ACCG224: Financial Accounting and

Reporting
Session 1, 2018

Individual Assignment
Impairment in the Energy and Extractive Industry

Part I - Research Based Report (15%)

Due: Monday 30 April, 5pm
Word limit: 1,200 words

Part II – Video Oral Presentation (5%)

Due: Monday 7 May, 5pm
Time limit: 4 minutes

S1 2018 ACCG224 Page 1

Part I – Research based report (15%)
As a new accounting graduate you have recently joined the accounting department of an ASX listed
company operating in the energy and extractive industry. To complete this assignment you will need
to select a suitable company yourself that meets the following criteria:

 The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com);

 The company must be in the ‘Materials or Energy’ sector – you can identify all
companies in this sector by sorting the list based on the third column of the table in the
above website;
 The company must publish audited annual financial reports in English, fully complying
with IFRS or AASB standards;
 The company must have a 30 June year end; and
Your manager, the CFO, has sent you an email containing a Media Release (MR) from the Australian
Securities & Investment Commission (ASIC).
A link to the MR is provided below:
http://asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-437mr-findings-from-
30-june-2017-financial-reports/

The Audit Committee is aware that as well as the 20 identified companies, numerous other
companies in the same industry may not have provided the appropriate accounting treatments
relating to asset valuations and impairment.
The Audit Committee is also aware that ASIC Commissioner, John Price, was quoted as saying the
following when announcing the focus areas for 30 June 2017 financial reports:
“The largest number of our findings continue to relate to impairment of non-financial assets
and inappropriate accounting treatments. Directors and auditors should continue to focus on
values of assets and accounting policy choices in preparing their 31 December 2017 financial
reports.”
You have been asked to undertake some research and prepare a report for presentation at the next
meeting of the Audit Committee, to be held on 1 June 2018. Your report must address each of the
following:

a) The role of ASIC as a Corporate Regulator, specifically in relation to their Financial Reporting
Surveillance Program. In your discussion provide a summary of ASIC’s findings from their review
of 30 June 2017 financial reports in relation to impairment testing and asset values.
(5 marks)

b) Provide a detailed explanation of the impairment write-down(s) made by your company in the
year ended 30 June 2017. Your explanation should include a discussion of the asset/s that were
impaired, the amount of the impairment write-down, the indicators of impairment and relevant
disclosures in the 30 June 2017 financial report in relation to impairment testing.(15 marks)

S1 2018 ACCG224 Page 2

c) Based on your findings in part b, critically analyse to what extent the disclosures on impairment
satisfy the fundamental and at least one of the enhancing qualitative characteristics of useful
financial information. You will need to refer to AASB 136 paragraphs 126 - 133 . (10 marks)

d) Based on your findings in part c, critically discuss to what extent the disclosures on Impairment
align with the objective of general purpose financial reporting and, as a conclusion, recommend
actions for improvement. (10 marks)

Assessment of report
The research based report represents 15% of your total mark for ACCG224 and is compulsory. Your
assignment will be marked out of 60 as shown in the Report Marking Rubric on page 7 of this document and
will then be converted to a mark out of 15 percent.

Report submission instructions

Where to submit The written report must be submitted in electronic form using Turnitin (through
iLearn via the ‘Assessment Tasks’ folder). Detailed submission instructions are
provided on iLearn. Please ensure that you are familiar with these instructions and
submit before the deadline in case of technical issues.

A hardcopy submission is not required.

When to submit The deadline for submission is 5pm Monday 30 April.

No extensions will be granted. There will be a deduction of 10% of the total
available marks made from the total awarded mark for each 24 hour period or part
thereof that the submission is late (for example, 25 hours late in submission – 20%
penalty). This penalty does not apply for cases in which an application for
disruption of studies is made and approved.

How to submit The report can be submitted either in a PDF or word format.

