1. Discusses the differences between the various levels in the fair value hierarchy and whether values produced under all levels should be described as ‘fair values’; and

(30 marks)

2. Reviews The Warehouse Group 2015 Annual Report to illustrate the application of fair value accounting. You should identify at least five different items for which fair value has been applied and discuss the valuation approach and the input levels used for each item.

                                                                 SAMPLE SOLUTION

Team work is one of the primary reasons for the success of several organizations. Many organizations prefer team work to individual work because it makes the task more easy and achievable for a person when working in a team. A competent team should possess six fundamental traits namely: committed, communicate well, selfless, enthusiastic, adaptable, and have a vision (Hollander, 2013). The team must support the values and vision of the company and work jointly in alignment with the organization goals and purpose. The team must also cooperate and support each other. It is important to note that a good team holds high trust amid the team members and stay out of the brambles of gossips. On the other hand, leadership plays a greater role at the various stages of team development including forming, storming, norming, and performing. During team development, a leader acts as a director, coach, collaborator, and visionary. The team leader must understand these four leadership skills, practice, and then refine the skills needed at each point of team development. After comprehending the skills, the team leader establishes effective actions strategies for individual leadership development. Also, the team leader must understand and comprehend members’ backgrounds, beliefs, and values to give precise and amicable direction to all members.

A number of problems may arise at each stage of team development, for example, at the forming stage, some members may find it hard to understand the project to detail, therefore, fail to know their role as well the goals of the project. The team leader may also fail to provide a clear direction in regards to the project. At the storming stage, the members bear diverse opinions on what ought to be done as well as how it ought to be done – which leads to conflict within the team (Egolf & Chester, 2013). The team leader also faces a challenge by ensuring that the team members learn to listen to one another as well as respect their ideas and differences. Conversely, at norming, the members could experience a challenge with the data flow amid them. Finally, the performing stage has got a number of problems including low productivity, problems in decision-making as well as conflicts among members. All these problems can be solved through effective communication and setting rules which must be adhered to by all the team members. The team members need to coordinate well to avoid such kinds of menaces. At the performing stage, members must be considerably task oriented and vastly individual oriented to ensure group identity, morale, unity as well as loyalty.