I would like to ask you to work out the attached 3 memos based on the Australian rules and ensured the rubric written requirements. 

The first memo is: 

"Using a standard format memo (i.e. a short report of ½ to 1 ½ pages) please discuss the nature and importance of the “Moral Hazard” issue in financial markets and how it is resolved by accounting and auditing. 

This is to be answered in your groups of 3-5 students, where each group will submit one report with the names and student numbers of all group members in the heading." 
Holmes Institute HI5025 Memo 04 – Semester 01, 2014
Mr Tom White, the president of White Crane Importing Ltd (WCIL), informed you that his 
firm has an accounting profit before tax (PBT) of $800,000, the corporate tax rate is 25.0 
percent, and (during the tax year) WCIL experienced and journalised the following items:
i. The WCIL sales people spent $35,000 entertaining customers.
ii. WCIL won $60,000 in a lottery.
iii. Goodwill was found to be impaired and was written down by $45,000.
iv. Prepaid rent of $200,000 was paid for a new warehouse that will be used in the following 
tax year.
v. An accounting depreciation expense of $100,000 and for tax purposes will claim
depreciation of $180,000.
vi. An accounting Warranty Expense of $210,000 and actual payouts for warranty costs of 
$260,000.
vii. Long-service leave was accrued for accounting purposes at $110,000 and the Long-service 
leave paid was $65,000.
viii. The Bad Debt Expense for accounting purposes was $70,000 and during the year $65,000
in Accounts Receivable (A/R) was written-off.
Required:
a) Calculate the Income Tax Expense and the Income Tax Payable (show the workings).
b) Write a memo to Mr. White that gives him the Income Tax Expense, the Income Tax 
Payable, and the difference between those two values. Also, name that difference and 
explain whether its attributes are the same as any other asset/(liability)?
Holmes Institute HI5025 Memo 03 – Semester 01, 2014
Background:
In 2010, the Water Accounting Standards Board (WASB), an independent advisory Board to 
the Australian Bureau of Meteorology, issued The Exposure Draft of Australian Water 
Accounting Standard 1: Preparation and Presentation of General Purpose Water Accounting 
Reports (ED AWAS 1) and asked for comments from accounting practitioners, industry, and/or 
industry peak bodies. 
There is great concern that proposals in the ED AWAS 1 will significantly affect how major 
users of water resources report their water usage and may result in the need to result in new 
types of assets, liabilities, and expenses.
Required:
1) Go to http://www.bom.gov.au/water/standards/documents/ed_awas1_v1.0.pdf and 
download the WASB ED AWAS 1,
2) Read the downloaded document, and
3) Working from the premise that you are a consultant who has been asked by the 
President of an Australian Brewery (Mountain Goat Beer Pty Ltd, Corner North & 
Clark Streets, Richmond Victoria 3121) to read the above report and to write a short 
memo (1-1.5 pages long) listing and discussing any issues that it raises that could 
significantly affect the Micro-brewery and its financial reporting.
This is to be answered in your groups of 3-6 students, where each group will submit one 
report with the names and student numbers of all group members in the heading. The 
assignment is due 28 May/14, in class.
The marking rubric that will guide the marking is posted to the assignment section of the
HI5025 Blackboard site.