ACCT1080 Financial Accounting Theory

WIL ACCT 1080Financial Accounting Theory

Team Report &Individual Report Semester 1 2014

The following assessments involve Work Integrated Learning (WIL) activities. The focus of RMIT’sWIL policy is for you to ‘learn by doing in context and with feedback’ in realistic contexts. This assessed WIL experience makes a significant contribution to development of your work-readiness capabilities by deepening your knowledge of, and skills at, core accountancy practices concerning the practical application of contemporary financial accounting regulation in the workplace.

You and your future team members are graduate employees of a public accountancy firm, Ragunathan Accounting (RA).

You will work as a team to produce a team report, and subsequently individually to produce an individual report for RA responding to the following brief:

Section 1: Client Brief

Background:

Priya Chemicals Ltd (a Singaporeancompany) is a client of Ragunathan Accounting (RA).Priya Chemicals Ltd (PC) is involved in the development, manufacture and distribution of a range of industrial and agricultural chemicals. At present, PC is listed on the Singapore Exchange (SGX) and RA has been providing both audit and non-audit services to PC for the past eleven years.

PC is currently seeking international expansion opportunities for its core business competencies.PC advises that its core competencies are the manufacture and distribution of industrial and agricultural chemicals. The company has already completed extensive marketing research seeking new opportunities for the international expansion of its exploration and miningoperations. As a result of this research the company has identified that Indiawould potentially be a suitable site for the formation of a publicly listed subsidiary.

PC has not made a final determination as to whether this expansion project will go ahead and as part of its research it has sought the services of RA. It has asked RA to provide reports outlining the financial reporting and disclosure issues that might arise if they decided to list their subsidiary on the Bombay Stock Exchange (BSE) in India.

Your supervisor, Miss Sudha has provided you with detailed requirements for a team report that is to be produced by you in section 2 below. The report requirements have been tailored by Miss Sudha to meet the perceived needs of PC Ltd and the scope of your report should be limited to the issues outlined below. Miss Sudha has further provided instructions for an individual report that is to be produced in section 3 below.

Before starting your research, I highly recommend that you visit the following site: http://emedia.rmit.edu.au/isearch/ and complete the interactive tutorials which will assist you in locating relevant academic references such as journal articles etc. for your report.

Please Note: As these reports are designed to simulate a real working experience you may find that you will need to spend some time reflecting upon the scope and purpose of the report you are to produce and your approach to the work that is to be undertaken. There is no one best way to approach ‘real-life’ work tasks such as these and it is expected that each individual and team will develop different methodologies and responses to the outlined tasks. The companies and accounting firms discussed in the assignment are not real companies.

Section 2: Team Report

Due Date: to be advised

Word Limit: 2000 words (not including letter of transmittal/memorandum, executive summary, table of contents, references, appendices, minutes of team meetings)

Weighting: 30%

Submission: 1 Turnitin and Electronically via MyRMIT Grade Centre; and

2 Hard copy via Administration office of the RMIT Program, Level 6, Singapore Institute of Management

Students will form teams of 3 studentsenrolled in the same seminar/class (these teams need to be approved by your course coordinator or local lecturer). Students must seek approval for their team members from their course coordinator or local lecturer no later than class 3 of the semester; otherwise the local lecturer will allocate you to a team (where possible).

Team Report Requirements:

1. Your team needs to locate a publically listed company in India, listed on the Bombay Stock Exchange (BSE) that operates in a similar environment to Priya Chemicals Ltd,(i.e. in the chemicalindustry). Your team also need to find the reports produced by this company for its stakeholders (this would generally include the annual report and other reports such as sustainability reports). These reports are normally available on the companies’ websites.

2. Drawing upon your identified company, its annual report, and other reports, you are required to present a written report to Priya Chemicals Ltd outlining your findings regarding the following issues:

1. A description of the financial reporting environment in India:

a. What are current financial reporting requirements for publically listed companies in India? Your report should describe recent changes in Indian reporting requirements since 2000, and any likely future changes in Indian reporting requirements.

b. What are the cultural influences on financial reporting in India?

c. Identify the political processes that are influencing the setting of accounting standards in the India.

2. A description of the reporting (financial and non-financial) undertaken by the company you have identified, in particular:

a. The information provided in the annual report

b. Reporting undertaken by the company in addition to the annual report (e.g. Sustainability reporting)

c. A discussion of how the financial reporting environment you discussed in question 1 and the company’s stakeholders appear to have influenced your chosen company’s reporting practices.

