Reference no: EM132371291

Accountancy Capstone

This assessment item assesses the following learning outcomes:

Knowledge and Technological Skills (KS)

1.1 Demonstrate and apply integrated discipline (including technical) knowledge across the broad field of business with depth in one or more core business disciplines

Higher Order Thinking (HO)

2.2 Exercise independent judgment and initiative in adapting and applying knowledge and skills for effective planning, problem solving and decision making in diverse contexts.

PART 1: Preparation of a Financial Dashboard and Reflection

(a) For the 11-month period from 1 August 2018 to 30 June 2019, Odette Winter (the contract bookkeeper) has been using MYOB to process transactions for Toy Jungle Pty Ltd. She has been presenting Emily and Rebecca with quarterly Profit and Loss Statements and Balance Sheets of the business.

However, Emily and Rebecca do not have an accounting background and readily admit that they struggle to read and understand the MYOB management accounts presented to them by their bookkeeper, Odette. Being more visually orientated, they ask you to prepare a one-page financial dashboard for them (in landscape orientation).

The one-page financial dashboard is to be prepared based on the four quarterly figures presented in the EXCEL spreadsheet that is available to download from the AYB 339 Blackboard site.

The one-page financial dashboard for the four quarters is to be prepared in such a way that enables you to present and highlight key financial information, financial ratios and trends of the business over the four quarters in a highly visual way.

The one-page financial dashboard should primarily consist of five (5) key graphs/charts. Please use the four quarters of financial data presented in EXCEL before any journal entry adjustments that you make in Part 2 of this case study.

In other words, develop a financial dashboard in EXCEL based on Odette's unadjusted figures (ie. before your journal entry adjustments).

In terms of which financial ratios to select for your dashboard, students are advised to consider those financial ratios identified in the financial quadrant of the balanced scorecard on page 15 of the business plan of Toy Jungle Pty Ltd) on the AYB 339 Blackboard site).

(b) For each table or graph developed in the financial dashboard, Emily and Rebecca ask you to briefly summarise for them what the chart or graph is indicating. Furthermore, please identify any trends or concerns that your financial dashboard over the four quarters has highlighted for the business.

PART 2: Enter Year-End Adjusting Journal Entries into MYOB & Print out a revised Profit and Loss Statement and Balance Sheet from MYOB - in pdf format

a. Students are required to prepare and enter adjusting general journal entries directly into the MYOB data file to take into account all of the relevant and necessary adjustments (please include cents in all of your journal entries).

The MYOB data file is available on the AYB 339 Blackboard site for students to download The MYOB data file was created using MYOB AccountRight Enterprise (Educational Version 19). This version of MYOB is available in the student labs in both B and Z blocks.

However, students can use any version of MYOB to open the data file and make adjustments (provided it is version 19 or higher).

It will not be possible to open this MYOB data file if you use the MYOB trial versions available on the MYOB website or any version of MYOB lower than this version.

The data file has been created in MYOB 19 for Windows. However, for those students who have an Apple Mac computer or laptop, the data file will be able to be converted and opened in Mac AccountEdge Pro. For those students who do not have MYOB loaded onto their Apple computer, we have provided the link to a compressed zip file containing the appropriate software to enable you to load Mac AccountEdge Pro v15.5 on your home or laptop computer.

These entries must be entered, produced and printed out using MYOB.

Make sure you use MYOB. Students cannot use other packages like Microsoft EXCEL or Word or any other accounting package.

When you open up the MYOB data file, please use the "Administrator" User ID, as shown below.

b. Adding Account Names to the Chart of Accounts

Please note that students are expected to add additional accounts in the MYOB data file provided on the AYB 339 Blackboard site, as several of your adjusting general journal entries will be made to these new accounts (eg. depreciation expense).

c. Dating your Adjusting General Journal Entries 30 June 2019

Please date all of your adjusting general journal entries 30 June 2019.

