assignment
HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines Trimester T1 2020 Unit Code HI6025 Unit Title Accounting Theory and Current Issues Assessment Type Individual Assignment Assessment Title Australian financial reporting regulations: A Critical Review Purpose of the assessment (with ULO Mapping) Students are required to critically examine the financial reporting regulations for Australian reporting entities, and the relevance of Positive Accounting Theory (PAT) in predicting accounting practice. They will have to identify a real-life accounting fraud case and evaluate it based on their violations of financial reporting regulations. Students will have to do research on relevant academic literature and demonstrate understanding and critical evaluation of the Australian financial reporting environment and its current regulatory framework, and recommend future directions to the Australian financial reporting regulators (ULO 1, 2, 4, 6, 7). Weight 40 % of the total assessments Total Marks 40 Word limit 3,000 words; ± 500 words Due Date Assignment submission: Final Submission of Group Assignment: 11:59 pm Thursday, Week 9. Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline. Submission Guidelines · All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page (available in Black Board). · The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. · Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. HI6025 Accounting Theory and Current Issues Group Assignment T1 2020 Purpose: Assignment Specifications Page 2 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T1 2020 This assignment aims at developing student’s ability to critically examine the financial reporting regulations for Australian reporting entities, and the relevance of Positive Accounting Theory (PAT) in predicting accounting practice. They will have to identify a real-life accounting fraud case and evaluate it based on their violations of financial reporting regulations. Students will have to do research on relevant academic literature and demonstrate understanding and critical evaluation of the Australian financial reporting environment and its current regulatory framework, and recommend future directions to the Australian financial reporting regulators. Students are required to review the relevant academic literature, incl. relevant organisation websites and write in-text citations when answering this assignment. Required Tasks: In the body of the assignment, students will have to critically discuss the following issues: 1. Identify and discuss the current regulatory framework or regulations encompassing the preparation of financial statements by reporting entities in Australia. (5 marks) 2. In your opinion, is the Australian financial reporting environment over regulated? Justify your answer. [Hint: Cite relevant literature source(s) to back up your answer]. (5 marks) 3. Identify one (1) real-life ‘financial reporting accounting fraud’ that occurred post 1990 (i.e. in the last 30 years), in any country, and answer the following questions: a) Summarise the key facts about your chosen ‘financial reporting accounting fraud’ (5 marks) b) Explain which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (5 marks) c) Discuss what specific accounting regulations were violated? (5 marks) d) What valuable lessons can the accounting community (incl. reporting entities and regulators), learn from the outcomes of your chosen accounting fraud? (5 marks) e) Provide two (2) recommendations to the Australian financial reporting regulators, to prevent accounting frauds from happening in the future. (5 marks) Assignment Structure should be as the following: Abstract (one paragraph) Table of Content Introduction Body of the assignment with detailed answer on each of the required tasks Conclusion List of References Marking Criteria – Written Report Marking Criteria Weighting Abstract Xx Introduction Xx 1. Identify and discuss the current regulatory framework or regulations encompassing the preparation of financial statements by reporting entities in Australia. Xx 2. In your opinion, is the Australian financial reporting environment over regulated? Justify your answer. [Hint: Cite relevant literature source(s) to back up your answer]. Xx 3. Identify one (1) real-life ‘financial reporting accounting fraud’ that occurred post 1990 (i.e. in the last 30 years), in any country, and answer the following questions: a) Summarise the key facts about your chosen ‘financial reporting accounting fraud’ Xx b) Explain which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. Xx c) Discuss what specific accounting regulations were violated? Xx d) What lessons have been learnt from your chosen accounting fraud? Xx e) Provide two (2) recommendations to the Australian financial reporting regulators, to prevent accounting frauds from happening in the future. Xx Overall Presentation of Assignment Xx TOTAL Marks xx Marking Rubric Excellent Very Good Good Satisfactory Unsatisfactory Abstract (1 mark) (1 mark) (0.8 mark) (0.6 mark) (0.5 mark) (0 mark) Clear, concise, A very good A good abstract. A poorly No abstract compelling abstract worded or included. abstract. incomplete abstract. Introduction (2 marks) (2 marks) (1.6 marks) (1.2 mark) (1 mark) (0 - 0.5 mark) Presented an Presented a Presented a Adequate Unable to excellent very good good introduction present a introduction. introduction. introduction. presented. proper introduction or confusing. 