Business SchoolSchool of Accountancy

Integrated Issues in Professional PracticeIntegrated Case Study

Semester 1, 2015

ASSESSMENT ITEM 2: INTEGRATED CASE STUDY

Due Date: 20 May 2015 (no later than 7:00 pm).

Submission: Parts 1 to 3 (Assignment Minder Submission 1); and Part 4 (Assignment Minder Submission 2).

Group or Individual: Individual (no collaboration is permitted whatsoever)

This assessment item assesses the following learning outcomes:

Knowledge and Technological Skills (KS)

1.1 Demonstrate and apply integrated discipline (including technical) knowledge across the broad field of business with depth in one or more core business disciplines

Higher Order Thinking (HO)

2.2 Exercise independent judgment and initiative in adapting and applying knowledge and skills for effective planning, problem solving and decision making in diverse contexts.

Teamwork and Self (TS)

4.1 Exercise self-reflection, responsibility and accountability in relation to own learning and professional practice

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ASSESSMENT OVERVIEW

Part Description Pages1 Enter year-end Adjusting Journals into MYOB and Print out a revised 4-5

Profit and Loss Statement and Balance Sheet from MYOB (10 Marks)

2 Prepare the 2014 Annual Report for Essential Optics Pty Ltd in Microsoft 6-8Word (18 marks)

3 Prepare the 2014 Company Income Tax Return and Tax Reconciliation 9for Essential Optics Pty Ltd (6 marks)

4 Self-Reflection (6 marks) 10

5 Professional Approach 11

6 Academic Conduct 12

7 Submission Requirements 13-15

Notes:

Parts 1 to 4 are worth 40 marks, Parts 5 and 6 outline various penalty marks which could be imposed, and Part 7 is a detail summary of the submission requirements.

It is each student's responsibility to research the issues contained in the case study. staff members will not be answering any questions or issues relating to this case study.

However, if clarification of a particular point is required, please send the e-mail directly to the Unit Coordinator, and not to your facilitator.

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Assessment Submission and Extensions

In both your study and your professional life you will be expected to meet deadlines. In keeping with this expectation, assessment submitted after the due date will not be marked and will receive a grade of 1 (ie. 0%).

If special circumstances prevent you from meeting the assessment due date, you can apply for an extension. If you don’t have an approved extension, you should submit the work you have completed by the due date and it will be marked against the assessment criteria.

However, please note that extensions are generally not given, even if students fall ill the week that the case study is due or experience computer difficulties.

The reason being is that students have seven weeks to complete the case study and the risk of leaving it to the last minute where these problems may strike is the student’s problem alone.

For this reason, it is strongly recommended that students start working on the integrated case study in Week 8 when it is released via the site.

Once submitted, students are not able to attach or submit any additional documentation whatsoever. It is the responsibility of each student to ensure that the complete assignment is submitted by the due date.

Furthermore, no submissions will be accepted by any academic staff member by any means (hard copies or emails) at any time. Any e-mail submissions will not be accepted under any circumstances and will simply be deleted when received with no corresponding e-mail reply.

All submissions need to be made in the prescribed manner to Assignment Minder.

Feedback and Return of Case Studies

Please note that this integrated case study should be viewed by students as a replacement of the final exam. Like a final exam, this case study will not be returned to students via Assignment Minder.

Instead, students wishing to review their case study will need to make an appointment with the unit co-ordinator within two weeks of the results for the unit being released (similar to the other units in the degree).

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ASSESSMENT REQUIREMENTS FOR EACH PART

PART 1: Enter Year-End Adjusting Journal Entries into MYOB & Print out a revised Profit and Loss Statement and Balance Sheet from MYOB – (10 Marks)

a. Students are required to prepare and enter adjusting general journal entries directly into the MYOB data file to take into account all of the relevant and necessary adjustments (please include cents in all of your journal entries).

The MYOB data file is available on the Blackboard site for students to download The MYOB data file was created using MYOB AccountRight Enterprise (Educational Version 19). This version of MYOB is available in the student labs in both B and Z blocks. However, students can use any version of MYOB to open the data file and make adjustments (provided it is version 19 or higher).

It will not be possible to open this MYOB data file if you use the MYOB trial versions available on the MYOB website or any version of MYOB lower than this version.

These entries must be entered and produced using MYOB.

Make sure you use MYOB. Students cannot use other packages like Microsoft EXCEL or Word or any other accounting package, otherwise a mark of zero out of ten will automatically be imposed.

b. Adding Account Names to the Chart of Accounts

Please note that students are expected to add additional accounts in the MYOB data file provided on the Blackboard site, as several of your adjusting general journal entries will be made to these new accounts (eg. depreciation expense).

c. Dating your Adjusting General Journal Entries 30 June 2014

Please date all of your adjusting general journal entries 30 June 2014. Please make also include a brief narration of the adjustment in the memo field in MYOB.

d. Printing Adjusting General Journal Entries

Make sure that you only print out your adjusting journal entries and not all of the other journal entries that are already residing in the MYOB data file that has been provided to you on the Blackboard site.

Simply select the General Journals for the date range: 30 June 2014 to 30 June 2014.

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e. Depreciation Entries

In the case of accounting depreciation journal entries, students are requested to combine depreciation on each individual asset class and show depreciation expense and accumulated depreciation per each asset class (ie. leasehold improvements; property, plant and equipment; computer software; and, leased motor vehicles).

For accounting purposes, each individual asset should be depreciated over their useful lives and for simplicity’s sake that should be based on the effective lives outlined in Table B of Taxation Ruling TR 2013/4.

However, there are four assets listed at Item 3(b) on page 17 of the case study where the effective lives should be determined in accordance with Table A “Photographic, Optical and Ophthalmic Equipment Manufacturing” and “Optometry and Optical Dispensing” of Taxation Ruling TR 2013/4.

f. Print out a Revised Profit and Loss Statement and Balance Sheet from MYOB as at 30 June 2014

Finally, students are required to print out a revised Profit and Loss Statement and Balance Sheet from MYOB for Essential Optics Pty Ltd for the year ended 30 June 2014 taking into account their adjusting general journal entries and include it in their submission.

In MYOB, your print range for the Profit and Loss Statement should be 1 July 2013 to 30 June 2014.

For the Balance Sheet, please print this report out as at 30 June

2014. Please include cents when printing out both reports.

Failure to print out and include both your adjusted MYOB Profit and Loss Statement and Balance Sheet will automatically result in the loss of two (2) marks.

[10 marks]

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PART 2: Prepare the 2014 Annual Report for Essential Optics Pty Ltd in Microsoft Word – (18 marks)

Students are not permitted to use any other electronic account preparation software packages (eg. Handisoft, Solution 6, MYOB Accountants Office etc). Failure to use Microsoft Word will result in a penalty of up to 18 marks.

