Explain the theoretical principles and development processes that influence the development of International Accounting Standards

This assignment is designed to develop students’ knowledge and critical analysis and problemsolving skills around two course objectives:CO3. recognise and explain the theoretical principles and development processes that influence the development of International Accounting StandardsCO4. communicate in a professional manner in writing to both an accounting and non-accountingaudienceAs the aim of Financial Accounting 3 is to develop your ability to use accounting standards generally,and not to just be able to apply the ones covered in the course, this assignment is extremelyrelevant to the course. It aims to develop your awareness of the process by which accountingstandards are produced and changed so that in your future career you are able to follow the debatesabout the accounting standards and to determine how these will impact on the organisations forwhich you work, or your clients. Some students may want the assignment to just be based on theaccounting standards covered in concept videos. This suggests they have missed the main aim ofFinancial Accounting 3 and have a very narrow understanding of the education process. Anassignment is an opportunity for you to develop deeper research, knowledge, critical analysis andproblem solving skills, and judgement skills that will serve you well in your future career. CourseObjectives 3 and 4 are only assessed in this assignment and not in the exam. We hope youappreciate the opportunities this assignment affords you and that by the time you submit it you willfeel more empowered to research and explore future accounting standard issues.Importantly assignments are an opportunity for students to develop the Threshold LearningOutcomes (TLO) of the Australian Qualifications Framework (AQF) that are essential for graduates togain employment. As well as developing your understanding of the accounting setting processthrough the International Financial Reporting Standards (IFRS) that apply internationally and thatyou will need to use when you are an accountant, this assignment is designed to develop skills highlysought after by employers.Specifically this assignment aims to develop the AQF TLOs of:• Knowledge, Judgement and Critical analysis and Problem solving skills• Written communication skills: Hence the high weighting on spelling and grammar in thecriteria• Self-management skills. These will be developed through working on the assignmentthroughout the study period as guided by the learnonline site and by keeping a diary as youdevelop the assignment.This assignment is also designed to develop the Program Learning Outcome of:• Written communication skills.You will progressively develop your report throughout the study period. Time will be allocated inworkshops /virtual classes to discuss any questions that you may have regarding writing, knowledge,analytical and judgement skills. The course discussion forum will also be used to develop these skills.1Please make the most of this feedback to identify and action learning opportunities and self-improvements.Useful Website• Al-Maskari, K 2012, A Practical Guide To Business Writing Writing in English for Non-NativeSpeakers, Wiley, New York e-bookAlthough it would not be normal to reference in business memos or letters to clients, in thisassignment it must be remembered that this is also an academic exercise and hence the use ofreferencing is essential. You are required to use the Harvard Referencing style in this assignment.Use of headings in the memo and letter is encouraged. Headings are effective to organise text bydividing a document into manageable sections. Headings are also important sign-posts which guidethe reader. They need to be brief and descriptive, in bold font, and not used excessively.Self-Management SkillsBeginning assignments sooner rather than later tends to lead to better learning outcomes and lessacademic integrity issues. The assignment will be covered at various stages throughout the studyperiod in workshops and virtual classrooms. Planning early and setting short term goals with a pieceof assessment rather than just the due date results in higher learning outcomes (Zimmerman,Bandura & Martinez-Pons 1992, p. 664). By developing the assignment over time, rather than in arush in the last day or two, provides students with the opportunity to develop the TLO forAccounting in the AQF of Self-Management: Reflect on performance feedback to identify and actionlearning opportunities and self-improvements. At the end of the assignment Template is a diary thathas to be filled in by students. You have to do more than just put the dates in the left hand column.You are expected to explain fully what you have done in each step and when. Students who simplyput the dates in the left hand column will be considered to have not completed the diary as a diary isa record of what has been done and not simply dates.Note: falsely completing the assignment diary would constitute a form of academic misconductunder paragraph 9.2.1 (c) and (f) of the Academic Assessment and Procedures Manual and will bereferred to an Academic Integrity Officer with a view to imposing a penalty of at least zero for theassignment.Assignment TaskCurrently, Accounting Standards do not specify how to account for combinations of companies orbusinesses that are controlled by the same party. As a result, companies account for suchtransactions in different ways, which makes it difficult for investors and regulators to compare theeffects of those transactions on companies’ financial positions and performances.The International Accounting Standards Board (IASB) is discussing whether it can developrequirements that would improve the comparability and transparency of accounting for businesscombinations under common control to help investors compare and better understand informationthat companies provide in financial statements about such transactions.One of the key issues concerning the accounting for business combinations under common control isthe Acquisition Analysis. The IASB has proposed different methods of Acquisition Analysis includingthe Acquisition Method (IFRS 