This is a individual assignment, which is due on 27th of jan, wed, 1pm.

Can u help me to do it?

Financial Accounting 2 ACG 27, Study Period 4, 2015 Case Study for Annual Report Assignment The following details are taken from the accounting records of the company as at 30 June 2015. Debit In $000's Sales Services revenue Interest Commission revenue Proceeds from sale of non-current assets Cost of sales Carrying amounts of non-current assets sold Other expenses Cash at bank Office furniture and equipment (net of depreciation) Machinery(net of depreciation) Land (at cost) Accounts receivable Allowance for doubtful debts Accrued commission revenues Inventory (at lower of cost and net realisable value) Investment Account with OurBank Accrued expenses Provision for legal case Provision for annual leave Accounts payable Provision for warranty Share capital General reserve Retained earnings (1 July 2014) Credit In $000's 19,400 11,600 35 114 3,204 11,250 2,850 14,300 55 234 21,360 3,800 3,450 188 28 8,372 4,000 69,699 570 620 480 8,400 980 8,336 7,500 8,272 69,699 Additional information: Note: Unless otherwise indicated the events and transactions outlined below have already been accounted for in the balances above if required. (a) Share capital at 1 July 2014 comprised : 2,000,000 ordinary shares issued and paid to $1.80 in 2009. Share issue costs of $40,000 were incurred in this issue. 1,000,000 ordinary shares issued and paid to $2.40 in 2011. Share issue costs of $24,000 were incurred in this issue. ACG 27 SP4 2015 Assignment Case Study page 1 of 3 In January 2015 a bonus share issue of 1 share for each 3 held (issued and paid to $2.40) was made from the general reserve. (b) Included in the amount of 'Other expenses' in the trial balance above are: $4,300,000 for employee expenses. This included an expense for annual leave of $680,000 The balance of the provision for annual leave as at 30 June 2014 was $310,000. Depreciation on office furniture of $42,000. Depreciation on machinery of $1,900,000. The useful life of machinery held by the company was reviewed on 1 July 2014 and it was decided that the average useful life should be revised downward from an average 10 years to 8 years. This has increased depreciation by $450,000 in this year (and is expected to increase by a similar amount in future years). Advertising expenses of $1,100,000. General operating expenses $2,300,000 $620,000 payment to auditors (of this amount $120,000 related to advice and services to increase IT security) $140,000 expense for bad and doubtful debts. Expense for warranty of $1,210,000. The balance of this provision at 30 June 2014 was $640,000. The company provides a 2 year warranty on its products. It is expected that 30% of the provision at 30 June 2015 will be used in the year ending 30 June 2016. $900 for gift for retiring cleaner who had been with the company for almost 6 years. (Note: This does not detail all expenses included in the total of 'Other expenses' in the trial balance above -You should classify the remaining expenses as 'other' or 'miscellaneous') (c) Proceeds from the sale of non-current assets relates to the following sales: In September 2014 an item of land was sold for $2,800,000. The land had originally been purchased in 2010 for $1,780,000. In May 2015 an item of machinery was sold for $404,000. These were the only sale of non-current assets made during the period. (d) The interest relates to interest earned on the investment in OurBank. Interest is paid to the company annually on 30 June. This investment matures (ends) on the 30 June 2016. (e) Accrued expenses relates to wages payable and utilities (e.g. electricity and water rates) payable. (f) On 30 June 2014 the Directors declared a dividend of $720,000 (this was not subject to further authorisation or approval). This dividend was paid on 17 August 2014 from retained earnings. ACG 27 SP4 2015 Assignment Case Study page 2 of 3 The following events/transactions are not reflected in the trial balance above. You will need to make appropriate adjustments if required. (g) On 30 June 2015 the directors: transferred $2,800,000 from retained earnings to the general reserve declared a final dividend of 24c per share from retained earnings. This was not subject to further authorisation or approval. (h) On 18 July 2015 the government introduced new legislation in relation to recycling. This requires companies to set up recycling locations for certain products and then recycle these (and the company is required to pay for this recycling). The changes will apply from 1 January 2017 to a number of the products the company sells. The cost of establishing the recycle locations and of recycling is expected to be $1,200,000 for the year ending 30 June 2016. (i) The legal provision in the trial balance relates to a claim made against the company in 2011 alleging false advertising. In June 2015 the company's lawyers advised that the case was proceeding to court and advised that the amount that the company would be expected to pay was now $900,000. This is a lengthy and complex case and is not expected to be decided until June 2017. (j) The company has entered into a contract with ABC Ltd on 1 June 2015 to build a new head office building on some land that the company already owns. Construction is expected to begin in August 2015. The total amount payable is $5,000,000 with $2,000,000 payable on 1 December 2015 and the final payment of $3,000,000 payable on 1 December 2016 when the building is expected to be completed. (k) On 10 September 2015 a fire destroyed machinery (with a carrying amount of $5,600,000). The company's insurance will cover the cost of replacing the machinery. However as it will take some time for the replacement machinery to arrive, some company operations will be disrupted. This is expected to reduce profits for the year ended 30 June 2016 by 9%. (l) The company tax rate is 30%. Ignore tax-effect accounting. Tax expense should be based on 30% of the accounting profit before tax. No tax expense has yet been recorded You should assume that the company is a reporting entity and that the date the annual report (including the financial report) is authorised for issue is the 22 August 2015. ACG 27 SP4 2015 Assignment Case Study page 3 of 3 UNI VER SIT Y OF SOU TH AUS TRA LIA C ov er Sh ee t A nn ua l Re po rt As sig n m en t- F A 2 An Assignment Cover Sheet needs to be included at the front of each assignment submitted. If this assignment has been prepared in a group only 1 group member is to submit this. First name UniSA email user name Student Family name 1. 2. 3. Statement on Use of Draft Feedback You must include a brief statement in the section below (100 word limit) in your own words on how you have used the feedback provided in relation to the draft submissions. If you do not include this penalties will be applied. Please refer to Assignment Instructions for further information about this statement. {Include statement here and delete this message} If you have completed in a group, please include the name of student who you wish the assignment to be posted to (Note: The assignment will be posted to the address in university records): Name of student OFFICE USE ONLY Assessed by: Mark: /100 Date recorded and returned: Recorded and returned by: Annual Report Assignment Instruction Booklet FINANCIAL ACCOUNTING 2 CONTENTS Nature of Assignment .............................................................................................................................. 2 Learning objectives for this assessment task ......................................................................................... 2 Specific Directions and Requirements .................................................................................................... 2 Statement on Use of Draft Feedback ...................................................................................................... 5 Academic Integrity Issues in relation to this assignment ........................................................................ 