When preparing the external financial statements, please round all figures from your MYOB management accounts to the nearest whole dollar. In other words, please do not include cents when preparing the external financial statements.

a. Students are required to prepare the Annual Report for Essential Optics Pty Ltd for the year ended 30 June 2014. The annual report should include the following documents (in the following order):

- the external financial statements excluding the Statement of Cash Flows but including all of the notes to the accounts;

- the Director’s Declaration; and - the Accountants Compilation Report.

There is no need to prepare a Directors' Report or an Auditor’s Independence Declaration, as the financial report was not audited.

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b. Which Accounting Standards Apply?

Essential Optics Pty Ltd is considered a non-reporting entity. Hence, only special purpose financial statements are required to be prepared.

Please ensure that the financial statements (and notes to the accounts) are prepared in accordance with the recognition, measurement and disclosure requirements of all of the AASB Accounting Standards with the exception of the following four (4) AASB Accounting Standards:

- AASB 8 Operating Segments; - AASB 107 Statement of Cash Flows; - AASB 133 Earnings Per Share; and - AASB 124 Related Party Disclosures.

In other words, all other AASB Accounting Standards (including their disclosure requirements) must be complied with. This includes the financial instruments suite of standards.

Please note that the company has elected not to adopt early any forthcoming new Accounting Standards (eg. AASB 9 Financial Instruments which is not effective until 1 January 2015).

Furthermore, the company is not eligible to apply the reduced disclosure requirements (RDR) contained in AASB 1053 Application of Tiers of Australian Accounting Standards as this standard only applies to reporting entities and Essential Optics Pty Ltd is considered a non-reporting entity.

c. Income Statement

For the Income Statement, Daniel and Michelle have requested that you classify expenses by nature instead of by function.

Furthermore, Daniel and Michelle only want you to show those expenses on the face of the Income Statement that are specifically required to be disclosed under AASB 101 Presentation of Financial Statements.

For the Balance Sheet, please use the minimum disclosure requirements required under AASB 101.

d. Statement of Changes in Equity

For the Statement of Changes in Equity, please use the minimum disclosure requirements required under AASB 101.

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e. Balance Sheet

For the Balance Sheet, please use the minimum disclosure requirements required under AASB 101.

f. “Real” and “Model” Financial Statements

Students are advised (and encouraged) to download the 2014 financial report of an Australian listed public company (preferably a retailer) and review the content, structure and format of the financial report.

Even though listed companies prepare general purpose financial reports as distinct from special purpose financial statements, it will give students an excellent idea as to the layout, format, structure and content of a financial report.

Furthermore, most of the “Big 4” accounting firms also have model financial statements in PDF which can be freely downloaded from the ICAA’s website, namely:

http://www.charteredaccountants.com.au/Industry-Topics/Reporting/Publications-and-tools/Specimen-financial-reports/reports/Specimen-accounts.aspx.

However, when preparing the external financial statements for Essential Optics Pty Ltd, please do not include the references to AASB paragraphs in the left-hand margin of the financial statements like the model sets of accounts do.

Students should also prepare a Director’s Declaration for Daniel and Michelle to sign as well as including the appropriate Accountant’s Compilation Report.

g. Date of Declarations and Reports and Comparative Figures

All declarations and reports should be dated 19 August 2014.

Comparative figures are not required in the financial statements, as the business only commenced trading on 1 August 2013.

[18 marks]

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PART 3: Prepare the 2014 Company Income Tax Return and Tax Reconciliation for Essential Optics Pty Ltd – (6 marks)

a. Students are required to prepare the company’s Income Tax Return & Tax Reconciliation for Essential Optics Pty Ltd for the year ended 30 June 2014

Students are required to prepare the 2014 company income tax return of Essential Optics Pty Ltd. A blank copy of the 2014 company tax return can be downloaded directly from the ATO website in PDF format at:

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/TP40078NAT06562014 .pdf.

As detailed in the business plan, the company’s tax file number is: 91 446 662.

Please use the company’s business address as the postal address on the tax return. Do not complete the BSB and account details on the second page of the tax return.

For the purposes of the tax agent declaration (on the last page of the tax return), your tax agent reference number is: 57208-416.

The income tax return should be dated 19 August 2014.

There is no need to prepare the dividend franking account for the company or the dividends and interest schedule. Both of these schedules normally form part of the income tax return. However, students are not required to prepare these schedules.

Furthermore, when presenting your tax reconciliation, there is no need to refer or quote sections of the ITAA (1936), ITAA (1997), cases or taxation rulings.

[2 marks]

b. Students are required to prepare a Tax Reconciliation for Essential Optics Pty Ltd for the year ended 30 June 2014

Daniel and Michelle also ask you to prepare a one page tax reconciliation. Students should start this reconciliation summary with the accounting net profit before income tax and then list all relevant adjustments to arrive at the company’s taxable income for the year ended 30 June 2014.

This one page reconciliation should be included immediately behind the last page of the company’s tax return. There is no need to prepare a deferred tax worksheet for this requirement.

[4 marks]

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PART 4: Self-Reflection – (6 marks)

Part 4 Self-reflection is required to be separately submitted to Assignment Minder.

In terms of Assignment Minder, please make sure you use the correct Part 4 Assignment Minder Cover Sheet.

Throughout the semester, you were required to solve problems relating to various clients of a public accounting firm.

Using your experiences during the semester, you are now required to reflect on the skill of problem solving in a public accounting firm.

Using appropriate references to theory and literature to back up your opinions and arguments:

a. Do you believe that problem solving is an important and useful skill for a professional accounting advisor to have? Why or why not?

[3 marks]

b. Assuming that you now have a job as a graduate accountant working within a public accounting firm and that your partner presents you with a client problem. What approach would you adopt to solve the problem? You may wish to frame this question (and your response) by providing an example of a potential client problem.

[3 marks]

Wherever possible, you must use theory and literature to support your views. You must also use the APA referencing style and have a list of references at the end. You should have a total of at least 4 relevant and reliable references in order to critically reflect on these questions.

Your writing must be in the first person, that is, you must write using the word “I”, as in “I believe …”, “I disagree with ….”, “In future, I will …”. This is very important as this assessment is a self-reflection so you must express your critical views and opinions on these issues.

It is also important to note that on completion of this unit, you will probably be graduating and entering the accounting profession. Your writing must reflect this with appropriate structuring and correct use of grammar and spelling. Please include a list of references at the end of the document.

You must use 11 point Arial font with 1.5 line spacing. Make sure each of your responses is clearly labelled. The maximum number of words is 750.

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PART 5: Professional Approach to Presentation

This assessment expects a professional approach to presentation similar to that expected in an Accounting firm when delivering documents to a client.

