Financial Accounting 2

• Part A: Technical component 15% - This mark covers the technical content of your advice and the explanation on each of the issues, the calculations and the sources used.

• Part B: Communications skills – Letter Writing 5% - This mark covers the generic skills of business letter writing; layout, clear meaning, structure and organisation, appropriate tone and grammar, spelling and punctuation etc. throughout the whole assignment.

The assignment is designed to test the following skills:

1. Your knowledge and your ability to research the issues and then apply the information appropriately

using judgement to correctly identify the relevant standards and legislation that relate to the issues

raised by the client.

2. Your written communication skills – business letter writing.

Please note: Any work which has been copied or shared between students will result in a Fail grade for all students concerned. Therefore, please make sure that the answer to this assignment is your work and copied or bought from any source. In completing this assignment make sure you follow the guidelines for assignments especially those relating to the presentation of written work, late assignment policy and academic integrity.

Re: Accounting Issues: Year Ending 30 June 2020 From: Joe Black ([email protected])

Sent: 13 July 2020

To: Adam Tucker ([email protected])

Dear Adam,

Thank you for your phone call this morning. As agreed I am emailing your regarding the accounting issues we briefly discussed. By the way to assist the accounting team in our decision-making process, could you please make sure you reference any relevant sources relating to your advice, for example, AASBs, Corporations Act, and relevant websites.

Here are the two issues we are most concerned about:

1. Sotoma Pty Ltd gives warranties at the time of sale to purchasers of its products (computer chips). Under the terms of the contract for sale, the manufacturer undertakes to remedy, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale. As this is the first year that the warranty has been available, there is no data from the firm to indicate whether there will be claims under the warranties. However, industry research suggests that it is likely that such claims will be forthcoming. It would be much appreciated if you could kindly advise the accounting team whether the company should recognise a provision.

2. On July 2020, Sotoma Pty Ltd noticed that a number of its employees have been with the company for a number of years including some who have actually been working for more than 10 years. The company has always provided annual leave and sick leave to its employees. However, our accounting team is not sure whether these employees are entitled to any other employee benefits. It would be much appreciated if you could give the accounting team some clarification on this matter and how to deal with this in our accounts.

Please respond by letter (not email) as I would like to present this to the Board. I look forward to hearing from your shortly.

Regards

Joe Black

Managing director, Sotoma Pty Ltd 55 York Street,

Sydney NSW 2000

Hint: Remember that your firm plans to charge the client for your advice; as a check ask yourself if you would pay for the advice you have drafted!

Learning outcome demonstrated

Develop information gathering and communication strategies to enable the provision of professional advice to a client.

Assessment Instructions

Submission

The assignment will need to be submitted electronically through the student portal – use the link under “Assessments”.

Referencing

Any sources that you use need to be acknowledged in order to avoid plagiarism. Information on referencing can be found in the Guidelines for Referencing and Presentation at the Kaplan website using the following address: (https://elearning.kbs.edu.au/mod/page/view.php?id=128881)

In-Text Referencing and the Reference List

Sources of information must be cited both in the body of the text (in‐text referencing) and the end of the assignment (reference list). Failure to do so will result in penalties. Remember that when referencing an Annual Report, it is a corporate document that does not have a particular author but it will still require referencing any time you use information from it. Any other documents or books or other references you use will also require referencing.

Penalties Regarding Referencing

• No in‐text referencing – deduct 2 marks

• Some in‐text referencing only – deduct 1 mark • No reference list – deduct 2

• Incomplete reference list – deduct 1 mark

Policy on Late Submissions

Penalties will be imposed on late assignment submissions in accordance with following:

• Number of days late Penalty 1* - 9 days 5% per day for each calendar day late deducted from the total

marks available.

• 10 - 14 days 50% deducted from the total marks available.

• After 14 days Assignments that are submitted more than 14 calendar days after the due date will not be accepted and the students will receive a mark of zero for their assignment.

• Note Notwithstanding the above penalty rules, assignments will also be given a mark of zero if they are submitted after assignments have been returned to students.

• *Assignments submitted at any stage within the first 24 hours after the deadline will be considered one day late and therefore subject to the associated penalty.

Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit is exceeded.