6 Single report or group ............................................................................................................................. 8 Criteria for assessment ........................................................................................................................... 9 Submission of assignment .................................................................................................................... 11 Extensions for assignments .................................................................................................................. 11 Option to sumbit draft statement of profit or loss and other comprehensive income ........................... 12 Checklist for draft option ...................................................................................................................... 14 Checklist for assignment ...................................................................................................................... 14 Feedback form ...................................................................................................................................... 15 1 Annual Report Assignment Nature of Assignment You will be provided with a case study, comprising a trial balance and additional information, in relation to a fictitious company. This case study can be accessed from the course learnonline site. Using this information as a basis, you are required to prepare an annual report suitable for publication a particular year ending 30 June. This must include the following: title page and contents page statement of profit or loss and other comprehensive income statement of financial position statement of changes in equity notes to the financial statements directors declaration annual directors report annual auditors report reference list. These must meet the minimum requirements of those Australian accounting standards/ pronouncements and corporations law as detailed in this booklet. In addition you must include a Statement on Use of Draft Feedback and an appendix. Further details about these are included later in this document. Learning objectives for this assessment task The aim of this assignment is to develop the following the qualities of a University of South Australia graduate. Graduate quality In relation to this assignment Operates with and upon a body of knowledge The body of knowledge addressed by this course is described in the course aims and objectives. The assignment requires you to identify and apply current accounting and reporting requirements. Is an effective problem solver, capable of applying logical, critical, and creative thinking to a range of problems The assignment requires you to synthesise relevant information in preparing the annual report. Preparation of lifelong learning toward personal development and professional practice Emphasis in this course is on preparation for professional practice. In particular, this assignment requires you to identify and apply current accounting and reporting requirements and hence develops the ability to source such requirements which is required for practice. Can work both collaboratively You have the opportunity to work on the assignment in a group. autonomously Communicates effectively and You are required to present an annual report suitable for publication that demonstrates written literacy appropriate to the profession of accountancy. Specific Directions and Requirements In relation to the financial statements and notes: You are required only to consider those accounting standards that you have studied in the first 5 topics (up to and including Liabilities) of this course. You should NOT consider standards that are considered in later topics. 2 You should also ensure that only the information required is included - students who record information in the notes or statements that is not required by the accounting standards in Topics 1 to 5 will be penalised. AASB 101 is a key standard you will need to consider and it is recommended that you review the requirements of this standard carefully in preparing this assignment. AASB 101 does not prescribe an exact format for the presentation of financial statements. In some cases, AASB 101 and other standards require information to be disclosed either in (on the front of) the statement or in the notes. For the purposes of this assignment students are required to prepare the 3 statements in accordance with the following instructions: in relation to the statement of financial position only those items required to be in (on the front) of the statement (refer AASB 101, para 54) are to be included in the statement of financial position. Additional disclosures for this statement must be included in the notes. This includes disclosures where the standard/s allows the choice to disclose either in the statement of financial position or in the notes. The one exception is that in (on the front of) the statement of financial position students must separately disclose retained earnings from 'other reserves'. in relation to the statement of profit or loss and other comprehensive income only those items required to be in (on the front of) the statement (refer AASB 101, paras 81A to 82 and para 85) are to be included in the statement. Additional disclosures for this statement must be included in the notes. This includes disclosures where the standard/s allows the choice to disclose either in the statement or in the notes. For example, for this assignment the analysis of expenses must be disclosed in the notes (not on the front of the statement). Please note: In this case study there are no items of other comprehensive income. In (on the front of) this statement you will need to include a line item for items of other comprehensive income however this will have a zero balance (please refer to the answer to topic review questions of topic 2 for an example). in relation to the statement of changes in equity, only those items required to be in (on the front) of the statement (refer AASB 101, para 106) are to be included in (on the front) of the statement. Additional disclosures for this statement must be included in the notes. This includes disclosures where the standard/s allows the choice to disclose either in the statement or in the notes. A cash flow statement is NOT required. In relation to each note: Where the accounting standards indicate that a disclosure is required but all of the information required to be disclosed is not available from the case study information, students need to either 'make up' the information, or indicate the specific information that needs to be included if the information were available. Students are required to identify which standard/s has been followed against the specific note, and record both the standard and relevant paragraph against each note to justify the inclusion of the information (see example following). Note x: Analysis of expenses (Then include actual note...) AASB 101 para 99 All notes (i.e. each and every note) must have a standard and paragraph number recorded against them to justify their inclusion. The standard and paragraph number must justify the inclusion of the note (i.e. justify why the specific disclosure made). Marks will be deducted for failing to adhere to these assignment instructions. For example, 3 Students who do not justify their notes with appropriate standard and paragraph references at all will lose 15 marks from the marks allocated for the notes. Incorrect identification of the paragraph justifying the note (for example, identifying the paragraph that describes the underlying accounting treatment rather than the requirement for the note disclosure) will be penalised. Including notes that are not required (for example, notes that provide no additional information than that already provided in - on the front of - the statements) will be penalised. For the statement of financial position and statement of profit or loss and other comprehensive income Comparative information must be disclosed in respect of the previous period for all amounts reported in the financial report in accordance with AASB 