ACC2014/BAB2204 1 SUNWAY UNIVERSITY BUSINESS SCHOOL BACHELOR OF SCIENCE (HONS) ACCOUNTING AND FINANCE ACADEMIC SESSION: MARCH – JULY 2013 ACC2014/BAB2204 FINANCIAL ACCOUNTING ASSIGNMENT DEADLINE: 31 MAY 2013 INSTRUCTIONS TO CANDIDATES 1. There are SIX (6) pages in this Assignment including the cover page. 2. This assignment will contribute 25% to your final grade. 3. The assignment must be typewritten on double line spacing, A 4 size paper and double sided. Work should be submitted with a cover sheet, which includes your name, unit number, tutor’s name, and the essay/group report topic. 4. You are requested NOT to use plastic binders (i.e. comb bind with plastic/ cardboard cover), just staple your work together in the top left hand corner. Help save our earth! 5. You are also required to submit a softcopy of your work through Turnitin. 6. This assignment is to be undertaken in a group of not more than two students. Marks will be allocated for content, presentation, and referencing. IMPORTANT Assignments must be submitted on their due dates. If an assignment is submitted after its due date, the following penalty will be imposed: ? One to two days late : 20% deducted from the total marks awarded. ? Three to five days late : 40% deducted from the total marks awarded. ? More than five days late : Assignment will not be marked. Example. A student scores 60 marks for an assignment that has a total mark of 100. If the assignment is submitted one day late, the marks awarded will be 48 marks (80% x 60). ACC2014/BAB2204 Assignment (Q) / MAR 2013 ACC2014/BAB2204 2 ASSIGNMENT 1 (SLO3): The Civil Aviation Authority Controlled Airspace – [50 MARKS] The Civil Aviation Authority (CAA) is going through a phase of corporatisation. In the past, the government funded the operations of the CAA on a recurrent basis. An increased demand for accountability has resulted in numerous administrative and operational changes taking place, with many having a direct impact on the accounting function. Major changes include the adoption of accrual accounting and the preparation of a balance sheet. The CAA, a corporation established by federal legislation, undertakes all aviation related functions on behalf of the federal government. These functions are self funded in that the CAA levies a yearly licence charge on all aircraft operating within its jurisdiction. In addition the CAA’s charter requires it to distribute a set percentage of yearly profit to the federal government in the form of a dividend. Jeremy, who is employed by the CAA as an Assistant Accountant, has recently been given the task of preparing an asset register to be used in the preparation of the CAA’s first set of annual reports, using the accrual method of accounting. In addition to his work duties, Jeremy is studying part time for the Bachelor of Business (Accounting) degree at Atlantis University of Technology. Recently Jeremy’s Lecturer in Financial Accounting Theory, Professor Gabrielle Lee, required students to examine and discuss a case study concerned with accounting for a hole in the ground to be used for waste disposal by a local government agency. The case study focused attention on what constitutes an asset and the associated problem of ascertaining a value for assets that did not have an acquisition cost. This particular case study so aroused Jeremy’s imagination that he spent a number of hours reading about the issues surrounding the definition, recognition and valuation of assets. As Jeremy commenced the task of preparing the asset register, he wondered, given the hole in the ground case study, whether the airspace controlled by the CAA should be included in the asset register. Jeremy arranged a meeting with Sarah, the CAA’s Financial Controller, and proposed that controlled airspace should be recognised as an asset. Sarah expressed surprise at the idea but given the recent changes to accounting concepts and standards, was prepared to accept a submission outlining the arguments for and against the proposal, together with a recommendation for consideration. Required: Prepare a 1,500 word submission for Sarah’s consideration detailing the arguments for and against the recognition of controlled airspace as an asset by the CAA. Your submission should make reference to the relevant provisions of the Conceptual Framework and other financial reporting standards as well as relevant academic literature. ACC2014/BAB2204 Assignment (Q) / MAR 2013 ACC2014/BAB2204 3 ASSIGNMENT 2 (SLO1): Convergence with International Financial Reporting Standards – [50 MARKS] The following article was published in the Star Online on 2 January 2013 and accessible from the following URL: http://biz.thestar.com.my/news/story.asp?file=/2013/1/2/business/12488671&sec=bus iness MASB’s move to fully converge with IFRS deemed positive The decision of the Malaysian Accounting Standards Board (MASB) to fully converge with the International Financial Reporting Standards (IFRS) set up by the International Accounting Standards Board (IASB) was a “good thrust”, according to a prominent accounting firm. BDO Malaysia head of audit Tang Seng Choon believes MASB’s move to fully converge with IFRS would help facilitate cross border fund raising activities. “It lends credibility to reported figures of our listed companies and enhances the Malaysian capital markets. Foreign investors would be confident that when they analyse financial results and positions of our listed companies, it would have been prepared and audited in accordance with international standards,” Tang said in an email interview with StarBiz. However, the full convergence with IFRS has been largely debated on, following Singapore’s decision to only converge partially with IFRS. Meanwhile, there are doubts if the United States would be converging with IFRS at all. “Research indicates that those jurisdictions which adopted IFRS in full have seen a reduction in the cost of capital. Those which adopt only part of IFRS or make changes to IFRS as issued by the IASB experience a reduction in confidence in the amounts reported in financial statements and a corresponding loss of advantage,” BDO International global head of IFRS Andrew Buchanan said. Australia’s partial convergence exemplified this loss of confidence. Australia had incorporated IFRS into its own accounting standards, but had eliminated a number of options. Although the Australian Financial Reporting Standards (FRS) was actually more restrictive than IFRS itself, the fact that the standards were not as issued by the IASB resulted in a loss of confidence internationally. Many Malaysian