For this reason, you must satisfy the following professional presentation requirements or you will incur penalties as detailed in last section of the criteria sheet.

A professional approach also means that it is the responsibility of each student (to ensure that the complete assignment is submitted by the due date.

Once submitted, students are not able to attach or submit any additional documentation whatsoever as in a client situation, you would be unable to deliver additional information to a client and late information will be regarded as being late and may not be useful.

Thus if a student submits any additional items or late items, they will be penalised up to a maximum of 10 marks for not following client instructions.

1. A professional approach also means presenting information in a professional manner to a client. Thus, Parts 1 to 3 of this case study must be bound (ie. spiral or plastic comb binding) in the order listed on page 13.

This is designed to ensure the client receives all the information intact and that there are no loose pieces of paper or documents inside the document wallet as these can easily get lost or misplaced.

Not binding the document will result in a penalty of 2 marks for unprofessional presentation.

2. In addition to the documents required in the prior seven parts, the following documents are submitted at the front of your submission:

the criteria sheets (on pages 31 and 32); and the student integrity declaration (on page 30).

If you do not submit your criteria sheet – you will incur a (2) marks penalty.

If you do not sign and submit the student integrity declaration, your case study will not be marked and will be automatically awarded a mark of zero out of 40.

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PART 6: Academic Conduct in Completing this Asessment

Academic conduct is expected to be ethical and above reproach in producing this assessment, in same way you would produce a client document as part of an accounting firm. The following table provides you with clear examples of what constitutes academic misconduct and what does not. Please carefully read this list before starting the assessment.

This Integrated Case Study is an individual assignment. As such, no collaboration with other students is permitted in any way whatsoever. Any collaboration between students, including comparing answers, sharing ideas and research etc. constitutes academic dishonesty.

Markers will be carefully checking case studies to determine whether there is any indication that collusion has taken place.

Students who are found to have committed academic misconduct as detailed below will be immediately referred to the Business School academic misconduct committee. Please note that penalties will be applied not only to the student(s) who have used this information but also to the student(s) who have shared this information.

To this end, each student is required to sign a student integrity declaration confirming that they have not used or plagiarised the work of others (on page 30).

More information on plagiarism and range of penalties that can be imposed can be found at:

Examples of what constitutes (or does not constitute)Academic Misconduct

Does Constitutes Academic Misconduct Does not Constitutes Academic Misconduct

1. Using a case study (or any part thereof) of another 1. Using a listed public company’s annual report or astudent from a previous semester. set of model financial statements as a basis of

This includes obtaining a soft or hard copy of adetermining the format, layout and structure for thefinancial report of Essential Optics Pty Ltd.

previously used annual report from a priorsemester and overtyping or re-typing any part andsubmitting such as part of your submission.

2. Using a case study (or any part thereof) of another 2. Using the words contained in a listed publicstudent doing the unit this semester. company’s annual report or a set of model financial

This even includes a student that has been in yourstatements (eg. the Note 1 Significant AccountingPolicy note) and using these words/sentences for

individual group during the semester. Essential Optics Pty Ltd.

3. Including a requirement that may have been part ofa previous semester’s case study and including itthis semester.

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PART 7: Submission Instructions

There are two separate submissions to be made via Assignment Minder, namely:

Parts 1 to 3 (worth 34 marks) – Assignment Minder Submission 1; and Part 4 Self-Reflection (worth 6 marks) – Assignment Minder Submission 2.

For Assignment Minder Submission 1 (Parts 1 to 3), please collate and spiral bind the following documents in the following order:

Criteria Sheet for Parts 1 to 3 (on page 31); Student Integrity Declaration (on page 30);

Part 1 - Your MYOB Adjusting Journal Entries dated 30 June 2014;

Part 1 - Revised MYOB Profit and Loss Statement and Balance Sheet as at 30 June 2014;

Part 2 - The 2014 Annual Report of Essential Optics Pty Ltd (including the external financial statements, notes to the accounts, the Directors’ Declaration and Accountant’s Compilation Report – in that order); and

Part 3 - The 2014 income tax return of Essential Optics Pty Ltd, including the one-page tax reconciliation (at the end of the last page of the tax return).

Students are required to spiral bind every document in the order listed above. Failure to spiral bind the case study will result in a 2 mark penalty. All of these documents need to be inserted into the document wallet and submitted to Assignment Minder by Tuesday 20 May 2015 no later than 7:00 pm.

**** Please put your FACILITATOR’S name on the Assignment Minder submission form and not the unit co-ordinator’s name *****

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For Assignment Minder Submission 2 (Part 4), please collate and staple the following documents in a separate Assignment Minder wallet in the following order:

Criteria Sheet for Part 4 (on page 32); and Your written reflection (maximum of 750 words).

Both of these documents should be stapled and inserted into a separate document wallet and separately submitted to Assignment Minder by Tuesday 20 May 2015 no later than 7:00 pm.

** Please put the unit co-ordinator’s name, on theAssignment Minder submission form and not your facilitator’s name **

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Assignment Minder

The integrated case study should be submitted via the Assignment Minder Service by 7:00 pm on Tuesday 20 May 2015.

Details of how to submit the case study through Assignment Minder are provided as follows.

1. Submitting your Assignment

Parts 1 to 3 are to be submitted via Assignment Minder in a (reusable) cardboard document wallet with a completed Assignment Minder Submission Form secured to the front (the form is available from the unit’s Blackboard website). The Assignment Minder Submission Form must be used.

Part 4 is also to be submitted via Assignment Minder as a separate submission. Please use a second cardboard document wallet with a completed Assignment Minder Submission Form secured to the front (the form is available from the unit’s Blackboard website). The Assignment Minder Submission Form must be used.

The Assignment Submission Form is available on the Blackboard site under Assessment, Assignment Minder. You hand in the case study to a staff member at the Assignment Minder desk.

You are required to produce your student card (or student number), which is scanned into the system, along with the bar code number identifying the submission form.

The case study is time and date stamped and then secured in a storeroom awaiting delivery to the unit coordinator.

You will get an e-mail receipt to confirm that Assignment Minder has received your case study.

Case studies may not be submitted directly to your facilitator or any other academic staff, via fax, post, e-mail, assignment boxes or School offices. You may submit the case study at any campus.

Case studies are considered submitted when their receipt has been recorded on the Assignment Minder computer system.

Once marked, the case studies will not be returned to students via Assignment minder. Students wishing to review their case study will need to make an appointment with the unit co-ordinator within two weeks after the release of the results for the unit.

2. Locations and Hours of Operation

Hours and locations can be found at:

3. Contact Details

You can contact Assignment Minder:

in person at the designated campus desk by email:

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INTEGRATED CASE STUDY (40%)ESSENTIAL OPTICS PTY LTD

Background Information:

The date is Monday 30 June 2014. The time is 3:00 pm. As the external accountants and tax advisors of Essential Optics Pty Ltd, you are in a meeting with your clients, Daniel and Michelle Lawson.

