Accounting: Integrated Reporting

 

Accounting: Integrated Reporting
Assignment 1 Questions

• Word length – maximum 1,500 words (+/- 10%)

Required:
Using the Australian Agricultural Company’s 2017 Annual Report available at:
https://aaco.com.au/investors-media/annual-reports

PART A (Maximum of 500 words) (9 marks)
Looking at the Consolidated Income Statement as at 31 March 2017 (page 46),DESCRIBEthe following items:
(i) Cattle fair value adjustments $300,026,000
• (you will find additional information in Note A3, pages 54 – 56, to assist you in answering this question).

(ii) Change in fair value of property $2,285,000
• (you will find additional information in answering this question in Note A4 on pages 57 – 59)

(iii) Net profit after tax, $71,586,000 and compare this item to total comprehensive income of $102,065,000 in the Consolidated Statement of Comprehensive Income for the year ended 31 March 2017 (page 47).

PART B (Maximum of 500 words) (9 marks)
Looking at the Consolidated Statement of Financial Position as at 31 March 2017 (page 48),DESCRIBE the following items:
(i) Livestock $269,850,000 (under Current Assets) and Livestock $392,632,000 – under Non-Current Assets
• (you will find additional information in Note A3, pages 54 – 56, to assist you in answering this question)

(ii) Property, plant and equipment $792,373 (under non-Current Assets)
• (you will find additional information in answering this question in Note A4 on pages 57 – 59).

(iii) Borrowings $362,918,000 (under Non-Current Liabilities)
• (you will find additional information in Note C1, page 62, to assist you in answering this question)

PART C (Maximum of 500 words) (12 marks)
Looking at Note E1 and E2 on page 69, DESCRIBEthe following items:
(i) Future minimum lease payments under non-cancellable operating leases for land and buildings of $7,718,000
(ii) The possible impact on Australian Agricultural Company (AAC)of the introduction of Australian Accounting Standard AASB 16, Leases which will be effective for periods beginning on or after 1 January 2019
(iii) Other commitments
(iv) Contingencies

Q&A FROM COURSE CONVENOR:
In part A you have 500 words for three parts. You can use 300 on (i) and 100 each on (ii) and (iii). And then there is the ten percent override. We will not be counting the words but we do not want “fluff” in there – i.e., words for the sake of words.
We just want the bare bones of the answer – we do not want a thesis on fair values.
I know it is much harder to write 500 words than 1500 words but this restriction is aimed at you using the key points for your answer.
Please provide evidence from the AAC annual report for any claims that you make. Please do not speculate. The accounts have been audited.
The aim of this assignment is to make you think about what are the assets and liabilities on a balance sheet and what is the profit figure. Hopefully you are now well aware that accounting is not “black and white.” When you are truly frustrated – go and read the article in today’s Australian about Elton Musk and Tesla!!!
The only reference that you need is to AAC’s 2017 annual report.
The KEY component of achieving marks in the assignment is to ANSWER the specific question:
e.g., Discuss/Describe (i) cattle fair value adjustments.
Refer to the rubric and marking scheme below so you can clearly see how the assignment will be marked. I hope that this assists in clarifying the requirements of the assignment.

Rubric for Assignment 1 – Accounting: Integrated Reporting
Criteria Result Mark
1. PART A:Demonstrate an understanding of components of the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income. The students have shown a very high level of ability to present the issue in a logical manner and to analyse the specific issues. /9
2. PART B:Demonstrate an understanding of the components of the Consolidated Statement of Financial Position. The students have shown a very high level of ability to present the issue in a logical manner and to analyse the specific issues. /9

3. PART C: Demonstrate an understanding of the Notes to the Financial Statements. The students have shown a very high level of ability to present the issue in a logical manner and to analyse the specific issues. /12
TOTAL and comments /30

MARKING GUIDE for Assignment 1 – Accounting: Integrated Reporting
TICKS/COMMENTS TOTAL
1. 1. PART A:Demonstrate an understanding of components of the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income.

(i) Has the student clearly demonstrated an understanding of the item from the Consolidated Income Statement: “Cattle Fair Value Adjustments”? √√ √√ √√
/3.0 marks
(ii) Has the student clearly demonstrated an understanding of the item from the Consolidated Income Statement: “Change in Fair Value of Property”? √√ √√ √√ /3.0 marks

(iii) Has the student clearly demonstrated an understanding of the item Net Profit after Tax from the Consolidated Income Statement and Total Comprehensive Income from the Consolidated Statement of Comprehensive Income? √√ √√ √√ /3.0 marks
PART A – TOTAL /9.0 marks

2. PART B: Demonstrate an understanding of the components of the Consolidated Statement of Financial Position.

(i) Has the student clearly demonstrated an understanding of the item from the Consolidated Statement of Financial Position “Livestock”? √√ √√ √√

/3.0 marks
(i) Has the student clearly demonstrated an understanding of the item from the Consolidated Statement of Financial Position “Property, Plant and Equipment”? √√ √√ √√
/3.0 marks

(i) Has the student clearly demonstrated an understanding of the item from the Consolidated Statement of Financial Position “Borrowings”?
√√ √√ √√ /3.0 marks
PART B – TOTAL
/9.0 marks

1. 3.PART C: Demonstrate and understanding of the Notes to the Financial Statements

2. (i) Has the student clearly demonstrated an understanding of the item from the Notes “Future minimum lease payments under non-cancellable operating leases for land and buildings”? √√√√√√
/3.0 marks
3. (ii) Has the student clearly demonstrated an understanding of the impact on AAC of the introduction of AASB 16 Leases in 2019? √√√√√√
√√√√√√
/6.0 marks

4. (iii) Has the student clearly demonstrated an understanding of the items from the Notes:
5. – Other commitments
6. – Contingencies √√√√√√ /3.0 marks
PART C – TOTAL /12.0 marks
OVERALL TOTAL – /30 marks

Last Updated on February 14, 2019 by