Swinburne University of Technology ACC80005 FINANCIAL ACCOUNTING THEORY Primary Exam Semester 2, 2019 Take-home assessment information • This is a take-home assessment task. • This paper represents 60% of the final assessment for this subject. Marks on the paper total 70. • This take-home assessment consists of 7 questions. Answer all questions. • The take-home assessment answers (including word count for each answer) should be submitted as a

Swinburne University of Technology
ACC80005 FINANCIAL ACCOUNTING THEORY
Primary Exam
Semester 2, 2019
Take-home assessment information
• This is a take-home assessment task.
• This paper represents 60% of the final assessment for this subject.
Marks on the paper total 70.
• This take-home assessment consists of 7 questions. Answer all questions.
• The take-home assessment answers (including word count for each answer) should be submitted as a
Microsoft “Word” file through the Turnitin System on Canvas by 5pm AEST 4 November.
o Draft submission facility on Canvas to check for referencing problems
o Interpret Turnitin similarity score (please note it will take up to 24 hours for Turnitin to provide a
similarity score)
o Do not include cover sheet or retype take-home assessment questions.
• A hard copy of your Microsoft “Word” file is required to be placed in a specially assigned take-home
assessment drop box located on level 11 of the BA building by 5pm AEST Monday 4 November. Please
include assignment cover sheet and retype take-home assessment questions.
• To avoid plagiarism, you are required to provide a reference whenever you include information from
11/5/2019 [Solved] 51962 – Swinburne University of TechnologyACC80005 FINANCIAL
https://www.australiabesttutors.com/Recent_Question/51962/Swinburne-University-of-TechnologyACC80005-FINANCIAL 3/6
other sources in your work. Both in-text citations, as well as a reference list, is required if you are using
others’ work.
• The reference list will be excluded from the maximum word count for each question.
• Referencing convention required for this unit is the Swinburne Harvard System. Helpful information on
referencing using the Swinburne Harvard System can be found at:
http://www.swinburne.edu.au/lib/studyhelp/harvard_style.html
QUESTION 1 (10 Marks)
Treasury Wine Estates chief executive Michael Clarke will retire next year and be replaced by chief
operating officer Tim Ford.
Mr Clarke, who has overseen a fivefold increase in Treasury Wine’s share price since taking charge in
March 2014, will retire in the first quarter of the 2021 financial year and return to the UK.
The former Kraft Foods president has given the Penfolds and Wolf Blass owner, which in August reported
a 16.4 per cent lift in full-year profit to $419.5 million, roughly one year’s notice of his intention to leave
between July 1 and September 30, 2020.
Mr Clarke led an overhaul of the company’s distribution and the global push of its higher-margin premium
and mass-market prestige, or -masstige-, offerings.
-Without question the extraordinary transformation and outstanding financial returns that TWE has
achieved, have been driven by Michael’s leadership over the past five and a half years,- chairman Paul
Rayner said on Monday.
-The structural changes and initiatives delivered by Michael and his team have established TWE as a
significantly stronger business than when he first joined the company, and one that is very well placed to
continue delivering sustainable, margin accretive growth well into the future.-
Treasury Wine shares dropped 9.0 per cent after the announcement and at 1105 AEDT were worth $16.92.
(Source: Condie, S (2019) ‘Treasury Wine Estates CEO Clarke to retire’, Australian Associated Press
https://au.news.yahoo.com/treasury-wine-estates-ceo-clarke-retire-213454648–spt.html
REQUIRED:
After reading the above extract, explain the fall in the Treasury Wines share price referring to capital
markets research? (Maximum word limit: 500 words) (10 marks)
QUESTION 2 (10 Marks)
Although [the Australian companies] Oil Search and Woodside Petroleum are leading their sector in
climate risk disclosures, they don’t hide their intent to explore for and produce more fossil fuels. That’s
just what they do. The same goes for many more companies whose business models depend on extracting,
transporting and burning fossil fuels.
(Source: Vincent, J (2017) ‘Climate change risk is broad and companies must take it seriously’ The
Sydney Morning Herald http://www.smh.com.au/business/information-is-power-in-climate-change-era20170705-gx55s1.html)
REQUIRED:
After reading the above extract, answer the following question. Using a normative theory, explain why the
general purpose financial statements of entities whose business model depends on extracting, transporting
and burning fossil fuels may not include climate risk disclosures? (Maximum word limit: 500 words) (10
marks)
QUESTION 3 (10 Marks)
Economic man is assumed to be rational and self-interested. He or she always carefully evaluates all the
options before making any decision, and always with the object of maximising his or her personal ‘utility’
or satisfaction. But cognitive psychologists have demonstrated that humans simply lack the neural
processing power to make the carefully calculated decisions economists assume. People are not rational,
they are intuitive. And altruism is often an important consideration in their decision-making. People can’t
choose correctly between three options where the best option is not immediately apparent. Rather than
carefully thinking through the pros and cons of every decision, people tend to rely on mental shortcuts
(‘heuristics’) which often serve them well enough, but also lead them into systematic biases. People are