Assignment
NAME OF COURSE
ADVANCED DIPLOMA IN ACCOUNTING (ADIA)
NAME OF SUBJECT
CORPORATE REPORTING
SUBJECT CODE
ACC 5044
ASSESSOR NAME
JESSY CHONG SUH KUAN
INTAKE
2022
DATE ISSUED
COMPLETION DATE
SUBMITTED
25/10/2022
25/11/2022
25/11/2022
ASSIGNMENT TITLE
GROUP ASSIGNMENT
Purpose of this assignment
a) Assess the financial reporting framework, report the financial performance of entities and reporting
issues relating to specialised entities.
b) Apply the implications of changes in accounting regulation on financial reporting and the current
developments corporate financial reporting.
Instruction to students
1. Download the language version of the assignment template concerned for preparation and
submission of your assignment. Your assignment should be typed using 12-point Times New Roman
font and 1.5 line spacing
2. You must submit your assignment ONLINE via the Google Classroom. Refer to the portal for
instructions on the procedures to submit your assignment online. You are advised to keep a copy of
your submitted assignment for personal reference.
3. You can submit your assignment ONCE only in a SINGLE file.
4. Submission after 25/11/2022 will NOT be accepted.
5. The assignment accounts for 10% of the total marks for the course and shall be assessed.
Please answer ALL questions. (Total 40 marks)
Question 1
Mighty IT Co provides hardware, software and IT services to small business customers. Mighty IT Co
has developed an accounting software package. The company offers a supply and installation service
for $1,000 and a separate two-year technical support service for $500.
Alternatively, it also offers a combined goods and services contract which includes both of these
elements for $1,200. Payment for the combined contract is due one month after the date of installation.
Mighty IT Co sells a combined contract on 1 January 20X6, the first day of its financial year.
On a January 20X6, Mighty IT Co revalued its corporate headquarters. Prior to the revaluation, the
carrying amount of the building was $2m and it was revalued to $2·5m. The remaining useful life was
50 years and no residual value. Mighty IT Co also revalued a sales office on the same date. The office
had been purchased for $500,000 earlier in the year, but subsequent discovery of defects reduced its
value to $400,000. No depreciation had been charged on the sales office. The remaining useful life
was 20 years and no residual value.
In 20X6, development costs of $200,000 had been incurred and capitalised. The development is still
in process at 31 December 20X6.
Required:
Discuss the accounting treatment for the following items.
a.) Recognition of revenues in accordance to IFRS 15 Revenue for the year ended 31 December
20X6.
(15 marks)
b.) Revaluation surplus, Depreciation charged and Carrying amount of corporate headquarters and
Sales Office as at 31 December 20X6 in accordance to IAS 16 Property, Plant and Equipment.
(15 marks)
c.) Recognition criteria in accordance to IAS 38 Intangible Assets.
(10 marks)
(Total: 40 marks)
END of QUESTION