101. However this information is not provided in the question hence a comparative column only is required in only the statement of profit or loss and other comprehensive income and statement of financial position. No numbers are required to be included in these columns. In this assignment, no comparative columns are required in the statement of changes in equity or in the notes. Appendix In addition, an appendix is required, containing the calculations used for the items appearing in (on the front of) each financial statement. This appendix will not be marked (so do not include parts of your actual assignment such as notes, or references, in this appendix) but is required to assist markers to determine how the totals on the statements have been derived. In relation to Directors declaration, Annual directors' report and Annual auditor's report You should refer to Chapter 14 of the text for the minimum requirements for the director's report, declaration and the auditor's report. In assessing this assignment markers will use the minimum requirements for these reports, as identified in the text in sections 14.2.2 to 14.2.4, to determine if the minimum requirements have been met. Further advice You are required to only consider the specific accounting standards that you have studied in topics 1 to 5 of this course. You should NOT consider standards that are studied in later topics or not covered in topics 1 to 5 of this course. A key objective of this assignment is to assess your ability to apply the requirements of particular accounting standards. You need to ensure that only the information required by the standards in Topics 1 to 5 of this course is included - students who record information in the notes or statements that is not required by these accounting standards will be penalised. All notes must have a standard and paragraph number recorded against them to justify their inclusion. In in preparing this assignment you may need to distinguish between revenue and other income. To do this you should refer to paragraphs 74-77 of the Framework. At the time you are completing this assignment we will not have considered accounting standards that specifically relate to revenue recognition. Remember for this assignment you should only apply the standards we have studied in topics 1 to 5 of this course (i.e. up to and including the Liabilities topic). Where the relevant information that would be required to be disclosed is not specifically provided in this assignment, it is expected that students will use their initiative and imagination to ensure that the minimum requirements for preparing annual financial reports are met. For example, the director's report requires information about the company's activities and director's names. To provide this information, you will need to 'make up' these details. 4 For some sections (such as the auditor's report) you may find it useful to look at examples provided in the annual reports of specific companies or model financial reports. This is acceptable, however, remember that you must adequately acknowledge the source (with Harvard in-text references and quotation marks if required) where your reports etc are based or adapted from such sources. Also, remember if referring to actual or model reports to assist in preparing this assignment such reports will cover a much wider range of accounting standards than those required to be applied for this assignment. Also take care that these consider the version of the standard/s that we are considering. Students are NOT required to prepare a cash flow statement, nor do you need to consider any Australian Securities Exchange (ASX) requirements. You should review the Frequently Asked Questions (FAQ's) in relation to this assignment available from the learnonline resources for this course. THIS IS VERY IMPORTANT IF YOU WISH TO AVOID COMMON MISTAKES. Case Study for assignment The case study for this assignment will be made available from the learnonline site for this course. Statement on Use of Draft Feedback In addition you must include a brief statement (100 word limit) in your own words on how you have used the feedback provided in relation to the draft submissions. This statement must be in the allocated section of the Annual Report Assignment cover sheet. (You can find this cover sheet on the learnonline site for this course). If you are completing this assignment in a group then there will be only 1 statement. You will need to do this as a group and include on the cover sheet for this assignment (i.e. each group member is not required to prepare an individual statement). WHY do you need to include this? An important learning outcome for accounting graduates is self-management. This includes the ability to reflect on feedback provided, and identify actions that may be required in response to feedback to promote self-improvement. Whether or not you submitted a draft, all students in this course are provided with feedback on those drafts submitted. The aim of this feedback is for students to improve their final assignment. Therefore, it is important to consider this feedback (even if it simply confirms that what you are doing is correct). WHAT do you need to do? In the allocated section in the assignment cover sheet you need to: 1. Identify (with relevant sub-heading number from draft feedback document if appropriate/available) and outline one specific piece of feedback provided in relation to the draft, and 2. Then briefly explain how you used this feedback to improve your final assignment. (Note: you cannot consider the feedback on dates/periods used in the example below. You must consider a different issue/information). 5 Are marks awarded? No. However if this section is not adequately completed you will receive a 5% penalty (i.e. a 5 mark deduction). How will this be assessed? The following criteria will be used: Has the statement been included in the cover sheet? If no, penalty of 5 marks. (Note: If included elsewhere in assignment but not in coversheet penalty of 5 marks will apply). Does the statement adequately identify the specific piece of feedback (i.e. include subheading number if appropriate/available) and state/outline feedback that was considered? If not, penalty of 2 marks and as specific feedback considered not adequately identified, then likely to also not receive further 2 marks (next). Does the statement explain how the specific feedback was used/considered when completing the final assignment? If no, penalty of 2 marks. For example, let's assume that the draft feedback at 2 (b) stated: 2(b) You will need a company name in the header (title) of the statement as well as indicating an appropriate date or period (remember from first year that this will differ between statements). An appropriate example of a Statement on Use of Draft Feedback would be: The feedback suggested checking that the statements had the correct date/period for the statements (2(b)). In my final assignment, I checked the dates for the statements and realised that I had indicated a period instead of 'as at' for the statement of financial position. So I changed this for my final assignment. (Of course, a student could check this specific feedback information/advice and this could simply confirm that the dates/periods included were already correct. This is also acceptable to state. Using feedback correctly does not mean that you need to find something to 'correct' or 'change'. It can confirm what you have done is correct). How will this help me? First, if you do this you will not receive a penalty! However this is not how this will help you the most. The final assignment of students who ignore the feedback provided in relation to the drafts, are often poor as mistakes have been made, that , if the information and advice provided had been followed could have been avoided. So the way this helps you the most is by ensuring that you take into account the feedback provided, and so get a better mark for your final assignment. Academic Integrity Issues in relation to this assignment This assignment is as much, if not more so, about presentation