Untitled HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group Assignment T2 2020 Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code...

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Untitled HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group Assignment T2 2020 Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code HI6025 Unit Title Accounting Theory and Current Issues Assessment Type Group Assignment Assessment Title Adoption of IFRSs and CSR Reporting Purpose of the assessment (with ULO Mapping) Students are required to critically examine the adoption of IFRSs and the benefits and challenges for reporting entities in Australia or any one country of choice. They will have to do research on relevant literature and demonstrate understanding and critical evaluation of key disclosure issues relating to application of specific accounting standards. They will also need to compare and contrast a real-life company’s corporate social responsibility (CSR) reporting and recommend future directions to the Australian financial reporting regulators. (ULO 1, 2, 3, 4, 5, 6, 7). Weight 40 % of the total assessments Total Marks 40 Word limit 3,000 words ± 500 words Due Date Group Formation: Please form the group by self-enrolling in Blackboard. There should be maximum of 4 members in a group. Email [email protected] for any issues with self-enrolling into groups. Assignment submission: Final Submission of Group Assignment: Week 10, Thursday 24th of September at 11:59 pm. Late submission incurs penalties of five (5) % of the assessment per calendar day unless an extension and/or special consideration has been granted by Student Services of your campus 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. • 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. mailto:[email protected] Page 2 of 10 HI6025 Accounting Theory and Current Issues Assignment Specifications Purpose: This assignment aims at developing the student’s ability to critically examine the financial reporting regulations for reporting entities in Australia or any one country of choice, and the effect of adopting IFRSs (global accounting standards). They will also need to compare and contrast a real-life company’s corporate social responsibility (CSR) reporting and recommend future directions to the Australian financial reporting regulators. Students will have to research relevant academic literature, including related organisation websites and write in-text citations in this assignment. Additionally, they will 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. Required Task: Part A 1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3 or more years, as revealed in the accounting literature, and discuss the following: I. In what year did the country adopt IFRSs? II. Were the IFRSs introduced all together (at once), or gradually into the local accounting standards of your chosen country? Explain the possible reason. III. Discuss the benefits and challenges reported in the literature about the adoption of IFRSs in your chosen country. 2. Choose a publicly listed company from your chosen country above that you can access their annual report, including financial statements and notes to the accounts. (e.g. Choose a company that is listed in the Australian Securities Exchange (ASX) if you chose Australia; or Hong Kong Exchange if you chose Hong Kong etc.). Find and download the financial statements for two (2) years as follows: • 1st financial statement – Choose the year immediately before IFRSs adoption and • 2nd financial statement – Choose either 2019 or 2018 only. Compare the two (2) years’ financial statements and accompanying notes to the accounts selected above, and discuss the following: I. Identify and discuss any remarkable changes to the disclosures relating to any two of the following financial aspects: • Non-Current Assets • Intangible Assets • Leases • Employee Benefits II. Express your opinion about the usefulness of the new format of disclosures compared to the disclosures at the pre-adoption of IFRSs. Include examples to support your opinion. Page 3 of 10 HI6025 Accounting Theory and Current Issues Part B 1. Discuss key trends in Corporate Social Responsibility (CSR), as reviewed in the literature in the past 5 years. (Word limit: approx. 500 – 800 words). 2. Choose one company listed on the ASX and obtain its latest annual report (incl. financial statements). Compare and contrast the extent of CSR reporting by your chosen company with your review of the literature (above in 1.), by answering the following questions: I. Evaluate the company’s extent of CSR reporting. (Include in your discussion, specific evidence of CSR disclosures, e.g. environmental etc.). II. Using one relevant accounting theory (e.g. PAT, Legitimacy Theory, Stakeholder Theory), explain why particular CSR disclosures were made by your chosen company. III. In your opinion, is there scope for improvement in CSR reporting by your company? Explain with two specific examples. 3. Based on your findings, provide two (2) recommendations to the Australian financial reporting regulators about the future of CSR reporting that will guide Australian public entities in the future. Assignment Structure should be as the following: Assignment cover page clearly stating your name(s) and student number(s) Group’s Assignment Task Allocation table (except for Solo group members) Abstract (one paragraph) Table of Content Introduction Body of the assignment with appropriate section headings Conclusion List of references Appendices (optional) To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. You need to complete the following Group Assignment Task Allocation table, which identifies which student/students are responsible for the various sections of the assignment. Assignment Section Student/Students This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Students that are registered in a solo group are not required to fill this table. Page 4 of 10 HI6025 Accounting Theory and Current Issues Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination. Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. Source: INQAAHE, 2020 Page 5 of 10 HI6025 Accounting Theory and Current Issues Marking Criteria: Marking criteria Weighting Abstract 1% Introduction 2% Part A 1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3 or more years, then discuss the following: I. In what year did the country adopt IFRSs? 1% II. Were the IFRSs introduced all together (at once), or gradually into the local accounting standards of your chosen country? Explain the possible reason. 3% III. Discuss the benefits and challenges reported in the literature about the adoption of IFRSs in your chosen country. 4% 2. Compare the two (2) years’ financial statements and accompanying notes to the accounts selected above, and discuss the following: I. Identify and discuss any remarkable changes to the disclosures relating to any two of the following financial aspects: • Non-Current Assets • Intangible Assets • Leases • Employee Benefits 4% II. Express your opinion about the usefulness of the new format of disclosures compared to the disclosures at the pre-adoption of IFRSs. Include examples to support your opinion. 3% Part B 1. Discuss key trends in Corporate Social Responsibility (CSR), as reviewed in the literature in the past 5 years. (Word limit: approx. 500 – 800 words). 5% 2. Choose one company listed on the ASX and obtain its latest annual report (incl. financial statements). Compare and contrast the extent of CSR reporting by your chosen company with your review of the literature (above in 1.), by answering the following questions: I. Evaluate the company’s extent of CSR reporting. (Include in your discussion, specific evidence of CSR disclosures, e.g. environmental etc.). 5% II. Using one relevant accounting theory (e.g. PAT, Legitimacy Theory, Stakeholder Theory), explain why particular CSR disclosures were made by your chosen company. 4% III. In your opinion, is there scope for improvement in CSR reporting by your company? Explain with two specific examples. 4% 3. Based on your findings, provide two (2) recommendations to the Australian financial reporting regulators about
Answered Same DaySep 18, 2021HI6025

