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March 21, 2017
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GB518 FAPAA Assignment.
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GB518 FAPAA Assignment.
GB518 FAPAA Assignment..
Assessment Description
.
Submission:
The assignment will need to be submitted electronically through the student portal –
use the link under “Assessments overview and submission” to submit the information.
The portal will close at 11:59 PM (AEST). Adelaide and Brisbane students please
allow for time difference.
.
.Requirement:
You are required to answer the following three questions. The assignment must be
completed individually and submitted before the due date to avoid any late penalties.
GB518 FAPAA Assignment 1 Page 2 of 4
Task 1: Business sustainability, ethics and corporate governance
Big Business Tobacco (BBT) is a large Australian producer of tobacco products
including a market-leader brand of cigarettes. With the continuing development of
Asian countries such as China and its move to a market-based economy, the company
has made the decision to sell its cigarettes in this larger market from the beginning of
next month. The cigarettes will be sold in packs of 40.
Mary Bender, marketing manager, is discussing the design of the cigarette packet for
the Asian market with Randall Hedges, the company’s public relations manager.
Having agreed on the basic design of the pack, Hedges raised the issue of whether to
include the normal health warning on the pack, which has to be displayed under
Australian law. He emphasised recent medical findings which predicted many
hundreds of thousands of deaths from cigarette smoking in the next few years,
particularly in the developing countries.
Mary Bender was strongly opposed to including a ‘health hazard’ warning on the packs
destined for parts of the Asian market. She explained: ‘In this business it is the bottom
line (i.e. profits) which matters — we have to think of our shareholders. BBT stands to
lose a considerable market share to competitors if it includes such a warning. Besides,
it is not a legal requirement in many Asian countries to display a health warning on
cigarette packs. If Asian law is subsequently amended then we will be one of the first
to comply. Besides, the managing director supports me on this one.’
Hedges expressed a final opinion: ‘The Company could be better off in the long term
by being seen to be acting with corporate responsibility, and demonstrating some
concern for its consumers. Besides, such warnings have not been detrimental to the
company’s performance in Australia, where health warnings have been common for
many years.’
Required
1. Who are the major stakeholders in the debate on the health warnings on
cigarette packs?
2. What are the main ethical issues involved in the debate?
3. If you were Randall Hedges, what would you do?
GB518 FAPAA Assignment 1 Page 3 of 4
Task 2: Business structures
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
2012. Due to the success of his product and the fact that he was dealing with very wealthy
football clubs, he was advised to form a proprietary company limited by shares so as to
maintain his credibility.
To comply with a previous requirement in the Corporations Act (whereby a company requires
two directors), he insisted that his wife Josephine (a school teacher) become a director. Phil
was not renowned for his accounting skills, and he overlooked the tax liabilities for the
company over the following two years. Earlier this year case ended up in court, with the
Australian Taxation Office claiming that both Phil and Josephine are individually and jointly
liable for the tax payable by the company.
Required
1. Do you think Phil and/or Josephine should be liable for overlooking the tax liabilities
for the company? Why or why not?
2. What responsibilities do you think Phil and Josephine have as directors of the
company?
Task 3: Business transactions
The following list of items relate to the business of Jay Street Wear:
1. cash paid into the business by Jay to begin operations
2. racks purchased to display merchandise to customers
3. building leased for 2 years, with rent payable monthly in advance
4. streetwear items purchased from a manufacturer
5. amount owing to the manufacturer for merchandise purchased
6. insurance premium on the merchandise paid in advance
7. cash withdrawn by Jay for personal use
8. wages paid to casual employee
9. amount borrowed long-term from the bank
10. cash sales of merchandise to customers
Required
1. Identify the elements of the financial statements (asset, liability, income, expense and
equity) impacted by each of the transactions.
2. List the cash flow classification (operating, investing or financing) and direction (inflow
or outflow) for each transaction.
GB518 FAPAA Assignment 1 Page 4 of 4
GB518 – Assignment 1 Marking Sheet
Assessment Information
Subject Code: GB518
Subject Name: Financial Accounting Principles and Analysis
Assessment Title: Written Assignment 1
Weighting: 20% (Assessable value)
Total Marks: 60 marks
Due Date: Monday of Week 7 i.e. 2 May 2016 by 11:59 pm AEST
Requirement Marks
allocated
Marked
received
Task 1: Business sustainability, ethics and
corporate governance
Who are the major stakeholders in the debate on the
health warnings on cigarette packs? 6 marks
What are the main ethical issues involved in the
debate? 7 marks
If you were Randall Hedges, what would you do? 7 marks
Task 2: Business structures
Do you think Phil and/or Josephine should be liable for
overlooking the tax liabilities for the company? Why or
why not?
12 marks
What responsibilities do you think Phil and Josephine
have as directors of the company? 8 marks
Task 3: Business transactions
Identify the elements of the financial statements (asset,
liability, income, expense and equity) impacted by each
of the transactions.
10 marks
List the cash flow classification (operating, investing or
financing) and direction (inflow or outflow) for each
transaction.
10 marks
Total above (gross marks) 60 marks
Weighted down marks (net) 20 marks
Previous answers to this question
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Get The Answer GB518 FAPAA Assignment.
