ACC518 Current Developments in Accounting Thought - Additional Assignment
Short Critical Essays
Due date: 24-December-2016
Length: 3,000 words (guide)
Task
Question 1 - 4 marks (1000 words)
Mather and Peison (2006) report that public debt contracts tend to have a lower average number of accounting based debt covenants as well as less binding debt covenants relative to private debt contracts. (For example, in relation to debt-to-asset constraints in both public and private debt agreements, the covenants in the public debt agreements were found to be “looser: meaning that the ratio percentage is typically higher in the public debt contract.)
You are required to write an essay explaining why this would be the case, supporting your arguments with references to Mather and Peirson (2006) and other relevant sources.
Question 2 - 4 marks (1000 words)
Assume that a government regulator makes a decision that all companies with a dead office in Australia must separately disclose, within their annual financial reports, the amount of expense incurred in relation to the training of employees. The companies must also spend at least 5 per cent of their reported profits on training employees.
You are required to write an essay that
a) Explains the decision made by the regulators in terms of public interest theory
b) Explain the decision made by the regulator in terms of the economic interest group theory of regulation.
Support your arguments with references in APA 6 style from relevant sources.
Question 3 - 4 marks (1000 words)
Identify a listed company, and then
a) Identify at least one positive and one negative externality generated by the organisation and identify the stakeholders affected by the externalities.
b) Would these externalities directly impact on the income or expenses (and therefore profit) of the organisation?
c) In your opinion, is the failure to recognise externalities a fundamental limitation of our current financial reporting requirements? Explain your answer.
Academic Writing and Referencing - 4 marks
Marking criteria
Question 1:
High Distinction
Distinction
Credit
Pass
Description and
Exemplary description of all of Clear Clear
Correct interpretation of the 1
identification of relevant the key issues and underlying description/identification of description/identification of question, issues identified
theories (SLO 4) assumptions thoroughly the issues and theories. the issues. Definitions of and outlined.
articulated. A high level of Examples are used to clearly the concepts provided to
understanding demonstrated.
examine the alternatives. Underlying assumptions discussed.
clearly outline the essay.
Critical Capacity and use Response provides a clear, Response provides a clear, Response provides a Some evidence of basic 3
of Source Material: Does deep and critical analysis of deep and critical analysis of clear, deep and critical critical thought in relation to
the response demonstrate both the issues and the issues that draws on a analysis of the issues that the issues that is based on
and analyse the reasons demonstrates a very high level wide variety of source draws on source material only one source.
behind the differences of understanding of the material as well as the as well as the students
between public and underlying theories. Well students own thoughts. own thoughts.
private debt agreements?
communicated and supported, relying on a wide variety of source material.
Question 2:
High Distinction
Distinction
Credit
Pass
Explains the decision in Response provides a clear, Response provides a clear, Response provides a clear Some evidence of basic 2
terms of public interest deep and critical analysis that deep and critical analysis analysis and evaluation of critical thought in relation to
theory (SLO 4) draws on source material as that draws on source the various perspectives the various perspectives
well as the students own material as well as the that draws on a variety of that is based on only one
thoughts. A well students own thoughts. The source material. The source. A simplistic but
communicated and supported conclusion demonstrates a conclusion demonstrates a clear conclusion is
conclusion is reached.
high level of understanding.
solid understanding of the topic. reached.
Explains the decision in Response provides a clear, Response provides a clear, Response provides a clear Some evidence of basic 2
terms of public interest deep and critical analysis that deep and critical analysis analysis and evaluation of critical thought in relation to
theory (SLO 4) draws on source material as that draws on source the various perspectives the various perspectives
well as the students own material as well as the that draws on a variety of that is based on only one
thoughts. A well students own thoughts. The source material. The source. A simplistic but
communicated and supported conclusion demonstrates a conclusion demonstrates a clear conclusion is
conclusion is reached.
high level of understanding.
solid understanding of the topic.
reached.

Question 3:
High Distinction
Distinction
Credit
Pass
A listed company and one A detailed explanation of the A company is identified, A company is identified, A company is identified, 1
positive and one negative terms is provided, externalities are identified externalities are identified externalities are identified
externality are correctly demonstrating a high level of and clearly and correctly and clearly and correctly and clearly and correctly
identified. Affected understanding of the context linked to stakeholders. An linked to stakeholders. A linked to stakeholders.
stakeholders are of the information in relation to advance explanation of the clear and concise
identified. (SLO2 the question. The terms are terms is provided. explanation of the terms is
explained with the additional use of examples.
provided.
Impact of externalities on The essay correctly identifies
The essay correctly identifies The essay correctly
The essay correctly .5
financial reports. (SLO2). the impact on the profit of the the impact on the profit of the identifies the impact on the identifies the impact on the
organisation. The student's organisation. Further profit of the organisation. profit of the organisation.
perspective is clearly comments on other relevant
articulated and supported providing an insightful perspective on the issues surrounding financial reporting. Further comments on other relevant financial impacts. financial impacts.
Recognition of limitations Response provides a clear, Response provides a clear, Response provides a clear Some evidence of basic 2.5
for financial reporting. deep and critical analysis that deep and critical analysis analysis and evaluation of critical thought in relation to
draws on source material as that draws on source the various perspectives the various perspectives
well as the student's own material as well as the that draws on a variety of that is based on only one
thoughts. Well communicated and supported.
student's own thoughts.
source material.
source.
Academic Writing: Is the Accurate use of syntax, Accurate use of syntax, Accurate use of syntax, Mostly accurate syntax, 2
answer well written, easy spelling and punctuation. A spelling and punctuation; vocabulary, spelling and spelling and punctuation,
to follow and understand? sophisticated vocabulary is succinct and effective use of punctuation. Writing is language is simplistic but
appropriately used. Answer is vocabulary. Clear expression easy to follow and appropriate.
logically structured with arguments coherently developed and supported. and structure.
understand.
Adherence to referencing Reference list included with
Reference list and in-text Reference list and in-text Reference list provided, 2

guidelines correct adherence to referencing performed in referencing performed formatted in APA style with
referencing guidelines. Correct accordance with APA largely in accordance with minor errors. Some in-text
in-text referencing is provided.
guidelines.
the APA guidelines.
referencing provided with minor errors
Total
16

Requirements
For this assessment you are required to use APA 6 referencing to acknowledge the sources that you have used in preparing your assessment. Please refer to the CSU referencing guide http://student.csu.edu.au/study/referencing-at-csu. In addition a very useful tool for you to use that demonstrates how to correctly use in text referencing and the correct way to cite the reference in your reference list can be found at https://apps.csu.edu.au/reftool/apa-6