as it is about calculations. A key aspect that is being assessed is your ability to prepare and format statements and notes from the accounting standards. Therefore it is required that the statements and notes are prepared and formatted by you (or your group). Some students may have access to software/computer programs or other templates that prepare annual reports (or part of these). It is not acceptable to use any source as a 'template' to format your statements or notes (whether this is from other students or from any source). In other words, for the statements and notes you need to begin with a blank electronic document and format and write these yourself!! You should note that in previous study periods a number of students received ZERO for this assignment as they had used other students work (from the same or previous study periods) 6 as the basis for their own assignment. If you use another students assignment (e.g. from this or a previous study period) as a basis or 'template' for some/all and change for this case study you will be referred to the Academic Integrity officer and should expect to receive ZERO as a minimum penalty. If you (or your group) need help with this assignment then you should seek assistance from your course coordinator directly or via the course discussion page. It is not appropriate to seek assistance from other students in relation to specific queries about this assignment. For the director's declaration, auditor's statement and some parts of the director's report you may adapt or copy from sources. However, where this is done you must include appropriate Harvard intext referencing (including quotations marks). Whilst we appreciate that in 'real' annual reports such referencing is not required, as this is an assessment item at university you are required to apply the Harvard referencing system. Also, take care as you need to remember that the older financial reports for companies may be based on the previous accounting standards. Plagiarism and referencing Plagiarism is regarded as a serious issue within the university system with severe consequences for students who have been found to have plagiarised, often the minimum penalty being zero for the assignment. You should be aware that in previous offerings of this course a number of students were referred to the Academic Integrity Officer. All students should ensure that they are familiar with the plagiarism policy and referencing requirements before commencing the assignment in this course. Remember If information contained in the assignment is not your own words or ideas you must acknowledge the source within the text of the paper as well as in the reference list. If you use another person's words (i.e. you quote) you must indicate that this is a direct quote (usually by quotation marks) and reference the source (including the page number) within the text of the paper. Including the source in the reference list is not sufficient. Changing, deleting, adding only a few words, or rearranging the sentence/paragraph does not negate that fact that you are quoting. If paraphrasing, you still need to include an in-text reference (which includes the page number). And take care that the paraphrasing is not 'too close' to the original; i.e. that it is in fact a quote. The fact that the source of the material is from an Internet site, and/or the specific author cannot be identified does not negate the need to acknowledge the source of the ideas or words, or to reference correctly. If you need help with referencing, please refer to the following resources available from the Learning & Teaching Unit website at: http://www.unisa.edu.au/ltu/students/study/referencing/default.asp You should be aware that academic misconduct includes the following: 9.2.2 (c) submitting another student's work in whole or in part, unless this is specifically allowed in the course outline; 9.2.1 (d) including material in individual work that has involved significant assistance from another person, unless this is specifically allowed in the course outline 9.2.1 (e) providing assistance to a student in the presentation of individual work, unless this is specifically allowed in the course outline Whilst I understand that pressures from fellow students are sometimes difficult to resist and it is acceptable (and indeed generous) to assist other students by discussing general issues relating to assignments, it is not acceptable to provide access to, or copies of, your own assignment (or part of 7 your assignment) to other students. Nor is it acceptable to use another students work as the basis for submission of your own (or part of) assignment, whether quoting, paraphrasing or simply using their ideas. While the nature of this assignment is more professional in nature and one in which fewer references would be needed, the report is assessable and hence still needs to meet academic requirements. As such acknowledgement of sources (via in-text referencing and quotation marks where appropriate) and a reference list is required. The Harvard (author date) referencing system is to be used in this assignment. For the director's declaration, auditor's report and some parts of the director's report you may adapt or copy from sources. However, where this is done you must include appropriate Harvard in-text referencing (including quotations marks). Whilst we appreciate that in 'real' annual reports such referencing is not required, as this is an assessment item at university you are required to apply the Harvard referencing system. Also, take care as you need to remember that the older financial reports for companies may be based on the previous accounting standards. Note that it is intended that assignments in this course will be checked, using text comparison software, for instances of plagiarism or collusion. Single report or group It is intended that students working in groups of 2 or 3 undertake this assessment task, however it is acceptable for students to work alone. It should be noted that reports produced by a group (rather than an individual) on average significantly out-perform reports produced by individuals, and as such, group work is highly recommended. It should be appreciated that the nature of this assignments means that you cannot simply 'split' the work amongst group members and prepare parts independently as the statements, notes and reports are all interrelated. The marking arrangements will not differentiate between assignments submitted in groups and those presented individually; each assignment is marked on its own merit/correctness/quality. Where students work in groups it is required that students will contribute approximately equally to the assessment task. Students may wish to use the discussion page to 'find' a student/s to prepare the assignment with. Please do not place your personal address (home or personal email) or phone numbers on this forum. This assignment will require a significant amount of preparation and coordination of group activities. It is recommended and expected that groups from the beginning of the study period organise and schedule regular meetings or contact between members to monitor progress and ensure individual group members are meeting group expectations. Where a group member/s either fails to attend meetings or make contact as agreed to by the group or achieve suitable progress in tasks allocated, then it may be appropriate to reconsider the group. Failure of students to keep regular contact with group members and set and monitor appropriate group members activities will not be considered adequate justification for an extension or for failure to contribute equally to the assignment. Ordinarily, the same mark will be awarded to each member of the group; however differential marking may be invoked at the discretion of the course coordinator given the expectation of equal contribution to this assignment where students undertake this assignment in a group. Where an individual student has not contributed significantly to the assignment (i.e. assessed by course coordinator at less than 40% for a group of 