This assignment requires students to select one of the following ASX listed companies to explore its
inappropriate accounting practice(s) that are subjected to scrutinization of ASIC:
- Yellow Brick Road Holdings Ltd (ASX: YBR)
- Mustera Property Group Limited. (ASX: MPX)
- Prime Financial Group Limited (ASX: PFG)
- Pro-Pac Packaging Limited (ASX: PPG)
- Pioneer Credit Limited (ASX: PNC)
Below are important points to be considered in preparation of Assessment 2:
• Student shall form group of not more than four (4) members voluntarily. Group member is not limited to
same workshop or same geographical location.
• Student is to download 2018 and 2019 annual reports from ACU library (or by clicking this link) and read
in conjunction with ASIC media release or other relevant public announcements in order to address or
answer the key points below.
• Part A of the requirements must be based on facts publicly released.
• Part B should mention the motivations of the government legislation and details of eligibility.
• Part B and D require analysis of the impact of asset write-off on the selected entity in local setting.
Furthermore, Part D requires additional analysis of international (European) economic stimulus of R&D
tax subsidies on the selected entity (relevant weblink: https://taxfoundation.org/rd-tax-incentives-europe2020/). The potential (or ex-ante) non-current asset write-off may be based on hypothetical case if no
findings of occurrence of such events in entity’s financial disclosures.
• Part B is different from part D in that part B implies the selected entity has taken the option of ‘asset writeoff’ ex-post so that pros and cons of such action can be discussed or justified. On the other hand, part
D looks at the ex-ante outcome of the selected entity, with the selected entity committing to the plan/
option is not a necessary condition. Part D also requires comparison of effectiveness in European tax
subsidies for R&D applied in selected Australian entity.
• Part C requires selection of an asset account from the balance sheet (statement of financial position) of
the selected entity. This item of asset account (may be current or non-current asset) may be selected
based on available qualified information (such as notes disclosures) about the selected asset account in
the financial statements. Please note that Conceptual Framework for Financial Reporting published by
AASB (Website link: aasb.gov.au/admin/file/content105/c9/Conceptual_Framework_05-19.pdf) contains
both fundamental qualitative characteristics (CF, 2019, pp. 14-15) and enhancing qualitative
characteristics (CF, 2019, pp. 16-17). The record of selected asset account in the financial reports should
imply its compliances with the ‘definition’ and ‘recognition’ criteria (CF, 2019, pp. 23-26 & pp. 32-36)
which are in line with the aforementioned ‘fundamental’ or ‘enhancing’ qualitative characteristics.
• This group assignment is an academic research report. The report should be presented in cohesive
paragraphs. An academic research paper must begin with finding sources that support the thesis. A
research paper does not give opinions. It is required to have sources that are reliable such as those from
scholarly journals, educational cites, or other credible sources.
You are required to address the following questions/ issues in your written assignment,
A) Identify the changes made in reissue of financial statements by the selected entity in response to ASIC
media release 18-364MR. Discussion of the said changes should be limited to Conceptual
Framework, asset valuation (AASB116 & 136 or IASB16 &36), intangible assets (AASB138 or
IASB38) or financial instruments (AASB139 or IASB39) issue, if applicable. (8 marks)
B) Identify the pros and cons (hypothetical) of the government’s instant asset’s write-off scheme to your
selected firm as part of its initial stimulus response to the Covid-19 pandemic. If your selected firm is
not eligible for the said scheme, also provide the reason of ineligibility based on details of the published
taxation rules. (6 marks)
C) Appraise a ‘fundamental’ and an ‘enhancing’ qualitative characteristic of the financial information
implied in an Asset account in the financial statements of the selected entity. References should be
made to relevant conceptual framework, accounting standard or relevant article (example click here)
D) Appraise the effectiveness of the Australian government’s instant asset’s write-off scheme as
compared to tax subsidies for Research and Development expenditure in Europe to your selected
entity. Supporting evidence of why the value of your selected entity would be influenced by the
increased capital spending under the said schemes (asset’s write-off and R&D tax subsidies) must be
provided. (8 marks)
Type of service: Academic paper writing
Type of assignment: Essay
Number of sources: 3
Academic level: Senior(college 4th year)
Paper format: Havard
Line spacing: Double
Language style: AU English