What is the purpose of an entity



Term 3 2012

Individual Assignment – 15%


The individual assignment is intended to provide students with:

1. The opportunity to work in a collaborative environment to:

· develop simple research and analytical skills.

· document findings in a professional and business like manner.

2. Exposure to current and topical accounting and business issues.


Based on the following questions as presented on page 2 you are required to answer the following questions which should total 500 – 750 words.

You must include any references you have used and cited in your questions. You must use the Harvard referencing system as per the guide available from the library website. (Note: the reference list is not included in the word count).

Submission information

This assessment task is to be submitted to your tutor at the beginning of your tutorial in Week 9 (i.e. week commencing 17 December 2012). A submission of no more than 750 wordsis expected (excluding the reference list). It must be word processed in either Times New Roman or Arial font, 12 pitch and double spacedwith a footerincluding your name, student ID and page number. Your assignment should be firmly stapled in the top left-hand corner. Do not use folders or plastic sleeves. The following items need to be included in the order listed:

1. ‘Individual Assignment – Cover sheet and Declaration form’(page 3), fully completed and signed;

3. Your assignmentwith reference list.

Please note that students are required to keep a copy of all written work submitted.


1. (a) What is the purpose of an entity? (4 marks)

(b) What are the rights of the stakeholders of an entity? (5 marks)

2. (a) Outline the legal duties that directors have to their company (in Australia). (5 marks)

(b) Provide an example of a director that has not fully complied with these legal duties. What were the penalties involved? (Ensure you provide evidence via appropriate references you have obtained to support your answer). (6 Marks)

One Tel Ltd and ABC Learning Centres Ltd were Australian companies that entered financial distress and were subsequently delisted from the ASX. Watch the CPA Australia videos found at.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/knowledge-auditing-toolkit.html”>http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/knowledge-auditing-toolkit.html (the video is at the right hand side of the screen) and.youtube.com/watch?v=YYF6JW9vJKo”>http://www.youtube.com/watch?v=YYF6JW9vJKo which discuss the downfall of these companies and then answer the following questions.

(a) For both One Tel Ltd and ABC Learning Centres Ltd, outline three warning signals that the financial statements and/or notes to the accounts revealed that would have indicated the company was at risk of financial distress? (your answer must explain which statement or note provides this information). (10 marks)


700005 ACCOUNTING INFORMATION FOR MANAGERS – Term 3, 2012.0/msohtmlclip1/01/clip_image004.jpg”>

Tutor: Tutorial Time:

Tut Day: Due Date:

Family Name

Given Name

Student No.


I hold a copy of this assignment if the original is lost or damaged. I hereby certify that no part of this report has been copied from any other student’s work or from any other source except where due acknowledgement is made. No part of the report has been written for me by any other person except where collaboration has been authorised by the Unit coordinator. I am aware that this assignment may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking).

……………………………………………………. …../…./……

Student signature Date

Note: An examiner or lecturer/tutor has the right to not mark this assignment if the above declaration has not been signed.

For late assignments – Date/Time Received:

– Penalty Imposed (if any):

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