1. Identify and discuss the (4.1 - 5 marks) (3.6 - 4 marks) (3.1 – 3.5 marks) (2.1 - 3 marks) (0 - 2 marks) current regulatory Identify 4 or Identify 4 or Identify 2-3 Identify 2-3 Identify 1 or less framework or regulations more current more current current current number of the encompassing the regulatory regulatory regulatory regulatory current preparation of financial framework or framework or framework or framework or regulatory statements by reporting regulations regulations regulations regulations framework or entities in Australia. (5 encompassing encompassing encompassing encompassing regulations marks) the preparation the preparation the preparation the encompassing of financial of financial of financial preparation of the preparation statements by statements by statements by financial of financial reporting reporting reporting statements by statements by entities in entities in entities in reporting reporting Australia, with Australia, with Australia, with entities in entities in excellent very good good discussion Australia, with Australia. discussion of discussion of of them. errors and/or them. them. omissions in the discussion. 2. In your opinion, is the (4.1 - 5 marks) (3.6 - 4 marks) (3.1 – 3.5 marks) (2.1 - 3 marks) (0 - 2 marks) Australian financial Clear, concise, Very good Good Adequate Unable to reporting environment compelling explanation on explanation on explanation on present proper over regulated? Justify explanation on whether the whether the whether the explanation on your answer. [Hint: Cite whether the Australian Australian Australian whether the relevant literature Australian financial financial financial Australian source(s) to back up your financial reporting reporting reporting financial answer]. (5 marks) reporting environment is environment is environment reporting environment is over regulated, over regulated, is over environment is over regulated, with very good with adequate regulated, over regulated, with excellent relevant relevant with with inadequate relevant literature to literature to inadequate relevant literature to back up back up relevant literature to back up explanation. explanation. literature to back up explanation. back up explanation. or explanation. confusing. 3. Identify one (1) real-life ‘financial reporting accounting fraud’ that occurred post 1990 (i.e. in the last 30 years), in any country, and answer the following questions: a) Summarise the key facts about your chosen ‘financial reporting accounting fraud’ (5 marks) (4.1 - 5 marks) Clear, concise, summary of the key facts about your chosen ‘financial reporting accounting fraud’. (3.6 - 4 marks) Very good summary of the key facts about your chosen ‘financial reporting accounting fraud’. (3.1 – 3.5 marks) Good summary of the key facts about your chosen ‘financial reporting accounting fraud’. (2.1 - 3 marks) Reasonable summary of the key facts about your chosen ‘financial reporting accounting fraud’. (0 - 2 marks) Unable to summarise the key facts about your chosen ‘financial reporting accounting fraud’, or confusing. b) Explain which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (5 marks) (4.1 - 5 marks) Clear, concise, compelling explanation as to which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (3.6 - 4 marks) Very good explanation as to which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (3.1 – 3.5 marks) Good explanation as to which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (2.1 - 3 marks) Reasonable explanation as to which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud. (0 - 2 marks) Unable to present proper explanation as to which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud, or confusing. c) Discuss what specific accounting regulations were violated? (5 marks) (4.1 - 5 marks) Clear, concise, compelling discussion of what specific accounting regulations were violated. (3.6 - 4 marks) Very good discussion of what specific accounting regulations were violated. (3.1 – 3.5 marks) Good discussion of what specific accounting regulations were violated. (2.1 - 3 marks) Reasonable discussion of what specific accounting regulations were violated (0 - 2 marks) Unable to present proper discussion of what specific accounting regulations were violated or confusing. d) What lessons have been learnt from your chosen accounting fraud? (5 marks) (4.1 - 5 marks) Clear, concise, compelling discussion of the lessons learnt from your chosen accounting fraud. (3.6 - 4 marks) Very good discussion of the lessons learnt from your chosen accounting fraud. (3.1 – 3.5 marks) Good discussion of the lessons learnt from your chosen accounting fraud. (2.1 - 3 marks) Reasonable discussion of the lessons learnt from your chosen accounting fraud. (0 - 2 marks) Unable to present proper discussion of the lessons learnt from your chosen accounting fraud, or confusing. e) Provide two (2) (4.1 - 5 marks) (3.6 - 4 marks) (3.1 – 3.5 marks) (2.1 - 3 marks) (0 - 2 marks) recommendations to the Clear, concise, Very good 2 Good 2 Reasonable 2 Unable to Australian financial compelling 2 recommenda- recommenda- recommenda- present 2 reporting regulators, to recommenda- tions to the tions to the tions to the recommenda- prevent accounting tions to the Australian Australian Australian tions to the frauds from happening in Australian financial financial financial Australian