australian vintage ltd boundary bend ltd or treasury wines ltd t 594407

Accounting Standards & Regulation – 22420 – Autumn 2014 ASR Assignment – Part 2 (10%) Background “The International Accounting Standards Board (IASB) has published an Exposure Draft (ED) of proposed amendments to IAS 16 ‘Property, Plant and Equipment’ and IAS 41 ‘Agriculture’ to include bearer plants within the scope of IAS 16. Currently, IAS 41 requires that all biological assets that are related to agricultural activity must be measured at fair value less costs to sell. The amendments issued today would bring bearer plants which no longer undergo significant biological transformation into the scope of IAS 16 so that they would be accounted for in the same way as property, plant and equipment.” IASB Press Release June 26, 2013 Required First, choose ONE of the following companies: Australian Vintage Ltd, Boundary Bend Ltd, or Treasury Wines Ltd, to illustrate your answers below. Use the company’s 2013 Annual Report/Financial Report. You are a recent graduate working for a Big 4 accounting firm and your manager has asked you to prepare a report which is to be presented to the Chief Financial Officer (CFO) of your selected company. The report should: a) Outline the main changes to the recognition and measurement of bearer plants proposed in Exposure Draft ED/2013/8 Agriculture: Bearer Plants (June 2013); b) Explain why the IASB has proposed the changes, including a discussion of the advantages and disadvantages of fair value measurement (in this context); and c) Advise the CFO on the possible impact of the ED for the company in relation to any agricultural assets the company may have. Your assignment must be set out as a report with the three sections (a) (b) (c) clearly shown. You must link your discussion to relevant accountings standards, and the exposure draft, including references to specific paragraphs. You must carry out independent research to complete this assignment and you must cite relevant academic and practitioner…