As part of the formal assessment for the programme you are required to submit a Professional, Statutory and Current Accounting Issues assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments. Learning Outcomes: After completing the module, you should be able to:
1. Examine current developments in the international harmonisation of accounting and financial reporting, including real-life applications
2. Critically analyse the challenges of international accounting, such as those faced by accountants, auditors, preparers, users and regulators
3. Critically appraise the role of international financial institutions such as the World Bank and IMF
4. Evaluate possible solutions to current accounting issues
5. Demonstrate an awareness, understanding and appreciation of current research
Guidance Your assignment should include: a title page containing your student number, the module name, the submission deadline and the exact word count of your submitted document; the appendices if relevant; and a reference list in AU Harvard system(s). You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work.
You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.
Question 1 Whilst acknowledging the importance of high-quality corporate reporting, the recommendations to improve it are sometimes questioned on the basis that the marketplace for capital can determine the nature and quality of corporate reporting. It could be argued that additional accounting and disclosure standards would only distort a market mechanism that already works well and would add cost to the reporting mechanism, with no apparent benefit. It could be said that accounting standards create costly, inefficient, and unnecessary regulation. It could be argued that increased disclosure reduces risks and offers a degree of protection to users. However, increased disclosure has several costs to the preparer of financial statements.
Required a. Explain why accounting standards are needed to help the market mechanism work effectively for the benefit of preparers and users of corporate reports.
Discuss the relative costs to the preparer and benefits to the users of financial statements of increased disclosure of information in financial statements
Question 2 Globalisation is the process by which businesses develop international influence or start operating on an international scale.
s the impact of globalisation on an organisation and how the impact can be properly managed using a company of your choice as example in your discussion
b) Critically examine the role International monetary fund (IMF) plays in the World Financial System, in your discussion include how it`s being funded.
Three regulatory bodies were set up in the United Kingdom as a fallout of the financial crisis in 2008. Briefly explain the role of:
Prudential Regulatory Authority
Financial Policy Committee
Financial Conduct Authority
Question 3 a) Comment on the need for ethical guidance for accountants on money laundering
You are a manager in Dedza & Co, a firm of Chartered Certified Accountants. Recently you have been assigned specific responsibility for undertaking annual reviews of existing clients. The following issues has arisen in connection with three clients
Dedza was appointed auditor to Kora Co Ltd last year and has recently issued an unmodified opinion on the financial statement for the year ended 31 March 2021. To your surprise, the tax authority has just launched an investigation into the affairs of Kora on suspicion of under declaring income
Your firm has provided financial advice to the Pholey family for many years, and this has sometimes involved your firm in carrying out transactions on their behalf. The eldest son, Esau is to take up a position as a senior government official to a foreign country next month.
The Chief executive of Ardenex Co, an exporter of specialist equipment, has asked you for advice on the accounting treatment and disclosure of payment being made for security consultancy services. The payment which aims to ensure that consignments are not impounded in the destination country of a major customer, may be material to the financial statement for the year ended 31 December 2020. Ardenex does not treat these payments as tax deductible.
Required: Identified and comment on the ethical and other professional issues raised by each of these matters and state what action, if any Dedza & Co should now take.
Question 4 Naco plc based in the UK is a multinational company dealing on manufacturing of mobile phones. The business is planning to seek fund from one of its newly established foreign business in the EU, and you are the finance manager based in the UK. You are required to write a detailed report to the finance director as he is concerned on this urgent plan.
The report should cover the following: a) Discuss the factors to be considered when raising finance in international markets
Critically evaluate the source of finance for Naco
Discuss the accounting and regulatory issues raising finance from overseas
Any other tax implication of borrowing and trading in the EU