The purpose of the meeting is to review the draft MYOB management accounts of Essential Optics Pty Ltd for the year ended 30 June 2014 which have been prepared by their part-time bookkeeper, Natalie Brooks.

The optometry store has been closed all day as Daniel, Michelle and the staff have spent all morning conducting the annual stocktake counting stock on hand.

Natalie is unable to attend the end-of-year meeting but has provided you with the MYOB data file. She asks that if you make any adjustments, you do so directly into the MYOB data file and date any adjustments 30 June 2014.

Natalie has advised you that she has entered all of the company’s transactions for the 2014 financial year (unless otherwise indicated). She has reconciled the company’s bank account and has reconciled the GST payable and GST receivable accounts in the Balance Sheet.

Please note that the MYOB data file that has been presented to you is not a “real” clientMYOB data file.

All that was done was to enter journal entries so as to arrive at closing balances at 30 June 2014. Hence, please do not analyse the journal entries already existing in this file.

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In your meeting, Daniel and Michelle have made you aware of the following information:

1. As at 30 June 2014, Essential Optics Pty Ltd had received lay-by payments from customers totalling $2,860 (GST-exclusive) in relation to several frames and sunglasses. As at 30 June 2014, these frames and sunglasses remained in the closing stock of Essential Optics Pty Ltd. Natalie posted the $2,860 to debit “cash at bank” and credit to “sales of frames and accessories”. Ignore any GST consequences.

The lay-bys are refundable, meaning that if the buyer does not pay the full amount owing under the lay-by transaction, Essential Optics Pty Ltd will refund the deposits paid to the customer. Do not make any adjustment to COGS or inventory.

2. The bookkeeper, Natalie, has not recorded any depreciation/amortisation in respect of any non-current assets acquired by the company during the 2014 financial year, as she was not sure what depreciation rates to use. She would like you to prepare an accounting depreciation schedule and to process the depreciation/amortisation journal entries for the 2014 financial year directly into MYOB (refer page 27 and 28 for details of depreciation policies for both accounting and tax purposes).

3. On 1 August 2013, Essential Optics Pty Ltd purchased the following assets outright (all amounts shown GST-exclusive):

(a) Leasehold Improvements:

Fit-out (consisting of floor tiles, ducted air-conditioning, lighting, shelving and signage) - $129,850.

(b) Property, Plant and Equipment:

Cash register - $3,080; Desktop computers (general) - $6,150; Multi function machine (print, copy, fax, scan) - $5,980;

Examination chairs - $6,640 (refer “Optometry and Optical Dispensing” in Table A of Taxation Ruling TR 2013/4); Lens tinting machine - $18,500 (refer “Photographic, Optical and Ophthalmic Equipment Manufacturing” in Table A of Taxation Ruling TR 2013/4);

Automated lens meter - $44,900 (refer “Photographic, Optical and Ophthalmic Equipment Manufacturing” in Table A of Taxation Ruling TR 2013/4);

Reception furniture - $13,840; and

Glaucoma Diagnostic machine - $16,100 (refer “Optometry and Optical Dispensing” in Table A of Taxation Ruling TR 2013/4).

(c) Computer Software:

Accounting software and retail point of sale software - $12,850.

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Natalie coded all of these purchases to their various asset category accounts in the Balance Sheet. No other non-current assets were purchased during the year.

Note: There are 334 days from 1 August 2013 to 30 June 2014.

4. On 8 January 2014, Essential Optics Pty Ltd entered into a non-cancellable lease agreement to finance the acquisition of a motor vehicle (ie. a 2,600 cc Honda Accord) that will be used exclusively in the business.

Details of the finance lease agreement are as follows:

Fair value of motor vehicle (GST-exclusive) $44,500

Present value of the minimum lease payments(including the present value of the guaranteed residual). $44,500

Amount financed under the lease agreement $44,500 Lease term 6 years Number of monthly lease payments 72 Monthly lease payments (GST-inclusive) due on the 8th day of each month $780 Salvage value of the motor vehicle after the eighth year $Nil The first lease payment of $780 is made in advance

on 8 January 2014. There is no interest on the first lease payment. Thereafter, 71 monthly lease payments are due on the 8 th day of each month. The 72nd and final lease payment is due on 8th

December 2019.

Under the lease agreement on 8th December 2019 (being the same date as the final $780 lease payment, the company is also required to make the guaranteed lease residual payment of $10,000 (GST-inclusive). The company intend paying out the guaranteed lease residual in 6 years time and taking possession of the motor vehicle.

Total GST-inclusive lease payments (including the guaranteed residual) $66,160 Total GST-exclusive lease payments (including the guaranteed residual) $60,145 Useful/(effective) life of the car (same for accounting and taxation) 8 years

Depreciation policy: the company uses the straight line method for accounting purposes and the SBE simplified depreciation regime for small business entities for taxation purposes.

The residual value of the motor vehicle at the end of the eighth year $Nil

Note: There are 174 days from 8 January 2014 to 30 June 2014.

Daniel has provided you with the original finance lease agreement. All of the above information is contained in the lease agreement. Unfortunately, the lease agreement does not stipulate the implicit interest rate. Hence, you will need to calculate the implicit interest rate when preparing your EXCEL lease spreadsheet.

Ignore any accrued interest between 8 June to 30 June each year.

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Daniel uses the motor vehicle to pick up stock items and visit optical company representatives and suppliers. It is therefore used 100% for business purposes. It is garaged every day and night of the year in the lock-up garage at the store in Toowong. As it is not available for private use by any employee, there are no fringe benefits tax implications in respect of the vehicle.

The motor vehicle has travelled in excess of 5,000 business kilometres during the 2014 financial year. Essential Optics Pty Ltd will use the logbook method in claiming a deduction for the motor vehicle expenses. As mentioned above, as there is no private use, all of the running costs associated with the motor vehicle will be fully tax-deductible to the company.

The company chooses to use the logbook method under Division 28 of the ITAA (1997) in claiming a deduction for its motor vehicle.

In the MYOB management accounts that Natalie has provided you with, on 8 January 2014, she has correctly recorded the motor vehicle in the Balance Sheet at its GST-exclusive cost of $44,500 with a corresponding lease liability of $44,500, recorded entirely as a non-current liability.

A total of six (6) lease repayments of $780 each (GST-inclusive) have been made between 8 January 2014 and 30 June 2014. Natalie has debited the 6 lease payments for their GST-exclusive amount of $4,254.55 to the “lease payments” account which is shown as an expense in the Profit and Loss Statement and credited“cash at bank” for this amount.

