Faculty of Business and Law ACC30008 Accounting Theory Final Assessment Semester 2, 2021 SWIN BUR NE * SWINBURNE UNIVERSITY OF TECHNOLOGY This is a take home assessment. It accounts for 60% of the final grade for this unit. Marks on this assessment total to 60. There are three (3) questions. Answer all questions. Include your full name and student identity number in the final assessment answer script Final assessment answers should be submitted as a Microsoft "Word" file through the Turnitin System on Canvas available under Final Assessment. Use 1.5 line spacing and provide your response within the maximum word limit specified under each sub-question (exclusive of references). Final assessment information The assessment submission will be available in Canvas for the duration from 9am ADST 15th November to 8.59am to ADST 16th November 2021 (i.e., available for 24 hours only). To avoid plagiarism, you are required to provide references whenever you include information from other sources in your work. Both in-text citations, as well as a reference list, are 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 Former Westpac CEO Brian Hartzer takes $2.8m hit as executives count Austrac cost Long-term incentives also lapsed, making it five years since the troubled bank's top executives have been paid an LTI. Westpac's annual report, released on Monday, confirmed that Mr Hartzer only received his contractual entitlements after he was ousted a year ago in response to Austrac's statement of claim. His 2020 entitlements included $3m in fixed pay, offset by $2.8 in lapsed share rights and $21.5m in lapsed CEO performance share rights. While some executives received a short-term incentive in 2019, there was a clean slate last year on the recommendation of chief executive Peter King, reflecting the bank's $1.3bn penalty for more than 23m transgressions of anti-money laundering legislation. Remuneration committee chairman Craig Dunn said the chief executive and board felt it was "fundamental" that collective accountability for the financial crime outcomes in Westpac's businesses, which had led to Austrac's action, be recognised. Mr Dunn said the board had cut $20.1m from group pay, including cancellation of the short- term incentive for senior management personnel. "Remuneration consequences were applied to 38 individuals, reflecting the level of direct management responsibility or accountability and the level of culpability for the compliance failures," Mr Dunn said. "In addition, as the issues took place over many years, a number of relevant individuals had since left Westpac's employment. "For most of these former employees, a remuneration adjustment was not possible as they did not have unvested deferred variable reward on foot." In other outcomes, Mr Dunn said Mr King's total remuneration target was 10.7 per cent lower than for Mr Hartzer, whose targeted remuneration was lowered by 23 per cent in October 2019. Mr King's