Description

This task requires you to prepare a report to evaluate information provided in the annual report of a chosen company listed on the Australian Stock Exchange (ASX). The annual report will have to cover from year 2019 to 2021, therefore you will need the annual report for 2019 and 2021 as 2021 will include 2020 as a comparison.

An entity needs to determine the valuation and measurement of assets and liabilities in order to provide more relevant and reliable information for users to understand its business practices.  However, the valuation and measurement of assets and liabilities requires professional judgements to be made concerning the nature and extent of uncertainty and estimations.

According to paragraph 86 of the Conceptual Framework, Reliability of Measurement

requires that “The second criterion for the recognition of an item is that it possesses a cost or value that can be measured with reliability. In many cases, cost or value must be estimated. The use of reasonable estimates is an essential part of the preparation of financial statements and does not undermine their reliability.”

In addition, paragraph 99 of the Conceptual Framework identifies that “Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement.”

In this report, you are required to select a 2019/2020 and  2020/2021 annual report of an

Australian company listed in the ASX (Australian Stock Exchange). You should provide your comments on the following questions:

Learning outcomes

This assessment task is aligned to the following unit learning outcomes:

· 2. Evaluate current issues in financial reporting and apply accounting theories relating to the business practices of corporate entities 

· 3. Critically analyse and apply selected accounting standards and techniques relating to assets, liabilities, leases, financial instruments, shareholders’ equity, income taxes, foreign currency transactions, business combinations and consolidation

· 4. Present coherent and persuasive arguments in relation to financial reporting issues.

Your comments or evaluation of the annual report should comply with the requirements of relevant Australian accounting standards (AASBs). The report should address the points outlined below:

Intangible Assets: You should refer to the requirements of AASB 138 Intangible Assets and AASB 136 Impairment of Assets as the guidelines of your report.

Assessment instruction

Question 1

List the composition of intangible assets in the chosen company. (6 marks)

Question 2

Comment on the recognition of intangible asset used by the chosen company.    (4 marks)

Question 3

Evaluate the measurement, amortisation or impairment of intangible assets in the chosen company.  (6 marks)

Question 4

Has there been any change in the valuation of intangible assets since CoVID-19?  Discuss the changes in value for the year 2019, 2020 and 2021.  (10 marks)

Question 5

Discuss whether the chosen company provides sufficient information to investors regarding the intangible valuation since CoVID-19.  (4 marks) 

Up to 5 marks will be deducted for poor report presentation, effective communication and referencing of the AASBs along with referencing your annual report.

You can find the paragraphs of Australian Conceptual Framework and a list of AASBs that are useful to support your discussion in this report, which are available from the AASB website:

http://www.aasb.gov.au/Pronouncements/Conceptual-framework.aspx and

http://www.aasb.gov.au/Pronouncements/Current-standards.aspx.

In particular, you may refer to the following or other AASBs in your report.

• AASB Conceptual Framework: Framework for the Presentation and Preparation

of Financial Statements

• AASB 136 Impairment of Assets

• AASB 138 Intangible Assets

You may find other references are useful as well, for example:

https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/covid-19-implications-for-financial-reporting-and-audit-frequently-asked-questions-faqs/

Measurement Bases for Financial Accounting – Measurement on Initial Recognition,

Prepared by staff of the Canadian Accounting Standards Board, 19 May 2006, (source:

https://www.aasb.gov.au/admin/file/content105/c9/IASB_Canadian_MM_paper.pdf)

Further information regarding the report:

· The report should include:  an executive summary, a body of contents covering points listed above, and a reference list. 

· You should refer to the requirements of AASBs used as the guidelines of your report.

· Other references used in the report such as annual report should be included in the reference list. Remember to provide a link of the annual report in the reference list.

· Sections extracted from the annual report or AASB to support your report should be included in the Appendix. Also, provide specific page numbers of the annual report and paragraph numbers of AASBs as in-text reference in your report such as annual report note 10 and AASB 101.26.

· If you choose to ignore these instructions, you will lose marks.

Submission

Submission format

Submit a word document of this assessment via the Turnitin link provided in the Assessment Tasks and Submission section of the unit’s Blackboard site.

The word document should first provide the Unit and Assessment details, followed by your student details (first and last name and student ID) and submission date. You do not need to state the questions in your response but must link your answers to the respective questions.

For instance: 

ACCT2002 – Assessment 2

Student: Roberta Querin

Student ID: 11111111

Submitted: 16/08/2022

Feedback and marking

You will be assessed on your ability to apply concepts from your understanding of relevant topics covered in the report and will receive written feedback. You are also marked on presentation and communication (17% of your overall marks). So, make sure you read the submission instructions and present your assessment professionally.

Assessment criteria:

The quality of the report will be assessed based on the following four areas:

1) Demonstrate and identify the measurement of intangible assets applied.

2) Use paragraphs from related Australian Accounting Standards as guidelines to support your discussion.

3) Provide evidence from the annual report or other sources to illustrate the concept(s) or principle(s) discussed.

4) Demonstrate effective communication, referencing, logical presentation and integrated evaluation.

Please refer to the attached rubric for success criteria.