PART B (20 marks)
(Maximum 1000 Words)
Measurement is arguably the most important concept in the discipline of accounting, since without measurement; there would be no need for accounting. The second most important concept is historical cost because it provides a critical evidentiary perspective to the discipline of accounting. This also means that for financial reporting purposes, historical cost helps to ensure reliability and credibility of the financial statements.
REQUIREMENTS
You are required to critically evaluate the above statements. Your answer should include a comparative analysis of the significant measurement models in accounting. As a minimum, this should encompass a detailed discussion of historical cost accounting (outlining the advantages
and disadvantages of the cost model), and at least four (4) alternative measurement models that have been adopted in current accounting standards.
PART C (15 marks)
(Maximum 750 Words)
Assume that you have been appointed as a consultant to Intellec-Morph Design Limited (IMDL), a successful firm in the computer software business, to develop a management compensation scheme that will motivate managers to maximize the value of the firm for shareholders. You are permitted to construct individual agreements for the senior executives of IMDL.
REQUIREMENTS
You are required to write a brief report to the firms remuneration committee covering the following issues:
1. How (and why) individual remuneration packages of executives can be structured to motivate managers to maximize equity value?
2. The extent to which different forms of compensation can be structured to suit the individual attributes/characteristics of managers
3. The various mechanisms that might be employed to monitor the performance of managers and thus provide assurances to the IMDL committee that incentive schemes are working.
4. The potential forms of ex-post opportunistic behaviour that managers may still engage in despite the existence of performance contracts?
Your report must include explanations of relevant theories which might support the basis of your conclusions/recommendations.
SUBMISSION INFORMATION
You must ensure that the assignment is submitted by the due lodgement date and that you have read and fully understand all other lodgement requirements, for example;
oWhere and when to lodge your assignment,
oThe appropriate evidence that must be retained should the need to establish the authenticity of your work be required,
oLate lodgement policies and penalties,
oExtension of time policies,
oThe Universitys plagiarism policies
oElectronic/word-processing, layout or format requirements, etc.
oAppendices(note word limits in this submission do not include references & appendices)
oReferencing & bibliography requirements (Harvardsystem)
oOther relevant information
FORMAT REQUIREMENTS
There are no specific format requirements for submission of this assignment and students are free to choose from a variety of acceptable models; for example, an essay approach, a formal report format, or simply an information memorandum. Note however, if you choose to use an information memorandum approach which normally sets out the facts and other relevant information (point-by-point format) but fail to provide linkages to logical argument submissions will penalised. This is a thinking assignment and what is expected is the personal views of individual students based on research and the evidence that has been sourced. Further, an assignment which presents more quotes than constructive analysis and argument may also be heavily penalised. What is critical in this assignment is that students have fully understood the requirements and have actually answered the questions, for example if asked whether a position or view is justified, you must answer by stating yes/no, agree/disagree, or some other similar response depending on the requirements of the question. Discussion should be followed by logical development of argument supporting the answer given. An executive summaryof approximately 100 words is recommended for some questions (eg., Questions in Part A and Part C), and should briefly provide information on the scope of the question, (ie., your understanding of the requirements), your research approach and the methods used (ie., what methods and procedures were engaged to source your information and to reach your conclusions), and a very brief summary of the outcomes of your work (usually, what position you have taken or conclusion you have reached and why).
WARNING! Students are expected to use the Universitys Safe Assign Tool it is your responsibility to ensure that you understand how this process works well before the due date for submission. Further, the Convenor reserves the right to scan any or all assignments using additional advanced plagiarism software. This means your work will be checked against any existing published work (including current assignments lodged) or past student work which has been scanned in previous Semesters in any subject.
** Your total marks will be weighted (i.e. actual marks attained from a possible total of 60 marks will be expressed as a proportion of 25 marks),