2 and 30% for a group of 3) that student will receive a mark of zero. 8 Some advice on working in a group/team Many students will opt to complete this annual report assignment in a group (remember maximum is 3). Whilst some students may already know potential group members, others may contact students via for example the discussion page, who they have not worked with before. Working on an assignment with 'new' students is a great opportunity- both to make new friends/contacts and to achieve a 'better' assignment/learning outcome. However for a group to work well you do need to take care in choosing group members; to make sure that the members 'fit' and work well together. Just because someone wants to work with you does not necessarily mean that you will work well together. You need to make sure that the expectations and work practices of group members are suited and/or complement each other. To do this it may be useful to try to 'get to know' your potential group members a little more before you commit to working in a group with them by asking a few questions. It is better to sort out any issues before you start, rather than try to solve problems later. Some questions to ask potential group members: Why do you want to do the assignment in a group? How are they finding the course so far? Are they up to date with the work in the course? What standard of work (grade) do they hope to achieve? How have they done in previous courses? What are they hoping to achieve from the group? Is it a better assignment or less work? What are their strengths and weaknesses? How do they work? Do they like to get things done early, or do they leave things until the last minute? What are their other commitments? How will this impact on their ability to undertake tasks on time or meet/contact other students? How do they expect the group to work? How often do they expect to meet /get together with group members and when and how? Does this fit with your expectations and schedule? Have they had any problems with group work in the past? There are also many resources available also to assist with group/team work. One that may be useful is the top 10 tips on creating a team at http://learnhigher.ac.uk/resources/files/Group%20work/team.pdf Criteria for assessment The assignment will be assessed in relation to the following criteria. The relative weightings for each criterion are indicated by the percentage. Statement of profit or loss and other comprehensive income Assessment will consider the adequacy of the prepared financial statement, including: Preparation in accordance with instructions Correct application of all \"relevant\" accounting standards Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information Statement of financial position Assessment will consider the adequacy of the prepared financial statement, including: Preparation in accordance with instructions Correct application of all \"relevant\" accounting standards 9 10% Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information 10% Statement of Changes in Equity Assessment will consider the adequacy of the prepared financial statement, including: Preparation in accordance with instructions Correct application of all 'relevant' accounting standards Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information 10% Notes to accounts This considers the adequacy and effectiveness of the notes provided and includes consideration of Correctness and Completeness of disclosures Correct application of all 'relevant' accounting standards Appropriate identification and referencing of standards applied (eg. Standard and paragraph number) Only required disclosures being made Appropriate inclusion of notes where judgment required to be exercised Ability to 'make up' information if not provided, or indicate information that needs to be included where this information is not available Logical sequence and links to statements to assist users 40% Other required reports Assessment will consider appropriate completion of additional reports as required (Directors declaration, Annual directors report, Annual auditors report) Completeness of these in terms of minimum requirements Correctness and adequacy of disclosures Ability to 'make up' information if not provided, or indicate information that needs to be included where this information is not available Format that facilitates usefulness for purpose 20% Presentation Assessment will include consideration of title page, referencing and reference list, contents, appropriate layout as defined in the relevant standards, explanations, linkages, appropriate grammar, spelling, clarify of expression and layout that facilitates understanding, ease of reading, structure to assist reader. Student's use of imagination and creativity in preparing aspects of reports requiring this. (Note: failure to adequately reference as distinct from errors in referencing is plagiarism and will be referred to the Academic Integrity Officer). Remember that a penalty of up to 5 marks will be applied if no Statement on Use of Draft Feedback is included (or is not adequate) in your coversheet.. 10 10% Submission of assignment All assignments must be submitted electronically via Gradebook on the learnonline site (refer to https://lo.unisa.edu.au/mod/book/view.php?id=1843 for information regarding how to upload your assignment). Please note: All assignments must use the FA2 Assignment cover sheet (available from the course learnonline site). This needs to be the first page of your assignment. This assignment must be in the form of either a PDF or Word document. You cannot submit Excel files. If you use Excel to prepare your assignment you will need to cut and paste and either convert to, or include in, a Word document or a PDF document. The electronic submission for this assignment must be in the form of either a PDF or Word document and must be in a readable format so that it can be processed via Turnitin. Until a readable document is submitted late penalties will be applied. This means that you cannot 'scan' any significant parts or all of this assignment or insert statements, notes or reports as pictures or the like (if necessary, you can insert graphics, for example on the title page, as pictures and can scan the appendix only). Only one copy of the assignment is to be submitted if the assignment is undertaken in a group. Please ensure that the names of all group members are included on the cover sheet. The nature of this assignment makes it very difficult (and inefficient) to mark online, and so we print your assignment and mark this and return the printed copy to students. All marked assignments will be returned approximately three weeks from the date of submission. Where students have completed this in groups the assignment will be returned to one student (as indicated on coversheet). It is expected that students in groups will continue to collaborate to share feedback received on the group assignment. Feedback on this assignment will be provided on the Feedback form, a copy of which is included at the back of this booklet (Please do not attach this feedback form to your assignment file). Extensions for assignments Extensions to assignment due dates will only be approved in exceptional cases and for reasons that could not have been foreseen at the commencement of the study period. All applications for extensions must be submitted via Gradebook on the Learnonline Website (refer to https://lo.unisa.edu.au/mod/book/view.php?id=1843&chapterid=18210 for information regarding how to apply for an extension for your assignment). Any available evidence supporting the application must be provided. In addition , if the extension is requested within one week of the due date a copy of the work completed to date also needs to be provided (this is to establish that failure to complete this assignment by the due date was caused by unforeseen circumstances beyond the students control and not due to time management issues). Heavy workloads or other study commitments are not normally considered grounds for extensions as you are expected to plan your study period with due dates in mind. All students (including those with a disability or access plan) should note the following: Requests for an extension of time for submission of an assignment must be made before the due date of the assignment. 