Individual Assignment
Impairment in the Energy and Extractive Industry
Part I - Research Based Report (15%)
Due: Monday 30 April, 5pm
Word limit: 1,200 words
Part II – Video Oral Presentation (5%)
Due: Monday 7 May, 5pm
Time limit: 4 minutes
Part I – Research based report (15%)
As a new accounting graduate you have recently joined the accounting department of an ASX listed company operating in the energy and extractive industry. To complete this assignment you will need to select a suitable company yourself that meets the following criteria:
• The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com);
• The company must be in the ‘Materials or Energy’ sector – you can identify all companies in this sector by sorting the list based on the third column of the table in the above website;
• The company must publish audited annual financial reports in English, fully complying with IFRS or AASB standards;
• The company must have a 30 June year end; and
Your manager, the CFO, has sent you an email containing a Media Release (MR) from the Australian Securities & Investment Commission (ASIC).
A link to the MR is provided below:
http://asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-437mr-findings-from30-june-2017-financial-reports/
The Audit Committee is aware that as well as the 20 identified companies, numerous other companies in the same industry may not have provided the appropriate accounting treatments relating to asset valuations and impairment.
The Audit Committee is also aware that ASIC Commissioner, John Price, was quoted as saying the following when announcing the focus areas for 30 June 2017 financial reports:
“The largest number of our findings continue to relate to impairment of non-financial assets and inappropriate accounting treatments. Directors and auditors should continue to focus on values of assets and accounting policy choices in preparing their 31 December 2017 financial reports.”
You have been asked to undertake some research and prepare a report for presentation at the next meeting of the Audit Committee, to be held on 1 June 2018. Your report must address each of the following:
a) The role of ASIC as a Corporate Regulator, specifically in relation to their Financial Reporting Surveillance Program. In your discussion provide a summary of ASIC’s findings from their review of 30 June 2017 financial reports in relation to impairment testing and asset values. (5 marks)
b) Provide a detailed explanation of the impairment write-down(s) made by your company in the year ended 30 June 2017. Your explanation should include a discussion of the asset/s that were impaired, the amount of the impairment write-down, the indicators of impairment and relevant disclosures in the 30 June 2017 financial report in relation to impairment testing.(15 marks)
c) Based on your findings in part b, critically analyse to what extent the disclosures on impairment satisfy the fundamental and at least one of the enhancing qualitative characteristics of useful financial information. You will need to refer to AASB 136 paragraphs 126 - 133 . (10 marks)
d) Based on your findings in part c, critically discuss to what extent the disclosures on Impairment align with the objective of general purpose financial reporting and, as a conclusion, recommend actions for improvement. (10 marks)
Assessment of report
The research based report represents 15% of your total mark for ACCG224 and is compulsory. Your assignment will be marked out of 60 as shown in the Report Marking Rubric on page 7 of this document and will then be converted to a mark out of 15 percent.
Report submission instructions
Where to submit The written report must be submitted in electronic form using Turnitin (through iLearn via the ‘Assessment Tasks’ folder). Detailed submission instructions are provided on iLearn. Please ensure that you are familiar with these instructions and submit before the deadline in case of technical issues.
A hardcopy submission is not required.
When to submit The deadline for submission is 5pm Monday 30 April.
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved.
How to submit The report can be submitted either in a PDF or word format.
The filename of your report must be as follows:
ACCG224_XXXXXXXX (where the crosses represent your eight digit SID)
Report Format
Before you start writing your report, it is recommended that you undertake the following (both of these can be accessed through the ‘Assessment Task’ folder on iLearn):
1. Watch the e-lecture on business report writing
2. Take a look at the sample Business Research Report provided on iLearn.
Structure The report must contain the following (in this order):
• Report cover page (You can design your own cover page)
• Table of contents
• Executive summary
• Introduction
• Body
• Conclusion
• Reference list • Appendix
You should include relevant parts of the annual reports that you have used and referred to in your report. Do NOT attach entire annual reports.
Length Total word count limit = 1,200 words.
Your word count must be included on your cover page.
Included in word count Excluded from word count
• Introduction
• Body
• Conclusion • Report cover page
• Table of contents
• Executive summary
• Reference list
• Appendix
Penalties for exceeding the word limit are as follows:
Word count Penalty
• 1,201 – 1,319 words
• 1,320 – 1,439 words
• 1,440 or more words • No penalty
• 10% of total marks
• 20% of total marks
Style The report must be presented as follows:
Font: Times New Roman 12 point Spacing: 1.5 times line spacing Margins: not less than 2.5 cm
Footer Each page must have a footer containing the following:
ACCG224 S1 2018 Your SID Page number
Referencing In text referencing is required for all sources used and a complete list of references must be provided using the Harvard Referencing System.
A copy of the Harvard Referencing System is available under the ‘Assessment Task’ folder on iLearn.
Please note that as this is a research assignment it is not appropriate to reference to textbooks or lecture slides.
Plagiarism All assignments will be manually and electronically checked for plagiarism and it is extremely important that you are familiar with the policy on Academic Honesty.