‘
‘
March 21, 2017
‘
<'">
0
GB518 FAPAA Assignment.
GB518 FAPAA Assignment..
Assessment Description
.
Submission:
The assignment will need to be submitted electronically through the student portal –
use the link under “Assessments overview and submission” to submit the information.
The portal will close at 11:59 PM (AEST). Adelaide and Brisbane students please
allow for time difference.
.
.Requirement:
You are required to answer the following three questions. The assignment must be
completed individually and submitted before the due date to avoid any late penalties.
GB518 FAPAA Assignment 1 Page 2 of 4
Task 1: Business sustainability, ethics and corporate governance
Big Business Tobacco (BBT) is a large Australian producer of tobacco products
including a market-leader brand of cigarettes. With the continuing development of
Asian countries such as China and its move to a market-based economy, the company
has made the decision to sell its cigarettes in this larger market from the beginning of
next month. The cigarettes will be sold in packs of 40.
Mary Bender, marketing manager, is discussing the design of the cigarette packet for
the Asian market with Randall Hedges, the company’s public relations manager.
Having agreed on the basic design of the pack, Hedges raised the issue of whether to
include the normal health warning on the pack, which has to be displayed under
Australian law. He emphasised recent medical findings which predicted many
hundreds of thousands of deaths from cigarette smoking in the next few years,
particularly in the developing countries.
Mary Bender was strongly opposed to including a ‘health hazard’ warning on the packs
destined for parts of the Asian market. She explained: ‘In this business it is the bottom
line (i.e. profits) which matters — we have to think of our shareholders. BBT stands to
lose a considerable market share to competitors if it includes such a warning. Besides,
it is not a legal requirement in many Asian countries to display a health warning on
cigarette packs. If Asian law is subsequently amended then we will be one of the first
to comply. Besides, the managing director supports me on this one.’
Hedges expressed a final opinion: ‘The Company could be better off in the long term
by being seen to be acting with corporate responsibility, and demonstrating some
concern for its consumers. Besides, such warnings have not been detrimental to the
company’s performance in Australia, where health warnings have been common for
many years.’
Required
1. Who are the major stakeholders in the debate on the health warnings on
cigarette packs?
2. What are the main ethical issues involved in the debate?
3. If you were Randall Hedges, what would you do?
GB518 FAPAA Assignment 1 Page 3 of 4
Task 2: Business structures
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
2012. Due to the success of his product and the fact that he was dealing with very wealthy
football clubs, he was advised to form a proprietary company limited by shares so as to
maintain his credibility.
To comply with a previous requirement in the Corporations Act (whereby a company requires
two directors), he insisted that his wife Josephine (a school teacher) become a director. Phil
was not renowned for his accounting skills, and he overlooked the tax liabilities for the
company over the following two years. Earlier this year case ended up in court, with the
Australian Taxation Office claiming that both Phil and Josephine are individually and jointly
liable for the tax payable by the company.
Required
1. Do you think Phil and/or Josephine should be liable for overlooking the tax liabilities
for the company? Why or why not?
2. What responsibilities do you think Phil and Josephine have as directors of the
company?
Task 3: Business transactions
The following list of items relate to the business of Jay Street Wear:
1. cash paid into the business by Jay to begin operations
2. racks purchased to display merchandise to customers
3. building leased for 2 years, with rent payable monthly in advance
4. streetwear items purchased from a manufacturer
5. amount owing to the manufacturer for merchandise purchased
6. insurance premium on the merchandise paid in advance
7. cash withdrawn by Jay for personal use
8. wages paid to casual employee
9. amount borrowed long-term from the bank
10. cash sales of merchandise to customers
Required
1. Identify the elements of the financial statements (asset, liability, income, expense and
equity) impacted by each of the transactions.
2. List the cash flow classification (operating, investing or financing) and direction (inflow
or outflow) for each transaction.
GB518 FAPAA Assignment 1 Page 4 of 4
GB518 – Assignment 1 Marking Sheet
Assessment Information
Subject Code: GB518
Subject Name: Financial Accounting Principles and Analysis
Assessment Title: Written Assignment 1
Weighting: 20% (Assessable value)
Total Marks: 60 marks
Due Date: Monday of Week 7 i.e. 2 May 2016 by 11:59 pm AEST
Requirement Marks
allocated
Marked
received
Task 1: Business sustainability, ethics and
corporate governance
Who are the major stakeholders in the debate on the
health warnings on cigarette packs? 6 marks
What are the main ethical issues involved in the
debate? 7 marks
If you were Randall Hedges, what would you do? 7 marks
Task 2: Business structures
Do you think Phil and/or Josephine should be liable for
overlooking the tax liabilities for the company? Why or
why not?
12 marks
What responsibilities do you think Phil and Josephine
have as directors of the company? 8 marks
Task 3: Business transactions
Identify the elements of the financial statements (asset,
liability, income, expense and equity) impacted by each
of the transactions.
10 marks
List the cash flow classification (operating, investing or
financing) and direction (inflow or outflow) for each
transaction.
10 marks
Total above (gross marks) 60 marks
Weighted down marks (net) 20 marks