11 Extensions will only be granted in exceptional and unforeseen circumstances supported by documentary evidence. Students requesting extensions within one week of the due date will be required to provide drafts of work-to-date in support of their application. Requests for an extension of more than 7 days will generally not be accepted. Note: in accordance with the Division of Business guidelines assignments submitted late without permission from the course coordinator/s will attract a penalty of 10% of the total possible marks for the assignment per day for each late day, or part of each late day, after the due date. Assignments submitted more than 7 calendar days after the due date will not be accepted or marked. Please note: NO assignment (even if an extension of up to 7 days has been granted) will be accepted or marked if received more than 7 calendar days after the original due date. Conditions The assignment is not redeemable and there is no provision for resubmission. OPTION TO SUBMIT DRAFT OF STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME In this study period students have the option of submitting a draft of the statement of profit or loss and other comprehensive income only and receiving bonus marks. If you wish to take up this option you will need to submit a draft via Gradebook only (following the instructions and using the template on the learnonline site) by due date and time (Note: This will be advised on the learnonline site and please note that this is Adelaide time). Background In the past I have found that many problems arise with this assignment (and others) due to students not starting this assignment early enough. I realise one of the most difficult things to do is to 'get started'. This is an assignment that will take a significant amount of time and require coordination if undertaken in a group. If students leave this assignment until the last minute/or few days they tend to rush and panic and this leads to mistakes, failure to read the instructions, failing to review the assignment before submitting and academic integrity issues. The objective of this draft option is to provide some motivation for students to begin the assignment, to 'sort' out any group issues early and to provide some feedback (albeit on just one part of this report). What do you need to do? Please note: This is entirely optional. You are not required to submit this draft. However if you choose to take up this option you need to follow the instructions below. You need to submit a draft of your statement of profit or loss and other comprehensive income only in relation to the case study for the current study period. Requirements: This must be submitted via the link on the learnonline site. No printed copy is required- submit online only. 12 Each student (even if you are in a group and the draft statement has been prepared by the group) needs to make an individual submission: i.e. only individual submissions are allowed. Your statement must be submitted on the template provided (so if you have prepared in excel or similar you will need to copy into this word document to submit). This must be submitted by the due date and time for this draft option as advised on the learnonline site. As this is optional NO extensions are allowed. What will you get by submitting this? If you have submitted an adequate attempt at this statement then you will receive 5 bonus marks for your assignment (i.e. your assignment will be marked and 5 marks added- up to a maximum of 100 for the assignment in total). These submissions will not be marked for correctness. The course coordinator will review these and will provide general feedback on any common errors to the all students in the course (via the learnonline site). You will not receive individual feedback on your own statement. How can this help you? Obviously there is the chance to be awarded a few more marks. However other possible benefits will probably be more significant. For example: First, it will get you started and this is often difficult to do. This will allow you to better manage your time, coordinate with group members and hopefully result in a better final assignment (and mark). The feedback may alert you to any common errors that you have made and also to resources that you may need to consider. If you have already formed a group to complete this assignment, this task may alert you to any possible problems with group members. You may want to think about whether the other group members were willing or able to contribute to this task; did their efforts here suggest that they are going to be a 'free rider'; were they too busy with other commitments to do their share; do they have different expectations about the standard of work required/desired. For example, if your group members suggested that 'you do it' and they will simply check it, this may suggest a possible problem! If you had any of these problems then you may wish to reconsider your group membership or at the very least, communicate with your group members and clarify expectations. [Of course, if you do decide to leave the group please make sure that you inform the other students explicitly of your decision]. If you have not formed a group this task may alert you to the benefits of completing this in a group. You may have wished to discuss in detail with other students when you were preparing this draft but didn't have any group members to discuss with. Conditions & other information An adequate attempt means a fully completed (but not necessarily correct) statement of profit or loss and other comprehensive income based on the case study for this study period. This must include numbers for any relevant items. Only the statement of profit or loss and other comprehensive income is to be submitted. Even if you have completed other parts (such as other statements, reports or notes) DO NOT INCLUDE these! Also DO NOT INCLUDE workings or calculations. If you do your submission will not be reviewed and will not receive any marks. Only submissions using the template provided (and correctly completed) will be reviewed or attract bonus marks. You should be able to 'fit' your statement on the first page of the template provided (so your submission should only be one page). Do not panic if it doesn't fit - I will accept submissions of more than 1 page. However if you cannot fit on one page you may wish to think about whether there are problems with how you have prepared this statement. 13 This must be your own (or your groups) work. Note: All submissions are automatically put into Turnitin and the same academic integrity principles and requirements apply to this as to any other assignment submission. If you are in a group, you still need to submit this statement individually (i.e. each group member needs to submit individually) and correctly complete the top of the template with your own name. This does not mean that you need to prepare this statement individually if you are in a group; if you do prepare this draft with group members then it would be expected that each group member submits the same statement in their own individual submission. However group members who have not contributed to this task cannot submit. Although the template asks you to indicate if you are in a group and your group members, only students who submit individually will receive the bonus marks. This requirement will hopefully avoid (or at least reduce) group members who have not contributed to this task receiving these bonus marks. Even if you are in a group if only you have prepared this draft then you can still get these bonus marks (whereas your other group members will not). If a number of group members have prepared this statement together (and therefore each submit the same statement) do not be concerned about the Turnitin report. These will of course 'match' almost completely but as you