Question:

> BHP Group Ltd includes a sustainability report in its annual report. What key performance indicators (KPIs) are included in this report? Explain the different stakeholders that would be interested in this information.

> Sustainability accounting is a very important and huge growth area of accounting. Discuss the different stakeholders (and their information needs) that would be interested in sustainability reports.

> Go to the IFRS Foundation website, www.ifrs.org. Select ‘Around the world’ then ‘Use of IFRS standards by jurisdiction’. Comment on the jurisdictions that have adopted IFRS. Which countries are yet to adopt IFRS? Can you think of reasons why certain coun

> Describe how accounting information helps shareholders and lenders to make decisions concerning the operations and performance of an entity.

> It is argued that the convergence of our accounting standards with international standards and their subsequent adoption have brought great benefits to the Australian economy. What are the benefits in relation to international trade?

> ‘Human rights are rights inherent to all human beings, whatever our nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or any other status. We are all equally entitled to our human rights without discrimination.

> Critique the role that regulation plays in encouraging business sustainability. In other words, assess whether you feel the government should regulate to protect the environment’s and society’s needs or whether companies would ‘do the right thing’ anyway

> You are a CFO in an organisation that is considering reporting on CSR using the GRI Standards. The CEO has asked you to prepare a report for the board supporting such a proposal. In this report you should outline: (a) The benefits of CSR reporting (b) Th

> Read the article on environmental auditing at www.epa.vic.gov.au/our-work/environmental-auditing. What is environmental auditing? What is a 53V audit? What is the role of the auditor in the 53V process?

> Compare the principles underlying the GRI sustainability reporting Standards with the principles underlying the preparation of GPFS.

> List the qualities needed in providing external audit and assurance services to organisations in relation to CSR reports.

> Suggest what the most important driver of sustainability would be and explain your rationale for its selection.

> What are some of the advantages of business planning?

> Outline some ways that accountants could contribute to the sustainability efforts of organisations.

> Outline the nine principles of business sustainability performance as put forward by Epstein and Roy (2003).

> Growth areas for accountants in the future include sustainability reporting and, more specifically, carbon accounting. What are the costs and the benefits for entities in reporting their carbon greenhouse gas emissions?

> What are the three pillars of sustainability?

> Suggest ways in which suppliers and customers could work together to reduce their overall impact on the environment.

> What is meant by business sustainability?

> What is the role of the International Integrated Reporting Council? What is its strategy?

> What are the six capitals that an integrated report is focused on?

> Explain the role of the blockchain in cryptocurrencies.

> How does data analytics help accountants make decisions?

> Financial acumen may not be every director’s strength but ignorance is no excuse when it comes to understanding company accounts. The former directors of property group Centro found this out the hard way when the Federal Court brought down its landmark d

> The IASB has published its revised Conceptual Framework for Financial Reporting. Required Go to the IFRS website and select the ‘Project Summary’ for the Conceptual Framework at www.ifrs.org/projects/2018/conceptual-framework/#supporting-material. (a) W

> Go to the Royal Commission website at https://financialservices.royalcommission.gov.au/Pages/default.aspx. 1. Select ‘Submissions’. 2. Select ‘Submissions in response to original request’. 3. Choose one of the companies that have been asked to provide f

> The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established in 2017. There were 10 140 public submissions, mainly in the areas of personal financial, superannuation and small-business finance. A num

> The downturn in the economy during 2008 revealed one of the biggest cases of fraud in history. The fraud was masterminded by Bernie Madoff, a well-known American finance executive. The $65 billion Ponzi scheme called the Bernard L Madoff Investment Secur

> Search the Johnson & Johnson website for its famous credo (www.jnj.com.au). (Hint: Access the credo from the drop-down menu called ‘Our Company’.) Given that the credo was written nearly 60 years ago, comment on its appropriateness in today’s business wo

> Erle Smith is a financial controller with Accounting Success Ltd, an entity that sells software products to accounting firms and small businesses. At present, Erle is analysing a number of software packages that focus on job costing. He needs to pick one

> The notes to the 2018 consolidated financial statements of JB Hi-Fi Ltd appear in the appendix to this text. Examine these notes together with other information from the website (http://investors.jbhifi.com.au) to investigate JB Hi-Fi Ltd’s compliance wi

> Corporate governance relates only to large public enterprises and is therefore irrelevant for small business. Discuss this statement.

