1. the document to be typed using 1.5 spacing justified 2. use Ariel font size 11 3. display a 2.5 cm margin for all sides 4. include page number 5. your word document should include the Student ID,...

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1. the document to be typed using 1.5 spacing justified 2. use Ariel font size 11 3. display a 2.5 cm margin for all sides 4. include page number 5. your word document should include the Student ID, Student Name and Campus 6. Please attach a Cover page at the front of the assignment. 7. original work, author(s) etc. Citation and referencing must conform to Harvard referencing format both in the body of the paper and its attached reference section. 8. Word Limit: 2500 words (maximum) Late submission Unless an extension is granted, essays/assignments submitted after the due date will incur a 5% per calendar day penalty based on the maximum marks available for that assessment task. This penalty will run up to a maximum of 15%. Assessment tasks received more than three calendar days after the due or extended date will not be allocated a mark. Note: The 5% penalty will be incurred for each whole or part of a calendar day that the work is overdue. For extension of time for assessments, please go to the Assessment and Assignment Forms page of the ACU website. Timely submission is critical. Semester 1 Main, 2020 ACCT207 Page 2 of 4 Do not copy paragraphs or definitions from relevant standards for the questions below. You are required to answer questions by applying knowledge gained through comprehension of key concepts and topics covered over the course of the semester. Questions are adapted to develop your skills based on Graduate Attributes and Learning Outcomes. Please note that this assessment goes through Turnitin to check for plagiarism. Case 1 10 Marks Wesfarmers Annual Report 2019 Click on one of the following weblinks given below: https://sitefinity.wesfarmers.com.au/docs/default-source/reports/wesfarmers-2019-annualreport.pdf?sfvrsn=2 https://www.wesfarmers.com.au/investor-centre/company-performance-news/resultspresentations Required: a. From the information provided in the website and its most recent annual report, determine the AASB/IFRS standards that are adopted or referred to. (You may list upto 6 relevant Accounting Standards) (1 marks) b. Select between 3 to 5 relevant Accounting Standards discussed during the semester and explain briefly how Wesfarmers have included them in their Financial Statements. (5 marks) c. Discuss the benefits to be gained from adopting Accounting Standards mentioned in (a) above (2 marks) d. Discuss the Accounting policies mentioned in the annual report (2 marks) Case 2 10 Marks Choose any two (2) from the four (4) cases below. (Each case is worth 5 Marks) (a) If a company finds retrospectively that the expected pattern of consumption of future economic benefits of an asset has changed, how must this be accounted for and which standard(s) applies? (b) Gains on revaluation are included within OCI, but losses on revaluation are included within profit or loss? Is this statement correct? Please justify your answer with reference to the appropriate standard(s). (c) Explain the importance of the Conceptual Framework for Financial Reporting from the point of view of all relevant stakeholders. Provide examples. (d) Transfer of ‘control’ of the asset is central requirement in the recognition of revenue under AASB15. Discuss with examples. Semester 1 Main, 2020 ACCT207 Page 3 of 4 Case 3 30 Marks Answer all cases. Each case is worth 10 marks (a) Sullivan Company acquired a depreciable asset on 1 July 2015 for $ XXXXXXXXXXThe asset was estimated to have a useful life of 10 years and was depreciated on a straight-line basis. Sullivan chose the cost model for accounting for assets in this class. Indicators of impairment have been identified for the reporting periods ending 2016 and 2018, while indicators for a reversal of impairment have been identified for the period ending 2017. The recoverable amounts of the asset on these dates were as follows: Year ended 30 June Recoverable amount 2016 $ XXXXXXXXXX XXXXXXXXXXThe asset was sold for $ XXXXXXXXXXon 31 December 2018. Required: Assuming that the company complies with AASB 116 ‘Property, Plant and Equipment’ and AASB 136 ‘Impairment of Assets’, show general journal entries relating to this asset between 1 July 2015 and 31 December 2018. Comment briefly on the above mentioned standards and its application to the journal entries. (b) On 1 July 2020 Octavio Ltd acquired some corporate bonds issued by Garnish Ltd. These bonds cost $11,682,000. They had a ‘face value’ of $10 million and offered a coupon rate of 10 per cent paid annually ($ XXXXXXXXXXper year, paid on 30 June). The bonds would repay the principal of $10 million on 30 June 2025. At the time the market only required a rate of return on 6 per cent on such bonds. We will assume that the market’s required rate of return on these financial instruments remains at 6 per cent throughout the life of the bonds. Octavio Ltd operates within a business model where bonds are held in order to collect contractual cash flows and there is no intention to trade them. Assume that there were no direct costs associated with acquiring the bonds. (The use of Present Value and Annuity tables are required. Please refer Appendix A & B of your prescribed textbook) Required: 1. Explain why the company was prepared to pay $ XXXXXXXXXXfor the bonds given that, apart from the interest, they expect to receive only $10 million back in five years. (2 Marks) 2. Determine whether Octavio Ltd can measure the bonds at amortised cost. (1 Marks) 3. Calculate the amortised cost of the bonds as at 30 June 2021 to 30 June XXXXXXXXXXMarks) 4. Provide the accounting journal entries for 1 July 2020 and the years ending 30 June 2021 and 30 June XXXXXXXXXXMarks) Semester 1 Main, 2020 ACCT207 Page 4 of 4 (c) On 1 July 2018, Jack, John and Jill formed the J, J and J partnership. Jack invested $21 000, John $35 000 and Jill $ XXXXXXXXXXJack will manage the store, John will work in the store three-quarters of the time, and Jill won’t work in the business. Required: 1. Calculate the partners’ shares of profits and losses under each of the following plans: a. Loss for the year ended 30 June 2019 is $42 000 and the partnership agreement allocates 45% of profits to Jack, 35% to John and 20% to Jill. The agreement doesn’t discuss the sharing of losses. (4 Marks) b. Profit for the year ended 30 June 2019 is $ XXXXXXXXXXThe first $25 000 is allocated on the basis of relative partner capital balances. The next $48 000 is based on service, with $38000 going to Jack and $10 000 going to John. Any remainder is shared equally. (4 Marks) 2. Revenues for the year ended 30 June 2019 were $ XXXXXXXXXXand expenses were $ XXXXXXXXXXUsing plan b above, prepare the partnership income statement for the year (and showing each partner’s share of the profit or loss for the year). (2 Marks
Answered Same DayJun 01, 2021ACCT207Australian Catholic University

