Hello, if you have any need, please feel free to consult us, this is my wechat: wx91due
ACCT7102 Individual Case Study Assignment:
Revenue Recognition: Acme Software Solutions
Weighting: 25% of final grade
Due Date: By 1pm, Thursday 16 May, 2024
Maximum Length: 1,200 words Individual
or Group Task: Individual
Task Description:
This financial reporting case study is designed to examine the specific application of case scenarios involving principally Topics 6 (Revenue recognition) and 7 (Assignment preparation and development). The case will be used to examine your report writing skills, general accounting knowledge, and ability to critically evaluate complex case scenarios.
NOTE: This case is to be undertaken individually, which means you are required to independently prepare your assignment.
|
ADDITIONAL GUIDANCE |
1. Criteria & Marking.
A full marking criteria sheet is available from TurnItIn and will be discussed in Seminar 7. In general, the case will assess your:
• accuracy of answer and interpretation of relevant accounting standards;
• presentation of a thoughtful and well-supported answer;
• clarity of analysis; and
• professional presentation (which will take into account grammar, appropriate use of technical language, spelling and punctuation).
Your submission will also be judged on its suitability for presentation to a fee-paying client.
2. Plagiarism.
All cases will be reviewed for plagiarism and independent content. At the University of Queensland, plagiarism is defined as follows:
Plagiarism is the act of misrepresenting as one's own original work the ideas, interpretations, words or creative works of another. These include published and unpublished documents, designs, music, sounds, images, photographs, computer codes and ideas gained through working in a group. These ideas, interpretations, words or works maybe found in print and/or electronic media.
You are encouraged to read the UQ Student Integrity and Misconduct policy (http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct) which makes a comprehensive statement about the University's approach to plagiarism, including the approved use of plagiarism detection software, the consequences of plagiarism and the principles associated with preventing plagiarism.
3. Use of Generative Artificial Intelligence (AI).
This assessment task evaluates students'abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
4. Late Submission.
An assignment (for which no extension has been granted) submitted after the due date and time, will incura late submission penalty. The penalty is at the rate of 5% (0.4 of a grade) of the total available marks for that particular piece of assessment, for each calendar day or part thereof that the item is overdue. Late assignments may be submitted through TurnItIn since all assignments automatically have a time/date stamp of when they are submitted. However, please contact the course coordinator if you are submitting a late assignment.
5. Length.
The maximum word limit is strictly 1200 words (excluding a reference list and any figures and tables). Any material exceeding the word limit will not be read and the mark for the assignment will be based on the material up to the point where the word limit was exceeded. The total number of pages, including Appendices, should not exceed 10 pages.
6. Referencing Style.
You are required to use the APA (seventh edition) style for in-text citations and your
reference list. Details of the APA (7 ed.) referencing style are available from the
Library guide at: https://guides.library.uq.edu.au/referencing/apa7. It is critical that the referencing style is consistently applied.
7. Format of Assignment.
The assignment is to be prepared as a Word document using 12 point font with 1.15 line spacing, and 2.54cm margins (left, right, top and bottom). The questions may be included as headings and will not be included in the word count. Please include your full name and student number as part of the file name, e.g., ‘347185_Kathleen Herbohn’ .
8. Submission.
The assignment is to be submitted through TurnItIn, which is available in a separate case study assignment submission folder on the course’s blackboard website. If you experience problems uploading your assignment before the due date please contact AskIT for help, and continue to try to upload the assignment until you are successful. A link to the AskIT instructions on TurnItIn is as follows: <https://www.library.uq.edu.au/ask-it/turnitin-assignments>. Note that assignment submission is a three-step process and it is your responsibility to check the assignment preview and confirm that the assignment has been successfully submitted. You will need to keep a copy of the Submission ID as proof you have submitted the assignment. You can submit as many times as you wish, and only the latest submission will be marked.
|
Case Study Assignment Questions |
(The facts below are to be used in answering ONLY Questions One and Two).
On 1 March, 2024 Acme Software Solutions entered into a contract with one of its major customers, Mr Joshua Jarvis. The two-year contract transfers a software licence for “No Sweat Software” (Acme Software Solution’s best-selling product), as well specifying that Acme Software Solutions will perform an installation service and provide unspecified software updates and technical support(online and telephone)over the two-year period.
The installation service includes changing the web interface for each type of user (for example, marketing, inventory management and information technology). The installation service is routinely performed by other entities and does not significantly modify the software. Additionally, the software remains functional without the updates and the technical support.
Although Mr Jarvis has purchased the licence, installation service, unspecified software updates and technical support together, Acme Software Solutions sells them separately to customers as well. In fact, over half of the company’s revenue is derived from separate sales of the licence, installation service and technical support.
Acme Software Solutions is a large Australian company and so complies with the requirements of AASB 15 ‘Revenue from Contracts with Customers’ .
|
QUESTION ONE (8% out of 25%) |
Identify the number of performance obligations contained in the contract between Acme Software Solutions and Mr Jarvis. Provide explanations to support your answer.
(Hint: Your answer should discuss the requirements of AASB 15 and how they apply to the facts of the case).
|
QUESTION TWO (6% out of 25%) |
The accounting standard AASB 15 requires that revenue allocated to a performance obligation is recognised when (or as) the performance obligation is satisfied. A performance obligation is satisfied when the customer obtains control of that good or service (para. 31, AASB 15).
REQUIRED:
For each performance obligation identified in Question One, explain with reference to AASB 15 whether revenue would be recognised by Acme Software Solutions at one point in time, or over the course of the two-year contract.
|
QUESTION THREE (8% out of 25%) |
When AASB 15 became effective for reporting period beginning on or after 1 January 2018, it changed existing accounting practice. In particular, it changed the way in which revenue was recognised, measured and disclosed (i.e. accounting effects). Since revenue is an important component of reported earnings,AASB 15 potentially influenced reported earnings.
Assume that compliance with AASB 15 reduced the total reported earnings of Acme Software Solutions. (Note: This question does not relate to the facts of the case and is to be answered more generally).
REQUIRED:
PART A (4%):
Would this reduction in reported earnings create potential incentives for the managers of Acme Software Solutions to manage earnings upward?
Explain using Agency Theory and two examples of potential contracts between Acme Software Solutions and its internal and external stakeholders.
PART B (4%):
“Generally, earnings can be managed by using accounting accruals and/or managing the timing of real transactions.”
Do you agree with this statement? Justify your answer with reference to at least two high- quality academic journal articles.*
* For the purpose of this assessment, high quality academic articles are articles published in the following journals:
|
Accounting Auditing and Accountability Journal Accounting, Organizations and Society Auditing: A Journal of Practice and Theory Journal of Accounting Research British Accounting Review Contemporary Accounting Research Journal of Accounting and Economics Journal of Business Finance & Accounting Journal of Management Accounting Research Management Accounting Research Review of Accounting Studies The Accounting Review The European Accounting Review Abacus Accounting and Business Research Accounting and Finance |
|
PROFESSIONAL AND EFFECTIVE WRITING SKILLS (3% out of 25%) |
Marks will be allocated for effectiveness of the written communication, clarity of expression, and referencing.