Accounting Standards And Regulations Essay

Accounting Standards And Regulations

ASR Assignment 1 (20%)
Background

You are a recent accounting graduate and have been employed by the Perpetual Trustees (PT) as a Research Analyst. The Asset Management Team is concerned that there may be insufficient investments in so-called ‘new technology’ companies and an initial analysis showed that very few of the companies that PT has equity investments in recognise ‘technology’ assets.

Required

They do have a significant investment in CSL Ltd, a renowned biopharmaceutical company and they have asked you to prepare a report considering how technology assets are recognised by CSL. In particular:

a) With reference to CSL Ltd, identify and summarise the current accounting policies relating to research and development and the development of technology generally, and the scope that this gives for the recognition of ‘technology’ assets (i.e., AASB 138).

b) With reference to CSL Ltd are there inconsistencies in:

a. The treatment of different types of expenditures and the recognition of ‘technology’ assets;

b. The treatment of expenditure incurred in developing ‘technology’ assets compared with other long term assets such as property plant and equipment (i.e., AASB 116);

c) What are the consequences for the financial reports of CSL Ltd (i.e., balance sheet and income statement impact) of these inconsistencies?

d) What does the empirical evidence suggest in its evaluation as to the relevance of expenditures on ‘technology’ assets for financial statement users? Specifically, is there any association between expenditures on technology assets, such as R&D and firm value, stock returns and firm performance?

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 Friday 10 May 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 & Regulations – 22420 – Autumn

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%)
AASB 138	/10	Correctly identifies and summarises most of the relevant accounting policies relating to AASB 138. Explicitly justifies how and why each accounting policy relates or could potentially relate to CSL. 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 AASB 138. Explicitly justifies how and why each accounting policy relates or could potentially relate to CSL. Correctly references some paragraphs of the relevant accounting standards included in report	Does not correctly identify and summarise the relevant accounting policies relating to AASB 138. Does not explicitly justify how and why each accounting policy relates or could potentially relate to CSL. Does not correctly reference specific paragraphs of the relevant accounting standards included in report.
Inconsistencies	/10	Correctly identifies and summarises most of the inconsistencies relating to accounting for expenditures on the development of technology assets. Correctly references most/all specific paragraphs of the relevant accounting standards included in report.	Correctly identifies and summarises some of the inconsistencies relating to accounting for expenditures on the development of technology assets. Correctly references some paragraphs of the relevant accounting standards included in report	Does not correctly identify and summarise the relevant inconsistencies relating to accounting for expenditures on the development of technology assets. Does not correctly reference specific paragraphs of the relevant accounting standards included in report.
Impacts on financial statements	/10	Clearly identifies and convincingly explains how the inconsistencies in accounting practices impacts the financial statements of CSL Ltd. Comprehensively identifies and explains the impacts on the balance sheet and income statement.	Identifies and explains how inconsistencies in accounting practices impacts the financial statements of CSL Ltd. Identifies and explains the impacts on the balance sheet and income statement.	Does not identify and explain how inconsistencies in accounting practices impacts the financial statements of CSL Ltd. Does not identify and explain the impacts on the balance sheet and income statement.
Empirical evidence	/10	Convincingly evaluates the empirical literature considering the relevance of expenditures on technology assets. Demonstrates deep engagement with accounting theory to support the evaluation.	Evaluates the empirical literature considering the relevance of expenditures on technology assets. Demonstrates engagement with accounting theory to support the evaluation.	Does not convincingly evaluate the empirical literature considering the relevance of expenditures on technology assets. Does not demonstrate 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 word 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 word 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 word limit is not adhered to (more than 10% over max page limit)
Additional Comments:

Accounting Standards And Regulations Essay

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