Accounting theory and practice. weekly homework.
Please follow the homework marking criteria strictly.
Strictly No plagiarism or copied work, own words only. (I had one of your writers who provided me with copied work and got me into trouble).
Answer all questions and look at all the documents attached for help and follow the word count requirement. Part A minimum of 100 words and part B is between 200 - 500 words.
Note: To make things easier, I have attached a copy of all last year's solutions to Part A questions. Now we cannot copy obviously but the writer can use that to good effect in terms of getting the right accuracy or even use their own words to answer in a similar manager. making their work easier.
Description: 2022_T1 1 3101AFE Accounting Theory and Practice Assessible Homework Questions Criteria Sheet and Marking Scheme General Instructions: • Homework will be assessed four times per trimester. Students are not given prior knowledge of the weeks in which homework will be assessed. Grades will be released within one week of submission. • The weekly workshop questions comprise two components: o Part A includes 3 – 5 questions that are marked for comprehensiveness. Comprehensiveness means that the answers are: ▪ at least 100 words per question (or as otherwise indicated), AND ▪ RELEVANT TO THE QUESTION and COURSE MATERIAL using the criteria below. o Part B relates to a research or news article or a contemporary accounting issue and requires analysis and deeper thinking. The word limit for this part is not to exceed 500 words. This part of the homework will be marked according to the criteria below. • Answers must be TYPED. Handwritten answers will not be marked. • You should write your answers as if you were telling your classmates about the issue being addressed. Therefore, your writing should be in understandable everyday language, and should not consist of sentences taken from the text or lecture slides. If any answers or part thereof, are COPIED from any source, the homework will receive a mark of ZERO. • The NUMBER OF WORDS in each answer must be indicated at the end of each answer. If any answer does not include the number of words, it will not be marked. • Use the Homework Submission Cover Sheet provided. Ensure that you SIGN the STUDENT DECLARATION at the beginning of your homework each week. For online submissions, your typed name is acceptable as a signature. If the STUDENT DECLARATION is not inserted along with the submission, the homework will not be marked. • Any quoted material forming part of an answer must be presented between inverted commas and the source i.e. author plus date, must be indicated. • SUBMIT your answers to workshop questions through Safe Assign (under the Assessment tab on the Learning@Griffith website) BEFORE 9 am on the day of your workshop. Please note that Safe Assign automatically checks the work submitted for plagiarism. Your attention is drawn to the University rules on plagiarism. Safe Assign will not accept late submissions. 2022_T1 2 Marking Scheme The weekly homework is worth 20% of the final grade. Only four (4) homework submissions are randomly selected for marking, thus carrying a weight of 5% of the final grade per assessed homework. Each homework is graded as follows: MARKING CRITERIA EXCELLENT (4 – 5) SATISFACTORY/ GOOD (3) POOR (1 - 2) VERY POOR (0 – 1) Part A (50%) 5- A comprehensive attempt at all the assigned questions, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials. 4 = A comprehensive attempt at 80% of the assigned questions, but less than 100%, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials. 3 = A comprehensive attempt of at least 60% of the assigned questions but less than 80%, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials. 2 = A comprehensive attempt of at least 40% but less than 60% of the assigned questions, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials. 1 = A comprehensive attempt of at least 20% but less than 40% of the assigned questions, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials. 0 = A comprehensive attempt at less than 20% of the assigned questions, that is at least 100 words in length for each question (or as otherwise indicated in the question) and is directly relevant to the question based on course materials; OR Student has not completed the academic integrity declaration; OR student has plagiarised one or more of their answers (breach of academic integrity). Part B (50%) 5 = Excellent level of understanding of topic and theory with no discernible gaps in knowledge. All key issues are addressed in a careful and thorough manner. Arguments are strongly reasoned and well evidenced. 4 = High level of understanding of topic and theory with few or no gaps in knowledge. Most or all key issues are addressed in full. Arguments are strongly reasoned and well evidenced. 3 = Good level of understanding of topic and theory with few or no gaps in knowledge. Most or all key issues are addressed in full. Arguments are reasoned and evidenced. 2 = Basic understanding of topic and theory with some gaps in knowledge. Some key issues are presented. Reasoning and evidence for arguments could be further developed. 