have indicated your group members I will be able to analyse these and work out that the match is due to you being in the same group. Checklist for draft option For this draft ensure that you have followed the instructions including: Have you only included the statement of profit or loss and other comprehensive income (No other statements, notes, workings or calculations have been included); You have submitted online using the specific template for this draft; You have submitted individually (and have included your own name at the top of the template). Remember to receive bonus marks you must submit individually under your own name (not as a group or under a group member's name). Checklist for assignment Before submitting this assignment it might be useful to check the following: Have you followed the instructions in this booklet and included only the required (minimum) information in (on the front of) the statements? (e.g. the analysis of expenses must be in the notes, not in the statement) Have you read the FAQ's for this assignment? Have you read the feedback provided in relation to the draft option? Have you considered all of the standards required (see FAQ's), not just AASB 101? Do you have a standard and paragraph reference for each note? If you have used (or copied from) sources (for example in auditor's report or summary of accounting policies note) do you have in text references and also quotation marks if words copied, in addition to your reference list? Have you used the coversheet provided and included a Statement on Use of Draft Feedback on this coversheet? You have followed the submission instructions as outlined previously. 14 PLEASE DO NOT ATTACH TO YOUR ASSIGNMENT FILE FEEDBACK FORM Financial Accounting 2 Annual Report Assignment Name.............................................Username:.............................. Name..............................................Username.............................. Name............................................. Username.............................. Graduate Qualities developed by this activity operate effectively with and upon a body of knowledge are effective problem solvers, capable of applying logical, critical, and creative thinking to a range of problems are prepared for lifelong learning and professional practice can work both autonomously and collaboratively communicate effectively Summary comment Final mark /100 Marker's initial 15 U= unsatisfactory S = satisfactory VG= very good Statement of profit or loss and other comprehensive income The adequacy of the prepared financial statement, including: Preparation in accordance with instructions Application of all \"relevant\" accounting standards Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information U S VG Out of /10 /10 /10 Notes to accounts The adequacy and effectiveness of the notes provided and includes consideration of Correctness and Completeness of disclosures Application of all \"relevant\" accounting standards Only required disclosures being made Appropriate inclusion of notes where judgment required to be exercised Appropriate identification & referencing of standards (paras) applied Ability to \"make up\" info if not provided, or indicate information that needs to be included where this information is not available Logical sequence and links to statements to assist users Other required reports (Directors declaration, Annual directors report, Annual auditors report) Completeness of these in terms of minimum requirements Correctness and adequacy of disclosures Ability to \"make up\" info if not provided, or indicate information that needs to be included where this information is not available Format that facilitates usefulness for purpose Statement of Financial Position The adequacy of the prepared financial statement, including: Preparation in accordance with instructions Application of all \"relevant\" accounting standards Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information Statement of changes in equity The adequacy of the prepared financial statement, including: Preparation in accordance with instructions Application of all \"relevant\" accounting standards Correctness of calculations/amounts Inclusion of all required information Exclusion of non-required information Presentation Presentability- contents page, links, structure Appropriate layout as defined in the relevant standards Spelling, Grammar and Expression Referencing Creativity Penalty if Statement on Use of Draft Feedback not included or inadequate ( -/5) TOTAL OUT OF 100 16 /40 /20 /10 ACG 27 Financial Accounting 2 SP4 2015 FEEDBACK ON DRAFTS OF STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME I have now reviewed the draft submissions and offer the following comments/advice. These comments primarily focus on the format (not actual calculations or the treatment of specific events/transactions) and these comments may, or may not apply, to individual student's drafts. I have not provided comments regarding every error that occurred - only those that were noted for a number of students. I also realise that this is a 'draft' and not the final product/assignment submission, so it may be that you already intend to address some points that I raise. First, congratulations are due to many of you. It was clear that the majority of students who submitted a draft had followed the instructions and read the FAQ's. For those who have not yet done so, PLEASE read the instructions and FAQs carefully, and take time to review the assignment overview video before you complete this assignment if you are to avoid a number of common errors. For many drafts this statement was correctly formatted. I have provided below comments on some common problems and advice. These comments have been numbered to allow for easy reference when completing the \"Statement of Use of Draft Feedback\" required with your final submission REMEMBER: EVEN IF YOU DID NOT SUBMIT THIS DRAFT OPTION YOU WILL STILL NEED TO INCLUDE THIS STATEMENT IN YOUR FINAL ASSIGNMENT. 1. It was disappointing that a number of student's statements were still formatted as in first year courses and did not comply with the assignment instructions (e.g. some students presented a fully classified statement with the analysis of expenses included in this (i.e. on the front of the statement) - the assignment required presentation of only the minimum requirements in this statement. The only time additional lines should be used is where it is absolutely necessary - e.g. expenses, excluding finance costs or other income). 2. The assignment instructions explicitly require that only the minimum line items be included in (i.e. on the front of) this statement. This means: 2.1. The analysis of expense must be in the notes (not in the statement). Students should NOT follow the examples in AASB 101 para 102 or 103 for this statement (these examples would apply where the analysis is included in - on the front of - the statement). 2.2. Individual expenses (such as COGS) and other amounts such as Gross Profit/Margin should NOT be in (on the front of) the statement. 2.3. Individual material items of expense (or revenue or other income) are disclosed in the notes; not separately on the front of the statement. 2.4. A number of students split expenses into 'expenses' and 'other expenses' and/or 'loss'. This is not correct. Unless the expense is a finance cost, then if an item is an expense you need to include in the line item for expenses (excluding finance costs). Please refer to the assignment instructions. There are also examples of statements with the minimum line items on the front in your topic review questions/activities. It was apparent that some students had simply 'copied' the items/format from model or actual reports. Such statements will not follow the assignment instructions and will therefore be heavily penalised. Further, remember we are assessing your ability to format statements and notes (not your ability to 'copy' or use a template). 3. You need a comparative column for this statement (some students had comparative columns with numbers. While you can 'make up' numbers, you can simply use 'x' in your comparative column in place of numbers). 