The filename of your report must be as follows:

ACCG224_XXXXXXXX (where the crosses represent your eight digit SID)

S1 2018 ACCG224 Page 3

Report Format
Before you start writing your report, it is recommended that you undertake the following (both of these can
be accessed through the ‘Assessment Task’ folder on iLearn):

1. Watch the e-lecture on business report writing

2. Take a look at the sample Business Research Report provided on iLearn.

Structure The report must contain the following (in this order):
 Report cover page (You can design your own cover page)
 Table of contents
 Executive summary
 Introduction
 Body
 Conclusion
 Reference list
 Appendix
You should include relevant parts of the annual reports that you have used and referred to
in your report. Do NOT attach entire annual reports.
Length Total word count limit = 1,200 words.
Your word count must be included on your cover page.
Included in word count Excluded from word count
 Introduction  Report cover page
 Body  Table of contents
 Conclusion  Executive summary
 Reference list
 Appendix
Penalties for exceeding the word limit are as follows:
Word count Penalty
 1,201 – 1,319 words  No penalty
 1,320 – 1,439 words  10% of total marks
 1,440 or more words  20% of total marks
Style The report must be presented as follows:
Font: Times New Roman 12 point Spacing: 1.5 times line spacing
Margins: not less than 2.5 cm
Footer Each page must have a footer containing the following:
ACCG224 S1 2018 Your SID Page number
Referencing In text referencing is required for all sources used and a complete list of references must
be provided using the Harvard Referencing System.
A copy of the Harvard Referencing System is available under the ‘Assessment Task’ folder
on iLearn.
Please note that as this is a research assignment it is not appropriate to reference to
textbooks or lecture slides.
Plagiarism All assignments will be manually and electronically checked for plagiarism and it is
extremely important that you are familiar with the policy on Academic Honesty.
A link to the policy is available in the ‘Assessment Task’ folder on iLearn.

S1 2018 ACCG224 Page 4

Part II – Video Oral Presentation (5%)
The CFO was impressed by your report and has asked you to prepare a video presentation to be
played to the Audit Committee at the next meeting on 1 June 2018.
Your video presentation should:
a) Explain the importance of accurate asset valuations and impairment testing from ASIC’s
perspective.
b) Based on the findings from the 2017 report, identify and explain the areas that you believe the
Audit Committee must consider when reviewing the 30 June 2018 impairment testing results.
c) Discuss whether the extent of disclosures on asset valuations and impairment align with the
objective of general purpose financial reporting and, in the form of conclusion, recommend
actions for improvement.

Assessment of video
The research based report represents 5% of your total mark for ACCG224 and is compulsory. Your
assignment will be marked out of 40 as shown in the Presentation Marking Rubric on page 8 of this
document and will then be converted to a mark out of 5.

Video format
Before you start recording your video it is recommended that you view the two YouTube videos by Vlog
Brothers and Idea Channel. Both of these can be accessed through the ‘Assessment Task’ folder on iLearn.

Length Time limit = 4 minutes

Penalties for exceeding the time limit are as follows:
Time Penalty
 Up to 4:29  No penalty
 4:30-5:29  10% of total marks
 5:30 or more  20% of total marks
Slides The use of slides (eg Powerpoint/Prezi) is not mandatory as you will not be marked on your
slides, but on your communication skills.

If you do wish to use slides please use a screen capture rather than a projected image.
Physical Students must actually appear in their video – you must be visible as well as able to be
presence heard.
Audibility It is your responsibility to ensure that we can hear your presentation clearly. If we can’t
hear it then we can’t mark it!

If you are recording using screen capture technology consider using speaker and
headphones.
Technology You can record your video using one of the following:

 Your mobile device or tablet – it editing is required iMovie can be used.

 Screen capture technology such as Windows 10 Screen Recorder, Cyberlink or others

These are suggestions only and you are free to use another method.

S1 2018 ACCG224 Page 5

Video submission instructions
Where to submit The video must be submitted in electronic form using the Oral Presentation
Submission Guide link (through iLearn via the ‘Assessment Tasks’ folder). Detailed
submission instructions are provided on iLearn. Please ensure that you are familiar
with these instructions and submit before the deadline in case of technical issues.

