accounting and Finance assignment

FNSACC504 - Assessment

Assessment Summary

Unit Details:	FNSACC504 Prepare financial reports for corporate entities
Prerequisite Units:	Nil
Possible Co-Requisite Units:	Nil
Assessment Type:	This is a summative assessment, which requires each student to have adequate practice prior to undertaking this assessment This assessment Must also be undertaken in a real or simulated office environment.
Unit Summary:	This unit describes the performance outcomes, skills and knowledge required to prepare financial reports for a reporting entity and encompasses compiling and analysing data and meeting statutory reporting requirements. This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body. The unit has application to any job roles that have responsibility for producing financial reports for corporate entities.
Assessment Methods	Observation / Project	Assessment 1 (Acquisition updated balance sheet & Tax calculations)
	Observation / Project	Assessment 2 (Preparation of financial reports)
	Written Research	Assessment 3 (Individual research into business legal requirements)
	Online Assessment	Assessment 4 (Online Quiz)
Due Date:	07/09/2017

Assessment Contents

1 FNSACC504 - Assessment

3 ASSESSMENT SUMMARY / COVER SHEET

5 ASSESSMENT 1 – STUDENT INFORMATION

6 ASSESSMENT 2 – STUDENT INFORMATION

7 ASSESSMENT 3 – STUDENT INFORMATION

7 Part 1

7 Part 2

8 Appendix 1

10 Appendix 2

12 ASSESSMENT 4 - Online Assessment

Important notice to students:

1. Students must submit assessments by due dates; otherwise, they will incur a fine of $50.00.per Unit (if submitted within one week after the due date) followed by $100.00 per Unit (if submitted within two weeks after the due date) and $150.00 per Unit (if submitted within one month after the due date). If you don’t submit assessments even by one month, or do not pay fines, HIBT may report to DIBP as against non-completion of assessments and non-payment of fees and fines, and it may affect your student visa.

2. Plagiarism is not accepted in Australian education system and at HIBT. You should not practice any plagiarism in your assessments or any other works. If you are found to practice plagiarism, or your assessment has been found to be plagiarised, you will be fined $250 (for first time) followed by $500 (for second time) and $1000 (for third time). If you are still found to be plagiarised after the third time, HIBT will report to DIBP as against plagiarism and it may affect your student visa.

ASSESSMENT SUMMARY / COVER SHEET

This form is to be completed by the assessor and used a final record of student competency. All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file. Student results are not to be entered onto the Student Database unless all relevant paperwork is completed and attached to this form.

Student Name:
Student ID No:
Final Completion Date:

Unit Code:

FNSACC504 | Prepare financial reports for corporate entities

Please attach the following documentation to this form	Result S = Satisfactory NS = Not Satisfactory NA = Not Assessed
Assessment 1	( Balance sheet attached ( Income tax calculations attached ( Checklist attached	S | NS | NA
Assessment 2	( Cash flow statement attached ( Statement of financial position attached ( Statement of financial performance attached ( Checklist attached	S | NS | NA
Assessment 3	( Business legal requirements report attached (group report) ( Legislation and accounting standards report attached (individual report) ( Checklist attached	S | NS | NA
Assessment 4	( Online Assessment	S | NS | NA

Final Assessment Result for this unit

C / NYC

Assessor notes over page:

Assessor Notes: (inclusive of reassessment, reasonable adjustment, further opportunities for gap training etc):

Result: Competent | Not Yet Competent | Not Assessed

Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights. Name: _________________________________ Signature: _________________________________ Date: ____/_____/_____

Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback Name: ____________________________ Signature: ____________________________ Date: ____/_____/_____

Administrative use only
Entered onto Student Management Database	( __________________ Date	_______________ Initials

ASSESSMENT 1 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, students are to prepare updated financial records for the acquisition of RDL Ltd by TMH Ltd (Information found in Appendix 1). Students are to complete the Balance sheet ending 30 June 2013 for TMH Ltd which doesn’t include merger details. Students must then use the information provided to complete the Balance sheet for the new parent company following the merger,

Students are to prepare an updated balance sheet following the acquisition of RDL Ltd. by TMH Ltd. Students must:

· Undertake face to face or phone consultation with your instructor, who will role-play the part of management of TMH Ltd. to define any procedures you must follow as well as set timeframes and deadlines.