A link to the policy is available in the ‘Assessment Task’ folder on iLearn.
Part II – Video Oral Presentation (5%)
The CFO was impressed by your report and has asked you to prepare a video presentation to be played to the Audit Committee at the next meeting on 1 June 2018.
Your video presentation should:
a) Explain the importance of accurate asset valuations and impairment testing from ASIC’s perspective.
b) Based on the findings from the 2017 report, identify and explain the areas that you believe the Audit Committee must consider when reviewing the 30 June 2018 impairment testing results.
c) Discuss whether the extent of disclosures on asset valuations and impairment align with the objective of general purpose financial reporting and, in the form of conclusion, recommend actions for improvement.
Assessment of video
The research based report represents 5% of your total mark for ACCG224 and is compulsory. Your assignment will be marked out of 40 as shown in the Presentation Marking Rubric on page 8 of this document and will then be converted to a mark out of 5.
Video format
Before you start recording your video it is recommended that you view the two YouTube videos by Vlog
Brothers and Idea Channel. Both of these can be accessed through the ‘Assessment Task’ folder on iLearn.
Length Time limit = 4 minutes
Penalties for exceeding the time limit are as follows:
Time Penalty
• Up to 4:29
• 4:30-5:29
• 5:30 or more • No penalty
• 10% of total marks
• 20% of total marks
Slides The use of slides (eg Powerpoint/Prezi) is not mandatory as you will not be marked on your slides, but on your communication skills.
If you do wish to use slides please use a screen capture rather than a projected image.
Physical presence Students must actually appear in their video – you must be visible as well as able to be heard.
Audibility It is your responsibility to ensure that we can hear your presentation clearly. If we can’t hear it then we can’t mark it!
If you are recording using screen capture technology consider using speaker and headphones.
Technology You can record your video using one of the following:
• Your mobile device or tablet – it editing is required iMovie can be used.
• Screen capture technology such as Windows 10 Screen Recorder, Cyberlink or others
These are suggestions only and you are free to use another method.
Video submission instructions
Where to submit The video must be submitted in electronic form using the Oral Presentation Submission Guide link (through iLearn via the ‘Assessment Tasks’ folder). Detailed submission instructions are provided on iLearn. Please ensure that you are familiar with these instructions and submit before the deadline in case of technical issues.
A hardcopy submission is not required.
When to submit The deadline for submission is 5pm Monday 7 May. Late submissions will be penalised xxxxxxx.
How to submit All videos must be submitted in an mp4 or wmv format
Please make the video visible when you upload the video on ilearn.
Not attempted Fail Pass Credit Distinction High Distinction
Explanation of the role of ASIC and summary of findings from 30 June 2017 financial reports in relation to asset values and impairment testing Not attempted or
entirely or significantly plagiarized from other sources. Writing is unclear.
Leaves out several relevant aspects of the role of ASIC or summary of findings and/or contains incorrect information Writing is not very clear.
Describes the role of ASIC and the majority of findings and is mostly correct, although significantly more detail may be needed. Writes clearly.
Correctly describes the role of ASIC and the majority on findings and details are mostly correct, although more detail may be needed. Writes clearly.
Correctly describes the role of ASIC and nearly all the findings with adequate detail. Writes clearly.
Correctly describes the role of ASIC and all the findings with plentiful detail.
5 marks 0 marks 2 marks 3 marks 3 marks 4 marks 5 marks
Explanation of impairment write-down made by your choice of company Not attempted or
entirely or significantly plagiarized from other sources. Writing is unclear.
Explanation incomplete or faulty in one or more aspects Writing is not very clear. Explanation including assets written down, amount, reason and analysis of disclosures but with omissions and/or incorrect explanation Writes clearly.
Mostly complete explanation including assets written down, amount, reason and analysis of disclosures Writes clearly.
Explanation including assets written down, amount, reason and analysis of disclosures with minor omissions Writes clearly.
Complete explanation including assets written down, amount, reason and analysis of disclosures
15 marks 0 marks 6 marks 8 marks 10 marks 12 marks 15 marks
Critical analysis of the disclosures related to impairment satisfying the qualitative characteristics as per the conceptual framework.
Not attempted or
entirely or significantly plagiarized from other sources. Chosen company is not suitable/Does not include relevant details, uses faulty analysis Includes the majority of relevant details, although
some analysis may be
faulty Includes most relevant details. Analysis mostly accurate but more needed Includes nearly all relevant details. Analysis mostly accurate with adequate detail. Includes relevant and possibly unusual details. Analysis accurate and insightful.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Critical discussion of the disclosures related to impairment aligning with the objective of general purpose financial reporting and recommendations.
10 marks Not attempted or
entirely or significantly plagiarized from other sources.
0 marks Chosen company is not suitable/Did not relate possible disclosures to any aspect of the objective and recommendations do not relate to the key dimensions of the case.
4 marks Relate only some possible disclosures to some aspects of the objective with recommendations relating to only some areas of the case or are not helpful.