listed companies have already adopted the standards since Jan 1, 2012, with the exception of plantation operators and property developers due to issues arising from some of the standards. Both plantation operators and property developers are expected to adopt IFRS from Jan 1, 2014 onwards. Tang said the MASB had been engaging many parties that ACC2014/BAB2204 Assignment (Q) / MAR 2013 ACC2014/BAB2204 4 would be affected by IFRS by having discussions with plantation operators and property developers. “We are also aware that MASB has been proactively engaging the tax authorities, capital market regulators, accountants and auditors, and listed companies to facilitate a smooth transition into IFRS,” Tang said. He stressed the need for accountants to be continually updated with IFRS, and also exposure drafts that may be issued as IFRS in the future. This is because the implementation timeframe of new IFRS would be shorter. “There is always the lingering question on the tax implications arising from the implementation of IFRS,” he added. Moving forward, Tang highlighted three challenges the accounting industry is facing. The first is the acute shortage of experienced accountants in Malaysia, especially with the implementation of IFRS. “We are faced with not just the increased mobility of young Malaysian accountants, but also the need to re train existing accountants,” he said. As for private companies, the question that comes to mind is whether they too would need to apply IFRS, or IFRS for small and medium enterprises, which is essentially a “mini version” of IFRS, or to apply a reduced disclosure requirement regime. Required Prepare a 1,500 word article to critically discuss the implications of the convergence of financial reporting standards. Your article should address the issues raised in the above article specifically in relation to the benefits and barriers to convergence. Do you agree that it is a positive move for the MASB to fully converge with IFRS? Your article should make reference to the relevant academic and professional literature. ACC2014/BAB2204 Assignment (Q) / MAR 2013 ACC2014/BAB2204 5 MARKING CRITERIA The evaluation of a written assignment is subjective but the following marking criteria will provide a degree of consistency and clarity for both the examiner and students. There is no one correct answer required. Students’ need to show depth of understanding of the relevant issues, the ability to synthesise information from diverse and credible sources to formulate sustained arguments towards arriving at an appropriate conclusion related to the topic of interest. Therefore, extensive research beyond lecture notes and prescribed textbooks is expected. The essay should provide evidence of criticality expected of a second year undergraduate student. English expression, sentence construction, grammar and spelling are also indicators of the quality of the essay and report. The coherence and logical flow of ideas and arguments are also assessed. The format and presentation of the assignment should also be neat and professional. The assignments are marked out of 100 percent and then converted to 25 marks. The overall assessment criteria are presented in the table on the next page to provide further guidance on how the assignments are evaluated. ACADEMIC MALPRACTICE Plagiarism, whether inadvertent or deliberate, shall include the following: ? Word for word copying of sentences or whole paragraphs from one or more sources, or presenting substantial extracts from books, articles, thesis, other unpublished work such as working papers, seminar and conference papers, internal reports, computer software, lecture notes or tapes, without clearly indicating their origin. ? Using very close paraphrasing of sentences of whole paragraphs without due acknowledgement in the form of reference to the original. ? Submitting another student’s work in whole or in part. ? Use of other person’s ideas, work or research data without acknowledgement. Collusion, whether inadvertent or deliberate, shall include the following: ? Submitting an “individual assignment” that was jointly prepared by the candidate and any other third party, e.g. other students, family, professionals, or tutors/lecturers. ? Submitting a “group assignment” that was jointly prepared by the group and any external party, e.g. family, students from other subjects, or professionals. ? Copying each other’s work and passing it off as an individual effort. Please refer to Student Handbook for Diploma and Undergraduate Programmes or Blackboard for details about academic malpractice penalties. ACC2014/BAB2204 Assignment (Q) / MAR 2013 ACC2014/BAB2204 6 Table of Evaluation Criteria for Written Assignment Criteria Marks % Description Excellent 70 – 100 Work fulfilling the above criteria to an outstanding degree, in particular demonstrating excellence in sustained argument, critical thought and synthesis of material from diverse sources. Very good 60 – 69 Work demonstrating extensive knowledge and understanding of major content areas and issues; the ability to appropriately synthesise material from a range of sources; a well developed capacity for critical analysis of key issues and concepts; the ability to present a defensible personal perspective on issues; evidence of wide reading in relevant areas of the discipline; high quality presentation Good 50 – 59 Above average work demonstrating good knowledge and understanding of major content areas and issues; demonstration of some capacity for critical analysis; the ability to present a perspective on issues; evidence of reading in relevant areas of the discipline; high quality presentation. Average 40 – 49 Work of ‘average’ standard which demonstrates an average comprehension both of basic concepts and some issues, based on class work and some further reading in the area; some ability to compare key concepts and theoretical perspectives; average presentation, particularly in regard to structure, expression and referencing. Marginal 30 – 39 Work which shows a basic understanding of key elements of the subject matter at a descriptive level, based mainly on attendance at lectures; satisfactory presentation with some deficiencies in structure, expression and referencing. Poor 1 – 29 Work which shows little evidence of knowledge or understanding of the subject matter and is unsatisfactorily presented, particularly in regard to structure, expression and referencing. Very poor 0 Work which shows no evidence of knowledge or understanding of the subject matter.
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