Corporate Reporting (ACC2CRE)

Group Case Study 20%

Due date: Friday (5.00pm), 9 September 2016
1. The assignment is a compulsory group assignment and is worth 20%
of the total marks of the subject.
2. The group should be comprised of four (4) students. It is the
responsibility of students to form the groups. Only one copy of the
group assignment must be submitted on behalf of the group by one
of the group members.
3. You must keep a copy of your assignment (in hard copy form) until
you receive the marked original back. If your assignment is lost and
you fail to provide us with a copy of the assignment when requested,
we will assume the assignment was not written and the penalties for
late assignment will be applied.
4. The assignment must be presented in a professional manner (word
processed).
5. Submissions must be properly referenced (refer to the University
Style Guide).
6. Plagiarism is a serious matter; all students involved will be
referred to the Universitys appropriate authority.
7. Late submission will incur a penalty of one mark per day including
the weekend. Late submission must be lodged with Course
Coordinator only.

8. Application

for

extensions

must

be

lodged

with

the

Course

Coordinator before due date in writing for granting an extension

(medical problems etc.).
9. Assignment must be submitted through the LMS.
Note 1: Word limit 2,000.
Question 1 (5 Marks) (Word Limit = 1000 words)
(a) Deegan (2012) states that Australian companies are producing
stand-alone social report since early 1990s. Critically discuss the
above statement and briefly explain the motivations for social and
environmental reporting.
Reference:
Deegan, C. 2012. Australian Financial Accounting (7th Edition), Irwin
McGraw-Hill, Australia
(b) Obtain the 2013 sustainability report for Toyota Motor Corporation.
Prepare a report that addresses the following issues:
1.
Toyotas vision and mission statement, and how these might
relate to sustainability (if at all)
2.
Toyotas stakeholders and how the company has engaged with
each of stakeholder group
3.
Governance mechanisms in place on the board of directors to
address sustainability
4.
Any guidance Toyota used in implementing environmental and
social performance and reporting systems.

Question 2 (10 Marks) (Word Limit = 500 words)

The summarised general ledger trial balance of Matthew Ltd, a
manufacturing company, for the year ended 30 June 2016 is detailed
below.

Additional information
(a) $20 000 of bank loans is repayable within 1 year.
(b) $90 000 of other loans is repayable within 1 year.
(c) Matthew Ltd uses the single statement format for the statement of
profit or loss and other comprehensive income and presents an analysis of
expenses by nature in the statement.
Required:
(1)
Prepare the statement of financial position, statement of profit
or loss and other comprehensive income and statement of changes
in equity of Matthew Ltd for the year ended 30 June 2016 in
accordance with the requirements of AASB 101/IAS 1.
(2)
Prepare relevant notes (explanations) to the financial
statements according to comply with relevant accounting
standards.

Question 3 (5 Marks) (Word Limit = 500 words)

The profit before tax, as reported in the statement of profit or loss and
other comprehensive income of Mackay Ltd for the year ended 30 June
2018, amounted to $60 000, including the following revenue and expense
items:
Rent revenue
Bad debts expense
Depreciation of plant
Annual leave expense
Entertainment
costs
(nondeductible)
Depreciation of buildings (nondeductible)

$3
6
5
3
1

000
000
000
000
800
800

The statement of financial position of the company at 30 June 2018

showed the following net assets.
2018
Assets
Cash
Inventories
Receivables
Allowance for doubtful debts
Office supplies
Plant
Accumulated depreciation
Buildings
Accumulated depreciation
Goodwill (net)
Deferred tax asset
Liabilities
Accounts payable
Provision for long service
leave
Provision for annual leave
Rent received in advance
Deferred tax liability

8 000
17 000
50 000
(5 500)
2 500
50 000
(26
000)
30 000
(14
800)
7 000
?
29 000
6 000
4 000
2 500
?

2017
8 500
15 500
48 000
(4 000)
2 200
50 000
(21 000)
30 000
(14 000)
7 000
4 050
26 000
4 500
3 000
2 000
3 150

Additional information
(a) Accumulated depreciation of plant for tax purposes was $31 500 at 30
June 2017, and depreciation for tax purposes for the year ended 30 June
2018 amounted to $7500.
(b) The tax rate is 30%.
Required:
Prepare a current tax worksheet and the journal entry to recognise the
6

companys current tax liability as at 30 June 2018. Also provide workings

for allowance for doubtful debts, provision for annual leave, provision for
long service leave and rent received in advance.