Assessment Instrument Assignment 1

Course Name Managerial Accounting Course code FIA 6001

Semester Spring Year 2020
Maximum Marks 15 Marks
Instructor Dr. Edmund Christopher
Assignment Due Date 28th February, 2020
i) Assignment should be submitted by electronically through Turnitin
Assessment Submission
ii) Academic dishonesty of any kind is strictly prohibited
Instructions
iii) assignments should be submitted by its due date as scheduled by the
Course Instructor
Word or Page Limit Theory question 500 words and for Problem all steps, answer and decision.
Use the following format:
• Introduction
• Detail Explanation
• Justify your explanation
Presentation Format • Conclusion
• MS Word document, Times new roman , front size 12 and 1.5 line space
(5 to 7 pages)
• Referencing Use APA or MLA format (minimum 5)
(Instructor provides additional guidelines and directions in class)

Resources and Support College Library, Internet, Newspapers, Journals, Magazines, or other Reference
Available Sources.
Scope of Accounting Concepts & Principles
Assignment Task
Course Learning Outcomes Course Learning Outcomes Marks
Assessed 1. Demonstrate the knowledge of concepts, tools, practices
7
and ethical issues in Management Accounting

2. Research and analyze the role of accounting information

8
in strategy formulation and decision making
Assignment Questions:

1. One of the differences between Managerial Accounting and Financial Accounting is reporting
flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas
reporting in Managerial Accounting has fewer rules.

a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports
used strictly by company management?

b) Should external users always have the same information as internal users? Explain.

2. The United States uses accounting standards developed by the Financial Accounting Standards Board
(FASB) known as the generally accepted accounting principles (GAAP). This system relies on rules and
regulations and thus is said to be a rules-based system. The rest of the world follows accounting
standards developed by the International Accounting Standards Board (IASB) known as the international
accounting financial reporting standards (IFRS). This system relies more on principles than rules. There is
a movement to have one global standard, which would combine GAAP and IFRS.

a) What are the differences between GAAP and IFRS?

b) How does each standard handle research and development costs?

c) What issues might arise with combining a rules-based with a principles-based system?
 The instructor evaluates the assignment and awards marks based on the following criteria

Evaluation Rubrics- Assignment-1

Course Learning Outcomes Excellent Students Faculty

Marks Comments

1.Demonstrate the The student accurately articulated the

knowledge of concepts, permissible violation of Accounting principles
tools, practices and ethical in managerial accounting reports.
issues in Management [2 mark]
Accounting The student has to demonstrate the ethical
(3 marks) issues and consequences connected to the
flexible reports of Managerial Accounting.
[2mark]

Described how the external uses always have

the same information as internal users.
[3 mark]

2. Research and Analyse Clearly differentiated six points on the subject

the role of accounting of GAAP and IFRS [3 marks]
information in strategy
formulation and decision The student analyzed each standard and
making. describe how the research and development
(2marks) cost. [2marks]

The student justified his / her decision

regarding the issues might be rule based arise
with principles based system
[3mark]