Being a lease, the company has claimed back the $70.91 GST input tax credits associated with each lease payment on the 8th day of each month in the company’s Business Activity Statement (BAS) for the relevant quarters. Natalie has correctly debited the total GST paid of $425.45 associated with the 6 monthly lease payments to the “GST receivable” account in the Balance Sheet.

5. On 12 June 2014 Essential Optics Pty Ltd imported designer frames from Hong Kong. This was the date that the goods left Hong Kong. The terms of shipment were FOB shipping point. The goods arrived at Daniel's store on 26 June 2014, with the invoice attached.

The goods were purchased in Hong Kong dollars at a cost of HKD 70,000 (inclusive of on-costs). The invoice states that goods must be paid for by 12 July 2014. At 12 June 2014, the foreign exchange rate was A$1.00 = HKD7.153 and Natalie has recorded the inventory purchase correctly at that spot rate on 12 June 2014 when the invoice was e-mailed through in pdf format to her by the Hong Kong importer.

At 30 June 2014, the foreign exchange rate had moved to A$1.00 = HKD6.609. Daniel paid the invoice on 5 July 2014. On this date, the foreign exchange rate was A$1.00 = HKD7.052. The goods were not hedged.

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6. On 31 July 2013, Essential Optics Pty Ltd held an opening party at the store for potential new clients, optical suppliers and local business people. The party consisted of food and drinks (both alcoholic and non-alcoholic). A total of 40 guests attended the opening party. No employees attended the opening party. The occasion was purely social. The cost of the opening party came to $2,500. This amount was coded to “opening party” in the Profit and Loss Statement. Ignore any GST consequences.

7. The company’s Christmas party was held on Friday 7 December 2013 at a nearby licensed seafood restaurant. Daniel, Michelle the company’s employees and their partners attended the Christmas party. No customers were invited. The cost of the Christmas party came to $1,260. This amount was coded to “Entertainment - Christmas Party" in the Profit and Loss Statement. Ignore any GST consequences. For FBT purposes, the company adopts the 50/50 split method in relation to valuing meal entertainment fringe benefits.

8. Apart from the Christmas party described above, the company did not provide any other fringe benefits to employees (or clients) during the 2014 income year.

9. The amount of “fringe benefits tax paid” of $1,985 shown in the Profit and Loss Statement has been correctly calculated by multiplying 50% of the GST-inclusive amount of both the opening party ($2,750) plus 50% of the GST-inclusive amount of the Christmas party ($1,386) by the Type 1 FBT gross-up rate of 2.0647. This gives a grossed up amount of $4,269.80. Multiplying this amount by the FBT tax rate of 46.5% equals $1,985.46. This amount is shown as an expense in the Profit and Loss Statement.

10. In your discussions with Daniel, he advises that in mid-December 2013, he took a pair of Prada sunglasses from the business and gave it to his brother, Anthony, as a Christmas present. The Prada sunglasses cost the business $105. They were being advertised for sale within the store for $285.

Natalie, the bookkeeper, recorded this transaction in MYOB by debiting the expense account “stock taken for personal use” and crediting the “inventory” account for $105, being the cost of the sunglasses. No sale was recorded in the system as Daniel did not pay any money to buy the sunglasses. Ignore any GST consequences.

11. Daniel, Michelle and the staff undertook a stocktake on the morning of 30 June 2014. Closing stock has been reliably ascertained at $62,740 (GST-exclusive). This amount reconciles with the computer system. This amount is shown as “inventory” in the Balance Sheet at 30 June 2014.

The company adopts a perpetual inventory system and uses the FIFO (first-in, first-out) inventory valuation method. The opening balance of inventory on the first day of business (ie. 1 August 2013) was $52,000.

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12. Essential Optics Pty Ltd extends credit to selected customers. For those customers that have been approved, the company has trade credit terms of net 30 days. The company rigorously pursues any bad debts owing by customers. The company uses the “provisioning” method in accounting for their bad/doubtful debts, not the “direct write-off” method. Natalie has already recorded the provision entry by debiting “bad debts expense” and crediting “provision for doubtful debts” for $1,828 (being the estimated total uncollectable bad debts).

During the 2014 financial year, several debts were written off. These were small debtors who were invoiced but were unable to pay their debts after several months of being chased to pay their outstanding amounts. In the end, Daniel instructed Natalie to write these debts off.

During the 2014 financial year, Natalie wrote off $935 in bad debts by debiting “provision for doubtful debts” and crediting “accounts receivable”. Hence, the balance of the “provision for doubtful debts” account at 30 June 2014 was $893. This amount comprised:

Age of Debtor Account Estimated % Provision forReceivable Uncollectable Doubtful Debts

0-30 days (not past due) $14,852.00 0% $-

31-60 days $3,330.00 10% $333.00

61-90 days $1,400.00 40% $560.00

Totals: $19,582.00 $893.00

At your year-end meeting with Daniel, he presents you with a letter and attached cheque from one of the debtors (Jack Collins) that had been previously written off confirming that this debtor recently won Gold Lotto and is now able to pay their outstanding debt totalling $265. This cheque is banked at 4:30 pm on 30 June 2014.

No journal entries in relation to the above transaction involving Jack Collins has been recorded by Natalie in the MYOB management accounts. Please ignore the effects of the GST.

If any adjusting entries are required, please do them in the general journal. Do not worry about the individual debtor account for Jack Collins.

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13. The employees of Essential Optics Pty Ltd are as follows:

Daniel Lawson (Director and full-time optometrist); Michelle Lawson (Director); Alicia Bridges (full-time optical dispenser); and Amanda Richardson (full-time retail assistant).

The total salaries and wages for directors and employees are shown in the Profit and Loss Statement. There are no outstanding (accrued) wages owing to any of the employees at 30 June 2014.

In addition, Stuart Copeland is engaged as a locum (ie. a contractor). Stuart works every Saturday morning at the store testing eyes. Stuart is paid as a contractor and receives $65 per hour (GST-exclusive). Stuart does not accrue any leave entitlements, nor is he entitled to any superannuation provided. He is a genuine contractor. Hence, there is no need to calculate any leave or superannuation entitlements.

Each fortnight, Stuart supplies Essential Optics Pty Ltd with a valid tax invoice quoting his ABN. Stuart was paid a total of $11,150 (GST-exclusive) during the 2014 financial year. This amount has been expensed to the Profit and Loss Statement under the account entitled “Locum fees”.

14. Each full-time employee is entitled to four (4) weeks paid annual leave. Part-time staff are entitled to pro-rata annual leave. At 30 June 2014, Natalie had not yet recorded a journal entry to accrue the annual leave for these employees. Based on the projected salaries of when each employee is expected to take their annual leave, the total provision for annual leave (in respect of all employees) totals $10,360. The company policy is that all annual leave must be taken within 12 months. No annual leave was taken by any employee during the 2014 financial year.

