ACC701 Financial Accounting Assignment Question Trimester 1 2016.

ACC701 Financial Accounting Assignment QuestionTrimester 1 2016.Question 1 (30 marks)In your response highlight ethics & governance, accountant’s role inchanging depreciation methods, stakeholders and the impact of AASB116?Students must provide 8 academic references to support their responsePringles Ltd is a large department store that has used the straight-linedepreciation method since the company was first formed. For the year ended30 June 2015, the company made a record profit and management expectedthese high profits to continue at least into 2016 and 2017, althougheconomists were generally predicting an economic slowdown and asubsequent fall in profits in 2018 and 2019. The general manager, PeterPringle, approached the accountant, Marion Mason, and asked her if shecould find a way to reduce the profit in the next couple of years and transferit to 2018 and 2019 when things may not be going so well. ‘This would giveus consistent profits over the next few years and keep our shareholdershappy,’ said Peter. Although Marion did not feel that Peter’s reason for thechange was justified, she was concerned that her contract with the companywould not be renewed if she upset the general manager. After someconsideration, Marion decided to change the depreciation method from thestraight-line method to the sum-of-years’-digits method. Marion did notdisclose this change in the notes to the financial statements as she felt thatthe reason given by Peter would not give a good impressionDue Date: Week 9 18th May 2016 by 8pmSubmission: must be made to the Moodle Assignment Link on the KOI MoodleSubject Home Page by 8.00 pm Wednesday of Week 9.A printed copy must be submitted to the Lecturer at the Week 9 Lecture toAssist with marking. All assignments must have a signed KOI AssignmentCoversheet included with the submission.Task Details: Based on the information provided, and using current theoriesand models in Accounting, students need to analyse how they apply to the givensituation. Specific research supporting recommendations need to be provided.Research requirements: Students need to support their analysis with reference torelevant material from the text and a minimum of eight (8) suitable, reliable,current and academically acceptable sources – this should include at least 2peer-reviewed academic journal articles.Presentation: 2000 +/- 10% word short report format.Title page, executive summary, table of contents, appropriate headings andSub-headings, recommendations/findings/conclusions, in-text referencing andReference list (Harvard – Anglia style), attachments if relevant. Single spaced,Font Times New Roman 12pt, Calibri 11pt or Arial 10pt.Marking Guide: Analysis 30%Research – extent and application 30%Recommendations/conclusions 20%Presentation 20%Total mark will be scaled to a mark out of 30 subject marks.