> Why has the globalisation of accounting become so important for accountants?

> From humble beginnings, Phil expanded his backyard business in Melbourne to produce and sell sports drink bottles for AFL, cricket, rugby league and rugby union football teams in 2019. Due to the success of his product and the fact that he was dealing wi

> Provide an example of the different types of activities that would be performed by a management accountant and a financial accountant for a large public company listed on the ASX.

> Kiki has just been offered a retirement package from her work as a sales representative with Makeup Magic. Her long-term goal has been to start up a day-spa resort on the Sunshine Coast in Queensland with her sister Cece, who is a marketing consultant. K

> The introduction of differential reporting has resulted in many significant changes for Australian companies. Access a summary of the Differential Reporting Project update at the AASB website (www.aasb.gov.au). Required (a) Summarise the requirements fo

> Refer to the statements of financial position for Advantage Tennis Coaching and Coconut Plantations Pty Ltd. Required (a) Summarise the differences in the ownership structure of the two business entities. (b) What are the relative advantages and disadva

> Access the latest update on the Australian Financial Reporting Framework from the AASB website www.aasb.gov.au/admin/file/content102/c3/AASB_Financial_Reporting_Framework_Project_Summary.pdf) and summarise the current status of the project.

> P Nightingale commenced business on 1 October 2020 as a beautician operating as Nightingale Beauty Salon. Transactions for the month of October were as follows. 2020 October 1 Started business by contributing capital of $120 000. 2 Paid rent for month of

> Samuel and Vinnie decide to form a partnership on 1 January 2020. They secure the services of a solicitor to draw up their partnership agreement as follows. (a) Samuel is to contribute: • His vehicle valued at $72 000 • Plant and equipment valued at $168

> The directors of Pumpkin Ltd provide you with the following financial information for the period ended 31 December 2020: selling expense $76 050; interest expense $29 250; legal fees $4875; administrative expense $60 450; income tax expense $31 200; cost

> Julia and Evie, owners of competing businesses, agree to form a partnership on 1 July 2020. Their individual assets and liabilities are independently valued and on this basis the following values are assigned to the partnership. Required Prepare a state

> Go to the Australian Taxation Office website (www.ato.gov.au) and select the ‘Business’ tab, then select ‘Businesses’ under the ‘Online Services’ heading. Next, select ‘Standard Business Reporting’ and then ‘What is Standard Business Reporting (SBR)?’ R

> Go to the Westpac website (www.westpac.com.au) and download the latest annual report. Required Use these statements to answer the following questions. (a) What is the total value of each of the following items at the end of the current reporting year in

> What are the three elements of a business plan? Consider the situation of two sisters contemplating a new business hiring surfboards and providing surf lessons on the Sunshine Coast. Explain how the business plan would assist the sisters in planning thei

> Go to www.jbhifi.com.au and find the consolidated statement of profit or loss and the consolidated statement of financial position for JB Hi-Fi Ltd in the latest annual report. Required Use these statements to answer the following questions. (a) What is

> The following business transactions and business events relate to Andrew’s Business Services Pty Ltd. 2020 June 1 Andrew commenced business with $15 000 given to him by his Aunt Kate. 4 Purchased new computer for his business $1200 on credit. 5 Received

> Rotterdam Financial Services Pty Ltd, managed by Saphira Browne, provides accounting, taxation and financial planning services to clients residing in the inner Melbourne area. The statement of financial position for Rotterdam Financial Services Pty Ltd a

> From the following business transactions of Kristy Jones, landscape consultant: (a) State the impact on the accounting equation for each transaction. For example: (b) Prepare a worksheet and a statement of financial position for the month of June 2020 f

> Using the data from the trial balance in problem 4.31, prepare a statement of profit or loss for the period ending 31 May 2020 and a statement of financial position as at 31 May 2020. In problem 4.31 Using the data in problem 4.30: (a) Record the transa

> Using the data in problem 4.30: (a) Record the transactions in the ledger for Anthony Reader for the month of May 2020. (b) Prepare a trial balance at 31 May 2020. (c) What is the purpose of the trial balance? Illustrate, by example, situations that woul

