Prepare a business letter to answer key accounting issues

Reference no: EM133531871 , Length: word count:1500

Financial Reporting

Assessment - Statement of Advice

Assessment - Provision of advice on accounting issues

Your Task
You are required to prepare a business letter to answer key accounting issues in regard to an acquisition analysis of a wholly owned subsidiary and various inter-company transactions.

This is an individual assessment.

Assessment Description
Assume that you are a graduate accountant working for Finley Figg, a public accounting firm situated at 372 Docklands Drive, Melbourne, VIC 3008. The Manager of your firm, Ms. Kara Song, has asked you to prepare a statement of advice in response to an email received from a client, Ms. Rana Carr, the Managing Director of Proton Motors Ltd, raising several accounting issues. Please refer to the email on the next page.

The maximum length for the body of the letter is 1,500 words. You should address all the technical issues and discussion in your advice, followed by a Reference List.

• Part A: Technical component 20% - This mark covers the technical content of your advice and the explanation of each of the issues, the calculations and journal entries (where applicable).
• Part B: Communication Skills 10% - This mark covers the generic skills of writing; layout, clear meaning, structure and organisation, appropriate tone and grammar, spelling, and punctuation throughout the whole assignment. It also includes referencing.

Case Study

Proton Motors Ltd is a public company listed on the ASX. It is a major manufacturer of traditional automotive vehicles. Proton Motors Ltd is under continuous pressure to reduce costs, improve fuel efficiency and reduce emissions of its vehicles to comply with government regulations. Stricter emission regulations, lower battery costs, more widely available charging infrastructure, and increasing consumer acceptance have created new and strong momentum for the penetration of electrified vehicles. This has led to declining sales revenues for Proton Motors Ltd of its traditional automotive vehicles. The incremental borrowing rate for Proton Motors Ltd is 10%. The corporate tax rate is 30%.

Draft a business letter in reply and make sure you reference any relevant sources relating to your advice, for example, AASBs, Corporations Act, and relevant sources. See the email attached.

Your Task

Your task is to analyse client information using the information and questions raised by the CEO, and present the findings in a Statement of Advice with a covering Business Letter.

For each issue, you are expected to:
1) Identify the facts and accounting topic
2) Apply the relevant legislation, accounting standard and/or process
3) Make a recommendation and/or summary of the correct accounting treatment.

Reference no: EM133531871

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