This assignment is based on the AASB Exposure Draft ED270, Reporting Service Performance Information, published in August 2015 by the Australian Accounting Standards Board (AASB). You can find a copy of this Exposure Draft and other useful documents in the assignment folder under the Assessments link on vUWS site for Advanced Accounting. The Exposure Draft ED270 is also available from the AASB web site, http://www.aasb.gov.au/Work-In-Progress/Open-for-comment.aspx

According to AASB the Exposure Draft ED270 establishes principles and requirements for an entity to report service performance information that is useful for accountability and decision-making purposes. It proposes mandatory requirements for not-for profit (NFP) entities in both the private and public sectors for which to report service performance information.

Service performance information according to AASB relates to the delivery of goods and/or services with the intention of having a positive impact on society or segments of society. This Exposure Draft requires service performance information to be reported at least annually in relation to:

a) the entity's service performance objectives;

b) key outputs, including the inputs used to produce those outputs;

c) any outcomes the entity is seeking to influence; and

d) the entity's efficiency and effectiveness in achieving its service performance objectives.

The proposals in this Exposure Draft are not required to be included as part of the financial statements; rather, the information reported is intended to supplement financial statements to assist users of NFP entity reporting in evaluating that entity's service performance. Therefore, this Exposure Draft does not specify whether service performance information reported is required to be audited; this is a matter for each entity's regulator.

The reasons why AASB are making these proposals according to AASB are; Service performance information is information that relates to the delivery of goods and/or services with the intention of having a positive impact on society or segments of society. Service performance information (in conjunction with an entity's financial statements) assists users of general purpose financial statements to assess an entity's performance. Much like the International Accounting Standards Board's Practice Statement Management Commentary that sets a framework for presentation, the proposals in this Exposure Draft aim to set a framework for reporting service performance information.

The AASB's powers and functions are set out under Part 12 Section 227 of the Australian Securities and Investments Commission Act 2001. Section 227 (1)(c) allows the AASB to "formulate accounting standards for other purposes" and it is under this function that the AASB has the mandate to develop an Australian Accounting Standard for reporting service performance information.

The AASB notes that section 300B of the Corporations Act 2001 requires companies limited by guarantee to provide much of the information required by the proposals in this Exposure Draft in their Annual directors' report. For example, these entities are required to:

a) describe their objectives;

b) set out the strategy for achieving those objectives;

c) state the principal activities during the year;

d) state how those activities assisted in achieving the entity's objectives; and

Requirements:

The ED270 was released for comment and you are required to act as a respondent, taking on one of the stakeholder perspectives listed below for the purpose of providing detailed response/comments to the selected questions on pages 11 to 13 on Specific Matters of the ED270 (and are listed below).

Stakeholders

- Accounting firm/Auditor

- Lender/Creditor

- Professional Accounting body

- Not-for-Profit entity in one of the following sector: health care sector; social services sector; education sector; sport and recreation sector; arts and culture sector; environment sector; animal welfare sector; or human rights and religious practices.

- Company in the Utilities Industry

- Company in the Banking Industry

- Company in the healthcare industry

- Not-for-Profit public sector entity

In your response/comments make sure you consider the relevance of the specific technical and theoretical issues in these questions from your nominated stakeholder perspective. You should also consider how such proposals would benefit and/or disadvantage the stakeholder. You might also like to consider the theoretical implication of accounting information produced from the perspective of your nominated stakeholder.

From your chosen perspective, respond to the following selected questions;

1. Paragraph 20 proposes the principles for reporting service performance information. These principles state that an entity reports service performance information that:

a. is useful for accountability and decision-making purposes;

b. shall be appropriate to the entity's service performance objectives;

c. clearly shows the extent to which an entity has achieved its service performance objectives; and

d. should enable users to assess the efficiency and effectiveness of the entity's service performance.

Do you agree with these principles? Why or why not?

2. It is proposed that the [draft] Standard will be applicable to NFP entities in both the private and public sector. The performance of these entities cannot typically be evaluated from the financial statements alone. Accordingly, users of NFP entity reporting require further information for accountability and decision-making purposes.

Do you agree that it is appropriate that the [draft] Standard apply to NFP entities in both the private and public sectors? Why or why not?

3. The AASB discussed whether this [draft] Standard could be applied by for-profit entities at a future date. The Board noted that the principle objectives of NFP entities and for-profit entities are different and, therefore, user needs are potentially different. However, the Board is of the view that users of for-profit reporting may also benefit from for profit entities reporting service performance information.

Do you agree that the application of this [draft] Standard could be extended in the future to include for-profit entities? Why or why not?

4. This [draft] Standard allows an entity to present its service performance information in:

a. the same report as the financial statements;

b. a separately issued report; or

c. in a variety of different reports.

Do you agree that this [draft] Standard should not specify the location of service performance information? Why or why not?

If you disagree with the approach proposed in this [draft] Standard how do you consider entities should present service performance information and why?

5. The AASB's view is that this [draft] Standard should be mandatory as it, in conjunction with an entity's financial statements, provides useful information for users to assess the performance of NFPs in relation to an entity's service performance objectives. Providing this information will further assist users for accountability and decision-making purposes.

Do you agree that this [draft] Standard should be mandatory for NFP entities? Why or why not?

6. Evaluate whether overall, the proposal would result in reporting that would be useful to users?

7. Summarise your submission to ASSB for your general manager who is from non-accounting background.

Objectives of the Assignment:

One of the key objectives of this assignment is to assist you to develop effective written communication skills which are crucial to gaining employment and ongoing career success.

In the 2014 Graduate Outlook report employers were surveyed about the most important selection criteria when recruiting graduates. It is evident in the table below that employers rate communication skills as their number one priority when recruiting graduates across the board.

Since 2012, the Australian Parliament legislated that all higher education providers are required to provide evidence that their graduates achieve a common national set of learning outcomes by the time they graduate. Minimum or threshold learning outcomes (TLOs) for accounting graduates were developed collaboratively across Australia in 2010 with input from the professional accounting bodies, various business practitioners and accounting academics. Five TLOs were developed for the accounting discipline of which the communication standard is particularly relevant for this assignment.

Bachelor graduates in Accounting will be able to justify and communicate accounting advice and ideas in straightforward collaborative contexts involving both accountants and non-accountants.

Please keep this TLO in mind when preparing your assignment. The Criteria and Standards for marking the assignment are on page 5. Use this to help you prepare your answer to the assignment. It shows what we will be looking for in marking and what mark you will get if you reach certain levels.

It is important to use appropriate referencing. If the reader of your report wants to further follow up any of the points you have made, correct referencing of the material is essential. You do not want the situation where the reader has to contact you to find out where the material came from!

5 references.

Attachment:- ED270.rar