HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HI6025 Unit...

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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HI6025 Unit Title Accounting Theory and Current Issues Assessment Type Group Assignment Assessment Title Adoption of IFRSs: A Critical Review Purpose of the assessment (with ULO Mapping) Students are required to critically examine the usefulness of the financial reporting regulations to Australian reporting entities, namely the Conceptual Framework and the adoption of IFRSs. Additionally, they will have to research on another country that has adopted IFRSs in the past 5 years. They will have to do research on relevant literature and demonstrate understanding and critical evaluation of key issues of adopting IFRSs such as the transitional issues, challenges and benefits, and recommend future directions to the national accounting setting bodies (ULO 1, 2, 3, 4, 5, 6, 7). Weight 30 % of the total assessments Total Marks 30 Word limit 3,000 words ± 500 words Due Date Group Formation: Registration of groups/Submission of group member’s name: before 5:00 pm Friday, Week 6. Please form the group and submit the name and ID of your group members to your lecturer in the class before 5:00 pm Friday, Week 6. There should be minimum 3 and maximum 5 members in a group. Assignment submission: Final Submission of Group Assignment: 11:59 pm Sunday, Week 10 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. Page 2 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 Assignment Specifications Purpose: This assignment aims at developing student’s ability to critically examine the usefulness of the financial reporting regulations to Australian reporting entities, namely the Conceptual Framework and the adoption of IFRSs. Students are also required to research on another country that has adopted IFRSs in the past 5 years. They will have to do research on relevant literature and demonstrate understanding and critical evaluation of key issues of adopting IFRSs such as the transitional issues, challenges and benefits, and recommend future directions to the national accounting setting bodies. Required Task: In the body of the assignment, students will have to critically discuss the following issues: 1. The relevance of the Conceptual Framework of financial reporting. How useful is it with examples to illustrate your arguments. 2. Compare and contrast the implementation of IFRSs in Australia and one other country of your choice. The second country must have adopted IFRSs for at least 5 years. For each of the two countries, discuss the following: i. reasons for the national accounting body adopting IFRSs and when it was adopted; ii. transitional issues faced (within a year or two), with examples; iii. what challenges were faced by reporting entities upon adopting IFRSs. (Do not discuss transitional issues here). Include specific examples of accounting standard(s) and discuss the issues that made them challenging/difficult to adopt, to support your arguments; iv. what were the benefits of adopting IFRSs by reporting entities; v. the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. 3. Based on your findings, do you think the adoption of IFRSs were successful in the two countries? Explain your answer. 4. Provide two recommendations to the national accounting setting bodies (incl. AASB) on ways to ensure the IFRSs continue to be relevant to users’ needs and to all sectors of the economy. 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 ….. Page 3 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 Marking Criteria Marking Criteria Weighting Abstract 1% Introduction 2% 1. The relevance of the Conceptual Framework of financial reporting. How useful is it with examples to illustrate your arguments. 5% 2. Compare and contrast the implementation of IFRSs in Australia and one other country of your choice. The second country must have adopted IFRSs for at least 5 years. For each of the two countries, discuss the following: i. reasons for the national accounting body adopting IFRSs and when it was adopted; 3% ii. transitional issues faced (within a year or two), with examples. 3% iii. what challenges were faced by reporting entities upon adopting IFRSs. (Do not discuss transitional issues here). Include specific examples of accounting standard(s) and discuss the issues that made them challenging/difficult to adopt, to support your arguments; 3% iv. what were the benefits of adopting IFRSs by reporting entities; 3% v. the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. 3% 3. Based on your findings, do you think the adoption of IFRSs were successful in the two countries? Explain your answer. 3% 4. For each of the two countries, provide two recommendations to the national accounting setting bodies on ways to ensure the IFRSs continue to be relevant to users’ needs and to all sectors of the economy. 2% Overall Presentation of Assignment 2% TOTAL Marks 30% Page 4 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 Marking Rubric Excellent Very Good Good Satisfactory Unsatisfactory Abstract (1 mark) (1 mark) Clear, concise, compelling abstract. (0.8 mark) A very good abstract (0.6 mark) A good abstract. (0.5 mark) A poorly worded or incomplete abstract. (0 mark) No abstract included. Introduction (2 marks) (2 marks) Presented an excellent introduction. (1.5 marks) Presented a very good introduction. (1.2 mark) Presented a good introduction. (1 mark) Adequate introduction presented. (0 - 0.5 mark) Unable to present a proper introduction or confusing. The relevance of the Conceptual Framework of financial reporting (5 marks) (5 marks) Clear, concise, compelling discussion of the relevance of the Conceptual Framework of financial reporting with excellent examples. (4 marks) A very good discussion of the relevance of the Conceptual Framework of financial reporting with very good examples. (3 marks) A good discussion of the relevance of the Conceptual Framework of financial reporting with good examples. (2 marks) Adequate discussion of the relevance of the Conceptual Framework of financial reporting with adequate