ACCG923 | Research Report Instruction, S2 2019
“In a perfect world, investors, board members, and executives would have full confidence in companies’ financial statements. They could rely on the numbers to make intelligent estimates of the magnitude, timing, and uncertainty of future cash flows and to judge whether the resulting estimate of value was fairly represented in the current stock price. And they could make wise decisions about whether to invest in or acquire a company, thus promoting the efficient allocation of capital.
Unfortunately, that’s not what happens in the real world, for several reasons. First, corporate financial statements necessarily depend on estimates and judgment calls that can be widely off the mark, even when made in good faith…..” (Sherman and Young, 2106, p.1).
The above clearly shows how crucial it is for accountants to apply their professional judgment in arriving at the most reasonable/appropriate accounting choices/estimates, which can be quite a challenging process. There is not necessarily one correct answer in most cases, and therefore, accountants need to be vigilant while dealing with accounting information.
You have recently taken an internship and joined the accounting department of an ASX listed company. To demonstrate your understanding of the application of professional judgment, you are asked to look into the company’s annual report, undertake required research on the company’s choices relating to the accounting estimates and policies on property, plant and equipment, and prepare a report for presentation to members of the accounting department and audit committee.
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 publish audited annual financial reports in English, fully complying with IFRS or AASB standards.
• The company has FY2019 annual report available.
Your report must address each of the following:
a) Discuss how professional judgment is applied to the accounting policies and estimates your company uses to measure Property, Plant and Equipment (PPE) for FY2019. (10 marks)
b) Based on your findings in part a), critically evaluate and discuss whether the professional judgment applied in accounting estimates and policies of PPE has been reasonable/appropriate by comparing to another company in the same industry. (15 marks)
c) Critically evaluate and discuss whether the disclosure made by the company regarding the accounting estimates and policies of PPE reflects the qualitative characteristics of financial information according to the Conceptual Framework. (15 marks)
Submission
Due date: Week 8 Thursday 3 October, 6pm You must submit your report through Turnitin.
The link will be provided on iLearn.
Late submission will have 10% of the report mark deducted per day.
Requirement of Report Format
Structure The report must contain the following:
• Your owned designed report cover page (including your name, student number, company name and annual report year, lecturer name, class time and word count)
• Table of contents
• Executive summary
• Body
• Reference list
• Appendix (screenshots of relevant parts of annual reports)
You should include relevant parts of the annual report of the company that you have selected in your report. Do NOT attach entire annual report. You can include the relevant parts of annual report as screenshots rather than copying and pasting content because it can affect the TurnitIn similarity percentage.
Length Word limit = 1,200 words
Your word count must be written on your cover page.
Included in the word count Excluded from the word count
• Body • Report cover page
• Table of contents
• Executive summary
• Reference list
•
Appendix
Style The report must be presented as follows:
Font: Times New Roman 12 point Spa
cing: 1.5 times line spacing
Footer Each page must have a footer containing page number.
Referencing In-text citations are required for all sources used (i.e., company annual report) and a reference list must be provided using the Harvard Referencing System. e.g.,
In-text citation: Telstra Corporation (2004) stresses the importance of ... Corporate governance is stressed due to ... (Telstra Corporation 2004).
Reference list: Telstra Corporation 2004, Annual report, Telstra, Melbourne.
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.
Further Assistance
Before you start writing your report, it is recommended that you undertake the following:
1. Watch the e-lecture on business report writing on iLearn
2. Read the sample Business Research Report provided on iLearn.
Marking Criteria
Your report will be marked out of 60 and according to the following marking rubric. The marking rubric will be also shown in Turnitin.

Not attempted Fail Pass Credit Distinction High Distinction
Explanation of the accounting policies and the estimates relating to PPE 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 includes some relevant details, but with omissions and/or incorrect explanation. Writes clearly. Provide explanations including the majority of relevant details. Writes clearly. Provides specific explanations. Explanation includes nearly all relevant details with minor omissions. Writes clearly. Provides insightful and complete explanations.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Critically evaluate and discuss whether the accounting
estimates and policies applied in PPE have been reasonable/appropriate by comparing to another company in the same industry Not attempted or
entirely or significantly plagiarized from other sources. Chosen company is not suitable/Does not include relevant details, uses faulty analysis. Writing is not very clear. Explanation includes some relevant details, but with omissions and/or incorrect explanation. Writes clearly. Provides explanations including most relevant details. Analysis mostly accurate but more needed. Writes clearly. Provides specific explanations and discussions. Includes nearly all relevant details. Analysis mostly accurate with adequate detail. Writes clearly. Provides insightful explanations and discussions. Includes relevant details. Analysis accurate and insightful.
15 marks 0 marks 6 marks 8 marks 10 marks 12 marks 15 marks
Critically evaluate and discuss whether the disclosure for the accounting estimates and policies of PPE reflects the qualitative characteristics of financial information according to 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. Writing is not very clear. Explanation includes some relevant details, but with omissions and/or incorrect explanation. Writes clearly. Provides explanations including most relevant details. Analysis mostly accurate but more needed. Writes clearly. Provides specific explanations and discussions. Includes nearly all relevant details. Analysis mostly accurate with adequate detail. Writes clearly. Provides insightful explanations and discussions. Includes relevant details. Analysis accurate and insightful.
15 marks 0 marks 6 marks 8 marks 10 marks 12 marks 15 marks
Document formatting and structure (including length, organisation of sections and paragraphs, and presentation) Not attempted or
entirely or significantly plagiarized from other sources. Fails to follow report requirement.
Too short or too long/Strongly affect reader due to formatting errors and confusing organisation. Occasionally meets the report requirement.
Distract reader due to formatting errors. Organisation causes some confusion. Occasionally meets the report requirement.
Occasionally include formatting errors. Organisation of sections and paragraphs generally clear. Mostly meets the report requirement. Rarely include formatting errors. Clear organisation of sections and paragraphs. Meets all the report 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 referencing system correctly. Too informal or errors in grammar make meaning unclear. Minimal referencing. Did not use referencing system correctly.
Sometimes too informal or errors in grammar make meaning unclear in places. Noticeable errors in referencing. Frequently used referencing system correctly. Generally appropriate tone. Language is generally clear but may be repetitive or simple. Frequently used referencing system correctly. Appropriate tone. Language is clear and shows variety. Used referencing consistently and accurately with very few minor errors. Appropriate tone. Language is clear, varied and easy to read. Used referencing consistently and accurately in all aspects.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
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