Assessment Task – Tutorial Questions Assignment 1
Unit Code: HA3011
Unit Name: Advanced Financial Accounting
Assignment: Tutorial Questions Assignment 1
Due: 11:30pm 15th May 2020
Weighting: 25%
Total Assignment Marks: 50 Marks
Purpose:
This assignment is designed to assess your level of knowledge of the key topics covered in this unit
Unit Learning Outcomes Assessed:
1. Understand the various theoretical models of accounting
2. To apply knowledge and understanding to specific financial reporting issues unit to AASB
Accounting standards
3. Discuss the theoretical constructs of contemporary financial accounting
4. Evaluate and explain the need for the development of a conceptual framework for Accounting, and discuss the influence of such a framework on accounting practice.
5. Understand the Australian accounting regulatory framework and the conceptual framework
6. Be able to understand how to account for assets, non-current assets and liabilities
7. Be able to calculate for revaluations and impairments of non-current assets, and then
journalise
8. Account for leases for both lessees and lessors.
9. Account for company income taxes
10. Accounting for the extractive industries
Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions from weeks 1 to 5 inclusive and submit these answers in a single document.
The questions to be answered are;
Week 1 Question (10 marks)
It is argued by some researchers that even in the absence of regulation, organisations will have an incentive to provide credible information about their operations and performance to certain parties outside the organisation; otherwise, the costs of the organisation’s operations will rise. What is the basis of this belief?
Week 2 Question (10 marks)
What force of law does the conceptual framework have?
Week 3 Question (10 marks)
Under Positive Accounting Theory, what are agency costs of equity and agency costs of debt? Is it possible to put in place mechanisms to reduce all opportunistic action? If not, why not?
Week 4 Question (10 marks)
TXA Ltd acquired a machine from Blue Ltd for the following consideration:
• Cash $70, 000
• Land in the books of TXA Ltd the land is recorded at its cost of $650,000. It has a fair value of $450,000.
TXA Ltd also agrees to assume the liability of the Blue Ltd bank loan of $89,000 as part of the machine acquisition.
Required:
(a) Calculate the acquisition cost of the machine. (2 marks)
(b) Provide the journal entries that would appear in TXA Ltd.’s books to account for the acquisition of the Machine. (8 marks)
Week 5 Question (10 marks)
Max Ltd acquires an item of machinery on 1 July 2016 for a total acquisition cost of $61,000. The life of the asset is assessed as being six (6) years, after which time Max Ltd expects to be able to dispose of the asset for $6,000. It is expected that the benefits will be generated in a pattern that is best reflected by the sum—of—digits depreciation approach. On 1 July 2019, owing to unforeseen circumstances, the machinery is exchanged for a motor vehicle. Note the motor vehicle is two years old, originally cost $17,000 and has a fair value of $11,000.
Required:
Provide the necessary journal entries for the disposal of the machinery and the acquisition of the motor vehicle on 1 July 2019.
Submission Directions:
The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one.
Academic Integrity
Academic honesty is highly valued at Holmes Institute. Students must always submit work that represents their original words or ideas. If any words or ideas used in a class posting or assignment submission do not represent the student’s original words or ideas, the student must cite all relevant sources and make clear the extent to which such sources were used. Written assignments that include material similar to course reading materials or other sources should include a citation including source, author, and page number.
In addition, written assignments that are similar or identical to those of another student in the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through to suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and the student’s history of academic misconduct issues. All assessments will be automatically submitted to Safe-Assign to assess their originality.
Further Information:
For further information and additional learning resources, students should refer to their Discussion Board for the unit.