4. Some students had a profit and loss statement - not a statement of profit or loss and other comprehensive income 5. The instructions are clear that there are no items of other comprehensive income (see below): Please note: In this case study there are no items of other comprehensive income. In (on the front of) this statement you will need to include a line item for items of other comprehensive income however this will have a zero balance (please refer to the answer to topic review questions of topic 2 for an example). 5.1. Despite this a number of drafts had included items as 'other comprehensive income' items. This is clearly incorrect. If you did this you need to re-assess where these items should be included. 6. It is apparent that a number of students are still confused about what to include as 'revenues' and what to include as 'other income' (i.e. income items that are not revenue). 6.1. Look at the advice in the instructions about how to differentiate between revenues and other income (e.g. look at para 74 of the Framework) 6.2. A number of students split income into 'revenue' and 'other revenue'. This is not correct. If an item is revenue then include in revenues. If an item is not revenue then you will need to include as 'other income'. 6.3. Some students included a line item 'Revenues' in their statement and then included in brackets after this the components. In your actual assignment you cannot include this extra information on the front of the statement; only in the notes. 6.4. Some students incorrectly included sales revenue net (i.e. after deduction of cost of sales). 7. There were also some students confused about how to account for the sale of non-current assets. In these drafts, the most common mistake was the treatment of the sales of noncurrent assets; although a number of students did correctly calculate and present the impact from the sale of non-current assets. Think about: 7.1. Is it appropriate to offset any gains/losses in this case? 7.2. Remember that, as noted above, material items of expense (or revenue or other income) are disclosed in the notes; not separately on the front of the statement. 7.3. Please refer to AASB 101 para 34 (and to the examples in the course materials). 8. Take care with finance costs. Please refer to the FAQ document about what is, and is not, included in these. Also think about what is 'included' as an expense; e.g. if there is interest accrued and/or paid during a period then this needs to be recognised, but the principal amount is already included in the statement of financial position. Further, as a FAQ states, finance costs would not include the range of items that you may have considered or classified as 'financial expenses' in internal profit and loss statements in earlier courses - such as doubtful debts expenses. 9. Take care with treatment of items. Think about: 9.1. Can I include something as an extraordinary item? 9.2. We do not consider discontinued operations, revaluations or non-controlling interests in this course. 10. Where line items do not apply to the company (such as share of profit/loss in associate, or discontinued operations) these should not be included in the statement. This would also apply to other statements such as the statement of financial position. For example, AASB 101 para 54(f) requires biological assets to be shown in (on the front) of the statement. However in this case study the company has no such assets so this line item would not be included. 11. There is no need to provide standard and paragraph references for the statements (this is only required for the notes); although we will not penalise students who include these for the statements. 12. In terms of 'general' formatting issues note the following (although I recognise that some of these you may intend to 'fix' prior to the final assignment submitted): 12.1. You will need an appropriate company name in the header (title) of the statement, as well as indicating an appropriate date or period (remember from first year that this will differ between statements). 12.2. Do not confuse the date of authorisation of the financial report with the date the reporting period ends. 12.3. Be consistent with rounding. 12.4. Take care with spelling (I didn't realise that 'comprehensive' could be misspelt so many different ways ) 12.5. Take care with alignment/justification and fonts - again be consistent. 12.6. Printing: in a few cases the statement has not printed properly on the page. Please ensure that this does not happen with the final assignment as the marker marks what is printed! Either print out before you submit or use the print preview function to check this. Academic Integrity issues: 13. As you are no doubt aware from viewing your own Turnitin report, given the nature of this draft (and therefore high similarities) it is difficult to determine if there have been any academic integrity issues in this draft from the Turnitin reports (the Turnitin reports will identify this in the final assignments as these are larger and thus the matches more meaningful). 14. As this draft was restricted to one statement few referencing issues were able to be identified. However remember that the assignment instructions are explicit that you need to format these statements and the notes yourself. It appeared that some students had included (particularly at the bottom of the statement) parts taken/copied from other sources, such as: \"This statement should be read in conjunction with the accompanying notes to the financial statements\" Such inclusions are acceptable but you must reference them- some students had referenced and some had not. 15. Other inclusions (such as details re: earnings per share) are NOT required in this assignment and such inclusions will be penalised. As well as this, as it would be apparent that such inclusions must have been copied from other sources, if they are not adequately referenced they would also constitute plagiarism, and would thus be referred to the academic integrity officer. 16. A few students had scanned or included their draft in a picture format in their document or copied an object into the document in a way that it is not readable/searchable. This is NOT acceptable for the final assignment. As the instructions state: The electronic submission for this assignment must be in the form of either a PDF or Word document and must be in a readable format so that it can be processed via Turnitin. Until a readable document is submitted late penalties will be applied. This means that you cannot 'scan' any significant parts or all of this assignment or insert statements, notes or reports as pictures or the like (if necessary, you can insert graphics, for example on the title page, as pictures and can scan the appendix only). 17. It also appears that some repeating students may have used their previous assignment as a basis. However you should note that you may not be able to use your previous assignment - see information below: Can you use parts of your previous assignment if repeating this course? 17.1. Only if you completed this previous assignment on an individual basis 17.2. If completed in a group then includes the work of other students 17.3. Under university policy it is misconduct to submit an assignment that includes the work of other students (i.e. students outside your current group submitting the assignment). Please note that Turnitin will match to previous assignments. I hope this document provides you with some useful information to consider in finalising your assignments. I would STRONGLY SUGGEST that if you have not already done so, that you read the assignment instructions and FAQ's carefully, and also view the assignment overview video. You should be able to access your marks for this draft from Learnonline. Please note a number of students will not receive these bonus marks as they did not comply with the instructions for this draft. In particular, students will not receive these bonus marks if: They did not use or comple