> The following transactions were taken from the records of Anthony Reader, an interior designer, for the month ending 31 May 2020. You are required to design a suitable accounting worksheet for the period. 2020 May 1 Commenced business with cash at bank o

> Choose appropriate account names and demonstrate the dual effect that occurs when the following business transactions for Brett Little take place. For example, in (a) we increase cash $14 000 and increase capital $14 000. (a) Brett Little commenced busin

> Using the information in problem 4.27, prepare a: (a) Statement of profit or loss for the period ending 31 July 2021 (b) Statement of financial position as at 31 July 2021. In problem 4.27 The closing statement of financial position items are given belo

> Integrated reporting is a type of reporting that has been adopted in countries such as South Africa. What do you think are the advantages and disadvantages to the company of providing such disclosures?

> The closing statement of financial position items are given below for Jason Woodstock in accounting equation form as at 30 June 2021. Transactions for the following month of July are also given. 2021 July 2 Received $2800 from accounts receivable. 3 Pai

> Enter the following transactions for the month of March 2020 in a worksheet and calculate the profit or loss for the period. Explain how the worksheet assists in the calculation of profit or loss. 2020 March 3 Injected capital to commence business $250 0

> For each of the following independent scenarios, explain why each transaction is or is not a business transaction. (a) Maggie, a sole trader, meets with her bank and negotiates a loan to provide additional finance to her business. (b) Maggie, a sole trad

> For each of the following transaction outcomes, describe an example of a transaction that would result in that outcome. (a) Both asset and equity accounts decreased. (b) Both asset and equity accounts increased. (c) Liability account increased and equity

> Choose two appropriate account names for each of the following business transactions. State whether you would debit or credit each of the accounts. (a) D Dango commenced business DD by contributing cash. (b) Cash sales by DD to customer. (c) Paid busines

> Cash sales of $2079 have caused the worksheet to be out of balance because a mistake was made when the figures were put into the worksheet. The bookkeeper accidentally increased the cash account by $2097 and increased the profit or loss account in the wo

> Complete the following table. (Note: Each row should be treated independently.) Current Non-current Current Non-current Profit/ assets + assets liabilities liabilities + Capital loss $ 200 $ 1 700 $ 1100 $4 000 $ 700 a. $19 700 50 b. 6400 400 750 151

> State the effect of each of the following business transactions for Trevor’s Trampolines. For example, in (a) we increase cash and increase capital. (a) P Trevor commenced business by injecting cash into her business. (b) Paid wages. (c) Purchased goods

> From the following descriptions of business transactions, choose two appropriate column headings for the worksheet. Justify for each description your choice of heading. (a) The owner contributes capital to the business. (b) The business purchases cabinet

> Determine the missing entries. Current Non-current Current Non-current assets assets liabilities liabilities Capital Income Expense $ 5000 $ 900 $6 000 $ 1400 $3 00 $ 5000 a. 7 000 5000 2 000 3 000 2000 $26 000 b. 21 000 61 000 9000 12 000 C. 60 100

> (a) Using the business transactions in part B, record the transactions in the ledger of Colin Clark. (b) Prepare a trial balance for Colin Clark as at 31 August 2020. (c) Prepare a statement of profit or loss for the month ending 31 August 2020. (d) Prep

> Using your knowledge of the accounting equation, solve the missing values in the following table. Assets Liabilities Equity $200 000 $58 000 a. %3! b. 66 000 $120000 250 000 C. 38 000 22 400 11 600 + d. + + + + +

> Classify each of the following according to whether it is an asset, liability or equity account. Apply your learning from the definitions in the introduction to accounting and business decision making chapter to provide a justification for each classific

> You are the bookkeeper for Chic Styles and, on review of the business’s records and reports, you realise the trial balance does not balance. Your supervisor asks you to investigate why this occurred. Explain with examples what type of errors would have c

> Can errors still exist in the trial balance if the sum of the debit and credit columns equals the same amount? If so, provide an example.

> Illustrate three scenarios of incorrect recordings that may cause a trial balance to not balance.

> Summarise the procedures you would undertake if an accounting worksheet does not balance.

> Discuss the purpose of a double-entry bookkeeping system.

