Subject Code: ACCM4200
Subject Name: Financial Accounting and Reporting 1
Assessment Title: Individual Assignment
(Technical 15%) and (Communication skills10%)
Learning Outcome 4: Develop information gathering (research) and communication
strategies to enable the provision of professional advice to a client.
Objective: The objective of this assignment is to learn to effectively research a
technical aspect of accounting and communicate professional advice to a client, via a
Background to the case study:
Assume that you are a graduate accountant working for Magenta and Associates a
public accounting firm situated at 718 Geelong Street, Melbourne, VIC 3000. The
manager of your firm, Ms. Lisa Magenta has asked you to draft a letter in response to
an email received from a client – Mr. Christopher Sampson, the Managing Director of
Beachlife Ltd, raising a number of issues regarding his company – see the copy of the
email on the next page.
The maximum length of the letter is 1,250 words (excluding any calculations).
Part A: Technical component 15% – This mark covers the technical content of
your advice and the explanation on each of the issues, the calculations and the
Part B: Communication Skills – Letter Writing 10% – This mark covers the
generic skills of business letter writing; layout, clear meaning, structure and
organisation, appropriate tone and grammar, spelling and punctuation etc.
The assignment is designed to test the following skills:
1. Your knowledge and your ability to research the issues and then apply the
information appropriately using judgement to correctly identify the relevant
standards and legislation that relate to the issues raised by the client.
2. Your written communication skills – business letter writing
ACCM4200 FAR1 Assignment Information Page 2 of 3
Please note: Any work which has been copied or shared between students will result
in a Fail grade for both students concerned. Therefore, please make sure that the
answer to this individual assignment is your own work and not copied or bought from
any source. In completing this assignment make sure you follow the guidelines for
assignments especially those relating to the presentation of written work, late
assignment policy and academic integrity.
Please check the marking rubric for each part to ensure that you have followed all the
guidelines for presenting your work.
Re: Accounting Issues: Year Ending 30 June 2018
From: Christopher Sampson (chrissampson@beachlifeLtd.com.au)
Sent: 13 November 2017
To: Lisa Magenta (email@example.com)
Thank you for your phone call this morning, as agreed I am emailing you regarding
the accounting issues we briefly discussed. By the way to assist the accounting team
in our decision-making process could you please make sure you reference any
relevant sources relating to your advice, for example, AASBs, Corporations Act, and
1. At our recent board meeting, several directors raised concerns about an intangible
asset relating to a brand name ‘Sun ‘n Surf Shirts’ which has been successfully
developed by the business over the past decade. The directors want to recognize
$800,000 for this asset as at 30 June 2018, being a ‘directors’ valuation’.
Could you please provide advice on the correct presentation of such intangible
assets and any potential changes in accounting policy?
2. Our company has recently entered into an agreement to sell equipment to
Goodsports Ltd for $90,000 on 1 December 2017. Beachlife Ltd will deliver the
equipment on 10 December 2017, with payment due on 30 December 2017.
The agreement states that, from the date of delivery, Beachlife Ltd must
provide maintenance for this equipment for the first 12 months. Goodsports Ltd is
entitled to a refund of 15% of the amount paid if Beachlife Ltd does not
satisfactorily maintain the equipment for the year as required. Beachlife Ltd
estimates the fair value of maintaining the equipment throughout the year to be
The board cannot agree on the appropriate accounting treatment for this sale
agreement. Could you please provide advice on the correct presentation of the
revenue and related costs?
ACCM4200 FAR1 Assignment Information Page 3 of 3
Please respond by letter (not email) as I would like to present this to the Board. I look
forward to hearing from you in the near future.
Managing Director, Beachlife Ltd
Level 7, 927 William Street,
Brisbane QLD 4000
Hint: Remember that your firm plans to charge the client for your advice; as a
check ask yourself if you would pay for the advice you have drafted!