Please also include a brief narration of the adjustment in the memo field in MYOB.

d. Printing Adjusting General Journal Entries at 30 June 2019 in pdf format

Make sure that you only print out your adjusting journal entries and not all of the other journal entries already residing in the MYOB data file that has been provided to you.

Simply select the General Journal function and the date range: 30 June 2019 to 30 June 2019.

e. Accounting Depreciation Entries

For accounting purposes, each individual depreciable asset listed on pages 18 and 19 of this case study should be depreciated over their useful lives based on the following straight-line rates (rate shown in the final column).

Depreciable Asset	Accounting         Useful Life	Depreciation Rate (Straight-Line %)
1.     Leasehold Improvements: §  Fit-out (consisting of floor covering, ducted air-conditioning, lighting, shelving and signage)	40 years	2.5% pa.
2.     Property, Plant and Equipment: §  Cash registers §  Desktop computers §  Photocopying machine §  Facsimile machine §  Furniture - consisting of freestanding cupboards   and shelves	10 years 4 years 5 years 5 years   10 years	10% pa. 25% pa. 20% pa. 20% pa.   10% pa.
3.     Computer Software: §  MYOB AccountRight and retail point of sale software	5 years	20% pa.
4.     Leased Motor Vehicle: §  Leased motor vehicle	8 years	12.5% pa.

There are 8 individual assets listed above.

However, instead of putting through 8 separate depreciation/amortisation journal entries, students are asked to only record four (4) journal entries in MYOB for each of the four classes of assets, namely:

• leasehold improvements (1 asset);
• property, plant and equipment (total of 5 assets);
• computer software (1 asset); and
• leased motor vehicle (1 asset).

This means that you should enter four (4) depreciation/amortisation journal entries into MYOB.

For taxation purposes, being a small business entity (SBE), Toy Jungle Pty Ltd will depreciate those eligible depreciating assets under Division 328 using the simplified depreciation regime (refer rules on page 30 of the case study).

f. Print out a Revised Profit and Loss Statement and Balance Sheet from MYOB as at 30 June 2019

Finally, students are required to print out a revised Profit and Loss Statement and Balance Sheet from MYOB for Toy Jungle Pty Ltd for the year ended 30 June 2019 taking into account their adjusting general journal entries and include it in their submission.

In MYOB, your print range for the Profit and Loss Statement should be 1 July 2018 to 30 June 2019.

For the Balance Sheet, please print this report out as at 30 June 2019.

Please include cents when printing out both reports.

PART 3: Prepare the 2019 Annual Report for Toy Jungle Pty Ltd in Microsoft Word

• Students must use Microsoft Word to prepare the annual report. Students are not permitted to use any other electronic account preparation software packages (eg. Handisoft, Xero, Solution 6, MYOB Accountants Office etc).

• When preparing the external financial statements, please round all figures from your MYOB management accounts to the nearest whole dollar. In other words, please do not include cents when preparing the external financial statements.

a. Students are required to prepare the Annual Report for Toy Jungle Pty Ltd for the year ended 30 June 2019. The annual report should include the following documents (in the following order):

- the external financial statements excluding the Statement of Cash Flows, but including all of the relevant notes to the accounts;
- the Director's Declaration; and
- the Accountant's Compilation Report.

There is no need to prepare a Directors' Report or an Auditor's Independence Declaration, as the financial report was not audited.

For the Accountant's Compilation Report, please use the name of the firm that you created and used throughout the semester for your PBLs.

b. Which AASB Accounting Standards Apply?

For the purposes of this assignment, despite Toy Jungle Pty Ltd being a small proprietary company, please treat the company as a reporting entity. In other words, please prepare general purpose financial statements for Toy Jungle Pty Ltd.

In other words, please ensure that the 2019 financial statements (and notes to the accounts) are prepared in accordance with the recognition, measurement and disclosure requirements of all of the AASB Accounting Standards.

However, please do not apply the following four (4) AASB Accounting Standards:

- AASB 8 Operating Segments;
- AASB 107 Statement of Cash Flows;
- AASB 124 Related Party Disclosures; and
- AASB 133 Earnings Per Share.

