HBC330N/HBC330 Accounting Theory/Current
Issues in Accounting
Semester 1
2013
Assignment Information Sheet
Accounting for leases

-The proposed accounting standard for leases is just another layer of significant added
complexity to already complex financial statements which will further reduce the usefulness for
all users unless they have an academic degree,- says Tom Pockett, Woolworths chief financial
officer.
-It will put more hypothetical entries through the profit and loss account. There needs to be a
proper benefits analysis as to why the world needs this change.- Pockett says companies with
long-term debt in place could face breaching their debt covenants as a result of the IASB draft
proposal.
-The comments made that the standard is needed as companies have underestimated their
liabilities is false and sensationalist. The lease commitments are already fully disclosed in the
notes to the accounts. Any debt provider already takes these commitments into account when
lending companies money, as do rating agencies when rating a company’s credit risk. Instead of
adding undue complexity we should be focusing on removing complexity and simplifying
financial statements for all users.-
Louis White, Global leases undergo changes, The Australian, January 29, 2011.
2
Required:
In view of the joint International Accounting Standards Board (IASB)/Financial
Accounting Standards Board (FASB) project to amend the current accounting standard
on accounting for leases, you are required to adopt a report format and critically evaluate
the above quotation. For instance, what assumptions are inherent in the quotation? What
is the evidence-base for the assertions made in the quotation? Do you agree or disagree
with the sentiments expressed? Why or why not? What is your recommendation in
relation to the AASB Exposure Draft Leases (ED 202R August 2010), which is based on
the joint IASB/FASB Exposure Draft?
You are expected to utilise materials available from the relevant accounting standard
setter(s) as well as research published in high quality, scholarly accounting and business
journals available through the Business Source Complete database in the Swinburne
University Library. See the last page for a list of quality, scholarly accounting and
business journals.
In your discussion, you should make reference to relevant theory/theor(ies) covered in the
Unit’s syllabus which might support, or contradict, the basis of your conclusions. Please
note that Wikipedia is not an appropriate reference source.
LODGEMENT: You must submit your assignment via Safe Assign facility available on
Blackboard and also in hardcopy by the due date in the allocated assignment box located on the
11
th
Floor of the BA Building (just next to the lifts) no later than 5 pm, Friday, 10 May 2013.
Students may also submit the assignment to their tutor on or before the due date. Students must
also keep an electronic or photocopied version of their assignment for evidentiary purposes.
MAXIMUM MARKS: 20 Marks toward the final assessment. The assignment will be marked
out of 100.
WORD COUNT: the body of the report/essay should not exceed 1500 words (excluding title
page, references and executive summary but including footnotes, endnotes and appendices).
3
Please provide a word count on the cover sheet. Assignments in excess of the allowable word
limit will be returned for correction.
FORMAT
A report format is required for this assignment. In a report, the Executive Summary should
provide an overview of the whole report, including any recommendations. This is a ‘thinking’
assignment and what is expected is the personal view of individual students’ based on research
and the evidence that has been sourced. Further, an assignment which presents more quotes than
constructive analysis and argument may be heavily penalised.
SUGGESTED REPORT STRUCTURE
1. Title Page
2. Contents Page
3. Executive Summary (which provides an overview of the whole report)
4. Introduction and Purpose
5. Responses to specific task using appropriate headings and sub-headings
6. Conclusion
7. References
This assignment is an important assessment component of this Unit and as such the assignment
must be properly researched and professionally presented. The assignment should also;
• Be all your own work
• Be word-processed (printed), and have 1.5 spacing for clarity; a high standard of
presentation is expected, but a folder, binding etc. is not to be included. A staple to
keep the pages together is all that is required.
• Have the cover sheet with all relevant details, including:
- student name, student number, tutorial time & tutor’s name
- Unit name and code
- date of submission
• Contain correct referencing, using the Harvard system. For assistance refer to:
http://www.swinburne.edu.au/lib/researchhelp/harvard_style.html
• Include a list of references adequately referencing your sources (In-text references should
only refer to the surname of the author/authors and the year of the publication).
Students are reminded to review the University policy on plagiarism.
4
Safe Assign Tool
The University is now using the Safe Assign tool. This is an effective tool to reduce plagiarism.
Students should self-check their assignments prior final submission. Documentation on the use of
this tool will be posted on Blackboard. Please ensure that you use only the Draft option. This is a
matching and not a punitive tool. The default setting allows every student to check one draft
submission. Upon receiving feedback from Safe Assign, you should amend your assignment to
ensure that it is -Plagiarism Safe-.