Solution

Preeta answered on Jun 05 2021
59 Votes
Case 1:
The following answers have been provided as per the annual report 2019 of Wesfarmers.
a. AASB standards that are adopted by Wesfarmers are as follows:
· AASB 16 – Accounting for leases.
· AASB 2 – Accounting for share base payments.
· AASB 15 – Revenue from contracts with customers.
· AASB 7 – Disclosure of financial instruments.
· AASB 9 – Financial instruments.
· AASB 118 – Revenue.
. Ways of application of the following standards in Wesfarmers:
· AASB 16 – Wesfarmers has several lease liabilities which it needs to measure along with the changes in the payment of future leases. All these calculations are done using AASB 16.
· AASB 9 – This standard has replaced AASB 139 and has
ought new rules on impairment. The company has several assets which it needs to impair.
· AASB 15 – The company generate revenue through its operations and several contracts are also made with the customers, some of which are fully completed while some are partly completed, for which this standard is to be followed.
c. Benefits of adopting accounting standards are as follows:
· It assists the auditors.
· The comparability with other companies becomes easier.
· A uniformity is followed.
· There are low chances of fraud and manipulation in the accounting framework.
· Improves the reliability of the financial statement.
d. The accounting policies followed by Wesfarmers are as follows:
· Revenue recognition is done when risk and rewards associated with a goods has been transfe
ed to the buyer.
· The financial statement of the consolidated group has been prepared based on going concern assumption.
Case 2:
(c) Importance of the conceptual framework for financial reporting from the viewpoint of relevant stakeholders (Zhang and Andrew 2014):
· The board of an organization is benefitted from the conceptual framework in making various decisions.
· The standard setting boards use the conceptual framework to set new standards as well as to revive the existing standards.
· A uniformity is maintained in the financial reporting when conceptual framework is used, which becomes convenient for the users of financial statement.
· It becomes easier for the researchers and scholars who are conducting research in the relevant fields to use conceptual framework to build the foundation of their research and to develop the research design well.
· Often conceptual framework has been used to remove conflict and to maintain a balance.
(d) The central...
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