 A$1= US$0.89 30 September 2020 A$1= US$0.85 A$1= US$0.84 31 October 2020 A$1= US$0.75 A$1= US$0.75 Assume that the hedging arrangement satisfies the requirements for hedge accounting as stipulated in AASB 139 ‘Financial Instruments: Recognition and Measurement’, and the management of Pacific Ltd. adopts Cash flow hedge accounting. Required Provide necessary journal entries to record the above transactions from 1 June 2020 to 31 October 2020 (Rounded to the nearest integer). (15 marks) Submission Instructions This assignment must be submitted electronically by the due date as a Microsoft Word document by uploading all documents to the respective assignment dropbox, via the MAA725 site on CloudDeakin. Each student has to submit their own individual assignment 2, into assignment 2 dropbox. Specifically, when uploading your assignment 2, the document must be given a name using the following syntax: _MAA725.doc (or ‘.docx’) (for example, 123456789_MAA725.doc). Submitting a hard copy of this assignment is not required. Students who anticipate possible difficulty in lodging this assignment online (for example, being in a remote place on the due date with no computer access) must contact the Unit Chair at least one week prior to the due date in order to make alternative arrangements for submission. Extensions can be granted for unexpected circumstances such as serious illness or for compassionate reasons under special circumstances. Extensions can only be approved by the Unit Chair. Requests for time extensions should be emailed to the Unit Chair AT LEAST ONE BUSINESS DAY BEFORE (24 business hours before) the due date of submission. You will need to provide evidence to support your request (for example, medical certificate) and a draft of the work completed to date. No extension exists until such time as it is approved in writing by the Unit Chair. For requests after the due date please submit your request to Special Consideration https://www.deakin.edu.au/students/studying/assessment-and-results/special-onsideration Work or holidays or other assignments are NOT grounds for an extension – you are expected to manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of any length. Please note, assignments that are submitted late (including those that have extension approved by the unit chair) will still be able to be submitted through the Dropbox. However, the system will show the submission date/time in red. It is important that students familiarize themselves with the online submission procedures well before the due date for this assignment. The most common problem when submitting an assignment electronically is an improperly configured Internet browser. Students can test if their browsers are properly configured. This can be done from the CloudDeakin homepage. The Unit Chair does not accept excuses for late, incorrect or incomplete submissions of assignments due to problems with uploading them to Turnitin. Check your ability to submit electronically at the outset of this trimester and advise staff via CloudDeakin if you are having a problem. It is the responsibility of each student to keep backup copies (both soft and hard) of their assignments. The Unit Chair will not accept excuses for late submissions due to computer-related matters (e.g., lost documents, virus infected documents, hardware failure, stolen computers, etc.). Back up your draft copies of your assignment in progress often and to a remote device for safe-keeping. You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy. Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism. When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment dropbox folder after upload, and check for, and keep, the email receipt for the submission. Notes · Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% of the total available mark will be deducted from the final mark achieved for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date. · For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site. · Building evidence of your experiences, skills and knowledge (Portfolio) - Building a portfolio that evidences your skills, knowledge and experience will provide you with a valuable tool to help you prepare for interviews and to showcase to potential employers. There are a number of tools that you can use to build a portfolio. You are provided with cloud space through OneDrive, or through the Portfolio tool in the Cloud Unit Site, but you can use any storage repository system that you like. Remember that a Portfolio is YOUR tool. You should be able to store your assessment work, reflections, achievements and artefacts in YOUR Portfolio. Once you have completed this assessment piece, add it to your personal Portfolio to use and showcase your learning later, when applying for jobs, or further studies. Curate your work by adding meaningful tags to your artefacts that describe what the artefact represents. Deakin's Bachelor of Commerce and MBA are internationally EPAS accredited. Deakin Business School is accredited by AACSB. Page 4 of 5 Marking rubrics Criteria Poor Needs Improvement Satisfactory Good Very Good Excellent (a) Translation from functional currency to presentation currency GLO1 GLO2 ULO1 ULO2 (5 marks) 0.7 marks Discussion is inappropriate and/or irrelevant, and presents an unacceptable exposition of complex knowledge and ideas. (0 – 1.4 marks) 2 marks Discussion is inappropriate and/or irrelevant, and presents an unclear exposition of complex knowledge and ideas (1.5 – 2.4 marks) 2.7 marks Discussion is moderately appropriate and relevant, and presents an acceptable level of clear exposition of complex knowledge and ideas (2.5 – 2.9 marks) 3.2 marks Most Discussion is appropriate and relevant, and presents a good level of clear exposition of complex knowledge and ideas (3-3.4 marks) 3.7 marks Discussion is appropriate and relevant, and presents a very good level of clear exposition of complex knowledge and ideas (3.5-3.9 marks) 5 marks Discussion is appropriate and relevant, and presents an excellent level of clear exposition of complex knowledge and ideas (4.0 - 5 marks) (c) Prepare the journal entries GLO1 ULO1 (10 marks) 2.2 marks Required journal entry is omitted. (0 – 4.3 mark) 5.9 marks Limited number of journal entries are presented with either correct account names or with correct amounts. (4.5 – 7.3 marks) 8.2 marks Required journal entries are reasonably presented with either correct account names or with correct amounts. (7.5 – 8.8 mark) 9.7 marks Required journal entries are presented well with either correct account names or with correct amounts. (9-10.3 mark) 11.2 marks Most of the required journal entries are presented very well with correct account names and amounts. (10.5 – 11.8 mark) 15 marks All of the required journal entries are presented with all correct account names and amounts (12-15 mark) Overall Score 20 0 or more 6 or more 10 or more 12 or more 14 or more 16 or more Deakin's Bachelor of Commerce and MBA are internationally EPAS accredited . Deakin Business School is accredited by AACSB . MAA725 – Advanced Accounting Principles and Practice Trimester T 2 , 2019 Assessment 2 DUE DATE AND TIME : 10 September 2019 , 11:59 PM PERCENTAGE OF FINAL GRADE : 20 % HURDLE DETAILS : N/A Learning Outcome Details Unit Learning Outcome (ULO) Graduate Learning Outcome (GLO) ULO 1: Explain, evaluate and apply a range of advanced accounting theories and standards. GLO 1 ULO 2: Identify, define and integrate to construct explanations that can inform