DIPLOMA LEVEL ACCOUNTING
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20170911102857module_02_assessment_3___case_study.docxAssessment 3
Case Study – Prepare Comprehensive Income Statement and Statement of Changes in Equity
Fergie Ltd incurs the following expenses and income for the year ended 30 June 2015.
The income tax expense of $150 000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. Tax rate is 33 per cent.
During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2014 was $nil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2014 and 30 June 2015 was $510 000.
REQUIRED
Prepare an income statement (in a single statement with expenses shown by function) and a statement of changes in equity in conformity with AASB 101. Provide only those notes that can be reasonably determined from the above information
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Assessment Mapping Checklist Learner Name/ID: ___________________________________ |
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Performance & Knowledge Evidence |
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Performance Evidence |
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· produce a detailed asset register and depreciation schedule |
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· accurately record entries for balance day adjustments |
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· prepare financial reports |
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· trace and reconcile errors systematically or seek expert advice if required |
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· apply double-entry principles |
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· complete all tasks according to organisational policies and industry standards
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Knowledge Evidence |
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· explain doubleentry bookkeeping principles |
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· identify general journal and general ledger entries |
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· list the key provisions of relevant legislation, regulations, standards and codes of practice that may preparation of financial reports |
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· describe organisational accounting systems |
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· outline relevant organisational policies, procedures and accounting standards. |
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· outline typical errors that can be made in processing financial transactions |
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· describe forms of ‘proof of lodgement’ |
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· describe types of ‘special transactions’ |
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Identify and describe the key features of: · industry codes of practice |
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· legislative and regulatory requirements relevant to the work |
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· organisational policy and procedures |
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· explain the security procedures for handling cheques, vouchers and cash |
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· describe the key features of a range of reports. |
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Comments: |
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Signed by Learner: Date: |
Signed by Assessor: Date: |
