This assignment will encourage the students to apply the financial accounting knowledge and skills.

IMPORTANT: Please carefully read Level 4 Module 3 Assessment 1 – Assignment Brief – Report_MG, and follow all guidelines.

Core
textbooks and recommended articles

Books

1.     Thomas, A., & Ward, A. M. (2019): Introduction
to Financial Accounting, 9^th ed. McGraw
Hill.

2.     Kaplan (2021), Financial
Accounting, Kaplan Publishing

3.    
BPP (2021),
Financial Accounting, BPP Publishing

Academic
articles

1.     Alzoubi, E. S., & Alnimer, O. R.
(2018). Financial ratios and the predictive power of
financial statements: Evidence from Jordan. International Journal of
Accounting, Auditing and Performance Evaluation, 14(1), 62-78.

2.     Embong, Z. and Ebrahimi Rad, S.S. (2019) ‘Decision
usefulness of financial information: The role of audit and IFRS’, Journal of
Financial Reporting and Accounting, 17(2), pp. 249-266.

3.     Francis,
J., & Schipper, K. (1999). Have financial statements lost their relevance?.
Journal of Accounting Research, 37(Supplement), 319-352.

4.     Healy, P. M., & Palepu, K. G. (2001). Information
asymmetry, corporate disclosure, and the capital markets: A review of the
empirical disclosure literature. Journal of Accounting and Economics, 31(1-3),
405-440.

5.    
Lev, B. (2018) ‘The deteriorating
usefulness of financial report information and how to reverse it’, Journal of
Accountancy, 225(3), pp. 24-29.

6.     Mirzaei,
A., & Mirzaei, H. (2021). The interrelation of financial statement
components and the prediction of financial performance: Evidence from Iran.
International Journal of Business and Management, 16(4), 88-103.

7. Monteiro, A.P., Vale, J., Silva, A., and Pereira, C. (2019)
‘Impact of the internal control and accounting systems on the financial
information usefulness: The role of the financial information quality’, Journal
of Accounting and Finance, 19(1), pp. 60-73.

8.     Orazalin, N., & Omarova, A. (2018). The importance of
financial ratios in the decision-making process of investors. International
Journal of Economics, Commerce and Management, 6(11), 172-183.

9.     Palea, V. (2015). Financial ratios and firms’ performance:
A review of literature and empirical analysis for European companies. Journal
of Applied Accounting Research, 16(2), 161-191.

10.     Sun, K.J. (2018) ‘The Effect of Financing Sources on the
Usefulness of Financial Reporting Quality in Guiding Investments’, Journal of
Accounting, Auditing & Finance, 33(4), pp. 553-575.

11.     Wang, J. (2018). Analysis of financial ratios in Chinese
and American companies. Journal of Accounting and Finance, 18(7), 47-55.

12. Zhang, W., Ma, J., & Guo, X. (2018). The interrelationship between earnings
management and financial statement information: Evidence from China. Journal of
Applied Accounting Research, 19(1), 44-63.

Important:
All of your work must be based on reliable research and have 10 different sources within it. Please ensure you use both direct and indirect citations. You must reference all sources used in your work, using the Harvard Referencing Guide from CCCU.  

Word Count (2,000
words +/ –10%)

 

The essay should have 2000 words exclusive of the cover
and reference pages. You are required
to produce an essay using a variety
of research materials, which must be properly referenced in accordance
with the CCCU/Harvard Referencing style.

 

Tips for report structure

1.    
Introduction (150 words)

An
introduction to the report with the areas covered in and the structure of the
report (150 words).

2.    
Main body (1600 words) – Task 01

a)   
Definition
of accounting and its purposes (200 words).

b)   
Purposes of
each component of the financial statements (250 words).

c)    
Define and
explain parent and subsidiary companies. (200 words)

d)   
What are
consolidated financial statements? (250 words)

e)    Explanation of different components of
Consolidated financial Statement i.e Goodwill, Retained earnings,
non-controlling interest. (300 words)

f)      From your calculations explain the
final consolidated financial statements, i.e. how you have calculated those
numbers and show your understanding of consolidation. (400 words)

3.    
Main body (100 words for financial statements) –
Task 02

Consolidated
income statement and consolidated statement of financial position

4.    
Conclusion (150 words)

Note: The word counts
are provided to give a rough idea of the structure. You may change the word
count.

 

Your work must be based on the topic covered in class and reliable research as well as have 10 different sources from the reading list within it. Please ensure you use both direct and indirect citations.