ACFI2307 Financial Reporting Assignment Brief 2026 | De Montfort University

ACFI2307 Assignment Brief

Assessment Information – What you need to do

This assignment is an individual assignment.

This assignment requires you to address the question set from page 4 onwards of the document.

Criteria for Assessment – How you will be marked

Further information on University mark descriptors can be found here..

Following completion of this assignment students should be able to demonstrate the following:

• The ability to apply numeracy skills, including the ability to manipulate financial and other numerical data.
• To appraise the impact of the regulatory framework on single entity companies.
• To apply selected accounting standards and discuss their impact upon modern business practice.
• To discuss the regulatory framework within which accounting operates.
• To demonstrate the ability to communicate, including the ability to present quantitative and qualitative information together with analysis, argument and commentary in a form appropriate to the intended audience.

Assessment Details

Please see the assignment question for further Information

There will be a penalty of a deduction of 10% of the mark for work exceeding the word limit by 10% or more.

The word limit includes tables, figures, quotations and citations, but excludes the references list and appendices.

How to Submit your Assessment

The assessment must be submitted by 12:00 noon (GMT/BST) on 12th August 2022. No paper copies are required. You can access the submission link through the module web.

• Your coursework will be given a zero mark if you do not submit a copy through Turnitin. Please take care to ensure that you have fully submitted your work.
• Please ensure that you have submitted your work using the correct file format, unreadable files will receive a mark of zero. The Faculty accepts Microsoft Office and PDF documents, unless otherwise advised by the module leader.
• All work submitted after the submission deadline without a valid and approved reason will be subject to the University regulations on late submissions.
• If work submitted as a reassessment of a previously failed assessment task is submitted later than the deadline the work will immediately be given a mark of zero per cent
• The University wants you to do your best. However, we know that sometimes events happen which mean that you can’t submit your coursework by the deadline – these events should be beyond your control and not easy to predict. You will find information about applying for extensions and deferrals here.
• Students MUST keep a copy and/or an electronic file of their assignment.
• Checks will be made on your work using anti-plagiarism software and approved plagiarism checking websites.

Return of Marked Work

You can expect to have feedback returned to you following the assessment board in September 2022 (for UG Programmes) and November 2022 (for PG Programmes). More information on assessment and feedback can be found here.

Academic Integrity

In submitting a piece of work for assessment it is essential that you understand the University’s requirements for maintaining academic integrity and ensure that the work does not contravene

University regulations. Some examples of behaviour that would not be considered acceptable include plagiarism, re-use of previously assessed work, collusion with others and purchasing your assignment from a third party. For more information on academic offences, bad academic practice, and academic penalties, please read chapter four of our academic regulations.

Academic Support and Your Well-being

Referencing is the process of acknowledging other people’s work when you have used it in your assignment or research. It allows the reader to locate your source material as quickly and easily as possible so that they can read these sources themselves and verify the validity of your arguments. Referencing provides the link between what you write and the evidence on which it is based.

You identify the sources that you have used by citing them in the text of your assignment (called citations or in-text citations) and referencing them at the end of your assignment (called the reference list or end-text citations). The reference list only includes the sources cited in your text. The main referencing guide can be found here and includes information on the basics of referencing and achieving good academic practice. It also has tabs for the specific referencing styles depending on whether you require Harvard style used in business or OSCOLA style used by the Law school.

The University has a wealth of support services available to students; further information can be obtained from Student Gateway, the Student Advice Centre, Library and Learning Services and, most importantly, your Personal Tutor. If you are struggling with your assessments and/or deadlines please do seek help as soon as possible so that appropriate support and guidance can be identified and put in place for you. More information can be found on the Healthy DMU pages.

Assignment Questions:

The following trial balance relates to Scala plc at 31 March 2022:

The following notes are relevant:

1) At 1 April 2021, Scala plc had its land and building revalued to £250 million. This valuation includes a value for land of £50 million. The estimated remaining life of the building at that date was 10 years. The net book value of Buildings as at 1 April 2021 was £175 million. Depreciation of buildings is charged on a straight-line basis and is allocated 60% to cost of sales, 20% to distribution costs and 20% to administrative expenses.

2) At the year end, a research and development department was established, this led to a cost of £5 million, including £1 million for specialised machinery (bought on 1 October 2021). The directors of the
company estimate that £3 million of the expenditure relates to the development of a new product that will be launched later in 2022 and the remaining expenses relate to pure research. The new product is expected to earn substantial profits. Whilst the specialised machinery has not been recorded, the rest of the figures have been included within Cost of Sales.

3) All plant is depreciated at 20% per annum (time apportioned where relevant) using the reducing balance method and charged to cost of sales.

4) On 31 December 2021, Scala Plc closed a division of the company. The division’s result from 1 April 2021 to the date of closure, which are included in the figures in the trial balance were:
Revenue
Cost of Sales
£000
2,500
3,000

The directors of the company decided to sell the plant and machinery used by the discontinued division and started to locate a buyer. The plant had a carrying value at 1 April 2021 of £2 million made up of a cost of £3.5 million and accumulated depreciation of £1.5 million. As there is demand for such an asset, the company is relatively confident that this asset would sold in a short amount of time. The current marker value of the plant is £1.5 million and it would cost £500,000 to dismantle the machinery to make it available to the purchaser.

5) The investment property is let at commercial rates to tenants who are not connected to the company in any way. Scala plc adopts the fair value model in its accounting treatment of the asset. At 31 March 2022, the property had a value of £82 million.

6) The inventory at 31 March 2022 was valued at cost of £74 million. This includes £8 million of slow-moving goods. Scala plc is trying to sell these to another company but has not been successful in obtaining a reasonable offer. The best price it has been offered is £6 million.

7) The Corporation tax account in the trial balance represents the over- provision of the previous year’s estimate. The estimated Corporation tax liability for the year ended 31 March 2022 is £15 million. At 31 March 2021 there were £25 million of taxable temporary differences. The Corporation tax rate is 20%.

Required

PART A

a) Prepare for Scala plc, a Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2022 and b) A Statement of Financial Position as at 31 March 2022 (Note: A Statement of Changes in Equity is NOT required)

PART B

Prepare a report for the CEO of Scala plc that explains, with reference to appropriate accounting standards, your treatment of the adjustments to the accounts for the year ended 31 March 2022.(1,500 words)

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