MAF 202 Yield Curve Assignment Guide

Assignment Tasks

Task 1: (12 marks)

A considerable body of academic research supports the argument that the slope of the yield curve (the spread between short term and long term interest rates) is a reliable predictor of future economic activity. Investors and policy makers have extensively used yield curves as a simple forecasting tool in real time to better understand business cycles.

1.        Construct the yield curves in Australia that represents the structure of interest rate in 6 successive periods respectively from March 2010 to March 2015. (4 marks)

Notes: For this task, students are expected to use yields for short term and long term government securities (minimum three maturities are required to plot the yield curve) provided on CloudDeakin at 6 different points in time respectively.

2.        Critically examine how changes in the slope of the yield curve provide possible explanation for changes in economic prospect of the Australian economy. (5 marks)

Notes: For this task, students are required to construct slopes of the yield curves from Task 1 and plot the slopes together with the GDP growth over the same period.

3.        Economists often use combined indicators to reconcile explanations for what  happened to the economy in the past as well as reaffirming their prediction of economic outlook in the future. Use the unemployment rate and building approvals indicators provided on CloudDeakin to justify the reliability of the yield slope as a leading indicator of the business cycle. (3 marks)

Task 2 (8 marks)

a.  Critically examine the effectiveness of monetary policy responses in the wake of economic and financial stress during the GlobalFinancial Crisis (GFC) and the European Debt Crisis. Illustrate how these responses have affected the shape of the yield curve. (4 marks)

b.  Draw some conclusions and policy implications of the yield curves for investors and policy makers in Australia. (4 marks)

Notes: In this task, students are expected to discuss how the RBA or other central banks use available tools to mitigate negative impacts of financial crises and distress on investment sentiment, consumers and industries in the economy.

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BAO2202 Financial Accounting Assignment

Purpose of the assignment

The assignment provides you the opportunity to develop in-depth understanding of measurement and recognition issues related to financial accounting. As accountants, we are concerned about providing decision useful information to the users of financial statements for their decision making. In order to provide decision useful information to the users of financial statements, accountants often require applying guidance given in accounting standards by using their judgment.

Required:

Your assignment is to prepare a research report.

You have to form either groups of three or four students for the submission of this assignment.

Three weeks before due date, you may commence testing your assignment for originality (30%) on TURNITIN which will be available in VU Collaborate.

You are required to select a company from the ASX. Click on the following URL for the list of listed companies. You are then to obtain copies of those companies’ latest annual reports and investigate three areas if there are 3 members in your group, otherwise four of the following areas:

1.      Leasing

a.      Critically discuss the measurement and recognition requirements of the relevant accounting standard using research literature.

b.      After reviewing the most recent financial statements of an Australian firm, critically analyse the measurement and recognition disclosure provided the firm. Discuss the firms’ disclosure to leasing to explore firms’ compliances with the relevant Australian Accounting Standard.

c.       Suggest improvements to accounting standard and firms’ reporting practice by using your arguments with the help of research literature.

2.      Liabilities including provisions and contingent liabilities (excluding lease liabilities)

a.      Critically discuss the measurement and recognition requirements of the relevant accounting standard using research literature.

b.      After reviewing the most recent financial statements of an Australian firm, critically analyse the measurement and recognition disclosure provided the firm. Discuss the firms’ disclosure to Liabilities including provisions and contingent liabilities (excluding lease liabilities) to explore firms’ compliances with the relevant Australian Accounting Standard.

c.       Suggest improvements to accounting standard and firms’ reporting practice by using your arguments with the help of research literature.

3.      Intangible assets

a.      Critically discuss the measurement and recognition requirements of the relevant accounting standard using research literature.

b.      After reviewing the most recent financial statements of an Australian firm, critically analyse the measurement and recognition disclosure provided the firm. Discuss the firms’ disclosure to intangible assets to explore firms’ compliances with the relevant Australian Accounting Standard.

c.       Suggest improvements to accounting standard and firms’ reporting practice by using your arguments with the help of research literature.

4.      Revenue

a.      Critically discuss the measurement and recognition requirements of the relevant accounting standard using research literature.

b.      After reviewing the most recent financial statements of an Australian firm, critically analyse the measurement and recognition disclosure provided the firm. Discuss the firms’ disclosure to revenue to explore firms’ compliances with the relevant Australian Accounting Standard.

c.       Suggest improvements to accounting standard and firms’ reporting practice by using your arguments with the help of research literature.

Structure of the research report

Synopsis/abstract

Introduction

Part 1

Part 2

Part 3

Part 4 (For 4 members group)

Conclusion

Bibliography, referencing and citations

Evidence of group meetings

Australian Accounting Standards can be accessed using the following website

http://www.aasb.gov.au/Pronouncements/Current-standards.aspx

Approximate word Length: 4000 words for four member groups and 3000 words for three member groups.