examples. (0 - 1 mark) Unable to present a proper discussion of the relevance of the Conceptual Framework of financial reporting with no examples or confusing. Reasons for the national accounting body adopting IFRSs and when it was adopted (3 marks) (3 marks) Clear, concise, compelling discussion of reasons for the national accounting body adopting IFRSs and when it was adopted. (2 marks) Very good discussion of reasons for the national accounting body adopting IFRSs and when it was adopted. (1.8 marks) Good discussion of reasons for the national accounting body adopting IFRSs and when it was adopted. (1.5 marks) Adequate discussion of reasons for the national accounting body adopting IFRSs and when it was adopted. (0 – 1 mark) Unable to present proper discussion of reasons for the national accounting body adopting IFRSs and when it was adopted or confusing. Transitional issues faced by the two countries (3 marks) (3 marks) Clear, concise, compelling discussion of transitional issues faced (within a year or two), with examples. (2 marks) Very good discussion of transitional issues faced (within a year or two), with examples. (1.8 marks) Good discussion of transitional issues faced (within a year or two), with examples. (1.5 marks) Adequate discussion of transitional issues faced (within a year or two), with examples. (0 – 1 mark) Unable to present proper discussion of transitional issues faced (within a year or two), with examples or confusing. Challenges were faced by reporting entities upon adopting IFRS (3 marks) (3 marks) Clear, concise, compelling discussion of (2 marks) Very good discussion of challenges (1.8 marks) Good discussion of challenges (1.5 marks) Adequate discussion of challenges faced (0 – 1 mark) Unable to present proper discussion of Page 5 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 challenges faced by reporting entities upon adopting IFRSs, with specific examples of accounting standard(s) that made them challenging/ difficult to adopt. faced by reporting entities upon adopting IFRSs, with specific examples of accounting standard(s) that made them challenging/ difficult to adopt. faced by reporting entities upon adopting IFRSs, with specific examples of accounting standard(s) that made them challenging/ difficult to adopt. by reporting entities upon adopting IFRSs, with specific examples of accounting standard(s) that made them challenging/ difficult to adopt. challenges faced by reporting entities upon adopting IFRSs, with no specific examples of accounting standard(s) that made them challenging/ difficult to adopt. Benefits of adopting IFRSs by reporting entities (3 marks) (3 marks) Clear, concise, compelling discussion of the benefits of adopting IFRSs by reporting entities. (2 marks) Very good discussion of the benefits of adopting IFRSs by reporting entities. (1.8 marks) Good discussion of the benefits of adopting IFRSs by reporting entities (1.5 marks) Adequate discussion of the benefits of adopting IFRSs by reporting entities (0 – 1 mark) Unable to present proper discussion of the benefits of adopting IFRSs by reporting entities or confusing. Similarities and differences in the adoption of IFRSs faced by Australia and the selected country (3 marks) (3 marks) Clear, concise, compelling discussion of the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. (2 marks) Very good discussion of the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. (1.8 marks) Good discussion of the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. (1.5 marks) Adequate discussion of the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found. (0 – 1 mark) Unable to present proper discussion of the similarities and differences in the adoption of IFRSs faced by Australia and the other country you have chosen. Include what factors had caused the differences you found, or confusing. The success of IFRS adoption in the two countries (3 marks) (3 marks) Clear, concise, compelling explanation. (2 marks) A very good explanation. (1.8 marks) A good explanation (1.5 marks) Adequate explanation (0 - 1 mark) Unable to present a proper explanation, or confusing. Recommendations to the national accounting setting bodies on ways to ensure continuing relevance of IFRS (2 marks) (2 marks) Clear, concise, identification of two recommendations to the (1.5 marks) A very good identification of two recommendations to the (1.2 marks) A good identification of two recommendations to the (1 mark) An adequate identification of two recommendations to the (0 – 0.5 marks) Unable to present a proper identification of two Page 6 of 6 HI6025 Accounting Theory and Current Issues Group Assignment T2 2019 national accounting setting bodies. national accounting setting bodies. national accounting setting bodies. national accounting setting bodies. recommendations to the national accounting setting bodies. Overall Presentation of Assignment (2 marks) (2 marks) Include all elements and is very well presented. Writing flows clearly and sections are linked very effectively. Referencing is exemplary. English is used very effectively and error-free. (1.5 marks) Include all elements and is well presented. Writing flows clearly and sections are linked effectively. Referencing is of a high standard. English is used effectively with very few errors present. (1.2 marks) Include all elements and is generally presented appropriately. Writing mostly flows well and sections are linked. Referencing is in accordance with guidelines. English is used effectively with few errors present. (1 mark) Include most elements and is adequately presented. Writing sometimes does not flow clearly leaving the paper to seem disjointed in areas. Referencing is somewhat in accordance with guidelines. Basic English is used with some errors present. (0 – 0.5 mark) Lack key elements and is poorly presented. Writing does not flow clearly leaving the paper to seem disjointed. Referencing is not in accordance with relevant guidelines. Basic English is used with errors present. TOTAL Marks (30) /30
Answered Same DaySep 05, 2021HI6025

Answer To: HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group...