All other AASB Accounting Standards (including their recognition, measurement and disclosure requirements) must be complied with. This includes the suite of financial instruments standards (including AASB 7, AASB 9 and AASB 139, where applicable).

Please note that in the case of publicly traded financial instruments, Toy Jungle Pty Ltd has made an irrevocable election under AASB 9 Financial Instruments to present subsequent changes in the fair value of equity instruments through Other Comprehensive Income (OCI) instead of recording increases and decreases in fair value through profit or loss.

Furthermore, the company has elected not to early adopt any new Accounting Standards (eg. AASB 16 Leases).

There is no need in Note 1 Statement of Significant Accounting Policies to outline or consider the likely impact of the application of new AASB Accounting Standards that will apply in the future (such as AASB 16).

Finally, the company does not wish to apply the reduced disclosure requirements (RDR) contained in AASB 1053 Application of Tiers of Australian Accounting Standards.

c. Income Statement

For the Income Statement, Emily has requested that you classify expenses by function instead of by nature.

Emily wants you to show those expenses on the face of the Income Statement that are specifically required to be disclosed on the face under AASB 101 Presentation of Financial Statements.

Furthermore, please group relevant individual expenses in the MYOB profit and loss statement on the face of the income statement under the following headings: "employee benefits", "depreciation and amortisation", "finance costs", "administrative expenses" and "other expenses".

d. Statement of Comprehensive Income

When preparing the external financial statements for Toy Jungle Pty Ltd, please ensure that you prepare and include a Statement of Comprehensive Income in accordance with AASB 101 Presentation of Financial Statements.

The company wishes to adopt a two-statement approach in presenting their statement of profit or loss and other comprehensive income. In other words, Emily wants you to prepare an Income Statement and the Statement of Comprehensive Income separately.

e. Statement of Changes in Equity

For the Statement of Changes in Equity, please use the minimum disclosure requirements required under AASB 101 Presentation of Financial Statements.

f. Balance Sheet

For the Balance Sheet, please use the minimum disclosure requirements required under AASB 101.

g. "Real" and "Model" Financial Statements

Students are advised (and encouraged) to download the 2019 financial report of an Australian listed public company (preferably a retailer, such as The Reject Shop Ltd or JB Hi-Fi Limited) and review the content, structure and format of the financial report.

Furthermore, some accounting firms have published model financial statements for companies on their websites that students should consider referring to.

For example, a generic Google search on the term "model financial accounts Australia" will list hyperlinks to several accounting firms websites where these model financial statements can be downloaded free-of-charge in pdf format.

Please make sure that you locate (and use) general purpose model financial statements and not special purpose model financial statements. Several accounting firms provide model financial statements for proprietary companies.

However, in most cases, special purpose financial statements are presented, and not general purpose financial statements. Hence, be careful to ensure that you use general purpose financial statements.

A reminder that in the case of Toy Jungle Pty Ltd, we are asking that general purpose financial statements be prepared.

Furthermore, when preparing the external financial statements for Toy Jungle Pty Ltd, please do not include the references to AASB paragraphs in the left-hand margin of the financial statements (or notes to the accounts) like the model sets of accounts do.

Students should also prepare a Director's Declaration for Emily and Rebecca to sign as well as drafting the appropriate Accountant's Compilation Report.

As mentioned in Item (a) on page 9, there is no need to prepare a Directors' Report.

h. Date of Declarations and Reports and Comparative Figures

All declarations and reports should be dated 3 September 2019.

Comparative figures are not required in the financial statements, as the business only commenced trading on 1 August 2018.

PART 4: Prepare the 2019 Company Income Tax Return and Tax Reconciliation for Toy Jungle Pty Ltd

a. Students are required to prepare the company's Income Tax Return & Tax Reconciliation for Toy Jungle Pty Ltd for the year ended 30 June 2019

Students are required to prepare the 2019 company income tax return of Toy Jungle Pty Ltd. A blank copy of the 2019 company tax return has been placed on the AYB 339 Blackboard site for you to download and complete.

