代写 ACCT3004 Accounting Theory and Analysis

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School of Accounting

ACCT3004 Accounting Theory and Analysis

Tri 2A 2016

Written Assessment Information Sheet

Sydney, Singapore, Hong Kong

Written Assessment (15%)

Due 5pm 19 th August 2016

(uploaded through Turnitin on the Blackboard site used by this unit)

Background

Carart Ltd is company established by the smash repair industry in Australia. Smash repairers fix

and repair cars after they have been involved in an accident. Most of the revenue of the smash

repair business comes from a small number of insurance companies and car paint is their biggest

cost. The industry is very fragmented, comprising many small businesses across Australia.

Therefore, the individual smash repairer businesses had very little bargaining power either with the

insurance companies or with their suppliers. In order to combat this, Carart Ltd was established and

has the following aims;

1) To act as a lobby group for the industry so that the individual smash repair business has a voice

against suppliers, regulators and the insurance companies

2) To negotiate better prices for the smash repairers for their paint and other supplies which they

could not do individually due to their size

3) To help build wealth for the individual smash repairer businesses through providing dividends

from investments

The structure of Carart Ltd is as follows;

 The income of Carart Ltd comprises rebate income from the paint suppliers as well as

investment income. The rebate income is calculated as a fixed % of all the paint that each of

the shareholder businesses acquire from the main paint supplier and is paid every July based

on the paint costs of the prior financial year.

 Carart Ltd has a policy of paying out dividends annually to the shareholders

 A copy of the draft projected financial statements for Carart Ltd is provided

 Carart Ltd has recently acquired a commercial rental property with bank funding. The

building cost $1m and they borrowed $650000. As a result of the funding, the bank has

imposed the following debt covenant;

 Net profit margin of at least 30% (EBIT/gross income)

Carart Ltd

Directors = 4

shareholder

representatives plus

Nicole

Shareholders = 40 individual smash

repairer businesses (equal

shareholding)

Employees = Nicole, the

General Manager and 2

administration staff

Page 2 of 4

Scenario and decision

The board is having their final board meeting before 30 June 2016 and Nicole has advised them that

one of the shareholders has contributed well over half of the rebate income for the year. The board

is considering rewarding this shareholder by paying out a rebate to them of $300,000 specifically as

a bonus for their efforts. This would be accounted for as an additional expense of Carart Ltd but it

would mean that it is fairer for that shareholder given their contribution.

The board is trying to decide whether or not they should commit to this before or after 30 June as

they are conscious of the impact this payment would have on the other stakeholders of Carart Ltd,

especially the bank.

Nicole has sought your advice as the external accountant to Carart Ltd.

Carart Ltd

Projected Financial statements for the year ended 30th June 2016

Assets Income

Current Assets Rental income 100000

Cash at Bank 250000 Rebates 750000

Rebates receivable 750000 Gross income 850000

Total current assets 1000000

Less: Expenses

Non-current assets Salaries 100000

Land & buildings 1000000 Rebates paid 0

Total non-current assets 1000000 Other expenses 210000

Total assets 2000000 Interest 45000

Total expenses 355000

Current Liabilities

Staff superannuation 25000 Net Profit 495000

Dividends payable 200000 Less: income tax 148500

Rebates payable 0 Net Profit after tax 346500

Total current liabilities 225000 Less: dividends 200000

Non-current liabilities Net profit after tax and dividends 146500

Bank Loan 650000

Total Liabilities 875000

Equity

代写 ACCT3004 Accounting Theory and Analysis

Share capital 40000

Retained earnings 1085000

Total Equity 1125000

REQUIRED

You are required to write a Letter of Advice to the Board, together with a transmittal email

to Nicole outlining

1) The financial impact that declaring the rebate before or after 30 June will have

(calculations are required)

2) Whether or not this represents earnings management, and if it is good or bad

earnings management? (academic references required)

3) Your recommendation as to which year the rebate should be committed to pre or post

30 June. (Hint: you may want to consider the AAA model discussed in the lecture)

(The Letter of advice should be limited to 4 pages plus references)

Page 3 of 4

Required Format and additional information

 There are two documents required to be submitted via turnitin

1) The transmittal email and

2) The letter of advice which includes references

 A guideline rubric/marking guide will be placed on Blackboard. Note that marks will be

allocated for both referencing and using the correct formats for these written forms of

communication.

