COLLEGE OF BANKING AND FINANCIAL STUDIES DEPARTMENT OF PROFESSIONAL STUDIES Assignment front sheet Assignment - I Qualification Unit number and title Pearson BTEC Level 5 HND Diploma in Business Unit 10: Financial Accounting and Reporting Semester

COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF PROFESSIONAL STUDIES
Assignment front sheet
Assignment - I

Qualification

Unit number and title

Pearson BTEC Level 5 HND Diploma in Business

Unit 10: Financial Accounting and Reporting

Semester

Batch

IV

Spring 2015-16

Student name

Assessor name

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Ms.Komal Khakhar

Student No.

Internal Verifier (IV) name

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,    .

Mr. Gnanendran

Date issued

Completion date

Submitted on

21-Feb-2016

14-April--2016 - Formative 21-April-2016 - Summative

Assignment title

Regulatory framework for financial reporting and presentation offinancial

information in accepted formats for publication

Learning
Outcome

Learning
Outcome

Assessment Criteria

In this assessment you will have the opportunity to present evidence that shows you are able to:

Task
no.

Evidence
(Page no)

LO 1

Understand the regulatory framework for financial

reporting

1.1

Describe the different users of financial statements and their needs

1

1.2

Explain the legal and regulatory

influences on financial statements

2

1.3

Assess the implications for users

3

1.4

--,

Explain how different policies are dealt with by accounting and reporting standards

4

LO 2

Be able to

prepare financial statements from complete or

incomplete records

2. 3

Prepare a consolidated balance sheet and profit and loss account for a simple group of companies

5

LO 3

Be able to present financial

information in accepted formats for publication

.₇),         3.1

Explain how the information needs of different user groups vary

1

a-          3.2

Prepare financial statements in a form suitable for publication by a sole trader, partnership and limited company

6

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature:                                                                                    Date:

Purpose of this assignment

The manner in which items and transactions are treated and presented in the financial statements may affect an investor's perception of the position and performance of the business. Whilst individual accounting standards can be developed to deal with specific issues it is also important that there is a framework that sets out the wider purposes that accounting standards are intended to achieve. This assignment will help you understand the importance of accounting regulations, the importance of accounting information to different user groups with varied needs and the need to present financial statements in standardized formats

Case Scenario

Well-known Ltd. is a well-established joint stock company in the UK. They are targeting to get listed on London Stock Exchange in near future. The CEO of Well-known Ltd having very limited financial knowledge attended a conferences on IFRS and regulatory framework in the UK. He has noted the following points and requests your explanation in the form of a report.

·       Why accounting regulations are important and required.

·         The need for and the structure of professional regulation, company law, stock exchange Legislation and EU Directives.

·       How the different aspects of regulation work together and complement each other.

·         The process through which an accounting standard comes into being

·       Purpose and use of financial statements

Task 1 —101 & 3 - Assessment Criteria 1.1 & 3.1 (M1, D3):

Identify various users of financial statements for Well-known Ltd. Describe their varied information needs and impact of financial information on decision making for different group of stakeholders.

To achieve pass you must;

·         Identify the different users of financial statements

·         Identify different financial statement prepared by Well-known limited.

·         Describe the information requirements linking to various financial statement prepared

·         Explain how the information needs of different user group vary

·         Explain significance of financial information on decision making.

To achieve Ml, you will make effective judgements by comparing different users of financial information and how they use those information for decision making.

To achieve D3, you should show convergent and lateral thinking on how different user groups use the financial statement for decision making. You should illustrate conflicting interest of different user groups in using the financial statement for decision making.

Task 2 —101 - Assessment Criteria 1.2 (M3, D2):

As per the EU Legislation, all listed companies in European Union (w.e.f.2005) shall prepare financial statements in accordance with IFRS. Identify legal and regulatory influence on financial statements. Explain the other influence with respect to accounting regulations for listed companies at the national -and international level.

To achieve pass you must;

·        Identify legal and regulatory influences.

Task 5 — LO2 - Assessment Criteria 2.3 (M1,M3, D2,D3):

Ltd. The Statement of Financial

at
of

On January 1, 2015, ABC Ltd acquired 20,100 equity shares of XYZ Position (SFP) of ABC Ltd. and XYZ Ltd. are as under:

Statement of Financial Position as on December 31, 2015

Non current Assets

ABC Ltd

XYZ Ltd

Plant and Equipment

85050

83700

Land and Buildings

36450

41514

Investment (20,100 shares of XYZ Ltd)

64125

Current asset

Inventory

3543

32553

Sundry debtors

8439

3375

Bills Receivables (Bill Receivables from ABC Ltd)

7425

6075

Cash at Bank

11139

7425

Total Assets

216171

174642

Liabilities

Equity share capital of R.0.1 each

40500

25125

General reserve

39150

30375

Profit and loss a/c

45900

52989

Secured loans

61932

50289

Sundry creditors

21939

10800

Bills payable (Bills Payables to YXZ Ltd)

6750

5064

Total Equity and Liabilities

216171

174642

The

You

Financial

Explain opposed and

To

To

following additional information is provided:

On January 1, 2015 the balances of general reserve and profit & loss account of XYZ Ltd. stood R0.13,500 and R0.15,000 (credit balance) respectively.

are required to prepare the consolidated Statement of Financial Position of ABC Ltd as on 31st December 2015 explaining the notes and additional information used for preparing the statement position.

why consolidated financial statements are useful to the users of financial statements (as to just the parent company's separate (entity) financial statements. (Provide Reference to 1AS IFRS wherever applicable)

achieve pass you must

·        Show the steps in calculating the Goodwill

·        Show the steps in calculating the NCI(Non-Controlling Interest)

·        Show the steps in calculating the retained earnings.

·        Prepare the consolidated balance sheet including all the line by line addition. achieve M1 you will have to make effective judgment on application of relevant 1AS and IFRS.

Evidence
checklist

Summary of evidence required by student

Evidence
presented

Task 1

Recognize different financial     statements and   Understanding  on            different

uses of accounting information and why they use those information.

Task 2

Able to explain legal and regulatory influences

Task 3

Assessment of legal and regulatory influences

Task 4

Explanation on how different policies are dealt referring to IAS 16

Task 5

Prepare consolidated SOFP

Task 6

Prepare financial statement for publication.

Guidance notes:

1.   Use standard document formats and structures.

2.   Word process the documents.

3.   Use 12 point Arial or Times New Roman script.

4.   Provide a list of references and use the Harvard referencing system.

5.   Complete the title page and sign the statement of authenticity.

6.   Upload the entire assignment in MS word format only on Turnitin.

7.   Staple only once to keep the pages of your work together.

8.   Late submission, late work will only be marked on the next occasion the unit is taught.

9.   Submit the work along with the Turnitin report to the respective assessors in their offices.

10.        Collect the assignment submission form duly signed by the assessor and the learner. 11.Grades are subject to External Verification.

Class ID: 12168834
Pass word: HND123