BAO3309 ADVANCED FINANCIAL ACCOUNTING Research Assignment: Review current AASB framework which is also known as “Framework for the Preparation and Presentation of Financial Statements” and provide a...

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BAO3309 ADVANCED FINANCIAL ACCOUNTING
Research Assignment:

  1. Review current AASB framework which is also known as “Framework for the Preparation and Presentation of Financial Statements” and provide a critical analysis of different measurement bases.
  1. From a review of 2011 annual reports/financial statements of two Australian firms listed in ASX from different industries, identify and briefly discuss different measurement bases used by these firms and provide explanation about the implications of using these measurement bases.
  1. Explore the relationship between accounting information and market reaction with reference to measurement issues by using the relevant research literature.

The following matters should be given particular attention:
  1. Evidence of extensive research beyond the prescribed texts is required. Ensure these are referenced appropriately in your references using Harvard referencing.
  1. Students should use research databases available through the university’s library
  1. Assignment must be typed and properly documented.
Students must submit both printed and electronic copy of assignment through Web-CT turnitin. Assignment should be no greater than 2000 words double-spaced with a 3cm left margin. A word count must be displayed on the title page of assignment. (Note: Word count does not include abstract, graphs, tables, and references).
Warning: Failure to submit both printed and electronic copies of assignment through Web-CT Turnitin will result in a fail grade and where student’s printed copy of submitted assignment is different from Turinitin electronic copy of the assignment then only Turnitin assignment will be marked.
  1. NO extensions will be granted unless supported by appropriate documentation prior to the due date. An application for an extension must use an application for extension of assessment form, submit an application on or before a due date to unit coordinator, be accompanied by a medical certificate or similar evidence, be acc

Note: Poor organisation and work commitments are not grounds for an extension. Students’ are responsible to protect their work and save data by making necessary backup. Therefore, loss of data due to computer or storage devices problems will not be considered a valid reason for an extension.
MARKING SCHEME RESEARCH ESSAY
Mark out of 100
Assessment StructureExcellentVery GoodGoodAverageMarginalPoorVery Poor
1. Synopsis/abstract (10)
2. Part A (25)
3. Part B (25)
4. Part C (30)
5. Referencing and citations (5)
6. English expression, coherence, grammar and spelling (5)


Assessment criteria to be applied on Assessments 1 to 6
Excellent: Work fulfilling the above criteria to an outstanding degree, in particular demonstrating excellence in sustained argument, critical thought and synthesis of material from diverse sources.
Very Good: Work demonstrating extensive knowledge and understanding of major content areas and issues; the ability to appropriately synthesise material from a range of sources; a well developed capacity for critical analysis of key issues and concepts; the ability to present a defensible personal perspective on issues; evidence of wide reading in relevant areas of the discipline; high quality presentation.
Good:Above average work demonstrating good knowledge and understanding of major content areas and issues; demonstration of some capacity for critical analysis; the ability to present a perspective on issues; evidence of reading in relevant areas of the discipline; high quality presentation.
Average:Work of ‘average’ standard which demonstrates a average comprehension both of basic concepts and some issues, based on class work and some further reading in the area; some ability to compare key concepts and theoretical perspectives; average presentation, particularly in regard to structure, expression and referencing.
Marginal:Work which shows a basic understanding of key elements of the subject matter at a descriptive level, based mainly on attendance at lectures; satisfactory presentation with some deficiencies in structure, expression and referencing.
Poor:Work which shows little evidence of knowledge or understanding of the subject matter and is unsatisfactorily presented, particularly in regard to structure, expression and referencing.
Very poor:Work which shows no evidence of knowledge or understanding of the subject matter.

Answered Same DayDec 20, 2021

Solution

David answered on Dec 20 2021
3 Votes
Introduction:
The accounting of a company is highly influenced by the environment in which it
operates. Countries have different histories, values, cultures, and political and economic systems,
and they are also in various stages of economic development, these are the factors which highly
affects the development as well as the practice of the financial accounting practices of the
country. With these differences the financial accounting standards that are being adopted by
different nations vary significantly.
The financial report of the countries is generally prepared with a motive to help the
primary users of the financial statements. In the past, most users were residents of the same
country as the corporation issuing the financial statements. The emergence of multinational
corporations and organizations such as the European Union (EU), the General Agreement on
Tariffs and Trade (GATT), and the North American Free Trade Agreement (NAFTA) has made
transnational financial reporting more commonplace. Transnational financial reporting requires
users to understand the accounting practices employed by the company, the language of the
country in which the company resides, and the cu
ency used by the corporation to prepare its
financial statements. When an company was wanting to operate at an international level than
then there were several issues that came up which resulted in harmonizing the accounting
standards across the globe.
In Australia, the Australian Accounting Standards Board is responsible for setting and
maintaining accounting standards (refe
ed as AASB) for both the private and public sectors.
Australia has forty-one accounting standards, which are adopted directly from the international
accounting standards. In addition, Australia has focused on developing different domestic
standards which takes into consideration the economic conditions and social system within its
economy, such as AASB 1004 Contribution, AASB1023 General Insurance Contracts, AASB
1031 Materiality, AASB 1038 Life Insurance Contracts, AASB 1039, Concise Financial Reports,
AASB 1046 Director and Executive Disclosures by Disclosing Entities, and AASB 1048
Interpretation and Application of Standards. These standards, which were created specifically
for the domestic context of Australia, were not included in this study because their contextual
application would make them automatically different from the India’s accounting standards.
Instead, this paper focuses on AASBs which were direct adoption of the international accounting
standards, and they are AASB 3 Business Combinations, AASB 5 Non Cu
ent Assets Held for
Sale and Discontinued Operations, AASB 6 Exploration for and Evaluation of Mineral
Resources, AASB 7 Financial Instruments: Disclosures, AASB 101 Presentation of Financial
Statements, AASB 138 Intangible Assets, AASB 129 Financial Reporting for Hyperinflationary
Economies, and AASB 141 Agriculture. (AASB, 2004)
Financial Reporting framework:
Objective of financial reporting:
The objective of financial reporting is the first concept statement presented by AASB
which states that the objective of the financial statement is for general purpose external reporting
i.e. the financial reporting concerns to the external users as well as internal users. The objective
of the financial reporting goes from a general purpose to the more specific purpose.
General Purpose: Information useful in making decision
The general purpose of the financial reporting states the financial statements should
provide relevant and useful information to its present as well as potential stakeholders which
includes investors, creditors, customers and other external users to help them in making different
decisions in respect to investment and other related decisions. It also takes into account the
eporting entity’s economic resources, claims and changes in the resources and claims.
Derived external user objective: Information relevant to the external users so as to
assess future cash receipts:
The financial reports should focus on providing information to the stakeholders so as to
access the amount,...
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