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

Harshit answered on Sep 21 2021
151 Votes
ADOPTION OF IFRS AND CSR REPORTING
(ACCOUNTING THEORY AND CURRENT ISSUES)
ABSTRACT
The report on “Adoption of IFRS and CSR Reporting” will be useful in understanding the financial reporting framework in the country Australia (that I have selected for this report). It will examine the process in which the IFRS was adopted in Australia and what were the challenges faced while its adoption. There were also certain benefits which was observed while adopting IFRS in Australia which will be discussed in detail. Another part of the report will be helpful to make an in-depth analysis of the trends in Corporate
Social Responsibility over the five years. It will be done by comparing and studying a real-life organization (a listed company in Australia) about how the CSR is incorporated in the company along with a discussion on how the company has made the CSR disclosures and the scope of improvement related to CSR disclosures in the company.
TABLE OF CONTENTS
    Sl. No.
    Contents
    Page Number
    1.
    Introduction
    3
    2.
    Part A
    4-6
    3.
    Part B
    7-10
    4.
    Conclusion
    11
    5.
    References
    12
INTRODUCTION
IFRS or the International Financial Reporting Standards are certain rules which are commonly adapted by organizations following IFRS that provide transparency, consistency, and comparability of financial statements all around the world. The IFRS is issued by the International Accounting Standard Board (IASB). It increases the reliability of the financial statements which can be used across different countries and companies (Chua, Y.L., Cheong, C.S., and Gould, G., 2012). However, one of the disadvantages of IFRS is that they are not universal with the Generally Accepted Accounting Standards (GAAP) of the United States. The first part of the report will make a discussion of IFRS adoption in Australia and what were the challenges and benefits faced by the country. Using an ASX listed company, the changes in disclosure requirements due to the adoption of IFRS will be studied and reported in detail.
CSR or Corporate Social Responsibility refers to the business model used by the companies to be socially accountable to itself, its different stakeholders (investors, creditors, customers, etc.), and the public. By following CSR practices, a company is aware of the impact it is having on the different aspects prevalent in society like the social, economic, and environmental. It is important for both society and the company (Nwagbara, U., and Reid, P., 2013). In the second part of this report, there will be a discussion on trends in CSR over the years. Also, the disclosures related to CSR of ASX listed companies will be studied to have a better idea of the same.
PART A
QUESTION 1
I. More than 100 countries (including the EU and major Asian Countries) all over the world have adopted the International Financial Reporting Standards (IFRS) entirely. The IFRS adoption in Australia through the equivalents Australian Financial reporting standards was done from 1st January 2005(strategic direction was given by the Financial Reporting Council in 2002). It shows that Australia also supports consistency and high-quality financial reporting.
II. In Australia, IFRS has been adopted in almost all the companies, i.e. the profit-making companies which are classified as the reporting entities in Australia. The companies are listed in the Australian Stock Exchanges (publicly traded) and others are included in it. Though the IFRS was adapted in 2005 in Australia, the convergence with the AASB and the predecessor, i.e. IASB board were carried once since 1996. The first IFRS was adopted in Australia was by applying the IFRS-1 (First-time adoption of International Financial Reporting Standards). The changes in the disclosure requirements due to transition was already informed to the organizations one year prior to the adoption through the AASB 1047 (Disclosing the Impacts of adopting the Australian Equivalents to IFRS). It was not required to change the IFRS into the local language in Australia as it was already in English. The IFRS was gradually introduced in the local accounting standards of Australia.
There were a lot of changes that took place after Australia adopted the IFRS entirely. It includes changes like eliminating the accounting policy options and many additional disclosure requirements. Some of the amendments were made by AASB by introducing an "Amending Standard" that reflected the changes adopted to the initial adoption of IFRS in Australia. Those were effective from 1st July 2007. The reason for doing so was that the reporting entities should be able to comply with IFRS and that it would result in greater consistency, transparency, and effectiveness of reporting by the organizations. Overall, it was observed that the transition to IFRS was smooth in Australia.
III. Benefits of adopting IFRS in Australia
The adoption of IFRS in Australia led to a lot of benefits in Australia. It has impacted the Australian economy in a positive manner. It has led to an improvement incomparability of the entities in Australia against global competitors. IFRS adoption by Australia showed that Australia also believes in preparing transparent financial reporting and support the harmonization of accounting internationally. It also has led to an increase in capital inflows, an increase in trade volumes by substantiating amount, and the growth of the capital markets in Australia (Elias, N., 2012). Also, as more than 100 countries have already adopted IFRS, Australia would benefit as it can expand its businesses, both within and outside the country.
Challenges in Australia while adopting IFRS
Though there were a lot of benefits observed in Australia due to the adoption of IFRS, there were also some challenges faced by them in the process. Its adoption involved a high cost to the small companies (which were almost 80% of the Australian Companies). There is an ongoing challenge faced on being an independent domestic developer of standards to following international standards and contributing to global accounting standards (Brown, P.,...
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