3/AASB 3), Full Fair Value Approach, Ceiling Approach and RevisedCeiling Approach. Although the project covers various aspects of business combinations undercommon control, the scope of this assignment is limited to Acquisition Analysis, in particular, to theAcquisition Method and Ceiling Approach.This assignment comprises two tasks: (1) Memo (2) Short letter. The detailed instructions are asbelow:1) MemoIn your own words write a memo to your colleagues at the accounting firm for which you work(this is just pretend, most students are not currently working for an accounting firm, use yourimagination to make up a name and letterhead for your accounting firm) explaining the issues raisedin the IFRS’s “Business Combinations under Common Control” project (this is relevant to Topic 1 Part2, Topic 2 and Topic 3) and advise which approach to Acquisition Analysis for business combinationsunder common control the firm should support.Important reminder: Although the project covers various aspects of business combinations undercommon control, your memo should include critical analysis (including the relative merits) of theAcquisition Method and Ceiling Approach only.2) LetterIn your own words draft a short letter to one of the firm’s clients who may be impacted by theIFRS project. The client acquired a 15% Non-Controlling Interest in a company that was a whollyowned subsidiary of the client’s parent company. (Use your imagination for the client’s industry andname).The details of this acquisition are as below:Purchase consideration: $1 272 000Fair value of business acquired: $1 258 000Fair value of net identifiable assets: $1 235 000Use the above information to explain the impact of the proposed IFRS’s developments on the client.Resources• www.ifrs.org > Projects > Work Plan > Research Projects > Business Combinations underCommon Control.• Look at all tabs but in particular the “Project History” tab to develop your arguments. Referto Agenda Paper 23 (as well as related audio recordings) published in April, May and June2018.• FA3 Assignment Rubric SP5 2018 (this provides the key criteria against which your memoand letter will be assessed and hence provide a possible structure for these two documents.)• How to set out a business memo and a letter to a client. You can either use templatesprovided in Microsoft Word or you can find many examples on the Internet. Remember toreference any Internet site you use. The following is also an excellent resource availableelectronically via the online library:Al-Maskari, K 2012, A Practical Guide To Business Writing Writing in English for Non-NativeSpeakers, Wiley, New York e-book• Written communication skills: see earlier section for references and links.Guidance• The memo to your colleagues in the accounting firm should be no more than about 1,000 to1,100 words and should use technical language that accountants could reasonably beexpected to understand. The letter to the client should be about 500 to 600 words and innon-technical language and written specifically for their needs. The Course Outline suggeststhe assignment can be up to 1,500 words. There is no minimum word limit. Anything after1,700 words will not be marked.• There is a lot of material in the suggested resources to answer the question. The bestapproach is to read the information, think about it and then summarise it in your ownwords. If you simply list many of the points from the suggested resources you will be heavilypenalised and fail this objective of the assignment. Your colleagues at the accounting firmhave the same access as you to the IFRS site so simply copying their papers is a waste oreveryone’s time. A list of all the points in the IFRS papers would be beyond theunderstanding of the client. Succinctly summarising the main issues for the readers is ofvalue and will be rewarded.• Referencing is essential. Remember that changing a few words does not make a quote aparaphrase or “in your own words”. It is still a quote and must have quotation marks ‘ ‘around it and an in-text reference. If you do manage to summarise or paraphrase ideas fromsomewhere it does not need quotation marks but it must still have an in-text reference as itis not your idea. Copying and pasting is never okay.• Copying and pasting text into your assignment and then altering it gradually by replacingwords, rearranging words, using the synonym function in Word to replace words etc. is notparaphrasing and any sections of assignments deemed to have been created this way willreceive no marks. This is not an appropriate method of writing and suggests that the writeris not capable of writing something original for themselves. Putting your work through atranslation or paraphrasing tool is considered a breach of the Academic Integrity policy andwill be referred to an Academic Integrity Officer with an expected minimum outcome of zerofor the assignment.• As the memo and letter are to be in your own words it is not appropriate to havequotes of more than a line, and no more than a couple of those. Lack of writing in students’own words will be heavily penalised as you need to develop this skill. Anyone can cut andpaste, but a professional can produce original work. As the markers will have read the5original documents we have suggested as resources, copying from them would add no valueand hence not be worth marks. What students can provide, that no-one else can, is theiroriginal writing of what they understand about the issue. That is worth marks.• Note that it is intended that assignments in this course will be checked, using textcomparison software, for instances of plagiarism or collusion.• Seek help early and from appropriate sources. Asking your friends, ‘seniors’ or otherstudents for assistance with this assignment is not appropriate. You may seek assistancefrom the Learnonline Student Forum, your tutor and the course coordinator.• Read the feedback rubric provided as this shows you the breakdown of the marks and anypenalties that apply.• Make sure you plan well so that when you submit your assignment it is a piece ofassessment on which you are very proud to have your name.For a custom paper on the above topic or related questions. 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