The allocation of the marks is in accordance with the rubric provided and can be broadly summarised as

Allocated by document type Allocated by question

Transmittal email 10%

Letter of advice 90%

Question 1) – Financial impact 20%

Question 2) – Earnings Management 50%

Question 3) – Recommendation & Justification 30%

 The written assessment should use a size 11 or 12 font. Left and right page margins should be at

least 2 cm. Documents submitted must be properly formatted and checked for appropriate

spelling and grammar. Documents submitted that are not formatted correctly will lose 10%

automatically. This includes appropriate punctuation and ensuring a space after a full stop or

comma or semi-colon or colon and inappropriate use of symbols.

 A separate cover page is not required. However, your Student Name and Student ID should be

incorporated into the written communication eg in the address section and your letter should

include page numbers.

 Chicago referencing style is required for in-text and end-text referencing. In-text and end-text

references are required. Students need to ensure they discuss the points they think are the most

important to ensure that the word limit is adhered to. Students who provide no in-text references

will receive a grade of zero and may be reported for plagiarism. University policies and

procedures for academic misconduct and plagiarism will be applied. Further information is

available at academicintegrity.curtin.edu.au.

 A minimum of 10 references should be provided

 Originality reports displaying percentage (%) of similarity can be viewed by students to ensure

they have referenced where appropriate and not plagiarised. Students can resubmit their edited

documents multiple times prior to the submission time. All similarities should be checked by

students to ensure that where applicable the text is correctly referenced. A high degree of

similarity and low degree of referencing will most likely result in a low grade.

 NOTE: When you submit your letter to Turnitin for the first time you will receive the

similarity report within 2-30 minutes. If you resubmit a second time and each time after

that it may take 24 hours to view the similarity report.

Page 4 of 4

 IMPORTANT - The file name of the word document and the submission title in Turnitin needs

to reflect your location and student ID (That is labelled correctly in BOTH places) for example;

- BEN_12345678 (for Bentley Students)

- FO_12345678 (for Fully Online Students)

- Miri_12345678 (for Miri Sarawak Campus Students)

- MAU_12345678 (for Mauritius Students)

- SYD_12345678 (for Sydney Students)

- SING_12345678 (for Singapore Students)

- HK_12345678 (for HK Students)

 Failure to comply with labelling instructions can result in a loss of 2 Marks.

Additional Support Information

Online grammar exercises and a calendar for support workshops can be found at the following websites:

 http://business.curtin.edu.au/study/student_support/communication_skills_centre/online-

grammar-exercise.cfm

 http://life.curtin.edu.au/learning-support/learning_support_calendar.htm

Please also refer to the additional resources and templates provided on Blackboard and in E-reserve

for writing letters of advice and transmittal emails.

Turnitin for Students

What is Turnitin?

Turnitin is an electronic text matching system that compares text in a student assignment against

electronic text on the Internet, in published works, on commercial databases, and in assignments

previously submitted to Turnitin by students in universities all over the world, including

assignments obtained from internet sites that sell student papers.

The Turnitin system operates through a web site and is accessed using standard web browsers.

Turnitin is a text-matching system and contrary to popular belief it is NOT a standalone plagiarism

detection system. Turnitin provides an 'originality report' in which 'matched' text is underlined,

colour coded, and linked to either the original source or a similar document on its database. Turnitin

indicates the degree of text matching, and lecturers must still review the originality report and

perhaps use other measures in order to determine if plagiarism has occurred.

Why is Turnitin being used at Curtin?

Currently, Curtin degrees have prestige with employers and the wider community but this can be

threatened by breaches of academic integrity (including plagiarism). Academic integrity is essential

to the operation and reputation of Curtin courses.

Turnitin supports the implementation of Curtin University's mission and values and its policy on

plagiarism. It is one of many resources that can help ensure that academic integrity is maintained:

tutors have multiple ways of detecting plagiarism and are normally very familiar with the academic

reference sources within their discipline. Turnitin quickly identifies the source of matching text and

this assists in the decision making process, thereby helping support the maintenance of fair

assessment standards for all students.

http://academicintegrity.curtin.edu.au/overview/Turnitin_whatis.cfm

代写 ACCT3004 Accounting Theory and Analysis