1 = Poor or limited understanding of the topic with evidence of gaps in knowledge. Lack of coverage of all key issues. Poor reasoning and argumentation. 0 = Student has not attempted the question; OR Student has not completed the academic integrity declaration; OR student has plagiarised one or more of their answers (breach of academic integrity). T1_2022 3101AFE Accounting Theory Workshop 9 Accounting Policy Choice ___________________________________________________________________________ PART A: GENERAL QUESTIONS QUESTION 1: If an entity were to discover that an expense of a prior period was omitted (perhaps as the result of a genuine mistake), should it record the error by increasing the expenses in the period in which the error was discovered, or recognise the error by making an adjustment directly to retained earnings? QUESTION 2: You are to consider the following two scenarios: Scenario 1 Fishtail Ltd has changed its basis of calculating doubtful debts from 2.5 per cent of gross accounts receivable to 4.0 per cent of gross accounts receivable. Scenario 2 Fishtail Ltd has previously allocated costs to inventory using a weighted-average costing approach. It was decided to change to a first-in, first-out inventory cost-flow assumption. REQUIRED Identify, giving reasons, which of the above scenarios is a change in accounting policy and which is not a change in accounting policy. Further, you are required to describe how the above scenarios are to be accounted for. QUESTION 3: Even though reporting entities are required to comply with accounting standards, are they also allowed to highlight and discuss other measures of ‘profits’ that are prepared in a way that is not in accordance with accounting standards? Why would they do this? QUESTION 4: On 30 June 2023, the end of the current reporting period, Kirk Ltd made a decision, using the information obtained over the past few years, to revise the useful life of its building acquired five years earlier on 1 July 2019 for $1 000 000. The useful life was revised from ten years to 15 years. The building was originally depreciated on the straight-line basis over its useful life and it was expected that the building would have no residual value. No depreciation has been provided in the current period. REQUIRED Prepare the journal entry to account for the change in accounting estimate. Assuming that the change in accounting estimate had a material effect on financial performance for the period, prepare an appropriate supporting note. PART B: ANALYSIS QUESTIONS QUESTION 5: Word limit: Between 200 and 500 words. This question ties together several topics covered so far in this course. Read the following article and answer the questions below. Lessons from the Freedom Foods fess-up https://www.bankingday.com/lessons-from-freedom-foods-fess-up Banking Day, 8 December 2020 There is nothing like a major accounting whodunnit to get people’s imaginations whirring and so it was last week with the Freedom Foods Group Limited annual report and associated company announcement. News broke on November 30 via the Australian Securities Exchange that the company had fessed up to a series of accounting hiccups resulting in approximately $590 million in adjustments over several reporting periods. The net loss after tax is A$174.5 million for the 2019-20 financial year. That loss is greater than the preceding financial year, which was adjusted to $145.8 million. These write-downs – or ‘losses’ as some media folks described them – occurred across a range of areas. It is clear from reading the financial statements and the report from the audit firm, Deloitte, that the company had been optimistic in keeping certain carrying amounts on balance sheet. A key to understanding what went on with Freedom Foods Group Limited lies in part in the company’s market release on its 2019-20 financial statements. It also discloses that the regulator is looking carefully at the circumstances and that the company is cooperating with ASIC’s investigation on the issues given the regulator has made a request under Section 30. Section 30 of the ASIC Act 2001 gives ASIC power to request an entity or an individual from an entity to produce documents related to a business. This will be material that goes beyond the usual public disclosures and involves internal accounting information and other documents that may explain the circumstances. It also means that there will be things parties outside of the company and the regulator will not be able to know given the usual investigation protocols. The company had its auditors look at a series of issues and commissioned a forensic investigation from PricewaterhouseCoopers. The work done by both these accounting firms raised accounting issues needing the company’s consideration. Capitalising expenses as assets was one of the issues pointed to by the accounting firms. The company used the figures as previously calculated to make business decisions. The company’s disclosures underscore the need to get the right numbers the first time around. Capitalising certain expenses will have made certain ratios look more attractive because stuff that needed to be off a balance sheet in in the