No sick leave was taken by employees during the 2014 financial year. No provision for sick leave should be made in the 2014 accounts as no employee is considered likely to take more than their allocated sick leave entitlements. The sick leave is non-accumulating and non-vesting meaning that no entitlement (and therefore, no accrued sick leave) is carried over to the following financial year for any employee.

Similarly, no employee is eligible for long service leave. No provision for long service leave should be made in the 2014 accounts as, at 30 June 2014, it is not currently considered probable that any employee will reach the 10-year employment target with the company in order to qualify for long service leave.

15. Due to surplus cash, on 1 June 2014, Essential Optics Pty Ltd prepaid 3 months of insurance totalling $900.

No journal entries have been recorded by Natalie in the MYOB management accounts in relation to this transaction whatsoever (including the initial entry on 1 June 2014). Please ignore the effects of the GST. If any journal entry/entries are required, please date these journal entries 30 June 2014.

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16. Daniel was delighted that there was surplus cash in the businesses Bank of Brisbane’s cheque account. On 3 June 2014, he invested $105,000 into a 90-day term deposit with the Bank of Brisbane at an interest rate of 4.15% per annum.

Interest totalling $334.27 will be paid by the bank on maturity 90 days later (ie. 31 August 2014). The company does not intend to rollover the term deposit once it matures. Natalie recorded the $105,000 in the “term deposit” account in the Balance Sheet.

Note: There are 28 days from 3 June 2014 to 30 June 2014.

17. On 20 May 2014, Essential Optics Pty Ltd purchased 1,600 shares in BHP Billiton Ltd at a cost of $35.20 per share (including brokerage). These shares were purchased with the view to holding them for the long-term. No dividends were paid by BHP Billiton Ltd between acquisition date and 30 June 2014.

Natalie recorded the shares in the company’s Balance Sheet at their cost of $56,320. No other shares were bought or sold during the 2014 financial year. As at 30 June 2014, the share price of BHP Billiton Ltd was trading on the ASX at $31.00 per share.

Daniel and Michelle anticipate that the company will derive further capital gains in the future (in the form of goodwill) if, and when, they sell their business.

18. Daniel was delighted with the fact that the company made a small accounting net profit in respect of the year ended 30 June 2014. So much so, that on 7 July 2014, Daniel and Michelle declared and paid a fully franked cash dividend totalling $4,000 based on the 30 June 2014 profits. These dividends comprised:

Shareholder Franked Dividend Imputation CreditDaniel Lawson (50% shareholder) $2,000 $857.14

Michelle Lawson (50% shareholder) $2,000 $857.14

The bookkeeper, Natalie, has not recorded any journal entries in MYOB relating to this event in respect of the 2014 financial year.

19. The initial set-up costs of $1,840 incurred to establish the company and associated accounting and legal fees are shown as an expense in the Profit and Loss Statement under “Establishment Costs”. These costs were incurred on 1 August 2013.

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20. As outlined in the business plan, on 1 August 2013, Essential Optics Pty Ltd signed a 3-year non-cancellable operating lease with the landlord to rent commercial premises at 64 Main Drive, Toowong for $4,000 per month (GST-exclusive). Under the lease agreement, a 2.5% annual increase to this rent will take effect on 1 August each year. There is an option in the lease agreement to renew the lease for an additional three years. At this stage, Daniel and Michelle intend on renewing the lease when the current lease term expires.

21. Daniel's best friend is Simon Davis. Simon is one of Australia’s leading marketing experts who specialises in brand name valuations for Australian companies. On 12 June 2014, Daniel asks Simon to conduct a marketing survey to find out what consumers know (and think about) the brand name, “Essential Optics”.

Since its opening in August 2013, Essential Optics has advertised extensively including utilising social media and it appears to have developed a strong following amongst consumers. Simon takes two weeks to write his report and presents his report to Daniel on 29 June 2014.

To Daniel’s great surprise, Simon’s report reveals that the name “Essential Optics” is regarded as the second most recognisable brand name for an optometry practice in the west Brisbane region - a remarkable achievement after only 11 months of trading.

Simon’s report values the brand name “Essential Optics” at $60,000. This valuation was based on accepted valuation methodologies used in valuing brand names (which takes into account a combination of sales figures, customer awareness, brand loyalty statistics etc).

No journal entries have been recorded by Natalie in the MYOB management accounts in relation to this transaction. Please ignore the effects of the GST.

Daniel advises you that if allowed, he would like to recognise this brand name in the external financial statements (ie. the Balance Sheet) of the company.

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Additional Facts:

The MYOB management accounts have been prepared on an accruals basis.

The company is on the accruals basis for income tax purposes.

Essential Optics Pty Ltd is registered for the GST. The company’s ABN is: 86 074 324 995.

Daniel and Michelle Lawson are the only two Directors of the company.

Being a small proprietary company, the company’s accounts were not required to be audited for the 2014 financial year (and were not).

All PAYG withholding tax owing in respect of employee’s salaries and wages have been remitted by Essential Optics Pty Ltd to the ATO by the due dates. The 30 June 2014 PAYG withholding tax has not yet been remitted to the ATO. This amount of $10,125 shown in the Balance Sheet as a current liability will be paid to the ATO when the company lodges its June 2014 Business Activity Statement with the ATO (sometime before the due date of 28 July 2014).

The three quarterly Business Activity Statements (BAS) for the September 2013, December 2013 and March 2014 quarters have been lodged with the ATO by their due dates and the net GST owing (ie. GST payable minus GST receivable) for each quarter have been paid to the ATO.

The amount of GST payable ($17,835) and GST receivable ($13,067) shown in the Balance Sheet at 30 June 2014 (giving a net GST owing to the ATO of $4,768) represents the GST collected during the June 2014 quarter. This net amount will be paid to the ATO before the due date for lodgement of the BAS (ie. before 28 July 2014).

The company has paid the following PAYG instalments to the Australian Taxation Office on each BAS:

- September 2013 quarter ($410 income tax paid to the ATO on 21 October 2013) - December 2013 quarter ($1,070 income tax paid to the ATO on 9 February 2014) - March 2014 quarter ($1,380 income tax paid to the ATO on 15 April 2014)

The fourth quarterly PAYG instalment payable of $1,259 shown in the current liability section of the Balance Sheet at 30 June 2014 represents the amount owing in respect of the April-June 2014 quarter. This amount will be paid when the company lodges its June 2014 Business Activity Statement (sometime before 28 July 2014).

All four PAYG instalments totalling $4,119 have been debited to “income tax receivable” in the Balance Sheet. This amount represents the total of the four PAYG quarterly instalments paid/(payable) to the ATO in respect of the 2014 income year (being $410 plus $1,070 plus $1,380 for the first three quarters as well as $1,259, for the accrued June 2014 quarterly instalment which is due and payable by the company by 28 July 2014).

