Reference no: EM131197116 , Length: 1000 Words
Individual assignment
This assignment is worth 20% of the total assessment for this course (20 marks).
The assignment focuses on the topic of lease accounting, in particular the changes to the accounting standard and the accounting and social impacts derived from this change.
REQUIREMENTS:
INSTRUCTIONS:
• To gain general knowledge of the new accounting standard for leases and the possible impacts on companies' reporting you can rely on AASB 16 Leases (the new accounting standard) and AASB 117 Leases (the old accounting standard), that you can download from www.aasb.gov.au.
• If you need more information about this topic, there are several newspaper articles and reviews that you can find if you search on the RMIT library website https://www1.rmit.edu.au/library.
• To answer the questions, you will need to read through the documents lodged on Blackboard in the "Documents for Individual Assigment Sem 1 2016" folder that you can find in the "Assignments" folder on Blackboard.
• You may not be able to obtain all answers from the documents. You will need to refer to other sources: your textbook (Chapter 11 on the old accounting standard may be useful; lecture slides and other financial accounting books).
• Minimise the use of websites like Investopedia, AccountingCoach or similar to support your answers.
• If you use or refer to AASB accounting standards, the textbook and any other sources, remember that you have to provide citations and a final reference list (see Citations rules)
• You are required to answer all five questions, which are marked 4 marks each according to the rubric that is attached at the end of this document.
QUESTIONS:
• Briefly illustrate (max 10 lines) how lease accounting is changing for the lessee with the introduction of AASB 16 Leases, which is replacing AASB 117 Leases from 1 January 2019.
• List and illustrate at least 2 prospective benefits for the actual and potential investors (shareholders) coming from the new lease accounting standard (AASB 16 Leases).
• Discuss whether the old lease accounting standard (AASB 117) is to blame for, or has contributed to, some companies' failures during the financial crisis (i.e. Border in Australia)?
• According to the documents, it is said that several implications may arise from the introduction of the new leasing accounting standard. Identify at least 1 accounting implication and 1 social implication arising from the new accounting standard and justify your answer.
• With respect to Virgin Australia Airlines Annual report 2015, can you identify the nature of the changes in Virgin Australia's liabilities under the new standard?
SCHOOL:
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(1)
(2)
(3)
(4)
(5)
(6)
Q1
- No answer
- The answer contains irrelevant and/or misleading information
- Does not adequately introduce the topic and/or context
- Does not include main information required by task
- Topic may be identified, but not key concepts
- Includes only Minimal information
- Introduces the topic, context
- Key concepts are identified clearly
- Includes the main information as required by the task
- All main concepts are identified
- Answers are presented with clarity and technical language
- Demonstrate ability to synthesise
- Outstanding clarity and relevance
Q2
- No answer
- The answer contains irrelevant and/or misleading information
- Does not adequately introduce the topic and/or context
- Lacks support to answer
- Does not include main information required by task
- Topic may be identified, but not key concepts
- only one benefit identified
- Poor support of statements
- Includes only Minimal information
- Introduces the topic, context
- Key concepts are identified clearly
- Includes both benefits but some details/aspects are missing
- All benefits are identified with details
- Answers use technical language
- Good synthesis
- Outstanding clarity and relevance
Q3
- No answer
- The answer contains irrelevant and/or misleading information
- Does not adequately introduce the topic and/or context
- Lacks support to answer
- Does not include main information required by task
- The reason may be identified, but not with enough clarity
- Poor support of statements
- Includes only Minimal information
- Introduces the topic, context
- Key concepts are identified clearly
- Includes the main reason but some details/aspects are missing
- All reasons are identified with details
- Answers use technical language
- Good synthesis
- Outstanding clarity and relevance
Q4
- No answer
- The answer contains irrelevant and/or misleading information
- Does not adequately introduce the topic and/or context
- Lacks support to answer
- Does not include main information required by task
- Topic may be identified, but not key concepts
-Only one implication identified
- Poor support of statements
- Includes only Minimal information
- Introduces the topic, context
- Key concepts are identified clearly
- Includes both implications but some aspects/details are missing
- All implications are identified with details
- Answers use technical language
- Good synthesis
- Outstanding clarity and relevance
Q5
- No answer
- The answer contains irrelevant and/or misleading information
- Does not adequately identify the issue
- Lacks support to answer
- Does not include main information required by task
- Issue may be identified, but not clearly developed
- Changes are not clear
- Poor support of statements
- Includes only Minimal information
- The changes are identified
- The implications are descripted clearly
- Includes the main changes but some details/aspects are missing
- All changes and implications are identified with details
- Answers use technical language
- Good synthesis
- Outstanding clarity and relevance