1 Teaching period 2, 2016 ACC80005: Financial Accounting Theory Assessment 2: Research assignment Word limit: 2000 (+/- 10%) Weighting: 35% Due date: 5pm AEDT Saturday 10 October (Week 10) Assessment overview Integrated reporting () is an innovative approach to corporate reporting which is gradually gaining international recognition. The International Integrated Reporting Committee (IIRC), which is the peak body driving the integrated reporting agenda internationally, explains that integrated reporting is about "communicating the full range of factors that materially affect the ability of an organization to create value over time" (IIRC, 2013a, p.8). This requires either preparing one comprehensive report or drawing links to standalone financial and sustainability reports, demonstrating how the firm interacts with the external environment and the key resources a firm depends on and is affected by to create value over the short-, medium- and long-term (IIRC, 2013a). According to the IIRC "an integrated report is a concise communication about how an organization's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term." (International Integrated Reporting Council, 2013b, p.1) Assessment details Assume that you are working for a consulting firm that specialises in implementing integrated reporting in large listed companies. You are required to write a report to the Chief Executive Officer of a large ASX listed company in Australia explaining how a move from traditional corporate reporting to integrating reporting can benefit the company and its stakeholders. Your report should specifically address the following: 1. Limitations of traditional corporate reporting. [note traditional corporate reporting includes the perpetration of separate financial reports and sustainability and other reports].2 2. What is integrated reporting and how integrated reporting can rectify the limitations of traditional corporate reporting. 3. How does integrated reporting differ from other forms of non-financial reporting (e.g. sustainability reporting, environmental reporting, intellectual capital reporting). [Note: In particular, demonstrate the conceptual differences between integrated reporting and sustainability reporting] 4. Advantages and disadvantages (or costs and benefits) associated with integrated reporting, and theoretically informed arguments as to how the company may benefit, in the balance, by adopting integrated reporting. (Note: refer to theories in accounting that explain why companies may adopt integrated reporting and based on those theories predict how the company might benefit by adopting integrated reporting). 5. How relevant is integrated reporting to various stakeholder groups of the company (e.g., retail investors, institutional investors, lenders, environmental lobby groups, customers etc.) In this research assignment you will be providing your personal view based on research evidence, theory and original thought. In your assignment, you are expected to draw on: • relevant accounting theories • the International Integrated Reporting Framework issued by the IIRC (available at: http://www.theiirc.org/wp-content/uploads/2013/12/13-12-08-THEINTERNATIONAL-IR-FRAMEWORK-2-1.pdf) • scholarly articles from academic journals • reports issued by professional accounting bodies, accounting firms (particularly, the Big 4), regulatory bodies, the IIRC and other organisations • official websites of professional accounting bodies, accounting firms (particularly the Big 4), regulatory bodies, the IIRC and other organisations • media reports on integrated reporting Integrated reporting is covered in Chapter 9 (pp. 458-462) of your textbook. The theoretical knowledge necessary to successfully complete this research assignment is not confined to one or few topics but spread across many topics in this unit. The theoretical knowledge provided in Chapters 7, 8 and 9 of your text book are particularly relevant to this assignment.3 Structure and referencing The assignment should take the form of a report and include an executive summary. The entire assignment should not exceed 2000 words (+/- 10 %) (excluding title page, table of contents and reference list but including executive summary, footnotes, endnotes and appendices). A reference list should be provided. To avoid plagiarism, you are required to provide a reference whenever you include information from other sources in your work. Further details regarding plagiarism are available in Section C of the unit outline. Referencing convention required for this unit is the Swinburne Harvard System. Helpful information on referencing using the Swinburne Harvard System can be found at: http://www.swinburne.edu.au/lib/studyhelp/harvard_style.html Submission details This assessment will be submitted through the Blackboard assessment submission system (via Turnitin) and by placing in a specially assigned assignment drop box located on level 11 of the BA building. Online submission: An electronic version of the assignment should be submitted via Turnitin no later than AEDT 5.00pm on 10th October, 2016. Do not attach an assignment submission coversheet or reproduce the assignment questions in your submission. Hard copy submission: A printed version of the assignment should be submitted no later than AEDT 5.00pm on 10th October, 2016. The printed version should be placed in a specially assigned assignment drop box located on level 11 of the BA building. A duly filled Assessment Cover Sheet must be submitted with the printed version. The standard Assessment Cover Sheet is available from the "Current Students" web site. Assessment criteria • Presentation. • Quality of response. • Quality of conclusion. • Referencing. Your work will be assessed using the following marking guide:4 Criteria No Pass Pass (50-59%) Credit (60-69%) Distinction (70-79%) High Distinction (80-100%) Presentation (30%) Did not meet criterion. Acceptable standard of presentation with clear communication. Good standard of presentation, including editing, grammar, punctuation and structure. Clear communication of ideas. High standard of presentation, including editing, grammar, punctuation and structure. Excellent communication of ideas. Excellent standard of presentation, including editing, grammar, punctuation and structure. Outstanding communication of ideas. Quality of response (50%) Did not meet criterion. Basic reference to relevant sources linked to Unit content. Some evidence of a coherent argument throughout the report. Clear research supported by relevant sources linked to Unit content. Linkage between the theories and assignment scenario. Coherent argument throughout the report. Significant research supported relevant sources linked to Unit content. Clear linkage between the theories and assignment scenario, supported by relevant examples. Clear and coherent argument through the report. Outstanding research supported by relevant sources linked to Unit content. Detailed linkage between the theories and assignment scenario, supported by clear and strong examples and arguments throughout the report. Quality of conclusion (10%) Did not meet criterion. Acceptable conclusion providing key findings and recommendations. Some points missed. Good conclusion, providing the key findings and recommendations of the report. Excellent conclusion, drawing together the key findings and recommendations of the report. Clearly worded. Outstanding conclusion, drawing together the key findings and recommendations of the report. Clear and concise. Referencing (10%) Did not meet criterion. External sources are acknowledged but incorrectly referenced. An author/date system of referencing has been used however closer adherence to the demands of the Harvard style guide is required. External sources are generally referenced correctly using the Harvard style but there are minor errors in formatting or the use of punctuation. All external sources are referenced correctly using the Harvard referencing style.5 References International Integrated Reporting Council. (2013a), "Consultation Draft of the International framework", available at: http://www.theiirc.org/wpcontent/uploads/Consultation-Draft/Consultation-Draft-of-theInternationalIRFramework.pdf, accessed 17 April 2013. International Integrated Reporting Council. (2013b), "The IIRC", available at: http://www.theiirc.org/the-iirc/, accessed 27 June 2013.