Accounting Standards & Regulations – 22420 – SUMMER 2022 1 ASR Assignment 1 (20%) Background You are a recent accounting graduate and have been employed as a financial reporting analyst at ASIC

Accounting Standards & Regulations – 22420 – SUMMER 2022 1 ASR Assignment 1 (20%) Background You are a recent accounting graduate and have been employed as a financial reporting analyst at ASIC. As part of your training and development, ASIC has assigned you to investigate the recent accounting judgements of The Star Entertainment Group, an ASX listed firm (ASX:SGR). Looking at the most recent general purpose financial report for the year ended 30th June 2022, you have been asked by the Chief Investigation Officer to identify any major accounting issues which will need to be considered. Your attention is drawn to recent press reports (available on Canvas) suggesting – at a minimum – that there are some concerns relating to the company’s ability to continue as a going concern and the recent impairment of the company’s assets. Required You are required to prepare a report for the Chief Investigation Officer considering whether The Star’s impairment of assets in its recent financial report was a reasonable reflection of reality. The report should, with reference to AASB 136: a) Outline what evidence indicated that impairment testing of assets was necessary; b) The processes required to be addressed in determining any asset impairments that might be necessary c) The information needed in determining asset impairments and if any information was omitted by The Star. d) Evaluate the flexibility management has available in the determination of asset impairments and whether you think that the market believes the amount of impairment recognised by the company was a reasonable estimation of the economic reality. Format Your assignment must be set out as a report with the four sections (a) (b) (c) (d) clearly shown. You must link your discussion to relevant accountings standards, including references to specific paragraphs. You must carry out independent research to complete this assignment and you must cite relevant academic (where relevant) and practitioner articles that support the material and views you present. Use Harvard style referencing. Your report must be typed using 12 point font, 1.5 line spacing and 2.5 cm margins on all sides, with a maximum length of 1300 words (excluding references, executive summary and appendices). You do not need an introduction or conclusion. State the word count at the beginning of the assignment. Refer to the UTS Business School Guide to Writing Assignments (link below) on recommendations and suggestions on how to structure your report. All material (excluding executive summary, references and appendices) over 1300 words will be disregarded. https://www.uts.edu.au/sites/default/files/2020-02/UTS%20Business%20writing%20guide%202020.pdf A soft copy of your report is due to turnitin by midnight (24:00 hours) Saturday 14th January, 2022. Assignments submitted (soft and hard copies) after the due date may attract a penalty of 10% per day. Save your word document using your student number as the file name (don't forget to include your name and student number in the header of your word document!). Marking Guide Parts (a), (b), (c) and (d) are each worth 10 marks. In addition, presentation and communication are worth 10 marks combined. This gives a total mark of 50 for the report, which will be converted into a mark out of 20. Your report should address each of the parts equally. Attached is the marking scheme that will be used in marking your report. This report is worth 20% of your total subject marks. Accounting Standards & Regulations – 22420 – SUMMER 2022 2 Attachment: Assignment marking matrix The criteria and weighting of each criterion used to mark your assignment are listed below: Well below acceptable Below acceptable Acceptable Above acceptable Well above acceptable Presentation and Communication (10 marks) Title Page Title of assignment, subject name, student number and name is given Body/Discussion Body is organised into main sections and sub-sections Sections and sub-sections have appropriate headings Report organisation suits requirements Main issues relevant to the topic are explained Other Report is the correct length Correct formatting (i.e. font/spacing) Tables/graphs are used correctly (if appropriate) Writing Style Information flows logically; Report is easy to follow Paragraphs are well constructed Grammar Sentence structure is grammatically correct Tenses are used correctly and spelling is correct Referencing Statements made in-text are referenced In-text reference format is correct End-text references format is correct Content (40 marks) Part A (10 marks) Evidence of asset impairment being necessary is identified and discussed. Part B (10 marks) Processes for determining asset impairments identified and discussed Part C (10 marks) Information needed to determine asset impairments is identified and discussed. Part D (10 marks) Flexibility management has in recognising asset impairments is identified and discussed