Charanjeet answered on Sep 23 2021
141 Votes
Abstract
In 2001 the task of developing International Accounting Standards have transferred to IASB from IASC. Prior to IFRS each country has their own accounting standards as per their local need. A need is felt to harmonize that accounting standards globally, only then the world can become a global market in real sense. In this a comparison is made between adoption of IFRS by Australia and India. Australia has adopted IFRS in 2002 much prior to India. There is difference in transition issues faced by both due to difference in adoption period and environments of the countries. There is also difference in needs, benefit
s of both. Australia has to adopt IFRS due to its international harmonization policies while India for the purpose of fair, reliable financial reporting. Based on the difference in challenges, the recommendations suggested to national accounting authorities of both nations is also different.
Table of Contents
    Sr. No.
    Topic
    Page No.
    1.
    Introduction
    1
    2.
    Relevance of Conceptual framework to Australia
    1-2
    3.
    Implementation of IFRS in Australia and India:
    2
    3.1
    Reasons for National Accounting bodies adopting IFRS
    2-3
    3.2
    Transitional Issues faced by Both Countries
    3-4
    3.3
    Challenges faced by adoption to reporting entities of both countries
    4-5
    3.4
    Benefits of adopting IFRS by reporting entities
    5-6
    3.5
    Similarities and difference in Adoption of IFRS between Australia and India
    6-7
    4.
    Adoption of IFRS is successful or not in Australia and India?
    7
    5.
    Recommendations to the National Accounting setting bodies of Australia and India
    7-8
    6.
    Conclusion
    8
    7.
    References
    9
Introduction: In 1973, 10 countries formed international Accounting Standards Committee (IASC) that had provided the task of development of International accounting standards. In 2001, this task is transferred to International Accounting Standards Board (IASB) which issues a new set of international accounting standards. Prior, to IFRS each and every country had its own accounting standards which are made by the national accounting authority of different countries. In this assignment a comparison of adoption of IFRS is made between Australia and India. In Australia prior to adoption of IFRS, all the work related to accounting standards is done by Australian Accounting Standard board (AASB), while in India all work is under Accounting Standards Board of Institute of Chartered Accountants of India. The adoption of IFRS by both nations is a step towards the harmonization of their local accounting standards to international accounting standards. The journey of IFRS adoption of both the countries is different, which is explained in detailed form in this assignment.
Relevance of Conceptual framework of IFRS to Australia:
Principle based Accounting Standards: The accounting standards as prescribed by IFRS are more principle based in place of rule based. In rule based principles very less options are available to auditors and accountants for different situations. So accountant and auditors can think of their own which option is applicable to them under present situation.
For Example: Under IFRS a provision for fair market value is such that in certain situation if market value of a particular thing is not available then the book value of such can be used.
Enhancement of Reliability and Comparability for Investors: IFRS standards are formed by keeping in view that it provides true, reliable and comparative information to the investors, creditors and other stakeholders. The harmonization would help in making comparison of international financial information easy.
For Example: An Australia investor can make assessment of various risk involved and return between Australian company and Indian company and can make decision accordingly.
Global Exposure: The framework is such that by adopting it ay country can take part in the global market. As it benefits by cutting cost of MNC by making one statements in place of multiple as per need of each country, the companies is on leveling playing with all other countries of the world.
For Example: An Australian company earlier has to modify its statements for listing at stock exchanges of US. But now there is no need to make multiple statements, one made as per IFRS is sufficient.
Implementation of IFRS in Australia and India: In India decision to fully converge with IFRS is taken by ICAI for accounting periods commencing on or after 1 April, 2011. After it , various press releases was done by Ministry of Corporate Affairs (MCA) to provide guidelines to various corporate entities from time to time for preparation of financial statements as per IFRS. In Australian the decision for adopting of IFRS by Financial Reporting Council (FRC) was taken in 2002. However the corporate entities were to adopt IFRS in its true spirit from 1st Jan 2005. The time difference in decision and implementation was taken for making changes that are necessary for implementation of IFRS in its full spirit.
(I) Reasons for National Bodies of both countries adopting IFRS:
Reasons of adoption of IFRS by Australia:
International Harmonization Process: Australia from the very beginning is involved in the process of international harmonization of accounting standards. AASB from the very beginning taking active role in making the accounting standards that are at par with the international accounting standards. So, Australia National Accounting body cannot miss the chance to be involved in International harmonization.
Benefits VS costs analysis of IFRS by AASB: AASB completely analysis the benefit and cost effect of adoption of IFRS on the economy of the Australian Economy. After that it is concluded that the benefits of this to investors in the from of true, fair, reliable and comparable information and also to corporate entities as such lower capital costs, global exposure are more as compared to initial costs. So this is also the reason for adoption of IFRS.
For Making presence in Global Capital market: Earlier to Australia European countries had announced their decisions for adoption of IFRS. If Australia did not adopt IFRS at that time, it would meant loss due to non global disclosure. The global...
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