OrangeApples Ltd is a familyâ€based business that has built a strong reputation for quality and service in the food processing industry. They estimated that the goodwill they had generated from their customer base has a fair value of $2.5m. Therefore, in 2015 they embarked on an expansion plan. They became a public company and listed on the ASX on 1 July 2015 with a share issue of 165,000,000 ordinary shares at $0.25 each, fully paid. The carried forward balance in the share capital account includes the share issue costs of $224,000. The 2017 reporting season has now arrived and the company’s financial controller is on extended leave so OrangeApples Ltd have approached ‘Fin Accounting’ to assist in the preparation of the financial statements for the year ended 30 June 2017 and preparing a report for the OrangeApples Ltd Board of Directors. You have been working as an accountant with ‘Fin Accounting’ for 15 months, since securing a graduate position with them. Your manager has assigned you and your team to help prepare the OrangeApples Ltd financial statements. Firstly, however, it appears that the bookâ€keeper has been struggling to keep up with accounting for all the changes that have been taking place over the past year, and so your first task is to update the accounts and make any necessary adjustments to the trial balance. If you have any questions regarding the data provided please direct your queries to the client’s accounts manager, Ms Victoria Plum. Ms Plum will respond to questions posted on the discussion board in the area designated “Ms Victoria Plum”. Be professional in your correspondence with Ms Plum and do not repeat questions that may have previously been asked of her. You will need to keep a close eye on the communications with the client, as other teams at ‘Fin Accounting’ will also be working on this account. In addition, please be aware that the professional nature of your correspondence will be monitored and assessed and penalties will be applied for inappropriate communication. Please ensure you also always use an appropriate salutation and signâ€off, avoid spelling and grammatical errors, and demonstrate a professional tone and attitude to ALL interactions with the client. YOUR TASK: Prepare an individual cover letter/memo and ONE group report in which you: 1. Present a properly formatted report to be presented to the Board of Directors (see sample provided on MyLO; include all sections including all introductory components); You MUST follow the sample report template provided on MyLO. Incorrectly formatted assignments will be returned to you unmarked. A 10% late penalty will be applied for every day, or part thereof, that it takes to correct format your report and resubmit. 2. Analyse the case study data and apply relevant accounting standards to complete the accounts and make any necessary end of year adjustments; 3. Prepare financial statements, set out in a professional manner, ready for inclusion in the overall annual report, and in line with AASB101; You are NOT required to prepare a cash flow statement. Expenses are to be classified by nature.
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4. In an appendix, provide in the following order: all journal entries (dated) & presented together with cross reference numbering to the relevant calcuations and schedules that follow; and an adjusted trial balance; 5. In a separate document to be uploaded to MyLO, provide the minutes of your group meetings; 6. EACH individual group member MUST complete a cover note (email) memo; 7. Sign and submit your team contract before you start and complete the online peer evaluation form within 48 hours of submission. Further details of what is required: 1) When preparing the notes to the financial statements you will need to include a Note 1 discussing the significant accounting policies and key components of relevant accounting standards (and paragraph/s where appropriate) that have been followed (hint: also include a discussion of AASB15); Please DO NOT simply copy out the standard and do not plagiarise samples. You must demonstrate your understanding by paraphrasing using your own words. Keep it brief but with the key points covered. Just include the most important/relevant parts of the standard. 2) To demonstrate your team work skills you must provide a set of properly formatted meeting minutes. These minutes should include: date; time; location; chairman (i.e. nominate someone to chair the meeting each time. The chair’s role is to ensure all items of business are dealt with and that all members have an opportunity to contribute); secretary (nominated to take the notes for that meeting and briefly document the discussion, decisions, and action plans); who is present at the meeting; and who is absent; a numbered heading for each aspect or matter discussed; a brief note about it; and most importantly what the action plan will be and who will do what, & by when, in the case of jobs being allocated. Any correspondence between meetings should also be noted at the next meeting. Importantly at your second and subsequent meetings the first item on the agenda is to present the minutes of the previous meeting and make a note if anyone is happy to accept they are a true and accurate record of what happened. If someone disagrees make a note of that too. At subsequent meetings you must also clearly note that the action items have been completed. It is expected that all teams will meet at least once a week. If you cannot arrange a convenient time to meet face to face you will need to organise a virtual meeting online, or get the one person who cannot make it in to call in on a conference call or Skype. You are being assesed on your ability to work together in a team so negotiating mutually convenient time to work together in a team is part of your task. 3) Sign and submit a copy of your team contract before you start and upload a copy to MyLO. All team members must complete the online peer evaluation form within 48 hours of submission. For further details please see the individual contribution multiplier information (on MyLO). 4) Individual cover letter/email MEMO: To demonstrate that every student has met the communication learning outcome for BFA201 (LO3), all group members MUST submit their own cover letter in the form of an email memo that should be addressed to your supervisor (Ms Smith). This memo should be prepared as if you were attaching the final report for review. It should therefore highlight key points and/or
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issues that you consider need attention, and offer an explanation for any large movements/variances from the previous year’s figures