ACC00713 Report 2019 S2
|Due date:||5pm Friday 25 September 2019|
|Word limit:||2000 words|
Instructions for the report
This task requires you to prepare a report to evaluate and comment on recognition and
measurement regarding carbon credits or carbon liabilities of an entity. You need to choose
a company listed on the Australian Stock Exchange (ASX) and provide your evaluation
regarding relevant presentation of carbon related issues. Your comments or evaluation can
refer to paragraphs of relevant Australian Accounting Standards (AASBs).
In the last decade, there is a trend for governments, organisations and businesses to be
committed to ecosystem restoration, renewable projects and responsible business
practices, aiming to reduce carbon emissions and reduce global warming. Businesses have
also become more aware of the benefits of reducing carbon emission activities.
West Gippsland farmer and inventor, Niels and Marja Olsen became the first to receive soil
carbon credits under the Australian Emissions Reduction Fund. Mr Olsen’s project was
approved through the Australian Government’s Emissions Reduction Fund (ERF). The project
uses Mr Olsen’s invention, the Soilkee Renovator, that ‘combines cultivation, mulching,
aeration and mixed species seeding to improve soil’s fertility and carbon levels’. In August
2019, Niels and Marja Olsen achieved a world first by earning income for capturing carbon
from the atmosphere and storing it in the soil on their property.
This creates a genuine opportunity for livestock producers to improve the health of land and
earn additional income for the reduction of carbon emissions and this places them in an
advantageous position in the future carbon market.
Sources of readings:
This $118 million mutual fund pays companies in carbon credits by Anya
Khalamayzer, on Wednesday, January 3, 2018, accessed from
Australian farmer accredited for soil carbon credits in a world first by Olivia Calver,
on 3 Apr 2019, accessed from https://www.theland.com.au/story/5981001/moneyindirt-the-future-of-carbon-farming/
Pay dirt: world first project paves way for soil carbon payments, by James Nason, on
7 August 2019, accessed from https://www.beefcentral.com/production/paydirtworld-first-project-lays-platform-for-soil-carbon-payments/
The Queensland Government is committed to growing a new carbon farming
industry, accessed from
Discussions and Questions:
You should answer questions listed in parts A and B in your report.
Part A (12 marks)
1) Discuss whether carbon credits and carbon liabilities should be presented in the
annual report of an entity? (4 marks)
2) According to your opinion, explain the recognition and measurement of carbon
credits by an entity. (4 marks)
3) According to your opinion, explain the recognition and measurement of carbon
liabilities by an entity. (4 marks)
Part B (6 marks)
4) Provide an example of a carbon related issue that is reported in the annual report of
your chosen company, and provide comments whether disclosures are sufficient or
appropriate. (3 marks)
5) From the perspective of the investors, evaluate the impact of such disclosures on
assets, liabilities and financial performance of the chosen company. (3 marks)
2 marks will be awarded to effective communication and presentation of this report.
Information regarding the report:
• The report should include an executive summary, a body of contents covering points
listed above, and a reference list.
• You can refer to the paragraphs of AASBs to support your discussion presented in the
• AASB Conceptual Framework: Framework for the Presentation and Preparation of
• AASB 13 Fair Value Measurement
• AASB 15 Revenue from Contracts with Customers
• AASB 101 Presentation of Financial Statements
• AASB 137 Provisions, Contingent Liabilities and Contingent Assets
• AASB 138 Intangible Assets
• Each student should choose a company, which is listed on the Australian Stock
Exchange (ASX). Find an annual report for the 2017/2018 or 2018/2019 financial year.
Remember to use a complete annual report, not a concise financial report or a halfyear financial report.
• You must reserve your company by adding a post on ‘Discussion Board’ under ‘Reserve
a company here’. Write the name and code of the chosen company in the subject of
your post so everyone can see it, such as Medibank Private – MPL.
• To ensure your choice of a company does not duplicate one already chosen by another
student, they will be allocated on ‘a first come, first served’ basis.
• The reference list should include all materials supporting the report, such as an annual
report and relevant AASBs. Please note: the textbook, study guide and Wikipedia
cannot be used as references.
• Sections extracted from the annual report or AASBs to support your report should be
included in the Appendix. Also, provide specific references of the annual report and
AASBs as in-text reference in your report, such as page 10 of annual report or AASB
101.26. If you choose to ignore this instruction, you will lose marks.
• The references of this report should follow Harvard Referencing Style.
The quality of the report will be assessed based on the following four areas:
1) Demonstrate and identify the accounting concepts applied.
2) Refer to paragraphs from related Australian Accounting Standard as guidelines to
support your discussion.
3) Provide an example from the annual report to illustrate the implementation of an
accounting concept(s) or principle(s) discussed.
4) Demonstrate effective communication, referencing, logical presentation and
Special instructions for submission:
• This is an individual assignment.
• Word limit of this report should not be less than or exceed 10% of word limit (1800 –
2200 words) excluding executive summary, references and appendix. A loss of 10% of
the total marks will apply if you do not follow this instruction.
• You must use the electronic Assignment Cover Sheet provided, fill in details and then
make this sheet the first page of your assignment. Do not send it as a separate
• The file name of the report should include (in order) your surname, last name and your
student number. For example: ‘ParkerSmith1235456′.
• Your assignments must be submitted as a word document. If you wish to submit in any
other format please discuss this with your lecturer before the submission date. Please
note: you are not allowed to submit the report in PDF file.
• Unless otherwise indicated, all assignments are to be submitted online via the link for
Turnitin assignment submission provided on the Blackboard site.