Corporate Reporting (ACC2CRE)
Group Case Study 20%
Due date: Friday (5.00pm), 8 September, 2017
1. The assignment is a compulsory group assignment and is worth 20% of the total
marks of the subject.
2. The group should be comprised of four (4) students. It is the responsibility of students
to form the groups. Only one copy of the group assignment must be submitted on
behalf of the group by one of the group members.
3. You must keep a copy of your assignment (in hard copy form) until you receive the
marked original back. If your assignment is lost and you fail to provide us with a copy
of the assignment when requested, we will assume the assignment was not written and
the penalties for late assignment will be applied.
4. The assignment must be presented in a professional manner (word processed).
5. Submissions must be properly referenced (Harvard referencing style).
6. Plagiarism is a serious matter; all students involved will be referred to the
University’s appropriate authority.
7. Late submission will incur a penalty of one mark per day including the weekend. Late
submission must be lodged with Course Coordinator only.
8. Application for extensions must be lodged with the Subject Coordinator before due
date in writing for granting an extension (medical problems etc.).
9. Assignment must be submitted through the LMS.
Note 1: Word limit 2,000. 1 Question 1 (50 Marks) (Word Limit = 1000 words)
Wild and van Staden (2013, p. 6) argue that stand-alone reports relevant to social and
environmental activities are non-integrated. Therefore, they are not capable to evaluate
business performance, strategy and potential for value creation for different types of
stakeholders (cited in Bernardi, 2015). Integrated reporting evolves due to response to this
criticism (Bernardi, 2015). Required:
Critically discuss the above statement and briefly explain the role of integrated reporting by
identifying the problems associated with tradition financial reporting. Choose a company
listed on the ASX and identify whether the company prepare integrated reporting or not?
Bernardi, C. 2015. The transparency of environmental, social and governance disclosures,
integrated reporting, and the accuracy of analyst forecasts, Working paper. (available at:
Wild, S. and van Staden, C. 2013. Integrated Reporting: initial analysis of early reporters –
An institutional theory approach’, paper presented at the 7th Asia Pacific
Interdisciplinary Research in Accounting Conference, 26-28 July, Kobe, Japan. Note 1: Word limit for Question 1 is 1,000.
Note 2: Professional marks will be awarded for format, clarity and expression.
Note 3: The presentation of Question 1 should include Introduction, Discussion, Conclusion
and List of references.
Note 4: You will be able to obtain electronic copies of articles by visiting La Trobe University
Question 2 (50 Marks) (Word Limit = 1000 words)
At the end of its financial year, Roxy Ltd. took the following information from its accounting books
Trial Balance as at 30 June, 2017 Land
Accumulated depreciation- buildings
Accumulated depreciation- vehicles
Cash at Bank
Calls in advance
Mortgage payable on land and buildings
Interest on investments
Cost of sales
Selling Commission expense
Interest on mortgage
Damage due to fire
General expenses Debit Credit AUD $ AUD $ 10,200,000
$131,350,000 $131,350,000 *** Note: Retained earnings is after deducting last year’s final dividend of
$2,500,000 and an interim dividends for this year of $1,500,000.
i. Depreciation on vehicles at the rate of 10% p.a. and on buildings at the rate of
5% p.a. for the whole year ii. The allowance for doubtful debts at 30 June 2017 is estimated to be $160,000 iii. Unrecorded and unpaid travellers’ salaries amount to $100,000 vi Prepaid general expenses amount to $15,000 3 v. Income tax provided for totals $3,504,000 vi A final dividend is recommended for a total of $2,500,000 vii. $1,000,000 is to be transferred to a general reserve viii. Land is revalued to its fair value of $11,000,000 ix.. Roxy Ltd pays income tax at the rate of 30%. x. On 21st June 2017, Roxy Ltd was notified of an impending legal suit for
$17,000 against the company for breach of contract. The case was settled 15 th
July 2017 xi. The share capital consists of 67,000,000 ordinary shares of $1 each xii. On 20 September 2017, Roxy Ltd issued 100,000 fully paid shares to acquire
the net assets of ABC Pty Ltd at price of $2.5 per share. xiii. On 28 July 2017 the Commonwealth government enacts legislation altering
the company income tax rate from 39 per cent to 42 per cent for all income tax
returns from 1 July 2017 Required:
1 Prepare necessary adjusting journal entries for the above events.
2 Prepare a Statement of Comprehensive Income, a Statement of Financial Position and a
Statement of Changes in Equity for ROXY Ltd for the year ended 30 th June 2017 in
accordance with the requirements of AASB 101.
3) Prepare at least fifteen (15) notes to the financial statements according to the relevant
accounting standards. 4