HBC330N/HBC330 Accounting Theory/Current
Issues in Accounting
Assignment Information Sheet
Accounting for leases
"The proposed accounting standard for leases is just another layer of significant added complexity to already complex financial statements which will further reduce the usefulness for all users unless they have an academic degree," says Tom Pockett, Woolworths chief financial officer.
"It will put more hypothetical entries through the profit and loss account. There needs to be a proper benefits analysis as to why the world needs this change." Pockett says companies with long-term debt in place could face breaching their debt covenants as a result of the IASB draft proposal.
"The comments made that the standard is needed as companies have underestimated their liabilities is false and sensationalist. The lease commitments are already fully disclosed in the notes to the accounts. Any debt provider already takes these commitments into account when lending companies money, as do rating agencies when rating a company’s credit risk. Instead of adding undue complexity we should be focusing on removing complexity and simplifying financial statements for all users."
Louis White, Global leases undergo changes, The Australian, January 29, 2011.
In view of the joint International Accounting Standards Board (IASB)/Financial Accounting Standards Board (FASB) project to amend the current accounting standard on accounting for leases, you are required to adopt a report format and critically evaluate the above quotation. For instance, what assumptions are inherent in the quotation? What is the evidence-base for the assertions made in the quotation? Do you agree or disagree with the sentiments expressed? Why or why not? What is your recommendation in relation to the AASB Exposure Draft Leases (ED 202R August 2010), which is based on the joint IASB/FASB Exposure Draft?
You are expected to utilise materials available from the relevant accounting standard setter(s) as well as research published in high quality, scholarly accounting and business journals available through the Business Source Complete database in the Swinburne University Library. See the last page for a list of quality, scholarly accounting and business journals.
In your discussion, you should make reference to relevant theory/theor(ies) covered in the Unit’s syllabus which might support, or contradict, the basis of your conclusions. Please note that Wikipedia is not an appropriate reference source.
LODGEMENT: You must submit your assignment via Safe Assign facility available on Blackboard and also in hardcopy by the due date in the allocated assignment box located on the 11th Floor of the BA Building (just next to the lifts) no later than 5 pm, Friday, 10 May 2013. Students may also submit the assignment to their tutor on or before the due date. Students must also keep an electronic or photocopied version of their assignment for evidentiary purposes.
MAXIMUM MARKS: 20 Marks toward the final assessment. The assignment will be marked out of 100.
WORD COUNT: the body of the report/essay should not exceed 1500 words (excluding title page, references and executive summary but including footnotes, endnotes and appendices).
Please provide a word count on the cover sheet. Assignments in excess of the allowable word limit will be returned for correction.
A report format is required for this assignment. In a report, the Executive Summary should provide an overview of the whole report, including any recommendations. This is a ‘thinking’ assignment and what is expected is the personal view of individual students’ based on research and the evidence that has been sourced. Further, an assignment which presents more quotes than constructive analysis and argument may be heavily penalised.
SUGGESTED REPORT STRUCTURE
1. Title Page
2. Contents Page
3. Executive Summary (which provides an overview of the whole report)
4. Introduction and Purpose
5. Responses to specific task using appropriate headings and sub-headings
This assignment is an important assessment component of this Unit and as such the assignment must be properly researched and professionally presented. The assignment should also;
• Be all your own work
• Be word-processed (printed), and have 1.5 spacing for clarity; a high standard of presentation is expected, but a folder, binding etc. is not to be included. A staple to keep the pages together is all that is required.
• Have the cover sheet with all relevant details, including:
- student name, student number, tutorial time & tutor’s name
- Unit name and code
- date of submission
• Contain correct referencing, using the Harvard system. For assistance refer to:
• Include a list of references adequately referencing your sources (In-text references should only refer to the surname of the author/authors and the year of the publication).
Students are reminded to review the University policy on plagiarism.
Safe Assign Tool
The University is now using the Safe Assign tool. This is an effective tool to reduce plagiarism. Students should self-check their assignments prior final submission. Documentation on the use of this tool will be posted on Blackboard. Please ensure that you use only the Draft option. This is a matching and not a punitive tool. The default setting allows every student to check one draft submission. Upon receiving feedback from Safe Assign, you should amend your assignment to ensure that it is "Plagiarism Safe".
Attachment 1: Extract of Ranked Tiers of (highest [A*] to lowest [B]) Peer-Reviewed
Journals in Field of Research 1501, Accounting, Auditing and Accountability
(Source: Excellence in Research (ERA) in Australia as at February 2010)
#C ranked journals are not included here
Rank Journal Name Rank Journal Name
A* Accounting Auditing and Accountability Journal B Australian Accounting Review
A* The Accounting Review B Corporate Board: role, duties and composition
A* Accounting, Organizations and Society B Corporate Ownership and Control
A* British Tax Review B E-Journal of Tax Research
A* Contemporary Accounting Research B International Journal of Accounting and Information Management
A* Journal of Accounting and Economics
A* Journal of Accounting Research B International Journal of Accounting Information Systems
A* Journal of Management Accounting Research
B International Journal of Accounting, Auditing and Performance Evaluation
A* National Tax Journal
A Abacus: a Journal of Accounting and Business Studies
B International Journal of Auditing
B Journal of Accounting and Organisational Change
A Accounting and Business Research
A Accounting History
B Journal of Applied Accounting Research
A Accounting Horizons
B Journal of Applied Finance: theory, practice, education
A Accounting, Business and Financial History
A Advances in Accounting : a Research Annual B Journal of Applied Research in Accounting and Finance
A Auditing: a Journal of Practice and Theory
A Behavioral Research in Accounting B Journal of Australian Taxation
A British Accounting Review B Journal of Construction Accounting and Taxation
A Critical Perspectives on Accounting
A Financial Accountability and Management B Journal of Contemporary Accounting and Economics
A JAAF - Journal of Accounting Auditing and Finance
B Journal of Financial Education
A Journal of Accounting and Public Policy B Journal of Forensic Accounting: auditing, fraud, and taxation
A Journal of Accounting Education
B Journal of Intellectual Capital
A Journal of Accounting Literature
B Journal of International Accounting Research
A Journal of Business Finance and Accounting
B Journal of International Accounting, Auditing and Taxation
A Management Accounting Research
A Review of Accounting Studies
B Journal of International Financial Management and Accounting
A The European Accounting Review
A The International Journal of Accounting B Journal of Public Budgeting, Accounting and Financial Management
B Accounting and Finance
B Accounting and the Public Interest B Journal of the American Taxation Association
B Accounting Forum B Managerial Auditing Journal
B Accounting Historians Journal B New Zealand Journal of Taxation Law and Policy
B Accounting in Europe
B Accounting Research Journal B Pacific Accounting Review
B Advances in Accounting Behavioral Research B Qualitative Research in Accounting and Management
B Advances in Financial Education
B Research in Accounting Regulation
B Advances in International Accounting
B Research in Governmental and Non-Profit Accounting
B Advances in Management Accounting
B Advances in Public Interest Accounting
B Revenue Law Journal
B Advances in Quantitative Analysis of Finance and Accounting
B Review of Derivatives Research
B Review of Finance
B Advances in Taxation
B Taxation in Australia
B Asia Pacific Journal of Finance
B The Geneva Risk and Insurance Review
B Australasian Accounting Business and Finance Journal