Assessment Criteria: 

Student work will generally be assessed in terms of the following criteria:

1. Effectiveness of communication - ie readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.

2. Demonstrated understanding - This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. Few, if any, accounting concepts are scientific facts and stereotype answers will demonstrate poor understanding on the part of the student.

3. Evidence of research - This will be evidenced by the references made to the statutes, accounting standards, books, journal articles and inclusion of a bibliography.

Note:

 

1. All written work must conform with the University of Ballarat General Guide for the Presentation of Academic Work.

 

2. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.

 

Part A (7.5 marks)(1,000 words)

As accounting standards globalise, the standard setting bodies face the challenge of accommodating the Islamic prohibition on interest, and other aspects of Sharia law, into money making.

There are two contrasting views on how to account for Islamic financial transactions.

a) A separate set of Islamic accounting standards is required; or

b) International Financial Reporting Standards can be applied to Islamic financial transactions.

The differing approaches to accounting for Islamic financial transactions can be generally attributed to opposing views on two main points of contention.

a) The acceptability of reflecting a time value of money in reporting an Islamic financial transaction; and

b) The conventional approach of recognising and measuring the economic substance of a transaction, rather than its legal form.

Discuss

Part B (10 marks) (1,200 words)

In the Australian accounting sphere the concept of due process is applied within the institutional arrangements for regulating financial reporting and falls particularly within the promulgation of accounting standards.

a) What is due process.

b) Is there a difference in due process in law and the due process as applied within the accounting standard setting regime

c) What is procedural due process and substantive due process. Is there a difference and if so what is it.

Part C (7.5 marks) (1,000 words)

It is well documented that the setting of accounting standards is the outcome of a political, rather than a technical or economic, process. Regulatory bodies endeavour to balance the competing demands and views of lobbyists, while also being mindful of their own situation and the extent to which their activities fall within the ambit of their political masters.

If accounting rules have widespread and significant economic and social implications, then proposed accounting rules would be of interest to many individuals and groups, whose wealth and welfare may be affected.

Lists of Exposure Drafts

Proposed Amendments to AASB 132 Financial Instruments: Presentation and AASB 101 Presentation of Financial Statements 150

Australian Additions to, and Deletions from IFRSs 151

Proposed Amendments to AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards – Cost of an Investment in a subsidiary 152

Proposed Amendments to AASB 124 – Related Party Disclosures – State-controlled Entities and the Definition of a Related Party 153

Proposed Amendments to AASB 102 – Inventories Held for Distribution by Not for Profit Entities 154

Financial Reporting by Whole of Governments

155

Proposals Arising from the Short-term Review of the Requirements in AAS 27, AAS 29 and AAS 31” 156

Joint Arrangements 157

Proposed Amendments to AASB 139 Financial Instruments: Recognition and Measurement – Exposures Qualifying for Hedge Accounting  158

Proposed Improvements to Australian Accounting Standards 159

Proposed Amendments to AASB 1 First-time Adoption of International Financial Reporting Standards and AASB 127 Consolidated and Separate Financial Statements - Cost of an Investment in a Subsidiary, Jointly-Controlled Entity or Associate 160

Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 - Group and Treasury Share Transactions - Group Cash-settled Share-based Payment Transactions  161

Proposed Amendments to Key Management Personnel Disclosures by Disclosing Entities 162

Proposed Amendments to AASB 1049 for Consistency with AASB 101  163

An improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information 164

Proposed Improvements to Australian Accounting Standards 165

Simplifying Earnings per Share: Proposed Amendments to AASB 133 166

Discontinued Operations: Proposed Amendments to AASB 5 167

Additional Exemptions for First-time Adopters: Proposed amendments to AASB 1 168

Improving Disclosures about Financial Instruments: Proposed amendments to AASB 7 169

Relationships with the State Proposed amendments to AASB 124 170

Consolidated Financial Statements 171

Embedded Derivatives (Proposed Amendments to AASB Interpretation 9 and AASB 139) 172

Investments in Debt Instruments (Proposed Amendments to AASB 7) 173

Amendments to Australian Accounting Standards to facilitate GAAP/GFS Harmonisation for Entities within the GGS 174

Post-implementation Revisions to AASB interpretations 175

Proposed Amendments to Australian Accounting Standards - Borrowing Costs of Not-for-Profit Public Sector Entities 176

Derecognition (Proposed Amendments to AASB 139 and AASB 7) 177

Income tax 178

Superannuation Plans and Approved Deposit Funds 179

Income from Non-exchange Transactions (Taxes and Transfers) 180

Fair Value Measurement 181

Prepayments of a Minimum Funding Requirement 182

Management Commentary 183

Financial Instruments: Classification and Measurement 184

Rate-regulated Activities 185

Classification of Rights Issues (proposed amendment to AASB 132) 186

Discount Rate for Employee Benefits (proposed amendments to AASB 119) 187

Improvements to IFRSs 188

Financial Instruments: Amortised Cost and Impairment 189

Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters (proposed amendment to AASB 1) 190

Measurement of Liabilities in AASB 137 (Limited re-exposure of proposed amendment to AASB 137) 191

Revised Differential Reporting Framework 192

Conceptual Framework for Financial Reporting: The Reporting Entity 193

Request for Comment on IPSASB Exposure Draft 'Service Concession Arrangements: Grantor’ 194

Defined Benefit Plans (proposed amendments to AASB 119 195

Fair Value Option for Financial Liabilities 196

Exposure Draft 197 – Presentation of Items of Other Comprehensive Income  197

Revenue from Contracts with Customers 198

Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (Limited re-exposure of proposed disclosure 199

200A Proposals to Harmonise Australian and New Zealand Standards in Relation to Entities Applying IFRSs as Adopted in Australia and New Zealand 200

200B Proposed Separate Disclosure Standards 

Choose ten Exposure Drafts between ED150 and ED200 and  comment on who is submitting (Go to the AASB site) and any other generalities you consider interesting.