Learning Objectives

Lo 1: Evaluate the role of New Zealand accounting and financial reporting framework

a) Evaluate the basic concepts of business accounting
b) Evaluate the importance of professional skills for accountants
c) Analyze the regulatory environment in New Zealand

LO 2: Preparation and evaluation of financial statements under the guidelines of New Zealand accounting framework

a) Evaluate the accounting system: Concepts and applications
b) Preparation and evaluation of financial statements: Balance sheet, income statement, statement of changes in equity, and statement of cash flows.
c) Managing and reporting working capital

Question 1 : Evaluate the role of New Zealand accounting and the financial reporting framework

Please read the following scenarios and answer the questions given at the end of each scenario.

1.1: Accrual and Cash Profit in Measuring Performance

Required:

What would you say to the general manager?

Note: Your answer should address the above given scenario from the following three aspects:

i. Cash versus accrual basis of accounting;
ii. Responsibilities of external auditor;

Your answer must be based on current New Zealand Accounting Standards Framework. It is expected that your answers will demonstrate strong support from the relevant academic and professional sources. Please consider the following source as a starting point:

Evaluation of basic accounting concepts

Please refer to the 30 June 2016 financial reports of Air New Zealand

Answer the following questions using the consolidated financial report and the notes to the financial report for the year ending 30 June 2016:

a) Which accounting firm audited the financial statements and what opinion was issued? Explain a qualified audit opinion.

b) Compare the net profit with the net cash flows from operating activities. Which amount is larger? Provide an explanation for this.

c) Name any three directors of the company who serve the audit committee, explain the role of audit committee.

d) Have the directors identified any contingent liabilities for the group? If so what are they and how have these been disclosed? Explain the concept of contingent liabilities.

Question 2

Preparation and evaluation of financial statements under the guidelines of New Zealand accounting framework.

Please read the following information regarding Interwood, and answer the questions given at the end of the information.

Required:

a. Prepare a worksheet showing all of the above transactions (The transactions are GST inclusive; assume 15% GST as applicable in New Zealand).

b. Prepare Income statement and balance sheet for the month ended June, 2017

c. Calculate and analyse working capital of the Interwood

Attachment:- Business Assignment.rar