Financial Accounting - Written Decision Case
You have taken a job as a graduate accountant working at ABC Mining Company Ltd. in the financial accounting area.
One day the CEO approaches you and asks for your advice on an accounting matter. The CEO tells you that ABC Mining Company has been approached by a conservation group with regard to its intentions to restore the land on which it is currently conducting open cut mining when the mine is exhausted. The mine has been in operation for more than 20 years. The original agreement for the mine did not include any requirement for restoration of the land, however subsequent agreements in the same area have included such clauses.
The CEO wants to more clearly understand what the obligations of ABC Mining Company might be with regard to the restoration of the land.
You need to provide advice to the CEO as to whether ABC Mining Company needs to record a liability, a provision or a contingent liability in accordance with AASB 137. Your advice should extensively refer to AASB 137 in providing your opinion and clearly explain why the option (liability, a provision or a contingent liability) you have chosen is the most appropriate for ABC Mining Company Ltd.
This assessment item assesses the following learning outcomes:
Knowledge & Technical Skills (KS) - Demonstrate and apply integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
Higher Order Thinking Skills (HO) - Exercise creativity and intellectual independence and make informed decisions and judgements in planning, designing, and executing strategic and research-based responses to address real world issues and problems.
Professional Communication (PC) - Use information literacy skills and communicate effectively and professionally in written forms and using media appropriate for diverse purposes, contexts and audiences.
Purpose: Effective written communication skills are highly valued in business. This is particularly true for accountants who are often tasked with suggesting solutions where there is no uncontested or objective answer to the problem they are faced with. This assessment item is intended to develop these skills.
Assignment Files -
https://www.dropbox.com/s/6z9vhonc2j6biqr/Assignment%20Files.rar?dl=0