A hardcopy submission is not required.

When to submit The deadline for submission is 5pm Monday 7 May. Late submissions will be
penalised xxxxxxx.

How to submit All videos must be submitted in an mp4 or wmv format

Please make the video visible when you upload the video on ilearn.

S1 2018 ACCG224 Page 6

 Not attempted Fail Pass Credit Distinction High Distinction
Explanation of the role of ASIC and Not attempted or Writing is unclear. Writing is not very clear. Writes clearly. Writes clearly. Writes clearly.
summary of findings from 30 June entirely or Leaves out several relevant Describes the role of ASIC Correctly describes the Correctly describes the Correctly describes the role of
2017 financial reports in relation to significantly aspects of the role of ASIC or and the majority of findings role of ASIC and the role of ASIC and nearly all ASIC and all the findings with
asset values and impairment testing plagiarized from summary of findings and/or and is mostly correct, majority on findings and the findings with adequate plentiful detail.
other sources. contains incorrect information although significantly more details are mostly correct, detail.
detail may be needed. although more detail may
be needed.
5 marks 0 marks 2 marks 3 marks 3 marks 4 marks 5 marks
Explanation of impairment write-down Not attempted or Writing is unclear. Writing is not very clear. Writes clearly. Writes clearly. Writes clearly.
made by your choice of company entirely or Explanation incomplete or faulty in Explanation including Mostly complete Explanation including Complete explanation including
significantly one or more aspects assets written down, explanation including assets written down, assets written down, amount,
plagiarized from amount, reason and assets written down, amount, reason and reason and analysis of
other sources. analysis of disclosures but amount, reason and analysis of disclosures disclosures
with omissions and/or analysis of disclosures with minor omissions
incorrect explanation
15 marks 0 marks 6 marks 8 marks 10 marks 12 marks 15 marks
Critical analysis of the disclosures Not attempted or Chosen company is not Includes the majority of Includes most relevant Includes nearly all relevant Includes relevant and possibly
related to impairment satisfying the entirely or suitable/Does not include relevant relevant details, although details. Analysis mostly details. Analysis mostly unusual details. Analysis
qualitative characteristics as per the significantly details, uses faulty analysis some analysis may be accurate but more needed accurate with adequate accurate and insightful.
conceptual framework. plagiarized from faulty detail.
other sources.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Critical discussion of the disclosures Not attempted or Chosen company is not Relate only some possible Relate most of the Refer to nearly all possible Refer to all possible
related to impairment aligning with the entirely or suitable/Did not relate possible disclosures to some possible disclosures to disclosures to nearly all disclosures to almost all
objective of general purpose financial significantly disclosures to any aspect of the aspects of the objective most of the aspects of the aspects of the objective aspects of the objective and
reporting and recommendations. plagiarized from objective and recommendations do with recommendations objectives and and recommendations recommendations refer to all
other sources. not relate to the key dimensions of relating to only some recommendations relating refer to nearly all areas of areas of the case and are
the case. areas of the case or are to most areas of the case the case and are helpful. helpful, insightful and
not helpful. and are generally helpful. innovative.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Document formatting and structure Not attempted or Fails to follow assignment Occasionally meets the Occasionally meets the Mostly meets the Meets all the assignment
(including length, organisation of entirely or requirement. assignment requirement. assignment requirement. assignment requirement. requirements.
sections and paragraphs) significantly Too short or too long/Strongly Distract reader due to Occasionally include Rarely include formatting Use professional, correct
plagiarized from affect reader due to formatting formatting errors. formatting errors. errors. Clear organisation formatting. Clear organisation
other sources. errors and confusing organisation. Organisation causes some Organisation of sections of sections and of sections and paragraphs
confusion. and paragraphs generally paragraphs. with excellent flow.
clear.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks
Written expression and referencing Not attempted or Too informal or errors in grammar Sometimes too informal or Generally appropriate Appropriate tone. Appropriate tone. Language is
entirely or make meaning unclear. Minimal errors in grammar make tone. Language is Language is clear and clear, varied and easy to read.
significantly referencing. Did not use Harvard meaning unclear in places. generally clear but may be shows variety. Used Used Harvard referencing
plagiarized from referencing system correctly. Noticeable errors in repetitive or simple. Harvard referencing consistently and accurately in
other sources. Did referencing. Frequently Frequently used Harvard consistently and accurately all aspects.
not use Harvard used Harvard referencing referencing system with very few minor errors.
referencing system correctly. correctly.
system correctly.
10 marks 0 marks 4 marks 5 marks 7 marks 8 marks 10 marks