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The share capital of $300,000 shown in the Balance Sheet comprises the following:

- Daniel Lawson (150,000 x $1.00 fully paid ordinary shares) $150,000- Michelle Lawson (150,000 x $1.00 fully paid ordinary shares) $150,000

These 300,000 fully paid ordinary shares were issued by the company on 1 August 2013.

The original $200,000 loan from the Bank of Brisbane that the company took out is unsecured. This loan is fixed at a fixed interest rate of 6.5% per annum and fully repayable in three years time. There were no initial borrowing costs associated with this bank loan. The borrowings are unsecured and no assets were pledged as security against these borrowings.

The company has been making loan repayments and as at 30 June 2014, the outstanding balance of the loan is $146,787 (split in the MYOB Balance Sheet as $35,858 current and $110,929 non-current). The bookkeeper, Natalie, has correctly split each loan payment between interest paid and reduction of the loan liability.

There were no initial borrowing costs associated with the loan. The borrowings are unsecured and no assets were pledged as security against any of these borrowings.

The company has been making the compulsory 9.25% employer-sponsored superannuation contributions into each employee’s superannuation fund on a quarterly basis on the last day of each quarter based on each employee’s ordinary times earnings (OTE). Accordingly, all superannuation amounts owing in respect of the 2014 financial year have been paid into each employee’s superannuation fund by 30 June 2014.

The amounts contained in the MYOB data file are based on the actual results of Essential Optics Pty Ltd for the period 1 August 2013 to 30 June 2014 (ie. 11 months of trading). These amounts override any amounts contained in the business plan and in any of the PBLs during the semester relating to Essential Optics Pty Ltd. Students should also note that the figures contained in the initial business plan were budgeted amounts.

Furthermore, ignore any additional information in PBLs during the semester relating to Essential Optics Pty Ltd (eg. PBL 1 for Topic 2 when students were asked to develop the chart of accounts for Essential Optics Pty Ltd and PBL 2 relating to the opening party). Only use information contained in the case study provided to you.

Impairment testing has been conducted at 30 June 2014 in respect of all assets (including the leased motor vehicle). There is no indication that any asset shown in the Balance Sheet is impaired (excluding the BHP Billiton Ltd shares).

In the MYOB management accounts, no non-current asset has been revalued to fair value.

The legal expenses ($1,405), general expenses ($524) and repairs and maintenance ($850) shown in the Profit and Loss Statement are all tax-deductible.

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The motor vehicle expenses ($3,974) represent the running costs associated with the motor vehicle (including petrol and oil, registration, insurance and RACQ). Depreciation has not been calculated or included as part of this figure. These motor vehicle expenses have been paid directly by the company. In other words, there was no employee contribution or reimbursement in respect of the running costs of the vehicle.

The staff amenities ($958) shown in the Profit and Loss Statement relates to tea, coffee and biscuits purchased by the company and provided to employees for consumption on the business premises during morning and afternoon tea breaks.

The sundry expenses ($425) shown in the Profit and Loss Statement represent non-tax deductible expenses.

Workers compensation ($468) relates to the workers compensation premium paid to Workcover Queensland on behalf of the employees and is tax-deductible.

Insurance of $4,040 represents premiums paid by the company during the 2014 financial year to Ace Insurance in respect of both public liability insurance and directors and officer’s professional indemnity insurance.

Any adjusting journal entries made in MYOB (through the “Record Journal Entry” function) should be made without adjusting for the effects of the GST (except where otherwise indicated in the case study). Please date all of your MYOB adjusting journal entries as 30 June 2014.

In other words, all journal entries you decide to make to the MYOB data file provided should be made using the GST tax code “N-T” (except where otherwise indicated in the case study).

In terms of depreciation for accounting purposes, the company will adopt the following rules:

- it will depreciate tangible non-current assets in accordance with the rules and principles outlined in AASB 116 Property, Plant and Equipment;

- in determining the accounting useful lives of its depreciable assets, please refer to Table B of Taxation Ruling TR 2013/4. A copy of this taxation ruling has been placed on the Blackboard site. Only refer to the effective lives in Table A for the four (4) assets specifically indicated at Item 3 on page 17 of this case study;

- for those other depreciable assets not specifically mentioned in Taxation Ruling TR 2013/4 (eg. computer software and the fit-out), please refer to their statutory lives as prescribed in the ITAA (1997);

- assume that the residual value for all depreciating assets is $Nil; and - the company will use the straight-line depreciation method for all depreciable assets

(including the motor vehicle).

As previously noted, in the case of accounting depreciation journal entries, students are requested to combine depreciation amounts for each individual asset class and show depreciation per asset class (ie. leasehold improvements, property, plant and equipment, computer software and the leased motor vehicle).

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This should result in four (4) separate depreciation journal entries in MYOB. Do not put MYOB journal entries through for each individual asset listed on page 17 of the case study.

Please note that an accounting depreciation schedule is not specifically required to be prepared or submitted. However, students will still need to manually calculate depreciation in respect of all depreciable assets, as these will be the four figures that will result in the four depreciation journal entries required in MYOB.

A reminder that for accounting purposes, each individual asset should be depreciated over their useful lives based on the effective lives outlined as per Taxation Ruling TR 2013/4.

In the case of computer software, students should use the rates prescribed by the ITAA (1997). This should be the same rate used for accounting purposes.

In the case of fit-out costs (ie. leasehold improvements), students should use the Division 43 capital works allowance rate (prime cost). This should be the same rate used for accounting purposes.

In terms of depreciation for taxation purposes, being a small business entity (SBE), the company will depreciate those eligible depreciating assets using the simplified depreciation regime.

Despite the fact that the SBE depreciation rules changed with the repeal of the mining tax on 5 September 2014, we will continue to adopt the simplified depreciation rules that were in place not only as at 30 June 2014, but also as at 19 August 2014, being the date the company would be lodging its 2014 tax return).

In other words, for the purposes of this case study (i.e. for assets purchased between 1 July 2013 and 31 December 2013) you will need to adopt the former simplified depreciation rules, namely:

(a) an immediate 100% deduction applies in respect of depreciating assets costing less than $6,500 (GST- exclusive); and

(b) depreciating assets costing $6,500 or more (GST-exclusive) are automatically pooled and are depreciated in a general small business pool at the diminishing value rate of 30% per year (15% DV in the first year).

An SBE is also entitled to an instant write-off for the first $5,000 of the cost of any new or used motor vehicle, ute or van acquired from 1 July 2012 onwards. The remainder of the purchase price of the car is pooled and depreciated at 15% DV in the first year and 30% DV in subsequent income years.