> Both the journal and the ledger can be used to record a large number of transactions. Differentiate between financial recordkeeping in the journal and the ledger.

> What is meant by the concept of duality? Provide an illustration involving a business transaction where the business purchases a motor vehicle on credit.

> Describe how an accounting worksheet assists in the preparation of the statement of profit or loss and the statement of financial position.

> The following business transactions relate to Colin Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1 Commenced business operations with a $300 000 cash injection of personal funds. 2 Paid monthly rent $15

> What is the purpose of a statement of profit or loss for an entity? List typical items that you would see in the statement of profit or loss for a computer service technician.

> Explain what is meant by an ‘arm’s length business transaction’ when a business buys accounting software on credit.

> Another relatively widespread business structure is a trust. What are the two main forms of trusts in Australia? What are the tax issues associated with family trusts?

> Illustrate with an example the difference in the format of the equity section of the statement of financial position between a sole trader, partnership and company.

> What are two major advantages and disadvantages of a company structure? Provide an illustration with a company listed on the ASX (such as JB Hi-Fi Ltd, CSL Ltd, BHP Billiton Ltd).

> Explain with examples the major differences between a company limited by shares (such as JB Hi-Fi Ltd) and a proprietary company (such as Coconut Plantations Pty Ltd).

> Distinguish between personal transactions and business transactions. Illustrate with five examples of each.

> You are a friend of Penny Williams, who is thinking about starting a business to sell her personalized embroidered towels. Advise Penny on the four factors that should be considered before deciding what form of business structure to operate under.

> Compare and contrast the views of Hobbes with those of Smith and Friedman.

> The following account balances, dated 30 September 2020, are of sole trader Victoria Stone (Stone Bike Hire): capital (V Stone) $108 125; hire revenue $45 000; bike maintenance $10 000; administrative expense $5000; rent expense $2750; wages $10 000; int

> Teddy Thomas, a real estate agent, requires you to prepare a statement of profit or loss for the period ended 31 December 2020: donations $120; office wages $8400; sales salaries $30 000; sales commission expense $6000; advertising $4800; rent expense $2

> From the following information for sole trader J Pfahlert, software designer, draw up a statement of financial position as at the end of the financial year (30 June 2020). You are also required to determine the amount of owner’s capital: accounts payable

> Go to the Business Queensland website (www.business.qld.gov.au) and select ‘Starting a business’, then ‘Business types and legal structures’. Next select ‘Setting up a legal business’ under the heading ‘Business legal structures’. List the various consid

> Go to the ASX website (www.asx.com.au). In the search window, type ‘listing with ASX’. What are the key benefits of listing according to the ASX?

> Lou and Stu are sole traders who run their own separate businesses providing accounting and bookkeeping services. On 31 December 2019, their individual statements of financial position show the following accounts. Starting in 2020, Lou and Stu have agre

> Refer to the JB Hi-Fi Ltd consolidated statement of financial position in figure 3.3 to answer the following questions. Figure 3.3 (a) What is the major difference between the format of this statement and that of a partnership? (b) List two current asse

> Refer to the JB Hi-Fi Ltd statement of profit or loss in figure 3.2 to answer the following questions. Figure 3.2 (a) What is the major difference between the format of this statement and that of a sole trader? (b) What do you think is the purpose of th

> Explain what a transposition error is and identify how you can detect that one has occurred.

> Using the information shown in exercise 3.30, produce a statement of profit or loss for the period ended 30 September 2020. In exercise 3.30 Presented below are financial statement items for Jupiter Planet (a sole trader) for the period ended 30 Septemb

> Presented below are financial statement items for Jupiter Planet (a sole trader) for the period ended 30 September 2020. Determine which items should appear in the statement of profit or loss and which items should appear in the statement of financial po

> Jenny and Margaret agree to form a partnership on 16 September 2020 to supply first-aid kits to motor vehicle dealers. They agree on the following market values given to them by an independent valuer. • Jenny’s contribution: – Cash $10 000 – Inventory $1

> Produce the shareholders’ equity section of the statement of financial position for Geelong Davis Ltd, a public company. Use the following information: share capital (200 000 $1 ordinary shares and 30 000 $4 preference shares, all fully paid up); profit