5 marks Relate most of the possible disclosures to most of the aspects of the objectives and
recommendations relating to most areas of the case and are generally helpful.
7 marks Refer to nearly all possible disclosures to nearly all
aspects of the objective and recommendations
refer to nearly all areas of the case and are helpful.
8 marks Refer to all possible disclosures to almost all aspects of the objective and recommendations refer to all areas of the case and are helpful, insightful and innovative.
10 marks
Document formatting and structure (including length, organisation of sections and paragraphs) Not attempted or
entirely or significantly plagiarized from other sources. Fails to follow assignment requirement.
Too short or too long/Strongly affect reader due to formatting errors and confusing organisation. Occasionally meets the assignment requirement. Distract reader due to formatting errors.
Organisation causes some confusion. Occasionally meets the assignment requirement. Occasionally include formatting errors. Organisation of sections and paragraphs generally clear. Mostly meets the assignment requirement. Rarely include formatting errors. Clear organisation of sections and paragraphs. Meets all the assignment requirements.
Use professional, correct formatting. Clear organisation of sections and paragraphs with excellent flow.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Written expression and referencing Not attempted or
entirely or significantly plagiarized from other sources. Did not use Harvard referencing system correctly. Too informal or errors in grammar make meaning unclear. Minimal referencing. Did not use Harvard referencing system correctly.
Sometimes too informal or errors in grammar make meaning unclear in places. Noticeable errors in referencing. Frequently used Harvard referencing system correctly. Generally appropriate tone. Language is generally clear but may be repetitive or simple.
Frequently used Harvard referencing system correctly. Appropriate tone. Language is clear and shows variety. Used Harvard referencing consistently and accurately with very few minor errors. Appropriate tone. Language is clear, varied and easy to read. Used Harvard referencing consistently and accurately in all aspects.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
S1 2018 ACCG224 Page 7
Part II – Video Oral Presentation Marking Rubric
Student name ID Topic
Not attempted Fail Pass Credit Distinction High Distinction
Content:
Relevance, appropriate detail, clear explanations of issues Not attempted or entirely or significantly plagiarized from other sources The majority of the areas presented are not relevant and/or clearly explained in appropriate detail. The issues identified are not key to the Audit Committee Some of the areas presented are relevant and clearly explained although more detail may be needed. Not all the issues identified are key to the Audit Committee Most of the areas presented are relevant and clearly explained with appropriate detail. Most of the issues identified are key to the
Audit Committee Nearly all of the areas presented are relevant, cover the key dimensions and are clearly explained with appropriate detail. All of the issues identified are
key to the Audit
Committee All of the areas presented are relevant, cover all key dimensions and are clearly explained with appropriate detail. All of the issues identified are key to the Audit Committee.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Structure: Appropriate opening/introduction (incl. purpose and overview), clear transitions from one section to another, smooth flow of ideas, adequate conclusion Not attempted or entirely
or significantly plagiarized from other sources No or inappropriate opening/introduction, unclear transitions, incongruous flow of ideas and/or inadequate conclusion. Presentation featured the majority of the required components, however transitions could have been clearer/flow of ideas smoother and/or conclusion more pronounced. Presentation featured most of the required components, transitions were quite clear, the flow of ideas quite smooth with an adequate conclusion. Presentation featured nearly all of the required components; transitions were clear, the flow of ideas smooth with an adequate conclusion. Presentation featured all of the required components; transitions were clear and well placed, the flow of ideas excellent with a remarkable conclusion.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Maintaining interest Awareness of audience, effectiveness of
techniques, good timing
Not attempted or entirely
or significantly plagiarized from other sources. Presentation frequently inappropriate for target audience. Techniques haphazard or poorly executed. Well over/under time. Presentation occasionally inappropriate for target audience. Techniques adequate but occasionally sloppy.
Timing within acceptable limits. Presentation appropriate for target audience. Techniques adequate and mostly interesting. Insignificantly over/under time. Presentation
considerably stimulates audience interest. Techniques creative and interesting. Good timing. Presentation is very well pitched to audience, or modified in view of audience reactions. Innovative but appropriate techniques greatly stimulated audience interest. Exact timing.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Verbal and non-verbal delivery
including pronunciation, volume, eye contact, gesture, video quality
stance
Not attempted or entirely or significantly plagiarized from other sources. Delivery strongly detracts from content; e.g.
pronunciation unclear, speech inaudible, too many filler words/ slang, distracting gestures, reading from notes with no eye contact. Poor video quality. Delivery detracts from content only in places;
e.g., pronunciation mostly clear, speech mainly audible; some distracting filler words and gestures, occasional eye contact with audience. Good Video quality. Delivery supports content; audible, pronunciation, minimal distracting gestures, regular eye contact with audience. Good Video quality. Delivery effectively supports content by allowing audience to focus on message. Nervousness may be evident but mostly under control. Very good Video quality. Confident delivery does not just convey the message but significantly enhances it; excellent use of volume, pace, etc. Nervousness may be evident but under control. Excellent Video quality.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
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