ASR Assignment 1 (20%)
Background
You are a recent accounting graduate and have been employed in the Financial Reporting Unit of Vicinity Centres (VCX), an ASX listed real estate investment trust. The Risk management Committee of the Board has become increasingly concerned about the changes in the retail industry, and this is evidenced by information on retail sales released by the Australian Bureau of Statistics and the consequences this has for retailers, such as Myer, David Jones, Oroton and Specialty Fashion Group who are major tenants.
Required
You are required to prepare a report for the CFO considering the potential impacts of the changes in the retail industry of VCX.
a) With reference to VCX identify and summarise the accounting policies relating to investment properties and how these are dictated by regulation.
b) With reference to VCX identify and explain the flexibility management has available in the determination of investment property values.
c) With reference to VCX explain the potential impacts of the changes in the retail industry on the financial reports (balance sheet and income statement impacts).
d) Evaluate the potential economic consequences of these changes in the retail industry on the financial reports of VCX. This should be answered using the accounting theory related to the use of financial reports (Week 0 material)
Maximum Word Limit - maximum 1300 words. All material (excluding executive summary, references and appendices) over 1300 words will be disregarded.
Report structure - Your assignment must be set out as a report that adheres to the following structure:
• Title page that includes (a) title of assignment (b) subject name and number, (c) student name and number (d) word count clearly and honestly stated (title page not included in word limit)
• Executive summary (not included in word limit)
• Table of contents NOT required
• Introduction paragraph NOT required
• Body of report - Each of the four sections (a) (b) (c) (d) clearly shown with appropriate headings. Sub headings used as required.
• Conclusion paragraph NOT required
• Reference list (not included in word limit)
• Appendices if required (not included in word limit)
• Your name and student number must be included in the header of your word document
Refer to the UTS Business School Guide to Writing Assignments (link below) on recommendations and suggestions on how to structure your report.
https://www.uts.edu.au/sites/default/files/business-writing-guide-2014.pdf
Formatting of body of report
• 12 point font,
• 1.5 line spacing and
• 2.5 cm margins on all sides
Research - You must carry out independent research to complete this assignment and you must cite relevant academic (where relevant) and practitioner articles that support the material and views you present.
Referencing - Use Harvard style referencing. Ensure that:
• Statements made in-text are referenced where required.
• In-text reference format is correct.
• End-text references format is correct
For help with referencing see the UTS library website:
http://www.lib.uts.edu.au/help/referencing/harvard-uts-referencing-guide
A soft copy of your report is due to turnitin on 11:59pm Wednesday 2 May 2018 and a hard copy is to be handed in during your enrolled tutorial class. Assignments submitted (soft and hard copies) after the due date may attract a penalty of 5 marks (out of 50) per day late or part thereof. Save your word document using your student number as the file name (don't forget to include your name and student number in the header of your word document!).
Marking Guide
Parts (a), (b), (c) and (d) are each worth 10 marks. In addition, presentation and communication are worth 10 marks combined. This gives a total mark of 50 for the report, which will be converted into a mark out of 20. Your report should address each of the parts equally. Attached is the marking scheme that will be used in marking your report. This report is worth 20% of your total subject marks.
Accounting Standards and Regulations 22420 Assignment 1: Marks and Feedback 00000000 First name LAST NAME Report /50
Tutorial time and Tutor’s name: Tutor’s Name, Tutorial Day, Tutorial Time
Marking item
Marks Exceeds criteria (Distinction/HD = 75% – 100%) Meets criteria (Pass/Credit = 50% – 74%) Criteria not yet met (0% – 49%)
Accounting policies and regulation /10 Correctly identifies and summarises most of the relevant accounting policies relating to investment properties. Explicitly justifies how and why each accounting policy relates or could potentially relate to VCX. Correctly references most/all specific paragraphs of the relevant accounting standards included in report. Correctly identifies and summarises some of the relevant accounting policies relating to investment properties. Relates some of the accounting policies to VCX. Correctly references some specific paragraphs of the relevant accounting standards included in report. Does not correctly identify and/or summarise most of the relevant accounting policies relating to investment properties. Does not explicitly justify how and why each accounting policy relates to VCX. Does not correctly reference specific paragraphs of the relevant accounting standards.
Management flexibility /10 Clearly identifies and convincingly explains the flexibility management has available in terms of estimates, choices and judgements made in the determination of investment property values. Explicitly and convincingly relates these choices to VCX. Clearly identifies and explains the flexibility the management has available in terms of estimates, choices and judgements made in the determination of investment property values. Relates these choices to VCX. Does not clearly identify and/or convincingly explain the flexibility management has available in terms of estimates, choices and judgements made in the determination of investment property values. Does not explicitly and convincingly relate these choices to VCX.
Retail industry impacts on financial statements of VCX /10 Clearly identifies and convincingly explains how changes in the retail industry impact on the financial reports of VCX. Comprehensively identifies and explains the impacts on the balance sheet and income statement of VCX. Identifies and explains how changes in the retail industry impact on the financial reports of VCX. Identifies and explains some of the impacts on the balance sheet and income statement of VCX. Does not clearly identify and/or convincingly explain how changes in the retail industry impact on the financial reports of VCX. Does not comprehensively identify and/or explain the impacts on the balance sheet and/or income statement of VCX.
Potential economic consequences /10 Convincingly evaluates several potential economic consequences of the changes in the retail industry on the financial reports of VCX. Demonstrates deep engagement with accounting theory to support the evaluation. Evaluates potential economic consequences of the changes in the retail industry on the financial reports of VCX. Uses relevant accounting theory and attempts to link it to the evaluation. Does not convincingly evaluate several potential economic consequences of the changes in the retail industry on the financial reports of VCX. Does not demonstrate deep engagement with accounting theory to support the evaluation.
Presentation and communication /10 Communication is clear, concise and precise. Report is very well written, structured, and presented in a professional and coherent manner. Excellent use of visual material (tables, graphs,) that is well integrated with text. No or minimal spelling/grammar/punctuation errors.
Highly relevant academic and practitioner articles are correctly used to inform the analysis. The Harvard referencing method is applied consistently with minimal errors. The formatting, and maximum page limit is strictly adhered to. Communication is generally clear and concise, making it easy for the reader to understand. Report is well written, structured, and presented in a professional and coherent manner. Good use of visual material (tables, graphs,) to support text. Some spelling/grammar /punctuation errors present.
Academic and/or practitioner articles are correctly used to inform the analysis. The Harvard referencing method is applied consistently, with a few errors. The formatting, and maximum page limit is mostly adhered to (up to 10% over max page limit). Communication of report is unclear making it difficult for the reader to understand the ideas being presented. This may be the result of errors in written communication, imprecise language, confusing use of diagrams, and/or poor structure. Presentation may appear unprofessional or unfinished. Many spelling/grammar/punctuation errors are present that distract the reader.
Minimal or no reliable sources are used to inform the analysis. The Harvard referencing method is applied incorrectly. The formatting, or maximum page limit is not adhered to (more than 10% over max page limit)
Additional Comments:
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