Hence, the accounting depreciation figures put through in MYOB for Part A may not necessarily be the same depreciation figures for taxation purposes. Students may need to acquaint themselves with the rules relating to the simplified depreciation regime for SBE’s.

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Once again, whilst students are required to calculate tax depreciation in respect of depreciating assets, a tax depreciation schedule is not specifically required to be prepared or submitted.

The company is also keen to take advantage of any other SBE tax concessions that it may be eligible for.

In the case of any temporary differences, please calculate, record each individual DTA and/or DTL separately in MYOB. In other words, any journal entries relating to DTA’s or DTL’s should be shown as separate journal entries, not combined into one.

Furthermore, when drafting your external financial statements (and in particular, the notes to the financial statements), please show (ie. disclose) your deferred tax assets (DTA’s) and deferred tax liabilities (DTL’s) separately, rather than offset the two amounts in the financial statements. Some Australian companies elect to net off their DTA’s and DTL’s and show the net figure as an asset or liability in their Balance Sheet. In this case study, students are asked not to do this, but to show their DTA’s as an asset and their DTL’s as a liability (with relevant note disclosures).

All calculations should be made on a daily basis. The ATO has a useful facility where you are able to calculate the number of days, being:

http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Calculate_Days.x r4&go=ok.

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INTEGRATED ISSUES IN PROFESSIONAL PRACTICESTUDENT INTEGRITY DECLARATION

(MUST BE COMPLETED, SIGNED AND SUBMITTED BY EACH STUDENT)

DECLARATION

1. I have complied with all the unit coordinator's instructions for this assessment.

2. I understand that plagiarism involves using another person’s (or persons’) ideas or work as one’s own, as explained in the Manual of Policies and Procedures at C5.3 which is available at:

3. I understand that it is a breach of academic integrity to assist, or allow another person/s to copy our work.

4. I declare that this work is entirely my own, and no part of it has been copied from any other person’s (or persons’) words or ideas, except as specifically acknowledged through the use of inverted commas and appropriate referencing.

5. I declare that no part of this assessment has been written for me by any other person or persons except where such collaboration has been authorised by the unit co-ordinator concerned.

6. I give permission for our assessment to be reproduced (copied), communicated, compared with other sources and stored (including electronically) in order to detect plagiarism and agree that plagiarism detection software may be used.

7. I declare that this assessment has not been submitted, in whole or in part, for any other unit at or any other institution, unless authorised by the relevant unit co-ordinator.

I, the undersigned, declare that I have read, accepted and agree to the statements in the Declaration above, which are true and correct.

Student Number Student Name Signature

Note: If this declaration is not completed, signed and submitted, the case study will simply not be marked and the student will automatically receive a mark of zero out of 40 for the case study.

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INTEGRATED ISSUES IN PROFESSIONAL PRACTINTEGRATED CASE STUDY - CRITERIA SHEET – PARTS 1 TO

STUDENT NAME & STUDENT NUMBER: __________________________________________

FACILITATOR: _________________________________________

CRITERIA7 6 5

14.5 - 16 13 – 14 10.5– 12.5Higher Order Thinking (AOL 2.2) Takes a logical and Takes a logical and Takes a logical and Takes a s

coherent approach to and cohecoherent approach at all coherent approach tomost steps in the most step Recording the correct journal entries in MYOB (10 steps in the analysis of most steps in theanalysis of the case and of the casmarks) the case and correctly analysis of the case andcorrectly applies the the releva

Preparation of the 2014 company’s income tax return applies the relevant applies the relevantrelevant accounting principlesand one-page income tax reconciliation reconciling net accounting principles accounting principlesprinciples and to the varprofit for accounting purposes to the company’s taxable and techniques to the and techniques to thetechniques to the tasks in mincome (6 marks) various required tasks. various required tasks invarious required tasks. DemonstrDemonstrates a high most cases.Demonstrates effective critical thilevel of critical thinking Demonstrates soundcritical thinking as evidenthroughout as evidenced critical thinkingthroughout as evidenced accurateby the accuracy and throughout as evidencedby the accuracy and sound adprofessional quality of by the accuracy andprofessional quality ofdocuments and advice. sound quality ofdocuments and advice documents and advice.

CRITERIA7 6 5

16.5 - 18 14 – 16 11.5 - 13.5Knowledge and Skills (AOL 1.1) You have demonstrated A few minor mistakes in Some mistakes in Several m

complete accuracy in calculation and calculation and calculatiocalculation and Preparing the Annual Report (18 marks) preparation of annual preparation of the preparatiopreparation of annual report including the annual report including report increport including the external financial external financial financial sexternal financial statements and other statements and other other repstatements and other reports reportsreports

TOTAL:

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INTEGRATED ISSUES IN PROFESSIONAL PRACTINTEGRATED CASE STUDY - CRITERIA SHEET – PART 4

STUDENT NAME & STUDENT NUMBER: __________________________________________

UNIT CO-ORDINATOR:

CRITERIA7 6 5

5.5 -6 4.5– 5.5 3.75 – 4.25Teamwork and Self (AOL 4.1)Demonstrate reflective thinking, responsibility andaccountability for own learning and professionalpractice The student’s view on The student’s view on The student’s view on The stude

Self Reflection (6 marks) these issues was very these issues was clear these issues was clear these issuclear and there was and there was a good and there was a and theresubstantial support attempt at supporting satisfactory attempt at attempt ausing relevant and that view using supporting that view using view usinreliable references for relevant and reliable relevant and reliable reliable rethat view; the work references; work references; work reflects reflects fareflects excellent reflects good English good English expression English eEnglish expression with expression with the with the writing lacking the writinthe writing being fluent writing being fluent fluency on some and oftenand containing very few, and containing few occasions, and containing grammatiif any, grammatical and grammatical and some grammatical and errors.spelling errors. spelling errors. spelling errors.

TOTAL:

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INTEGRATED ISSUES IN PROFESSIONAL PRACTICE - NO NEED FOR STUDENTS T ONLY)PART 6: PROFESSIONAL APPROPRACH TO PRESENTATION (SATISFACTORY

CRITERIA MAXIMUM PENALTIES TO BE APPLIED(The maximum amount of penalties that can apply is to reduce the student's overall mark to

Meets all of the submission requirements Unsatisfactory Sof the assignment as per the instructions

Not using MYOB to do the journal entries

Not using Microsoft Word to prepare the financial statements

Not printing and not submitting the revised Profit and LossStatement and Balance Sheet from MYOB

Not submitting the Assessment Criteria Sheet

Not signing and/or not submitting the Student Declaration

Not submitting Part 4 as a separate Assignment Minder Submission

Submission of additional items which do not form partof the requirements listed in the case study

Not binding all sections of Parts 1 to 3 of the case studyand/or not binding the case study in the correct order specified

TOTAL PENALTIES APPLIED:

FINAL MARK OUT OF 40:

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