Reference no: EM131952212
Assessment Description
Learning Outcome: Research and argue a position in regard to a contemporary issue in the accounting profession
REQUIRED:
Write a report based on the assignment details noted below. Your final report (Part 2) should be approximately 3000 words not including references, abstract and appendices. You should include a word count on your report. Submissions that exceed the word count by more than 10% will cease to be marked from the point at which that limit is exceeded.
The Assignment is designed to test the following skills:
1. Your knowledge, your ability to research the issues and then critically analyse the information appropriately using judgement to answer the research questions raised.
2. Your communication skills - report writing
Please make sure you follow the guidelines noted in your subject outline especially those relating to presentation of written work, late policy and academic integrity. You should also familiarise yourself with the assessment marking rubric (a separate document) to guide you in how you can score marks.
Individual Research Assignment - Case Study
You are a graduate accountant with a firm of consultants, Business Consult Australia (BCA).
The partners of a rapidly growing and ambitious mid-tier accounting firm have engaged your firm of consultants to provide them with the information necessary to determine whether they should set up a specialist team to help clients with the transition to the new leasing standard. The firm has a large number of clients who prepare general purpose financial statements. Some of the concerns raised by the partners during the initial meeting with them are given below.
AASB 117 Leases is due to be replaced in 2019 by AASB 16 and many clients are concerned about the potential impact of this new leasing accounting standard on their businesses. One of the partners, Marae Rickard, thinks the firm should set up a specialist team to help clients with the transition to the new standard. Marae also commented "We were so busy growing the business; we did not have any input during the consultation process into the new leasing standard. As a rapidly growing firm, clients increasingly expect us to take positions on these matters. If we had a specialist team it will enable us to lobby for change more effectively". However other partners believe that the issue should be dealt with as part of ‘business as usual' and are happy to leave lobbying to the ‘big 4' and the accounting bodies. Peter Anderson said "we are just one firm and our opinion is really not going to make much of a difference. In any case the Australian accounting standards appear to just follow the International accounting standards, so a specialist team may be a waste of resources".
The partners have requested your firm to compile a wide ranging report into current developments in lease accounting and how they should respond to the challenges raised. Specifically your report should contain (but is not restricted to) advice or responses regarding the following points:
- The background to and reasoning for the changes to the standards on leasing
- The current methodology for lease accounting (lessee only)
- The new methodology for lease accounting (lessee only)
- The potential impact on clients of the changes, including which types of business and financial structure will be most 'at risk'
- How the accounting practice can allay client fears about the changes and outline how clients may be able to minimise any negative impacts from these changes
- Making recommendations on how the changes should be communicated to clients (i.e. which methods of communication should be used)
- Arguments for and against having a specialist team to deal with the issue, concluding with a recommendation
- Recommending how staff should be trained on the technical aspects of the new standard, and on ways to deal with client queries
- Arguments for and against the new standard itself, concluding with a clear view as to the validity of the new standard
- Whilst it is too late to influence the initial new leasing standard your paper will help the partners form future lobbying positions on any further changes to lease accounting - Recommend whether the firm should have a separate "lobby" group to keep abreast of accounting standard developments and changes
Read the article entitled 'Shining the Light on Leases' on the IASB
After you have submitted the report plan (Part 1) to your manager, they will provide some feedback on your work to assist you with the final report (Part 2).
In Part-2, your manager is keen that you include a response to their feedback at the end of your report, after the references. You must outline how you were able to reflect on this feedback, and on any areas for improvement you identified yourself, in order to enhance your final report.
REQUIRED:
David McCarthy, a director of your firm (which offers consultancy services to medium and large accountancy practices around the world), with a reputation as someone who has expertise in accounting and auditing standards, innovation and latest trends requested you to draft a response to the above scenario providing this information in a report format but in two stages as outlined below.
Part 1: Evaluating information resources and research plan
1) Students are to answer the following questions and Identify 10 sources relevant to the project:
a) The purpose of the report is.....
b) The audience for the report is....
c) The key decision(s) to be made....
d) The information that would help them to make this decision is......
e) What keywords will I use in my search?
2) Identify 10 sources relevant to the project (e.g. journal articles, textbooks, websites etc.). At least 4 of these must be academic journal articles but there should be a variety of different sources used.
3) Complete a source analysis on 3 of the 10 sources with full bibliographic references. At least 2 of these sources must be academic journal articles. Refer to the source analysis template.
4) Provide a full plan of main and sub headings of the report (include appropriate numbering).
Resources to help you understand these requirements and in particular the source analysis template are provided on Moodle, including explanatory documents, marking rubrics and slides (which accompany a presentation by your lecturer in week 2).