MAA725 Advanced Accounting Principles and Practice

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Trimester T1, 2020
Assessment 2

HURDLE DETAILS: 15 May 2020, 11:59 PM
Learning Outcome Details

Unit Learning Outcome (ULO) Graduate Learning Outcome
ULO 1: Explain, evaluate and apply a range of advanced
accounting theories and standards. GLO 1
ULO 2: Identify, define and integrate to construct explanations
that can inform solutions to relevant accounting issues. GLO 2
Assessment Feedback:
Feedback on assignments will be provided via CloudDeakin by 15 Deakin University business days
from the due date or the approved extension date, whichever is later.
Failure to submit your work on time will affect the assessment process for your assessment and your
final result for the unit.
Description / Requirements
This assignment is an individual assignment and consists of two tasks. Please complete each task by
using tables and/or spaces provided in another document titled “Answer sheet for Assessment 2”
under the folder “Assignment 2” on clouddeakin.
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Task One
It is stated under AASB 2 ‘Share based payment’ that companies must value and record as an expense
any options granted to employees in exchange for their services. Previously Australian companies
recorded share-based payments in the notes to the financial statements, arguing that share-based
payments did not cost the company anything.
a) Explain the reasoning that led to the development of AASB 2 ‘Share based payment’.
b) Discuss briefly the possible economic implications of AASB 2.
(10 marks)
Task Two
Sampras Ltd issued $20 million of convertible notes on 1 July 2020. The notes have a life of 6 years
and a face value of $20 each. Annual interest of 5% is payable at the end of each year. The notes
were issued at their face value and each note can be converted into one ordinary share in Sampras
Ltd at any time over their lives. Organisations with a similar risk profile to Sampras Ltd have issued
debt with similar terms but without the option to convert at the rate of 7% per annum.
a) Identify the present value of the notes and calculate the equity component of the convertible
b) Provide the appropriate accounting entries to record i) the issue of the convertible notes; ii)
the first payment of interest; iii) the conversion of convertible notes into shares on 30 June
(10 marks)
Submission Instructions
This assignment must be submitted electronically by the due date as a Microsoft Word document
by uploading all documents to the respective assignment dropbox, via the MAA725 site on
CloudDeakin. Each student has to submit their own individual assignment 2, into assignment 2
dropbox. Specifically, when uploading your assignment 2, the document must be given a name using
the following syntax: _MAA725.doc (or ‘.docx’) (for example,
123456789_MAA725.doc). Submitting a hard copy of this assignment is not required.
Students who anticipate possible difficulty in lodging this assignment online (for example, being in
a remote place on the due date with no computer access) must contact the Unit Chair at least one
week prior to the due date in order to make alternative arrangements for submission.
Page 3 of 5
Extensions can be granted for unexpected circumstances such as serious illness or for
compassionate reasons under special circumstances. Extensions can only be approved by the Unit
Chair. Requests for time extensions should be emailed to the Unit Chair AT LEAST ONE BUSINESS
DAY BEFORE (24 business hours before) the due date of submission. You will need to provide
evidence to support your request (for example, medical certificate) and a draft of the work
completed to date. No extension exists until such time as it is approved in writing by the Unit Chair.
For requests after the due date please submit your request to Special Consideration
Work or holidays or other assignments are NOT grounds for an extension – you are expected to
manage these issues as part of your studies. You are strongly encouraged to start early and to
continually backup your assignment as you progress. Computer crashes or corrupted files will NOT
be accepted as valid reasons for an extension of any length.
Please note, assignments that are submitted late (including those that have extension approved by
the unit chair) will still be able to be submitted through the Dropbox. However, the system will show
the submission date/time in red.
It is important that students familiarize themselves with the online submission procedures well
before the due date for this assignment. The most common problem when submitting an
assignment electronically is an improperly configured Internet browser. Students can test if their
browsers are properly configured. This can be done from the CloudDeakin homepage. The Unit Chair
does not accept excuses for late, incorrect or incomplete submissions of assignments due to
problems with uploading them to Turnitin. Check your ability to submit electronically at the outset
of this trimester and advise staff via CloudDeakin if you are having a problem. It is the responsibility
of each student to keep backup copies (both soft and hard) of their assignments. The Unit Chair will
not accept excuses for late submissions due to computer-related matters (e.g., lost documents, virus
infected documents, hardware failure, stolen computers, etc.). Back up your draft copies of your
assignment in progress often and to a remote device for safe-keeping.
You must keep a backup copy of every assignment you submit, until the marked assignment has
been returned to you. In the unlikely event that one of your assignments is misplaced, you will need
to submit your backup copy.
Any work you submit may be checked by electronic or other means for the purposes of detecting
collusion and/or plagiarism.
When you are required to submit an assignment through your CloudDeakin unit site, you will receive
an email to your Deakin email address confirming that it has been submitted. You should check that
you can see your assignment in the Submissions view of the Assignment dropbox folder after
upload, and check for, and keep, the email receipt for the submission.
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 Penalties for late submission: The following marking penalties will apply if you submit an
assessment task after the due date without an approved extension: 5% of the total available
mark will be deducted from the final mark achieved for each day up to five days, and work
that is submitted more than five days after the due date will not be marked. You will receive
0% for the task. ‘Day’ means calendar day for electronic submissions. The Unit Chair may
refuse to accept a late submission where it is unreasonable or impracticable to assess the task
after the due date.

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