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Contemporary Accounting Theory

Please read requirements carefully
Assignment tasks
Task 1
Write a literature review on the following research issue;
‘The current accounting reporting approach that allows reporting entities to choose between measurement methods (e.g. fair value, or historical costs, or mixed of both) with respect to measurement of PPE and intangibles, is a problematic and therefore should be removed – do you agree?”

Task 2
Identify and analyse valuation (measurement) practices with respect to the use of historical cost and fair value) for the PPE and intangibles by carefully examining the ‘Accounting Policy’ sections of the companies listed in Australia and the USA.
(Note: Choose a company, each from listed in the Australian Stock Exchange (ASX) and the New York Stock Exchange (NSYE) and download their annual report for the period ending 2015 to answer this task).

Task 3
Based on your observation and analysis in Task 2, provide your opinion on the free choices between historical cost and fair value accounting for PPE and intangibles. Do you think such free choice be continued or abandoned? Justify your arguments.

Format:

• Cover page showing the title of the report, the author (Student name and ID number) and the word count (not included in the word count) –
• Executive summary outlining the major findings of the report (1/4 to 1/2 page) (not included in the word count) – 5 marks
• Table of contents (not included in the word count)
• An introduction telling the reader what the report is about, what it cover and how and how it is structured – 5 marks
• The answer itself of all 3 assignment tasks
o Task 1 – 30 marks
o Task 2 – 25 marks
o Task 3 – 20 marks
• A conclusion/summary – 5 marks
• References – using Harvard referencing style (not included in the word count) – 10 marks
• appendices (if applicable – not included in the word count)

 

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