The company's tax file number (TFN) is: 733 000 152.

The business and postal address of Toy Jungle Pty Ltd is:

46 Sugarbag Road Phone: (07) 3398 1030
Carindale, QLD, 4152. Facsimile: (07) 3398 1031

Do not complete the BSB and account details on the second page of the tax return.

For the purposes of the tax agent declaration (on the last page of the tax return), your tax agent reference number is: 57164-006. Please put your name and contact details in this box.

The income tax return should be dated 3 September 2019. It should be signed by Emily as she is the company's public officer.

There is no need to prepare the dividend franking account for the company or the dividends and interest schedule. Both of these schedules normally form part of the income tax return. However, students are not required to prepare these schedules.

b. Students are required to prepare a One-Page Tax Reconciliation for Toy Jungle Pty Ltd for the year ended 30 June 2019

Emily and Rebecca also ask you to prepare a one-page tax reconciliation.

Students should start this reconciliation summary with the accounting net profit/(loss) before income tax and then list all relevant adjustments to arrive at the company's taxable income for the year ended 30 June 2019.

This one page reconciliation should be included immediately behind the last page of the company's tax return. There is no need to prepare a deferred tax worksheet for this requirement nor any requirement to quote or reference sections of the ITAA.

PART 5: Professional Approach to Presentation

This assessment expects a professional approach to presentation similar to that expected in an Accounting firm when delivering documents to a client.

For this reason, you must satisfy the following professional presentation requirements or you may incur penalties.

• A professional approach also means that it is the responsibility of each student to ensure that the complete assignment is submitted by the due date and in the correct format (see below).

• Once submitted, students are not able to attach or submit any additional documentation whatsoever as in a client situation, you would be unable to deliver additional information to a client and late information will be regarded as being late and may not be useful.

• As students will be submitting all parts of the case study via QUT's Turnitin, students are asked to collate all of the various documents and save them into one pdf document to upload into Turnitin.

• Please name your file "Your Student Name - Integrated Case Study.pdf".

• Please save the documents in pdf format in the order listed on page 15 of this case study.

• Students are also required to submit the signed student integrity declaration (contained on page 31 of this case study).

PART 6: Academic Conduct in Completing this Assessment

Academic conduct is expected to be ethical and above reproach in producing this assessment in same way you would produce a client document as part of an accounting firm. The following table provides you with clear examples of what constitutes academic misconduct and what does not. Please carefully read this list before starting the assessment.

This integrated case study is an individual assignment. As such, no collaboration with other students is permitted in any way whatsoever. Any collaboration between students, including comparing answers, sharing ideas and research etc. constitutes academic dishonesty.

Markers will be carefully checking case studies to ascertain whether there is any indication that collusion has taken place (particularly those students that were in the same groups during the semester for the PBLs).

Students who are found to have committed academic misconduct as detailed below will be immediately referred to the QUT Business School academic misconduct committee.

Please note that penalties will be applied not only to the student(s) who have used this information but also to the student(s) who have shared this information.

To this end, each student is required to accept a student integrity declaration confirming that they have not used or plagiarised the work of others (more details are contained on page 31 of the case study).

PART 7: Submission Instructions

Please collate the following documents into one pdf document in the following order:

• Signed Student Integrity Declaration (on page 31);
• Criteria Sheets (on pages 32 and 33);
• Part 1 - Your financial dashboard and reflection (on page 4);
• Part 2 - Your MYOB Adjusting Journal Entries dated 30 June 2019 including your revised MYOB Profit and Loss Statement and Balance Sheet as at 30 June 2019;
• Part 3 - The 2019 Annual Report of Toy Jungle Pty Ltd (including the external financial statements, notes to the accounts, the Directors' Declaration and Accountant's Compilation Report) - in that order; and
• Part 4 - The 2019 income tax return of Toy Jungle Pty Ltd, including the one-page tax reconciliation (to be included at the end of the last page of the tax return).

Attachment:- Capstone Case Study.rar