ACC518 Current Developments in Accounting Thought - Additional Assignment Short Critical Essays Due date: 28-December-2016 Length: 3,000 words (guide) Task Question 1 - 4 marks (1000 words) Mather and Peison (2006) report that public debt contracts tend to have a lower average number of accounting based debt covenants as well as less binding debt covenants relative to private debt contracts. (For example, in relation to debt-to-asset constraints in both public and private debt agreements, the covenants in the public debt agreements were found to be "looser: meaning that the ratio percentage is typically higher in the public debt contract.) You are required to write an essay explaining why this would be the case, supporting your arguments with references to Mather and Peirson (2006) and other relevant sources. Question 2 - 4 marks (1000 words) Assume that a government regulator makes a decision that all companies with a dead office in Australia must separately disclose, within their annual financial reports, the amount of expense incurred in relation to the training of employees. The companies must also spend at least 5 per cent of their reported profits on training employees. You are required to write an essay that a) Explains the decision made by the regulators in terms of public interest theory b) Explain the decision made by the regulator in terms of the economic interest group theory of regulation. Support your arguments with references in APA 6 style from relevant sources. Question 3 - 4 marks (1000 words) Identify a listed company, and then a) Identify at least one positive and one negative externality generated by the organisation and identify the stakeholders affected by the externalities. b) Would these externalities directly impact on the income or expenses (and therefore profit) of the organisation? c) In your opinion, is the failure to recognise externalities a fundamental limitation of our current financial reporting requirements? Explain your answer. Academic Writing and Referencing - 4 marksMarking criteria Question 1: High Distinction Distinction Credit Pass Description and identification of relevant theories (SLO 4) Exemplary description of all of the key issues and underlying assumptions thoroughly articulated. A high level of understanding demonstrated. Clear description/identification of the issues and theories. Examples are used to clearly examine the alternatives. Underlying assumptions discussed. Clear description/identification of the issues. Definitions of the concepts provided to clearly outline the essay. Correct interpretation of the question, issues identified and outlined. 1 Critical Capacity and use of Source Material: Does the response demonstrate and analyse the reasons behind the differences between public and private debt agreements? Response provides a clear, deep and critical analysis of both the issues and demonstrates a very high level of understanding of the underlying theories. Well communicated and supported, relying on a wide variety of source material. Response provides a clear, deep and critical analysis of the issues that draws on a wide variety of source material as well as the students own thoughts. Response provides a clear, deep and critical analysis of the issues that draws on source material as well as the students own thoughts. Some evidence of basic critical thought in relation to the issues that is based on only one source. 3 Question 2: High Distinction Distinction Credit Pass Explains the decision in terms of public interest theory (SLO 4) Response provides a clear, deep and critical analysis that draws on source material as well as the students own thoughts. A well communicated and supported conclusion is reached. Response provides a clear, deep and critical analysis that draws on source material as well as the students own thoughts. The conclusion demonstrates a high level of understanding. Response provides a clear analysis and evaluation of the various perspectives that draws on a variety of source material. The conclusion demonstrates a solid understanding of the topic. Some evidence of basic critical thought in relation to the various perspectives that is based on only one source. A simplistic but clear conclusion is reached. 2 Explains the decision in terms of public interest theory (SLO 4) Response provides a clear, deep and critical analysis that draws on source material as well as the students own thoughts. A well communicated and supported conclusion is reached. Response provides a clear, deep and critical analysis that draws on source material as well as the students own thoughts. The conclusion demonstrates a high level of understanding. Response provides a clear analysis and evaluation of the various perspectives that draws on a variety of source material. The conclusion demonstrates a solid understanding of the topic. Some evidence of basic critical thought in relation to the various perspectives that is based on only one source. A simplistic but clear conclusion is reached. 2Question 3: High Distinction Distinction Credit Pass A listed company and one positive and one negative externality are correctly identified. Affected stakeholders are identified. (SLO2 A detailed explanation of the terms is provided, demonstrating a high level of understanding of the context of the information in relation to the question. The terms are explained with the additional use of examples. A company is identified, externalities are identified and clearly and correctly linked to stakeholders. An advance explanation of the terms is provided. A company is identified, externalities are identified and clearly and correctly linked to stakeholders. A clear and concise explanation of the terms is provided. A company is identified, externalities are identified and clearly and correctly linked to stakeholders. 1 Impact of externalities on financial reports. (SLO2). The essay correctly identifies the impact on the profit of the organisation. The student's perspective is clearly articulated and supported providing an insightful perspective on the issues surrounding financial reporting. Further comments on other relevant financial impacts. The essay correctly identifies the impact on the profit of the organisation. Further comments on other relevant financial impacts. The essay correctly identifies the impact on the profit of the organisation. The essay correctly identifies the impact on the profit of the organisation. .5 Recognition of limitations for financial reporting. Response provides a clear, deep and critical analysis that draws on source material as well as the student's own thoughts. Well communicated and supported. Response provides a clear, deep and critical analysis that draws on source material as well as the student's own thoughts. Response provides a clear analysis and evaluation of the various perspectives that draws on a variety of source material. Some evidence of basic critical thought in relation to the various perspectives that is based on only one source. 2.5 Academic Writing: Is the answer well written, easy to follow and understand? Accurate use of syntax, spelling and punctuation. A sophisticated vocabulary is appropriately used. Answer is logically structured with arguments coherently developed and supported. Accurate use of syntax, spelling and punctuation; succinct and effective use of vocabulary. Clear expression and structure. Accurate use of syntax, vocabulary, spelling and punctuation. Writing is easy to follow and understand. Mostly accurate syntax, spelling and punctuation, language is simplistic but appropriate. 2Adherence to referencing guidelines Reference list included with correct adherence to referencing guidelines. Correct in-text referencing is provided. Reference list and in-text referencing performed in accordance with APA guidelines. Reference list and in-text referencing performed largely in accordance with the APA guidelines. Reference list provided, formatted in APA style with minor errors. Some in-text referencing provided with minor errors 2 Total 16 Requirements For this assessment you are required to use APA 6 referencing to acknowledge the sources that you have used in preparing your assessment. Please refer to the CSU referencing guide http://student.csu.edu.au/study/referencing-at-csu. In addition a very useful tool for you to use that demonstrates how to correctly use in text referencing and the correct way to cite the reference in your reference list can be found at https://apps.csu.edu.au/reftool/apa-6