Internal Code-MAS5105

Part A Professor Ray Chambers once postulated on the following several decades ago: FLOCCINAUCINIHILIPILIFICATION Floccinaucinilhilipilification is the habit of treating things as trivial as of no account. It is a compound of four Latin roots, each of which means or implies triviality. The compound means treating things as absolutely of no account. The present contention is that treating significant differences between things as of no account is the source of much that is confusing, vacuous and fruitless in accounting debate and much that is false and misleading in the products of accounting processes. Required: With reference to the above statement describe, discuss and comment on these inferences/accusations in terms of your chosen annual report. Part B Title:                Professionalism and Accounting Rules Author:            Dr Brian P. West - Professor in Accounting Publication:     Routledge New Works in Accounting History Published:       2003 ISBN:              0-415-28569-0 The recent history of accounting has been marked by the rapid escalation of a vast array of accounting standards and other technical rules. In spite of this enormous regulatory activity, sudden corporate collapses and other associated financial reporting failures persist. In such a climate, audited financial reports are among the most highly regulated yet also the least reliable of commodities.. The author argues that the accounting profession is beset by an inferior and incomplete notion of quality in its work, emphasizing only compliance with processing rules rather than the correspondence with commercial phenomena necessary to make accounting information a reliable guide for financial decision making. It is revealed that the discourse of accounting researchers is largely unconcerned with improving the technical quality of financial statements and that the emphasis in accounting education is on simply the mastery of a rule-book. Accounting practice itself has degenerated into a ritual of rule-compliance. Building from a consideration of the function of accounting, the nature, roles and responsibilities of professions, and the features and effects of accounting rules, it is concluded that the professional warrant of the accounting occupation remains to be validated by the cognitive authority expected of a professional occupation. Required: Discuss in general terms Dr West’s assertions with particular emphasis placed on the following:

1. Do you believe accounting practice has degenerated into a ritual of rule compliance?
2. Is the emphasis in accounting education simply the mastery of rule-book techniques? If so is this desirable?
3. Has accounting and its procedures lost touch with commercial reality and its ability to provide relevant and reliable information for the requirements of current day decision making?

Part C:(Approx 700 words) (7 marks)

1. Discuss the nature of heritage assets in terms of their capacity to be both liabilities and assets

1. Ballarat City Council has control over the Eureka Flag. This is a heritage asset - it has not been included in the financial statements, as uncertainty exists as to the appropriateness of its carrying value. This is due to the unique nature of the asset and the absence of a market value. Should this be the case?