Your report should incorporate relevant accounting theories into your discussion (e.g. regulatory theories, cultural theories, systems orientated theories).

Your report must be fully referenced in text and include a list of references. You should keep in mind that your report is for a client of your firm

3 Team members are required to take minutes of the group (team) meetings held while completing the requirements for this report. It is a requirement that each team has a minimum of four meetings during the presentation preparation process, (the meetings do not have to be face-to-face, the group is encouraged to make use of internet and web 2.0 technologies, such as Blackboard, Facebook, Skype and other networking technologies). If the team is meeting face-to-face, another suggestion is that rather than one member being responsible for trying to write notes during the meeting, the team use a recording device (e.g. a mobile phone with a record function) to record the meeting and that one student then transcribe the meeting at a later date.

Meetings are integral to the work environment and this part of the assessment task is designed to familiarise you with team meetings and the minute taking process. It is also designed to ensure that there is a record of team participation in the assessment and that the team starts work early on this piece of assessment and works consistently towards submission.

Marks will be allocated on the basis of the following submitted deliverables (please also refer to the team report marking rubric):

1. Signed RMIT Coversheet

2. The client report, including:

a. Letter of Transmittal or memorandum

b. Executive Summary

c. Table of contents

d. Introduction (including purpose, scope, limitations and assumptions)

e. Findings

f. Conclusion

g. List of References

3. Minutes of team meetings:

These minutes should include (as a minimum):

a. Date, time and location of meeting (if held online note this e.g. Held via msn chat)

b. List of attendees and apologies

c. Details of agenda items/ issues discussedby all attendees

d. A record of the items to be actioned, and who is responsible for actioning the items

e. Date of the next meeting

f. Record of who acted as secretary and chairperson for the meeting

Please note:

· Your team should refer to the team report marking rubric available from the assignment folder on MyRMIT. This document provides guidance as to how your report will be assessed.

· Where relevant, your team should incorporate and discuss accounting theories and research in your report.

Your report must be submitted by the due date:

1. to Turnitin and electronically via MyRMIT Grade Centre; and

Your Turnitin submission should be one WORD file, (that is, your team should save the client report, and minutes as one electronic WORD file). Please ensure that only ONE member of your team submits to MyRMIT Grade Centre;

2. as a hard copy to the Administration office of the RMIT Program, Level 6, Singapore Institute of Management.

Your Report must include a completed and signed RMIT Coversheet.

Section 3: Individual Report

Due Date: to be advised

Word Limit: 1000 words (not including, table of contents, references, appendices)

Weighting: 20%

Submission: 1) Turnitin and Electronically via MyRMIT Grade Centre; and

2) Hard copy via Administration office of the RMIT Program, Level 6, Singapore Institute of Management

Individual Report Requirements:

1 You will be allocated a publically listed company in India, listed on the Bombay Stock Exchange (BSE) that operates in a similar environment to Priya Chemicals Ltd, (i.e. in the chemical industry). Youneed to refer to this company’s website, and find the reports produced by this company for its stakeholders (this would generally include the annual report and other reports such as sustainability reports). These reports are normally available on the company’s website.

2 Drawing upon your allocated company, its web site, annual report and other reports, you are required to present a written report to Priya Chemicals Ltd outlining your findings regarding the following issues:

1. Describe the current sustainability reporting practices of your allocated company.

2. Based upon a discussion of relevant accounting theories, develop suggested sustainability reporting practices for PC’s new subsidiaryin India.

Your report should incorporate relevant accounting theories into your discussion, (systems orientated theories).Your report must be fully referenced in text and include a list of references. You should keep in mind that your report is for a client of your firm.

Marks will be allocated on the basis of the following submitted deliverables (please also refer to the individual report marking rubric):

Deliverables:

1. Signed RMIT Coversheet

2. The client report, including:

a. Table of contents

b. Introduction;

c. Findings

d. Conclusion

e. List of references

Please note:

· You should refer to the individual report marking rubric available from the assignment folder on MyRMIT. This document provides guidance as to how your report will be assessed.

· Where relevant, you should incorporate and discuss accounting theories and research in your report.

Your report must be submitted by the due date:

1. to Turnitin and electronically via MyRMIT Grade Centre; and

2. as a hard copy to the Administration office of the RMIT Program, Level 6, Singapore Institute of Management.

Your Report must include a completed and signed RMIT Coversheet.

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ACCT 1080, Financial Accounting Theory, Singapore, WIL Assignment, Semester 1, 2014 Page 1