HI5020 Corporate Accounting T3 2019

HI5020 Corporate Accounting
T3 2019
Individual Assignment  
Holmes Institute     

Assessment Title

Raising funds for corporate operations and liabilities, provisions, contingent liabilities and contingent assets. Measurement Basis for Assets.

Purpose of the assessment (with ULO Mapping)

This assignment aims at developing a clear understanding of students on different sources of funds used/raised by companies. They will need to identify different sources of fund used by two selected companies, discuss the evolution of the sources of fund used by the selected companies over a period of 5 years. They will have to relate the relative merits of different sources of funds used by the selected companies and shed lights on why the selected companies are using different sources of fund differently. Students will also have to summarise the key concepts under the AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets and identify use of this standard by the selected companies. Students will have to identify all different categories of assets recorded by the selected companies and examine the measurement basis used by the company for each class of assets. (ULO 1, 2, 4, 5, 6, 7).

Assignment Specifications

Purpose:

This assignment aims at developing a clear understanding of students on different sources of funds used/raised by companies. They will need to identify different sources of fund used by two selected companies, discuss the evolution of the sources of fund used by the selected companies over a period of 3 years. They will have to relate the relative merits of different sources of funds used by the selected companies and shed lights on why the selected companies are using different sources of fund differently. Students will also have to summarise the key concepts under the AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets and identify use of this standard by the selected companies. Students will have to identify all different categories of assets recorded by the selected companies and examine the measurement basis used by the company for each class of assets.

Assessment task:

Collect the latest annual reports of Two (2) ASX listed companies for the last 3 financial years. Based on your collected annual reports, do the following tasks:

  1. Identify the different sources of fund that have been used by your selected companies.
  2. Examine the evolution of the sources of fund used by the company over the last three financial years with specific focus on the changes of different sources of funds.
  3. Identify the percentage of the fund that is internally generated and the percentage of the fund that is externally generated for each selected company.
  4. Explain the relative merits and shortcomings of the different sources of fund used by your selected companies.
  5. Critically examine different types of liabilities shown in the balance sheet of your selected companies? Identify which ones of the liabilities are interest bearing and which ones are not interest is bearing.
  6. Critically examine the key provisions under the AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets.
  7. Identify if your selected companies have made any reference to this particular standard (AASB 137) in their annual reports.
  8. Identify all different categories of assets recorded by the selected companies.
  9. Critically examine the measurement basis used by the company for each class of assets recoded by the selected companies.

Assignment Structure should be as the following:

  • Abstract - One paragraph
  • List of Content
  • Introduction
  • Body of the assignment with detailed answer on each of the required tasks
  • Summary/Conclusion
  • List of references

Instruction for video presentation:

Based on your written assignment you will have to make a summary video presentation at a length of 10 minutes. Your presentation should explain the assignment tasks and your key findings. You will have to upload the presentation in You Tube and submit the you tube link at Blackboard so that the marker can watch and mark your presentation. Your presentation will be marked based on the following criteria:

Presentation Style (3 marks)

Content (4 marks)

Clarity of the presentation (3 marks)

Excellent

3-2.5

4-3

3-2.5

Very good

2.5-1.75

3-2.5

2.5-1.75

Good

1.75-1.5

2.5-2.00

1.75-1.5

Satisfactory

1.5-1.00

2.00-1.00

1.5-1.00

Unsatisfactory

1.00-0

1.00-0

1.00-0

Marking criteria

Marking criteria

Weighting

Abstract

1%

List of content & overall presentation of the assignment

1%

Introduction

1%

Identify the different sources of fund that have been used by your selected companies.

1%

Examine the evolution of the sources of fund used by the company over the last three financial years with specific focus on the changes of different sources of funds.

3%

Identify the percentage of the fund that is internally generated and the percentage of the fund that is externally generated for each selected company.

2%

Explain the relative merits and shortcomings of the different sources of fund used by your selected companies.

3%

Critically examine different types of liabilities shown in the balance sheet of your selected companies? Identify which ones of the liabilities are interest bearing and which ones are not interest is bearing.

3%

Critically examine the key provisions under the AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets.

3%

Identify if your selected companies have made any reference to this particular standard (AASB 137) in their annual reports.

4%

Identify all different categories of assets recorded by the selected companies.

3%

Critically examine the measurement basis used by the company for each class of assets recoded by the selected companies.

4%

Conclusion

1%

Total in Written Assignment

30%

Video presentation

10%

Total

40 %

Marking Rubric

Excellent

Very Good

Good

Satisfactory

Unsatisfactory

Identify the different sources of

fund that have been used by your selected

companies.

/1

Specific sources of liabilities and

equities have been clearly identified.

Demonstrate a

clear

understanding of each sources

Specific sources of liabilities and

equities have been clearly identified.

Gross amount

of liabilities and equities have

been identified

without specific identification of each sources.

Gross amount of liabilities

and equities have been identified without

specific

identification of each

sources. There are some

errors

Has failed to identify

different

sources of

fund used by

the company.

