Diversity In Accounting Practice Assessment Task 2 Answer

Assessment Task 2: Assignment (Group) 

 Objective:

This assessment task aims to support you in achieving the following Subject Learning Objectives: 

• Describe and explain the reason for the diversity in accounting practice around the world 
• Explain the concepts and accounting issues involved in recording and reporting a variety of frequently occurring international transactions 
• Evaluate major issues in international accounting including transfer pricing, foreign currency financial statement translation and international taxation  

Task description:

This is a group assignment. Groups are to comprise 2-4 students. Assignments will only be accepted from individuals who have written permission from the Coordinator and have provided documentation of extraordinary circumstances. This is a team assignment.

Assignment length and format

Approximately 1,000 words (+/- 10%) per student in the group (excluding bibliography).

Please use Harvard Referencing style.

. Assignment questions

(A) Australian Dollar (AUD) and US Dollar (USD)

(a) Construct a graph (using quarterly data) of the Australian dollar against the USD for the five-year period 1 July 2016 to 30 June 2020. For the month of July 2020 construct a daily graph

(b) Highlight on the graphs the major peaks and troughs in the value of the AUD against the USD.

(c) Discuss what caused each of the major peaks and troughs in the value of the Australian dollar against the USD. Ensure you include detailed research as part of your discussion. Whilst your research can come from a variety of sources, a requirement is that your research includes articles from the business press (The Australian Financial Review, for example) as articles in the business press will give a much fuller explanation of what is happening with exchange rates and why there are rises and falls.

(d) Predict and discuss what you think the value of the AUD against the USD will be at 31 December 2021.

 (D) Australian Dollar (AUD) and the Chinese Yuan (CNY)

(a) – (d) As above except CNY rather than USD.

PART 2: Discuss the ‘trade weighted index’ (for Australia) in the context of the currency you have been allocated above. 

PART 3: Discuss the relevance of the currency you have been allotted to international accounting for Australia. Which country apart from Australia would be interested in their exchange rate with the currency you have been allotted? Why would they be interested?

PART 4: Impact of Foreign Exchange currency movements on business operations and strategic direction

• Research an Australian company which has interacted (through sales or through key purchases) with the above currency you have been allocated (USD, GBP, EUR, CNY or JPY). For example, the Australian company could sell to the Japan, so interaction could be sales in JPY. Alternatively, the Australian company could buy key materials from China, where purchases with China are generally transacted in USD.
• Discuss the effect that the changing exchange rate of the identified currency to AUD has had on strategic direction and operations of the Australian company over the last 5 years.
• Refer to your predictions developed earlier in Part (d) of the assignment. For your identified currency, discuss the impact that this prediction of value of the AUD against the identified currency at 30 June 2020 will have on the company.
• What does the company you have chosen in Part 3 disclose of their foreign currency activities? 

PART 5: Indicate one other aspect of International Accounting relevant to the currency you have been allocated or company you have chosen and why it is relevant.