S1 2018 ACCG224 Page 7

 Part II – Video Oral Presentation Marking Rubric
Student name ID Topic

Not attempted Fail Pass Credit Distinction High Distinction

Content: Not attempted or entirely The majority of the areas Some of the areas Most of the areas Nearly all of the areas All of the areas
Relevance, appropriate or significantly presented are not presented are relevant presented are relevant presented are relevant, presented are relevant,
detail, clear explanations plagiarized from other relevant and/or clearly and clearly explained and clearly explained cover the key cover all key dimensions
of issues sources explained in appropriate although more detail may with appropriate detail. dimensions and are and are clearly explained
detail. The issues be needed. Not all the Most of the issues clearly explained with with appropriate detail.
identified are not key to issues identified are key identified are key to the appropriate detail. All of All of the issues
the Audit Committee to the Audit Committee Audit Committee the issues identified are identified are key to the
key to the Audit Audit Committee.
Committee
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Structure: Not attempted or entirely No or inappropriate Presentation featured the Presentation featured Presentation featured Presentation featured all
Appropriate or significantly opening/introduction, majority of the required most of the required nearly all of the required of the required
opening/introduction plagiarized from other unclear transitions, components, however components, transitions components; transitions components; transitions
(incl. purpose and sources incongruous flow of transitions could have were quite clear, the flow were clear, the flow of were clear and well
overview), clear ideas and/or inadequate been clearer/flow of of ideas quite smooth ideas smooth with an placed, the flow of ideas
transitions from one conclusion. ideas smoother and/or with an adequate adequate conclusion. excellent with a
section to another, conclusion more conclusion. remarkable conclusion.
smooth flow of ideas, pronounced.
adequate conclusion
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Maintaining interest Not attempted or entirely Presentation frequently Presentation Presentation appropriate Presentation Presentation is very well
Awareness of audience, or significantly inappropriate for target occasionally for target audience. considerably stimulates pitched to audience, or
effectiveness of plagiarized from other audience. Techniques inappropriate for target Techniques adequate audience interest. modified in view of
techniques, good timing sources. haphazard or poorly audience. Techniques and mostly interesting. Techniques creative and audience reactions.
executed. Well adequate but Insignificantly over/under interesting. Good timing. Innovative but
over/under time. occasionally sloppy. time. appropriate techniques
Timing within acceptable greatly stimulated
limits. audience interest. Exact
timing.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks
Verbal and non-verbal Not attempted or entirely Delivery strongly detracts Delivery detracts from Delivery supports Delivery effectively Confident delivery does
delivery or significantly from content; e.g. content only in places; content; audible, supports content by not just convey the
including pronunciation, plagiarized from other pronunciation unclear, e.g., pronunciation pronunciation, minimal allowing audience to message but significantly
volume, eye contact, sources. speech inaudible, too mostly clear, speech distracting gestures, focus on message. enhances it; excellent
gesture, video quality many filler words/ slang, mainly audible; some regular eye contact with Nervousness may be use of volume, pace, etc.
stance distracting gestures, distracting filler words audience. Good Video evident but mostly under Nervousness may be
reading from notes with and gestures, occasional quality. control. Very good Video evident but under
no eye contact. Poor eye contact with quality. control. Excellent Video
video quality. audience. Good Video quality.
quality.
10 marks 0 marks 4 marks 5 marks 7 marks 9 marks 10 marks

S1 2018 ACCG224 Page 8