Many errors in the answer or has

misunderstoo d the question

Examine the evolution of the

sources of fund used by the

company over the last three financial

years with specific focus on the

changes of different

sources of funds.

/3

The evolution of different sources

of funds within the company

(with specific focus on their changes) has

been discussed comprehensively.

The evolution of different sources

of funds within the company

(with specific focus on their changes) has

been discussed with minor errors.

The evolution of different

sources of funds within the

company (with

specific focus on

their changes) has been

discussed with major errors.

The evolution of different sources of

funds within

the company

(with specific focus on their

changes) has been

discussed with major errors.

The answer still make sense

Has answered the question with many errors and

misunderstand ing or has not answered the question

Identify the percentage of the fund that is

internally

generated and the

percentage of the fund that is

externally

generated for each

selected company.

/2

Has shown the percentage of

each sources of funds used by the company

distinguishing between

externally

generated funds and internally generated fund.

Has shown the percentage of

each sources of

funds used by the company.

Externally generated funds and internally

generated funds have been

distinguished with minor errors.

Has shown the percentage of

each sources of funds used by

the company.

Externally generated funds and internally

generated funds have been

distinguished with major errors.

Has shown the percentage of each sources

of funds used by the

company. Externally generated funds and internally

generated

funds have not been

distinguished.

Has not shown the

percentage of each sources

of funds used by the

company. Externally generated funds and internally

generated

funds have not been

distinguished.

Explain the relative merits and

shortcomings of the different sources of

fund used by your selected

companies.

/3

The relative merits and

demerits of the

different sources

of funds used by

the company have been

explained with particular

reference to the

context of the selected companies.

The relative merits and

demerits of the

different sources

of funds used by

the company have been

explained. Has

made reference

to the context of the selected

companies with minor errors

The relative merits and

demerits of the different

sources of funds used by the

company have

been explained with minor errors. Has

made reference to the context

of the selected

companies with major errors

The relative merits and

demerits of

the different sources of

funds used by the company have been

explained with

major errors and

confusions. No reference has

been made to

the context of the selected companies

Insignificant or no

acceptable

attempt has

been made to

The relative merits and

demerits of

the different sources of

funds used by the company

have not been explained

Critically examine different types of

liabilities shown in the balance sheet of your selected

companies? Identify

which one of the liability interest

bearing and which

one is not interest is bearing.

/3

All different types of liabilities have been

identified. Has correctly

identified

interest bearing

and non-interest bearing liabilities.

All different types of liabilities have been identified.

Minor errors in identifying

interest bearing

and non-interest bearing liabilities.

All different types of

liabilities have

been identified.

Major errors in identifying

interest bearing and non-

interest bearing liabilities.

Minor errors in identifying

different types of liabilities.

Major errors in identifying interest

bearing and

non-interest bearing liabilities.

Has not been able to

identify

different types of liabilities.

Has not been able to

identify

interest

bearing and

non-interest bearing liabilities.

Critically examine the key provisions

under the AASB 137

‘Provisions,

Contingent

Liabilities and Contingent Assets.

/3

Has shown an excellent grasp of the concepts under AASB 137

Has shown a good level of

understanding of the concepts under AASB 137

Has shown a basic level of

understanding

of the concepts under AASB 137.

Has shown a poor level of

understanding of the

concepts

under AASB 137.

Has not shown any acceptable level of

understanding of the

concepts

under AASB 137.

Identify if your selected companies have made any

reference to this

particular standard

(AASB 137) in their annual reports.

/4

Has been able to identify and explain the areas where the selected companies have made reference to AASB 137

Has been able to identify and explain the areas where the selected companies have made reference to AASB 137 with minor errors.

Has been able to identify and explain the

areas where the selected

companies have

made reference

to AASB 137 with major

confusions or errors.

Has been able to identify and explain the

areas where the selected companies

have made

reference to

AASB 137 with major

confusions or errors.

Has not been able to

identify and explain the

areas where the selected companies

have made

reference to AASB 137.

Identify all different categories of assets recorded by the

selected companies

/3

Has completely identified all different classes of assets recorded by the company. The focus is on classes of assets, not on individual assets.

Has identified different classes of assets recorded by the company with minor errors.

Has identified different classes of assets

recorded by the company with major errors

Has identified different

classes of

assets with

major errors.

Has mixed up assets with other

elements of

the balance sheet

Has not provided an acceptable answer.

Critically examine the measurement basis used by the

company for each class of assets

recoded by the selected

companies.

/4

Has comprehensively examined the

measurement

basis used by the company with demonstration of excellent level of understanding of the concepts of historical cost and fair value.

Has examined the measurement

basis used by the company. Has demonstrated a good level of understanding of the concepts of historical cost and fair value.

Has examined the

measurement basis used by the company with minor errors. Has

demonstrated a basic level of

understanding

of the concepts

of historical cost and fair value.

Has examined the

measurement basis used by the company with major errors. Has

demonstrated a poor level of

understanding of the

concepts of

historical cost and fair value.

Has failed to identify the

measurement basis used by

the company.

Has failed to demonstrate

any acceptable level of

understanding

of the

concepts of

historical cost and fair value