The Major Assignment has three sections, will be graded as a score out of 100, with that score converted to a mark out of 20 (as the assignment is worth 20% of the marks for this unit).

The 100 marks are allocated across Section A (25 marks), Section B (60 marks), and Section C (15 marks).

Sections A and B are completed by the team. Sections A and B are unrelated. Section A requires the team to complete a business combination application exercise.

Section B requires the team to work together to produce a report for a partner of a large international accounting firm re the 30^th June 2018 financial statements of three (or, depending on team size, four) ASX listed companies.

Section C requires each team member to individually submit a short piece titled “Team Work Self-Reflection & Evaluation”.

You need to form a team consisting of a minimum of three and a maximum of four students and work collectively to complete Sections A and B (team membership can include students from different tutorial classes). Appoint a team leader. The team leader will notify their tutor and Dr Mark Shying [email protected] of the names and student id numbers of the members of their team by Friday 27^th March 2020.

SECTION A (25 marks)

Snap Ltd is a seafood business with headquarters in Apollo Bay. Snap Ltd products include many varieties of seafood but one item lacking in its product range is Tasmanian Atlantic Salmon. The board of Snap Ltd decided to investigate a takeover of a Tasmanian company, Southern Pty Ltd, whose major product is the packaging of Tasmanian Atlantic Salmon. Strategically, Southern Pty Ltd would be a good fit with Snap Ltd as Snap owns two processing factories in Devonport, one of which is under-utilised. If Southern were acquired, then Snap would liquidate the company and transfer all the processing work to one of the Devonport factories.

The financial statements of Southern Pty Ltd at 1 April 2020 showed the following information:

Plant                                                                                                                           $133 600

Accumulated depreciation – plant                                                                        (32 000)

Land                                                                                                                              20 800

Cash                                                                                                                               26 000

Accounts receivable                                                                                                     54 800

Inventory                                                                                                                         27 200  

Total assets                                                                                                                     230 400  

Accounts payable                                                                                                           34 800

Loans                                                                                                                                 55 200  

Total liabilities                                                                                                                90 000  

Share capital – 60 000 A ordinary shares                                                                48 000

Share capital – 40 000 B ordinary shares                                                                 32 000

Retained earnings                                                                                                           60 400  

Total equity                                                                                                                     140 400  

 

All the assets and liabilities of Southern Pty Ltd were recorded at amounts equal to fair value except for:

	Fair Value
Plant	112 000
Land	35 800
Inventory	28 000

Southern Pty Ltd also had a brand ’41 South’ that was not recorded by the company because it had been internally generated. It was valued at $12 000. Southern Pty Ltd had not recorded both the interest accrued on the loans amounting to $22 800 and annual leave entitlements of

$13 000.

Snap Ltd decided to acquire all the assets of Southern Pty Ltd except for the cash. In

exchange for these assets, Snap Pty Ltd agreed to provide:

• Two shares in Snap Ltd for every three A ordinary shares held in Southern Pty The fair value of each Snap Ltd share was agreed to be $2.16.
• Artworks to the owners of the B ordinary shares held in Southern Pty (These artworks were held in the records of Snap Ltd at $40 000 and valued at $58 000.)
• Sufficient additional cash to enable Southern Pty Ltd to pay off its

The business combination occurred on 1 April 2020. Legal and accounting costs incurred by Snap Ltd in undertaking this business combination amounted to $1300. Costs to issue the shares to the A ordinary shareholders of Southern Ltd were $700.

Required

Prepare the journal entries in the records of Snap Ltd at 1 April 2020 to record the business combination (dates and narrations are required). Show all calcualations.

SECTION B (60 marks)

Assume that each of you is a summer vacation intern at the Melbourne office of an international accounting firm and have been assigned to a team to work together to produce a report for a partner of the firm. Specifically, the partner requires the team download and read the 30^th June 2018 financial statements of some ASX listed companies. Teams consisting of three members will access the 30^th June 2018 financial statements of AXSESSTODAY LIMITED, CROWN RESORTS LTD, and WISETECH

GLOBAL LTD. Teams consisting of four members will access those three financial statements plus the 30^th June 2018 financial statements of WESFARMERS LTD. The report must:

1. explain:
   • the accounting policies adopted;
   • the disclosure of changes in accounting policies (if any);
   • the disclosure of changes in accounting estimates (if any);
   • how errors have been treated (if any);
   • how events after the reporting period have been treated (if any);
   • the role of materiality

1. evaluate the usefulness of this information to users of the above financial The evaluation must include identification of whether the team agrees with the policies and estimates adopted, along with the treatment of errors and events after the reporting period and whether the team finds the provided information strengthens or weakens the usefulness of the financial statements.

The report should include some background material about each company including any more recent information about the company, and as necessary refer to relevant sections

of the Corporations Act 2001 Part 2M.3 FINANCIAL REPORTING and relevant accounting standards including paragraph numbers.

Additional guidance

The report will reflect the personal view of the team based on research evidence, theory and original consideration. The report is expected to draw on:

• The Corporations Act 2001
• Australian Accounting Standards
• DatAnalysis is a comprehensive data set on all companies ever listed on the Australian Securities Exchange (ASX). Includes annual reports (including the financial statements), corporate history and listing details, cross directorships and committee composition, shareholders’ trading history, takeover details, industry comparisons, price history and graphs, financial data, key events corporate calendar and ASX announcements
• Newspaper and other media reports
• Other relevant material

The report should include an executive summary.

• For three-member teams, the entire Section B report should not exceed 2500 words (+/-10%) (excluding title page, table of contents, reference list and the executive summary, but including footnotes, endnotes and appendices).
• For four-member teams, the word limit is 3000 words (+/- 10%) (excluding title page, table of contents, reference list and the executive summary, but including footnotes, endnotes and appendices) .

