1. Compare and contrast the presentation requirements of the Conceptual Framework for
Financial Reporting and of AASB132 – Financial Instruments: Presentation in relation to
such instruments as convertible notes, particularly when they concern the probability of
conversion. Are you more inclined to agree with the requirements of AASB132 or the
suggestions provided by the conceptual framework? Justify and support your
perspective. (Adapted from Deegan, C., Financial Accounting, 2016).
2. What are the major issues addressed by accountants when dealing with international
financial transactions? How and why do accountants mitigate risk in such instances?
3. The article entitled ‘One third of large Australian Companies pay no tax, ATO Data
Shows’ (ABC, 14 December 2018, Topic 3) states ‘About one third of large companies
have failed to pay tax even though they made a gross profit … but the Tax Office says
most have good reasons…’. In terms of the Code of Ethics for Professional Standards
what issues may arise in this type of situation for the Professional Accountant?
4. When IFRS15/AASB15 Revenue from contracts with customers was released, one of
the large international accounting firms issued a short document entitled IFRS Industry
issues: Construction and Real Estate. In the document the following was stated: ‘The
adoption of IFRS15 may lead to significant changes in the pattern of revenue and profit
recognition. Careful consideration and planning will be needed for a range of issues,
including the effect on compliance with bank covenants and performance based
compensation.’ Why do you consider this advice was given? Do you agree with this
advice? Why or why not? (Adapted from Deegan, C., Financial Accounting, 2016).
5. Going forward, can you envisage a single universally accepted theory of accounting?
Why or why not? Justify and support your response.
6. If a company adopted a particular accounting policy that the Australian Securities and
Investment Commission (ASIC) considered to be questionable, in principle ASIC might
consider taking legal action against the Company Directors for failing to produce true
and fair statements. However in your opinion why may it be difficult for ASIC to prove in
court that the company’s financial statements were not true and fair. What other action
might ASIC take in this instance? (Adapted from Deegan, C., Financial Accounting,

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