MPA702 – Financial Interpretation

Description
This is a two-part task with the following descriptions:
A). The first part of the task focuses on your practical knowledge of analysis of accounting
transactions and also contents and structures of the two key financial statements, income statement
and balance sheet. These issues are the entry points to understand the information of corporate
financial reporting.
B). In part two of this task, you will conduct a short research on corporate social responsibility
(CSR). This is about CSR concept, and the theories supporting CSR activities and reporting.

Specific Requirements:
Part 1 (25 +7+ 18 = 50 marks)
Lee’s Computer System Consulting (LCS Consulting) began operations on first June 2021 and
completed the following transactions during the month. Her clients will include local businesses and
individuals. Her first month of transactions trading as LCS Consulting are provided below.

a) You are required to record the following events into the transaction analysis chart or
indicating if the event is not an accounting event (template provided).
June 2021
1 Jennifer Lee deposited $50,000 of her personal funds in a current account at a
bank opened in the name of her business. (This transaction is analysed as an
example in the given template).
1 Office lease contract was signed, six months lease paid in advance, $7,200.
1 Office contents were insured for $1,440, 12 months, paid in cash.
2 Computer equipment was purchased from ComTech at a cost of $28,000. Half
of the purchase amount was paid in cash and the rest to be paid by the end of
next month.
3 Paid $500 in cash for delivery and unpacking of the computer equipment.
3 Susan Tuch and Peter Lu employed as the office assistance and technician,
annual salaries of $36,400 and $52,000, respectively.
3 Job advertisement invoice received and paid in cash, $150.
3 Office supplies were purchased from Office Gears on credit $450, office
supplies initially recorded as an asset.
4 Jennifer purchased a van for business $26,000. The total amount as an interest
free loan, will be paid by one-off payment in August 2022.
5 First client, Lily Tour Pty Ltd was invoiced for services, $2,200.
9 Tile & Bathroom Pty Ltd chain was invoiced for services, $4,850
11 Lily Tour Pty Ltd paid its full account.
15 Jennifer withdrawn $800 for personal use.
17 Office furniture was purchased from Modern Space for $3,320 on credit.
18 Paid Wages totalling $3,000, $300 of which was deducted for PAYG
24 Signed a service contract with PTT Pty Ltd for 12 months computer systems
maintenance $24,000. An advance payment of $4,000 was paid by PTT.
29 Tile & Bathroom Pty Ltd paid 50% of its account
Additional information at the end of the month (30 June 2021):

• Salaries owing at balance date are $2,530.
• The business depreciation policy is this: if an asset is purchased in the first half of the month,
the asset is depreciate for the full month, if the asset is purchased in the second half of the
month, no depreciation shall be applied for the month.
Depreciation information:
- Van- useful life 5 years, residual value $5000, straight line method.
- Computer equipment - 40%, no residual value, reducing balance method.
- Office furniture – 4 years, residual value $200, straight line method.
• Accounts for one month of insurance and lease expenses.
• $All the office supplies remained unused at balance day.
• Ignore GST and income tax.
b) Prepare the classified Income Statement and Balance Sheet for the month ending 30
June 2021 for .
Please note that your answer to this part (1-b) must be presented after part (1-a) in the same
file.

Part 2 
Background
Corporate social responsibility (CSR) concerns ‘the responsibility of an organisation for the impacts
of its decisions and activities on society and the environment through transparent and ethical
behaviour that contributes to sustainable development; takes into account the expectations of
stakeholders; complies with applicable laws and consistent international norms of behaviour; and is
integrated throughout the organisation and practiced in its relationships’ (Shaw et al, 2021, p. 129,*).

*Shaw, WH, Barry, V, Muntean, D, Issa, T, Illott, G, and Cateley B (2021) Moral Issues in Business,
4th Asia-Pacific edn, Cengage, Melbourne.

Required:
You are required to research information on the below issues.
1- The concept of CSR and historical evolution of the concept.
2- The common theories supporting CSR activities and reporting (you should discuss 3 relevant
theories).
Then discuss and document the results of your research on the above issues in an essay format
with the following suggested sections1:
 Introduction (suggesting 100-150 words);
 Body, can be presented under some subheadings (suggesting 900-1000 words);
 Conclusion (suggesting 100-150 words).

Additional information:
 You are expected to undertake research in order to complete this task. Review of the above
referred source can be a good point to start with. Your research should also include further
primary-source references i.e. peer-reviewed journal articles, scholarly books, and professional
publications (avoid Wikipedia type material).
 You are required to use a minimum of 6 references (minimum 4 academic peer reviewed journal
articles and the other 2 can be from other types of resources e.g., scholarly books, professional
publications) to support your discussion. Your references can be included the given source.
 Word Limit: 1200 words (excluding reference list), double-spaced, 12-point Ariel, or Times New
Roman font. A word count must be included. Students exceeding the word limit by more than
10% will incur a mark penalty.
 Students must submit a properly referenced assignment that complies with the Harvard
referencing style. This includes in-text citations and a reference list.
Your total mark out of 100 for Parts 1 & 2 will be converted to a percentage out of 20%.
Learning Outcomes
This task allows you to demonstrate achievement towards the unit learning outcomes. The ULOs
are aligned with specific graduate learning outcomes – that is, the skills and knowledge graduates
are expected to have upon completion of their studies – and this assessment task is an important
tool in determining achievement of those outcomes.

If you do not demonstrate achievement of the unit learning outcomes, you will not be successful in
this unit.
It is good practice to familiarise yourself with the ULOs and GLOs as they provide guidance on the
knowledge, understanding and skills you’re expected to demonstrate upon completion of the unit. In
this way they can be used to guide your study.
Table for learning outcomes that are aligned to this task goes here:

Unit Learning Outcomes (ULO) Graduate Learning Outcomes (GLO)
ULO 1: Assess the financial standing of an
entity by examining relevant financial information
and identify how disclosure techniques can
support business decisions.
GLO 1 Discipline-specific knowledge and
capabilities: appropriate to the level of study
related to a discipline or profession
ULO 2: Evaluate scenarios involving ethical
decisions in financial accounting.
GLO 8 engaging ethically and productively in
the professional context and with diverse
communities and cultures in a global context