ACC5215 Integrate Theoretical And Technical Accounting Knowledge Assignment Answer

ACC5215 Corporate Accounting

Assignment

Important Information

At USQ, Policy and Procedure guides our approach to assessment, and it is important that all students are familiar with the relevant Policy and Procedure documents, and annually complete the Mandatory Academic Integrity Training. You will not be able to submit your assignment files if you have not completed the integrity training this year.

In the Assessment section of the StudyDesk for this course you will find:

• A link to complete the mandatory academic integrity training
• Information regarding plagiarism and academic misconduct, such as collusion and cheating (Academic Integrity Policy)
• Information about extensions (Assessment Policy and Assessment Procedures)
• A link to request an extension

You are strongly urged to complete this assignment by yourself to receive clear feedback about your level of understanding of the course material. To ensure your submission is your own work, plagiarism detection software is used.

Assignment Objectives

• Integrate theoretical and technical accounting knowledge particularly in the area of finance and the relevant regulations, in order to exercise judgement at a professional level to provide possible solutions to emerging and/or advanced accounting problem in complex contexts;
• critically apply theoretical and technical accounting knowledge and skills to solve accounting problems which require adjusting procedures to changes in regulations and preparing accounting entries according to professional accounting standards both Australia and international;
• Analyse and critically evaluate accounting topics in real world scenarios and identify and consider ethical and cultural issues facing accountants operating in corporations in the national and international business community.

Course objective – employability skills:

Employers seek graduates with more than technical knowledge; they also look for skills like communication (writing reports, memos, business letters), critical thinking and judgement, and ‘business acumen’. This Assignment provides an opportunity for you to produce professional standard examples of communications that you can use as part of your portfolio, whether it be for entry to the profession, promotion, or seeking a better position with another employer. These skills are also highly relevant if you operate your own business.

Assignment Preparation

• Provide a cover sheet (as per the one shown at the end of this document)
• Page margin should be 1 inch (2.54 cm) all around.
• You should use Verdana font size 11 and 1.5 line spacing for your internal memorandum and business letter
• Tables / worksheets and similar should be clearly labelled and formatted
• Start each question on a new page
• You will submit one Word file with your answer to each question. You can also submit an Excel file if you have prepared your answers in Excel (this is not a requirement, nor are marks allocated to using Excel, but it could be useful to the marker).
• Provide an Appendix – Reference List at the end of your Word file (using Harvard AGPS style for any references used in preparing your assignment)

When relevant, the Word limit excludes in-text references, headings, and sub- headingsThere is a link in the Assessment section of the StudyDesk to use to submit your Word file. Turnitin is activated – do not complete the submission process until you are ready to submit.

Extensions

Extensions are only granted in extenuating circumstances and will not be granted after the due date. Refer to the Assessment Policy and Assessment Procedures links in the Assessment section of StudyDesk. Use the link provided there to make your application.

Crashing of computers, too busy with other assignments and such reasons are not considered extenuating circumstances. You must organise your study time around these other commitments. Extensions will only be considered where supporting documentation is provided (e.g. doctor’s certificate). Work commitments are generally not considered to be extenuating circumstances. If you have had to do extensive amounts of overtime or work-related travel you must provide a supporting letter from your employer, which provides details of such circumstances.

Question 1

Zeehan Pty Ltd is a membership organisation and holds fund in trust for operating a local charity in Tasmania. Zeehan Pty Ltd has prepared its adjusted trial balance for the year ended 30 June 2031.

It has yet to determine its income tax expense for the year and the tax assets and liabilities that arise from the transactions and events of the year. The following tables provide relevant information from the adjusted trial balance:

TABLE 2

Additional information:

• Zeehan Pty Ltd recouped a tax loss of $27,200 in this financial year
• A deferred tax asset was previously recognised in relation to this tax loss
• The entertainment expenses paid by Zeehan during the year are not deductible
• Machinery assets are depreciated using straight-line at 10% p.a. with no residual
• Machinery – tax depreciation rate is 25% p.a., straight-line with no residual
• The export incentive grant income relates to its international sales. The grant received from the Commonwealth Government is not taxable.
• The tax rate is 30%

Required:

1. Analyse the data and information presented above and show the supporting calculations required for values included in the two tax worksheets.
2. Prepare the current tax worksheet to calculate the current tax liability for the year ended 30 June 2031.
3. Prepare the deferred tax worksheet to calculate the movements in deferred tax accounts for the year ended 30 June 2031.
4. Provide the journal entries that arise from these tax worksheets.
5. Briefly explain how the items that arise from these journal entries will be reported in the financial statements for the year ended 30 June 2031 (no word limit).

Question 2 (800 words)

Daydream Island Resort Pty Ltd is an Australian subsidiary of a large multinational company. The parent company is financially sound and is a guarantor of all debt of the Australian subsidiary. In May 2031, a cyclone caused extensive damage to the resort. A significant loss was incurred for the year ended 30 June 2031, as the insurance policy excluded coverage for cyclones and ocean surges. A tax loss of $45 million was determined for that financial year. As an Australian company, the subsidiary pays company tax in Australia. Assume that taxation legislation allows such losses to be offset against future taxable profit.

Required:

Imagine that you are a recent graduate working for an accounting practice. Your manager has asked you to provide advice via an internal memo (see later discussion) on the recognition of a deferred tax asset in relation to the tax loss. Your manager will review and revise your memo before writing a business letter containing advice for the CEO of Daydream Island Resort Pty Ltd on this matter.

In your answer, you are expected to explain and apply the requirements of AASB 112

Income Taxes.

Writing style:

Your answer to Q2 should be presented in the form of a memorandum (not an essay). A memo template file will be provided on StudyDesk for you to copy from or adapt (copy from this document and paste it into the Word doc you will submit for this assignment). You should:

• use headings and sub-headings in the memo to structure your response
• at the start of each section of your memo, provide a quote of the relevant paragraph of the standard you are applying in that section
• use the Harvard AGPS referencing style in this memo
• quoted paragraphs from the standard are not included in the word count

You are writing for experienced accountants in this report and your writing style should reflect it.

Question 3

On 1 July 2034, Strahan Ltd, a company based in Tasmania, Australia, acquired all the issued shares of Bavarian Brewing Ltd (BBL), a German craft beer brewery based in Munich. The trial balance (in Euro) for BBL for the last two years appears below:

Additional information

1. Sales, purchases, and expenses were occurred evenly throughout the period.
2. Closing inventory on 30 June 2035 was $1,064,000 and was acquired during June 2035.
3. Land was acquired by BBL on 1 October 2034 for $600,000.
4. New motor vehicles were delivered and paid for on 1 April 2035 for $380,000. Each motor vehicle has a useful life of ten years, with no residual value. BBL use straight-line method for all motor vehicles.
5. New machinery assets were delivered and paid for on 31 December 2034 for

$456,000. The machinery assets have a useful life of eight years, with no residual value. BBL use straight-line method for all machinery.

1. The interim dividend was paid on 31 December 2034
2. The dividend payable was declared on 30 June 2035
3. BBL borrowed Euro $1,800,000 on 1 October 2034 at an interest rate of 6.5% per annum, with interest payments at the end of each half-year (i.e., 31 December and 30 June).

The exchange rates for the&