Purposec To allow students to apply the technical knowledge of relevant accounting standards to nancial reporting settings. This assessment relates to leaming outcomes c d Value: 30% Due Datec Week 9 8:00 pm Wednesday of Week 9 ssion must be made to the Moode Assignment Link on the KOI Moodle Subject pm Wednesday of Week 9 A printed copy must be submited to the Lecurer at the rssist with marking All assignments must have a signed KOI Assignment d with the submission Topic: Researdh Individual Assignment Task Details: Tedhnology Enterprises Ltd, a isted company, commenced a research and development R&D) project in July 2017 to modity the method of recharging batteries used in its products. The project was successfully completed in June 2018 and the company applied for a patent for the design. Technology Enterprises Ltd plans to modfy all products in its consumer range over the next two years and has incorporated these plans into its fnancial budget. The enity expects to derive economic benefts from the new battery recharging technology over the next 10 years The accountant was unsure how to account for the project so they used the New Project R&D account to accumuate the salaries of all engineers innvolved in the project during the year ended 30 June 2018 The following analysis of the salaries expenditure is based on the engineers time sheets King's Own Institute ACC701 Cost of sme spent searching for and evalualting wernative materials of sime spent on The vakae in use of the design, estimated tair value of the design is estmated to be only $3 000 000 because the only potental buyer would need to modfy the design to adapt R to its own products. present value techniques, is $4 000 000. However, the The felowing conversation look place between the chiel executive offcer (CEO) and the accountant ACC) CEO: Tat R&D asser should make our financial statements look great this year we can show it is worth $4 000 000 in the balance sheet and add an extra $3 000 000 to proft because it cost only $1 000 000 ACC I haven't finaised accounting for yet but l am quite sure the accounting standard roures us to measure t at historical cost and some of it will probably have to be recognised as an CEO: Ran tair. These conservative accounting rules makue it impossible to show investors that our project was successful- and expensing any of it ill cause our share price to go down 1 How should the project be accounted for in the financial statements for the year ended 30 June 0187 Jusity your answer with reference to relevant paragraphs of AASB 1381AS 38 2 To what extent might the nules or restrictions in AASB 138AS 38 reduce the comparability of financial statements 3 Write a response to the CEO, drawing on your understanding of AASB 138AS 38 and the efficient market hypothesis (refer to chapter 2 of Lotus) Include a recommendation as to how the company might mitigate their concerns about investors interpretation of the informaion reported in the financial statements Research requirements: Students need to support their analysis with reference to relevant material from the text and a minimum of eight (8) suitable, relable, current and academically acceptable sources- this should include at least 2 peen-reviewed academic joumal artides Presentation 2000 * 10% word short report format Title page, execune summary, table of contents, reference list (Harvard- Anglia style), artachments if elevant. Single spaced, font Times New Roman 12pt Calibri 11 pt or Arial 10 pt Purposec To allow students to apply the technical knowledge of relevant accounting standards to nancial reporting settings. This assessment relates to leaming outcomes c d Value: 30% Due Datec Week 9 8:00 pm Wednesday of Week 9 ssion must be made to the Moode Assignment Link on the KOI Moodle Subject pm Wednesday of Week 9 A printed copy must be submited to the Lecurer at the rssist with marking All assignments must have a signed KOI Assignment d with the submission Topic: Researdh Individual Assignment Task Details: Tedhnology Enterprises Ltd, a isted company, commenced a research and development R&D) project in July 2017 to modity the method of recharging batteries used in its products. The project was successfully completed in June 2018 and the company applied for a patent for the design. Technology Enterprises Ltd plans to modfy all products in its consumer range over the next two years and has incorporated these plans into its fnancial budget. The enity expects to derive economic benefts from the new battery recharging technology over the next 10 years The accountant was unsure how to account for the project so they used the New Project R&D account to accumuate the salaries of all engineers innvolved in the project during the year ended 30 June 2018 The following analysis of the salaries expenditure is based on the engineers time sheets King's Own Institute ACC701 Cost of sme spent searching for and evalualting wernative materials of sime spent on The vakae in use of the design, estimated tair value of the design is estmated to be only $3 000 000 because the only potental buyer would need to modfy the design to adapt R to its own products. present value techniques, is $4 000 000. However, the The felowing conversation look place between the chiel executive offcer (CEO) and the accountant ACC) CEO: Tat R&D asser should make our financial statements look great this year we can show it is worth $4 000 000 in the balance sheet and add an extra $3 000 000 to proft because it cost only $1 000 000 ACC I haven't finaised accounting for yet but l am quite sure the accounting standard roures us to measure t at historical cost and some of it will probably have to be recognised as an CEO: Ran tair. These conservative accounting rules makue it impossible to show investors that our project was successful- and expensing any of it ill cause our share price to go down 1 How should the project be accounted for in the financial statements for the year ended 30 June 0187 Jusity your answer with reference to relevant paragraphs of AASB 1381AS 38 2 To what extent might the nules or restrictions in AASB 138AS 38 reduce the comparability of financial statements 3 Write a response to the CEO, drawing on your understanding of AASB 138AS 38 and the efficient market hypothesis (refer to chapter 2 of Lotus) Include a recommendation as to how the company might mitigate their concerns about investors interpretation of the informaion reported in the financial statements Research requirements: Students need to support their analysis with reference to relevant material from the text and a minimum of eight (8) suitable, relable, current and academically acceptable sources- this should include at least 2 peen-reviewed academic joumal artides Presentation 2000 * 10% word short report format Title page, execune summary, table of contents, reference list (Harvard- Anglia style), artachments if elevant. Single spaced, font Times New Roman 12pt Calibri 11 pt or Arial 10 pt