MAA 363: Big Yellow Taxi Ltd (“BYT”) - Corporate Management Assignment

Internal Code: MAS4057

Corporate Management Assignment:

Big Yellow Taxi Ltd (“BYT”) was floated as a public company on 1 July 2009 by its founder and first CEO Mr. Bryan Driver. The company owns and operates Australia’s largest combined taxi fleet from its base in Melbourne, Victoria with branches throughout Australia and until recently has been quite profitable. Mr Driver has retained a substantial ownership in the company but retired as the CEO at the end of the last financial year (30 June 2016). The new CEO, Mr Simon Vallay, was appointed effective as of 1st July 2016 and has established a new management and financial team. Mr Vallay has thoroughly investigated the operations and state of affairs of the company and is in the process of reviewing the draft financial statements of Big Yellow Taxi Ltd that have been for the year ended 30 June 2017. It should be noted that Mr Vallay is quite conservative and has an inherent preference not to carry intangible assets in the financial statements. Questions: 1. Outline the definition and recognition criteria for intangible assets and how these assets are measured as per AASB 138? Which of these factors are particularly relevant to the circumstances presented in this case? 2. Analyse the view of the new CEO on each of issues presented above. Are the views justifiable? 3. For each of the issues, analyse and discuss the accounting implications of financial statements. Consider these effects in the context of various stakeholders, in particular investors and lenders.