A reference list is a MUST. Please provide a word count on the title page.

To avoid plagiarism, you are required to provide a reference whenever you include information from other sources in your work. Further details regarding plagiarism are available in Part C of the unit outline.

Referencing convention required for this unit is the Swinburne Harvard System. Helpful information on referencing using the Swinburne Harvard System can be found at: http://www.swinburne.edu.au/lib/studyhelp/harvard_style.html

SECTION C (15 marks)

Team Work Self-Reflection & Evaluation

Section C requires each team member to individually submit a short piece titled “Team Work Self-Reflection & Evaluation”.

Copy the tables and questions below into a word document and provide your response.

1.     Rate your team participation using the following rating scale:

Team participation criteria	1 Always	2 Sometimes	3 Rarely
I shared my ideas and answers with my team

I asked questions when I did not understand something
I helped others to understand when they had problems
I tried to make people feel comfortable working in the team
I stayed on the assigned task
I tried to find out why I did not agree with someone else

2.

a.      In my team, I am good at … (use no more than 10 words)

1. Next time I will try to be better at … (use no more than 10 words)

c.      I learned from the team … that I probably would not have learned working alone (use no more than 10 words)

1. Other team members learned from me … that they probably would not have learned working alone (use no more than 10 words)

e.      Suggest one change the team could make to improve its performance (use no more than 10 words)

1. I feel my team was … (use one word to describe your team)

3. Rate your team and other members

	1 Extremely well	2 Well	3 Adequately	4 Poorly
Overall, how efficiently did the team work together on this assignment?
	None	One	Two	Three
Excluding yourself, how many team members failed to participate actively most of the time?
Excluding yourself, how many team members failed to fully prepare for the activity?

Prior to submission of your assignment make sure your work is properly edited and proofread. Please use spelling and grammar checkers. You would like to obtain assistance from the Language and Academic Skills (LAS) Centre to improve your assignment and your writing skills. If you intend to obtain assistance from LAS then you

should contact them as soon as possible. This can be done even before you have started working on your assignment.

For more information about LAS and how to contact them - http://www.swinburne.edu.au/student/study-help/las.html

You may also benefit from using Writer’s Diet (http://writersdiet.com/?page_id=4) - a free online tool that help you improve the quality of your written work.

Objectives of the Assignment

There are two objectives for this assignment. The first objective is to assist you achieve the following Unit Learning Outcomes (ULOs):

1. Demonstrate a comprehensive accounting knowledge in such areas as business combinations, consolidations, accounting for income tax, liquidation of companies and preparation of team financial
2. Apply critical thinking, problem solving techniques and presentation skills to individual and/or team activities dealing with financial accounting
3. Undertake independent research skills and communicate solutions utilizing relevant accounting standards, corporations’ legislation and accounting and other relevant
4. Work collaboratively in diverse teams to develop appropriate and relevant solutions to accounting

The second objective of this assignment is to assist you develop effective written communication skills, analysis skills and the ability to work as section of team.

Research with employers consistently shows that communication skills is the main priority of employers when recruiting graduates in business, including accounting. In the 2015 Graduate Outlook Report published by Graduate Careers Australia, 58.3 per cent of graduate employers ranked ‘communication skills’ in their three top key selection criteria. Due to its importance, The Australian Learning and Teaching Council (ALTC) included Communication Skills as one of the five threshold learning outcomes for accounting graduates.

The development of the assignment marking rubric has been informed by those objectives.

Submission details

This assessment will be submitted through the Canvas assessment submission system (via Turnitin).

Online submission: No later than AEST 5.00pm on Friday 1^st May 2020:

• Each team leader will submit via Turnitin one electronic version of the team response to the assignment (Sections A and B).
• Each individual will submit via Turnitin an electronic version of their short piece titled “Team Work Self-Reflection & Evaluation” (Section C of the assignment).

IMPORTANT ASSIGNMENT INSTRUCTIONS

You are required to complete this assignment in a team consisting of 3 or 4

members. You are responsible for forming, or joining, your own assignment team. Unit

staff will not be placing students in teams.

Teams do not have to be formed from the same tutorial class - team members can come

from different tutorial classes. Please feel free to "advertise" for teams, or additional team

members, by posting a notice on the ACC20013 website Discussion Board. You are strongly

advised to organise your team membership early, and as quickly as possible. Do not wait

any longer than is absolutely necessary. Remember that the more time passes, the more

difficult it will become to form, or join, an assignment team.

Please be aware the following penalties will be imposed for failure to follow team

formation instructions:

(A) If you complete the assignment as a single individual, the assignment you

submit will be assessed on its merits. However, your assessment score will be

one-third of the marks awarded for the assignment.

(B) If you complete the assignment as a team having only two members, the

assignment you submit will be assessed on its merits. However, each team

member will be given an assessment score of 50 percent of the marks awarded

for the assignment.

(C) If you complete the assignment as a team having five or more members, the

assignment you submit will be assessed on its merits. However, the assessment

score given to each team member will be the total number of marks awarded for

the assignment divided by the number of team members.

(D) If it is discovered that a student has joined more than one team but has contributed to only one assignment submission, that student will be given an assessment score equal to the mark awarded for the submitted assignment divided by the number of team members who prepared the submitted assignment. IT IS THEREFORE IN YOUR INTERESTS TO ENSURE THAT YOU COMPLETE THE MAJOR ASSIGNMENT IN A TEAM OF 3 OR 4 MEMBERS, AND ONLY A TEAM OF 3 OR 4 MEMBERS.