MAA261 group Assignment T12020 Instructions PDF

Preview

Summary

Download MAA261 group Assignment T12020 Instructions PDF

Description

MAA261 FINANCIAL ACCOUNTING T1 2020 Assessment 2 Part A Group Assignment DUE DATE AND TIME: PERCENTAGE OF FINAL GRADE:

9.00am Thursday 14th May 2019 10%

Learning Outcome Details Unit Learning Outcome (ULO) ULO 1: Comprehend accounting as a language of business

Graduate Learning Outcome (GLO) GLO1: Discipline-specific knowledge and capabilities

ULO 4: Evaluate financial statements and appreciate the regulation of accounting systems of business organisations

Requirements 1. This is a group assignment. Students must form a group of four (4). Penalties will apply for groups less than 4 and may result in a mark of zero. 2. Once you have formed a group of 4 please read and follow the document titled ‘instructions on how to form a group,’ in the unit’s cloud site. 3. Please use the Harvard referencing style: http://www.deakin.edu.au/students/study-support/referencing/harvard 4. Any questions related to this assignment must be placed on CloudDeakin. Do not email the unit chair, lecturer or your seminar leader directly. This ensures all students have access to the same information.

Submission Instructions 1. This assignment is to be submitted ONLINE ONLY (You are NOT required to submit a hard copy). 2. This assessment must be completed using MS Word. 3. Only ONE submission is required per group. Please organise for 1 group member to submit the assignment for the group. Each group member will receive an email confirming it has been submitted. 4. The Assessment submission folder will be open from 5:00pm, Thursday 7 May 2020 and will close at 9.00am, 18 May 2020 5. You are not required to upload an Assignment Cover Sheet. You will complete a Plagiarism declaration when you access the Dropbox. 6. Once submitted you cannot take your assignment back BUT you CAN SUBMIT another version. The most recent version submitted will be marked, however this must be submitted before the DUE DATE.

Objective The objective of this assignment is to evaluate and assess recording, expensing and reporting of noncurrent assets as well as examining the institutional environment of financial reporting, including with respect to the conceptual framework for financial reporting and regulation. You are required to form groups of four for this assignment. Your group must be set up on CloudDeakin as per the instructions found in the document called ‘instructions on how to form a group.’ This document is available in the resource folder under Assessment 2 Group Assignment Part B. Once you form your group the next stage is to all meet up online using skype, zoom, FaceTime or a method of your choice. It is advised that the group keep a record of what was said at the meeting. We will provide you with an initial action template that you can use in your first group meeting to record details such as, who attended, deadlines for having part A completed, who will provide feedback to who for part A, etc. This will be available in the assessment folder for Assessment 2 Part A and is called ‘Action Plan Template.’ Every time you meet you should document the meeting, so that if there is any disagreement within the group you can refer back to the template. When working in a group it is very important to communicate. This assignment requires students to share their answers, as some answers are dependent on the answer given to a previous question. Therefore, students are encouraged to use tools, which allow them to share information and create documents collaboratively. Examples of these include, Google Docs, OneDrive (provided by Deakin) and Slack. Students are not limited to these and can choose their own tool. Students can find out more information about how to use OneDrive from the following link: http://www.deakin.edu.au/about-deakin/administrative-divisions/esolutions/it-help/digital-filestorage Slack https://slack.com/is

Group Task 1,500 words (10 marks) The case data (Get Fit at Home Pty Ltd) is given in a separate file.

You and your team have recently been employed to work for the up and coming accounting firm Top Dollar. They have asked you to work with a new client, Get Fit at Home Pty Ltd. This will involve recording, expensing and reporting of non-current assets in order to provide advice regarding the company’s current and non-current asset treatment and liability recognition Your supervisor would like you to work as a group (team) with three other graduate analysts from the firm and meet with the concerned client next week (Get Fit at Home Pty Ltd). In preparation, your supervisor has provided you with some background information regarding the company’s current and non-current assets. The group is required to prepare a brief report prior to the upcoming meeting. Your group is encouraged to refer to AASB 116 Property, Plant and Equipment, AASB 136 Impairment of Assets. When referring to the accounting standards to justify your answer, you may reference the paragraph number within the text. See the following example below: In this scenario, the revaluation increase should be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus (para 39, AASB 116)

