HC1010 Accounting for Business – Group Assignment  

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HC1010 Assignment Details and Requirements 

Purpose:  

This assignment aims to reinforce and extend students’ knowledge and understanding of key topics in this course (HC1010) including: Overview of Accounting, Organisational Structure & the Reporting Environment, Corporate Governance, Statement of Financial Position, Statement of

Financial Performance, Cash Flow Statement, Financial Statement Analysis, Accounting for Business Transactions, Cost Concepts & Behaviour, Preparation of Budgets, and Cost-VolumeProfit-Analysis through independent research and application of knowledge and skills. 

Assignment Details:  

Ronald has approached you to advise him regarding a business that he intends purchasing, Ronald is also interested to advise him on some accounting related matters. An Extract from the financial statements of the business shows total assets and liabilities as listed below:

 A review of the business operations shows that building was bought 4 years ago and is reported at carrying amount of $500,000, the current market value of the building is $1,000,000. Inspection of inventory reveals that 10% of the inventory is obsolete, for which there is limited demand. Further 12% of the accounts receivable is overdue by more than 120 days. The accounts receivable and inventory are carried at their gross amount and cost value respectively on the financial statements.

A review of Income statement reveals that business has not provided for any bad debt expense and upward prevision of inventory. 

As you are an accounting student, you have been asked to advise on the following: 

1. Ronald has a very limited understanding of the term Assets. With reference to the conceptual framework for accounting, explain to Ronald the nature of goodwill and how goodwill is accounted for in the books of account as an asset. 

1. Based on the information provided, Ronald believes the business is worth $550 000. With reference to the different measurement’s methods in accounting, advise Ronald on the appropriateness of his assessment.

1. Explain to Ronald how the accounts receivable and inventory should be valued on the financial statements. If the business was to apply the correct measurement basis, determine the effect on: (1) profit and (2) assets.

Explain to Ronald the difference between cash and accrual basis methods of accounting and how each method would produce different profit or loss for any given period. Explain to Ronald why its preferred to use accrual-based accounting method, especially for mid and large size organisations.

1. Explain to Ronald the difference between cash and accrual basis methods of accounting and how each method would produce different profit or loss for any given period. Explain to Ronald why its preferred to use accrual-based accounting method, especially for mid and large size organisations.

1. Explain to Ronald the differences between financial and management accounting. Give an example of how management accounting reports would be incorporated into financial accounting reports.

1. Describe to Ronald how accounting information helps shareholders and lenders to make decisions concerning the operations and performance of the entity.

1. Explain to Ronald what challenges face business in relation to ethical behaviour? And if such challenges are the same for accountants.     

Explain and discuss your responses to the above issues and provide your advice and recommendations to Ronald in a report form. 

Resources and Useful Links:  

1. www.business.gov.au 
2. www.business.nsw.gov.au   
3. www.business.vic.gov.au 
4. www.business.qld.gov.au   
5. Recommended Textbook: Hancock, P., Robinson, P., and Bazley, M. 2019. Contemporary accounting: a strategic approach for users. Cengage Learning 

Group Formation and Group Assignment: 

Students are required to work on the assignment in groups of 3-4, produce and submit a group report.

Group membership need to use a cover page where they need to write their details, with parts of the assignment that they have completed.  This is to ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. Each group needs to complete the group assignment completion table provided on Blackboard which identifies which student/students are responsible for the various sections of the assignment. 

The assessment item must be submitted on Blackboard. The assignment must be in a report format and submitted through the  SafeAssign final submission link.  

Assessment Design – Adapted Harvard Referencing

Holmes will be implementing as a pilot program a revised Harvard approach to      referencing. The following guidelines apply:

1. Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the essay and titled: References. 
3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname.  In addition, it MUST include a hyperlink to the full text of the cited reference source.  

For example; 

P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of Information

Systems Education, Fall,  http://jise.org/Volume15/n3/JISEv15n3p327.pdf

4. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found.

For example; 

“The company decided to implement an enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”