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ACCT2011 Financial Accounting A
Group Assignment Instructions and Guidelines
Completed Group Assignment: Due 5pm (Sydney time) Monday 2 May 2022
Draft Part A Response: Due 5pm (Sydney time) Monday 4 April 2022
A panel of practitioners from HLB Mann Judd will review and provide feedback on draft Part A
responses. As per assessment criteria and rubric included in Appendix 1 to this assignment, up to 2
marks of the total marks is for the Practitioner Review Part A response submission. This mark will
be awarded when the completed group assignment is graded.
1. Background Information for Group Assignment
NewCare Ltd (NewCare) is a listed carbon technology company that provides low carbon consultancy services
to clients. NewCare is planning to internally develop “Project InfoCare”, a unique information technology platform
that will monitor, calculate, and report a client’s carbon output according to prescribed environmental
sustainability metrics. NewCare’s Information Technology Division (ITD) will be responsible for the research and
development phases of Project InfoCare. While NewCare has not undertaken any targeted InfoCare market
research, the directors believe the information technology platform will provide significant strategic benefits and
have given ITD an unlimited budget for Project InfoCare.
According to the Project InfoCare timeline, ITD will commence work on 1 January 2022 and the proposed
information technology platform will be available for client use from 1 February 2023. NewCare is expecting two
(2) revenue streams from the InfoCare information technology platform, a separate single use stream and a low
carbon competitiveness package stream that will also include revenue from ongoing consultancy services.
NewCare anticipates client contractual arrangements for both revenue streams will be established from 1
December 2022 with a service start date of 1 February 2023.
NewCare uses a 31 December year-end balance date and has adopted AASB 138:Intangible Assets and AASB
15: Revenue from Contracts with Customers.
NewCare has recently onboarded you as graduate financial accountant reporting directly to the Financial
Controller. On your first day, you receive the following email from the Financial Controller:
“Hi, welcome to the team. Have assigned the financial reporting implications of Project InfoCare task to you.
Please focus on the recognition issues for the anticipated costs of each phase and expected revenue streams.
Looking forward to working with you.”
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2. Assignment Questions
Responses to the following questions will be considered on their ability to present relevant information and
develop well supported arguments. Do not submit a series of dot points. Please note Part C requires your group
to prepare a persuasive extended essay response. Marks will be awarded for content as well as structure, and
quality of the communication.
REQUIRED:
Your Part A and Part B responses are to be presented in a short answer format.
(Hint: You may wish to present some of your Part A responses in a table with headings. Below is a suggested
form of presentation. This can be adapted to a landscape page orientation.)
Part A (b)(i) Part A (b)(ii)
Part A (14 marks in total, 12 marks for final submission, 2 marks for Practitioner Review Part A submission)
(a) Identify and describe, in your own words, one (1) key financial reporting issue for the recognition of
Project InfoCare costs in NewCare’s financial statements for the year ended 31 December 2022.
(b) Using information from the background to this assignment, explain why this is a key financial
reporting issue from the perspective of:
(i) the AASB Conceptual Framework 2019 definitions of the elements of the financial
statements. Relevant paragraph reference(s) from the Conceptual Framework are required in
your answer; and
(ii) NewCare’s shareholders.
(c) Discuss how:
(i) AASB 138: Intangible Assets addresses the key financial reporting issue identified in your
Part A (a) answer. Include references to appropriate paragraph(s) from AASB 138; and
(ii) NewCare should apply AASB 138 to the Project InfoCare costs recognised in its 31
December 2022 financial statements. Include at least one (1) anticipated Project InfoCare
transaction as an example.
Part B (6 marks)
(Hint: You may wish to present your Part B responses in a table with headings. Below is a suggested form of
presentation. This can be adapted to a landscape page orientation.)
Revenue stream Part B (a) Part B (b)
Consider AASB 15:Revenue from Contracts with Customers and the two (2) expected revenue streams from
Project InfoCare. For each expected revenue stream:
(a) Identify and describe one (1) transaction specific professional judgment that would be required when
recognising the revenue stream in NewCare’s financial statements; and
(b) Explain how the AASB 15 requirement(s) will assist with the transaction specific professional
judgment.
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Part C (20 marks)
Your Part C response is to be presented in an essay format.
“In regard to guidance for recognition of transactions in entities financial statements, principle-based
accounting standards are not always perfect”.
Discuss this statement. Your persuasive response should include:
• an introduction;
• one (1) for argument point supporting this statement;
• one (1) alternative argument point that refutes this statement; and
• a conclusion that includes a final opinion and valid reason(s).
Both argument points are to be accompanied by supporting example(s) developed from your Part A (including
draft Part A response and feedback) and Part B responses, evidence and/or academic reference(s)*#.
*Supporting examples from your Part A and Part B responses must explain in detail how and why they support the argument point.
#Your references should be from papers published in peer reviewed academic journals. Not internet sources such as Wikipedia, not
ACCT2011 course materials such as the Semester 1 2022 slides and tutorial materials, and not textbook chapter references, such as
the Henderson et al textbook. Please look at the library resources for assignment link on the Group Assignment Canvas page for
guidance.
