AYN415 External Reporting Issues

AYN415 External Reporting Issues
Question
Answered

In 2015 Regis Healthcare changed its accounting policy for Land and Buildings from Fair Value to Historical Cost.  In the annual report the Directors advised that: ‘… the change in accounting policy in the current year is consistent with industry practice and therefore more relevant for the users of these financial statements’.  The change in policy resulted in a net reduction in the carrying value of land and buildings of $20.460M.
Critique the change in accounting policy and the cited comments of the Directors.  Your response should cover your prior learning (specifically AYN418/AYB311) and the content of our first two lectures.

Tips and Requirement:
This assessment only need 300 words
This is a critical thinking assessment, your own thinking and analysing is the most important.
Set out arguments to support your decision
•    Set them out logically so it’s easy to read, understand and your work flows.  Always explain your argument and be clear why or how it supports your case (make the link between the argument and your opinion!).
•    Think – WHY is this important, WHY am I making this argument, HOW does it support my case.
•    Point out your key thinking or reason in the critical analysis; you only have 300 words to write!!

To conclude restate your decision and why you made it.
DO NOT:
•    Give information that does not add value to your case or arguments (for example broad all-encompassing comments or too much background information).
•    Let all your arguments run together, use a logical set out and explain each individually.
•    Theory or references are not the significant in critical thinking, you can provide a few references to support your analysis