Required Your group is required to refer to questions from the client, Get Fit at Home Pty Ltd, and produce a report. The report should address the following: 1. Determine the amounts to be recorded in the balance sheet for the newly acquired land, building and machinery. Consider any additional amounts that need to be included in the cost of the land, building and machinery and justify why or why not they should be included. Include in your answer journal entry required to record the lump-sum acquisition. Show your calculations in a table in the appendix. (the appendix is not counted in the word count) 2. Calculate the annual depreciation expense using all 3 methods of depreciation with respect to the building and machinery for each of the years ending 30 June 2015, 2016, 2017. For the building and machinery select the method of depreciation you would advise them to use and justify your selection. Please use excel to do this. A template was provided in Topic 4. Please take a screen shot of your templates that show the answers and insert directly under question 2 answer. Please include in the appendix a screen shot of your template that shows the excel formulas that you used. Please use formulas to obtain the answers. 3. Explain why it’s important under AASB 116 that non-current assets be measured using the cost or revaluation model. Calculate the revised amount that the building, land and machinery should be recorded at in the balance sheet for 30 June 2017. Include in your answer the general journal entries that need to be recorded to recognise the revised value of the building, machinery and land. Remember to record any adjusting entries for depreciation before recording any impairment of the non-current assets. Show your calculations.

4. Calculate the revised amount that the building, land and machinery should be recorded at in the balance sheet for 30 June 2020. Include in your answer the general journal entries that need to be recorded to recognize the revised value of the building, machinery and land. Remember to record any adjusting entries for depreciation before recording any impairment of the non-current assets. When determining the carrying amount for machinery and buildings please use your depreciation expense amounts from question 2 and also include any amounts from the impairment loss calculated in question 3. You do not need to recalculate a new depreciation rate for buildings and machinery. Show your calculations.

5. Show the general journal entries needed in relation to the overhaul of the machinery on 1 July 2020. 6. Prepare an excerpt of the balance sheet which shows the non-current assets that Get Fit At Home Pty Ltd has on hand as at 1 July 2020. Show any relevant calculations. 7. Record the general journal entries required to write off the bad debts and to record the bad and doubtful debts expense for the year ended 30 June 2020. Discuss whether you would recommend that the company increase their rate that they use to calculate bad debts. In your answer please mention which qualitative characteristic will be violated if the business does not increase the rate and they continue to write off more bad debts than they have allowed for. 8. Advise the company whether the warranty for the gym equipment should be treated as a liability. Justify your answers with reference to the Conceptual Framework definition and/or recognition criteria.

The answers are to be provided in a report, headings MUST be used. For example: Heading 1: Introduction (150 words maximum and not included in the word count) Heading 2: Acquisition of Non-Current Assets (question 1) Heading 3: Calculation of Depreciation (question 2) Heading 4: Revaluation (questions 3 and 4) Heading 5: Overhaul (question 5) Heading 6: Balance Sheet Excerpt (question 6) Heading 6: Accounts Receivable (question 7) Heading 7: Liability Discussion (question 8) Appendix These headings are only a suggestion. The sooner you form a group and register the group you can get started. Please don’t forget to include the names of your team members and group number on the title page when you submit.

Assessment Feedback Students who submit their work by the due date will receive their marks and feedback on CloudDeakin on 1 June 2020, 5.00 PM. Failure to submit your work on time will affect the assessment process for your assessment and your final result for the unit. Late submission will incur a late penalty in assessment.

Extensions Extensions can be granted for unexpected circumstances such as serious illness or for compassionate reasons under special circumstances. Extensions can only be approved by the Unit Chair, Tracey McDowall. Please email your request to: [email protected] before the due date. You will be asked to provide evidence to support your request and a draft of the work completed to date. Where an extension is approved you will be given between 1 day and 2 weeks to submit your work. For requests after the due date please submit your request to Special Consideration https://www.deakin.edu.au/students/studying/assessment-and-results/special-consideration Work or holidays or other assignments are NOT grounds for an extension – you are expected to manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of any length.

Important Notes • Discussion area for this assignment: There is a discussion area on CloudDeakin entitled ‘Assignment Discussion’. This area is for you to discuss the assignment. It is an area to help each other – it is NOT an area for the answer to be provided to each other. Each group has also been provided with a discussion folder that only their group members can see and access. • Penalties for late submission: The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. 'Day' means working day for paper submissions and calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date. Requests for special consideration will be considered only in extenuating circumstances and should be made to Tracey McDowall by email [email protected]. • Plagiarism and collusion: Plagiarism and collusion are forms of cheating and are considered serious academic misconduct. There are severe penalties associated with them. Please refer to the MAA261 unit guide for your responsibilities with regard to plagiarism and other academic offences. Penalties apply in this assignment. • For more information about academic misconduct, special consideration, extensions, and assessment feedback, please refer to the document Your rights and responsibilities as a student in this Unit in the first folder next to the Unit Guide of the Resources area in the CloudDeakin unit site....