· Complete the worksheet provided in Appendix 1.

· Complete the year ending 30 June 2013 Balance sheet for TMH using the information provided.

· Systematically review, code and classify data as required and check for accuracy following policies set by your instructor and complying with AASB standards.

· Undertake conversion & consolidation procedures to compile the data (Using the merger method) and make comments as to appropriateness and ensure they meet AASB standards

· Calculate the amount of income tax for TMH for the year ending 30 June 2013. Take into consideration assessable and non-assessable items. Including performing the following tasks:

· Calculate the amount of income tax expense for the year, using the derivative method that complies with Accounting Standard AASB1026/AAS28

· State the Profit before income tax

· State the Accounting Profit

· State the Profit after income tax.

This assessment is due on: __________________________________

ASSESSMENT 2 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

Students are required to complete financial reports for the reportable entity of Atlanta Company (using the information provided in Appendix 2). The following must be completed:

Students must utilise the data provided to undertake the following:

· Prepare comprehensive income statement.

· Prepare Statement of Change in Equity

· Prepare Statement of Financial Position

· Prepare Cash Flow Statement.

· Students are required to provide notes for the important information as per AASB standards.

· Appropriate diagrams and graphs must be included as well as supporting data as necessary

· Students must ensure they comply with organisational policy and AASB standards for their report presentation (this information should be sought from your instructor who again will role-play the part of Atlanta management

This assessment is due on: __________________________________

ASSESSMENT 3 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

This is a 2-part assessment with the first part involving research work and the second part involving written assignment.

Part 1: (1,500 words)

For this part, students are required to work in small groups of 2-4 to undertake the following research assignment. Students must research into business legal requirements as well as financial and taxation requirements in regards to business reporting requirements and business mergers / acquisitions. This report should include:

· Discuss the differences in calculation of income tax based on the PAYG system and the Income Tax Assessment Act

· Discuss what constitute taxable transactions, and what legislation governs this

· Provide information regarding the impact the AASB has on reporting requirements to businesses

· Discuss the legal implications that affect businesses – research into different State and Federal legislation and comment on each

Part 2 (800 words)

For this assignment, students are required to discuss why it is necessary to have the legislation and accounting standards discussed in Part 1. Students should concentrate on the following:

· Who is being protected by the legislative / standards?

· What do these laws / standards promote?

· What do these laws / standards prevent?

· How do these laws / standards promote ethical accounting?

Both parts should be submitted together as a 2,300 word assignment.

Appendix 1:

On 1st July, 2014, TMH Ltd. acquired all the share capital of RDL Ltd.

At that date the equity of RDL was:

Share Capital $60,000

General Reserve $10,000

Retained earnings $10,000

Additional information

During the year ended 30 June, 2016:

a. TMH Ltd sold goods to RDL for $20,000

b. Unrealized profit in the inventory:

· At 1st July 2015, $1,000

· At 30 June, 2016, $700

c. On 1st January, 2016, RDL Ltd. sold an item of plant to TMH Ltd. for $20,000. The book value of the plant at the date of sale was $16,000. TMH Ltd depreciates plant at 15% per annum on cost.

d. TMH Ltd charged RDL Ltd a management fee of $7,000 for the year ended 30 June, 2016.

e. Goodwill is tested annually for impairment goodwill has been impaired by $5,000 for the year ended 30 June, 2016.

Consolidation worksheet 30 June 2016	TMH Ltd	RDL	Elimination	Consolidation Statement
			DR.	Cr
	$	$	$	$	$
Sales	330,000	240,000
Inventory 1-7-2015	30,000	20,000
Purchase	180,000	110,000
	210,000	130,000
Inventory 30-6-2016	40,000	20,000
Cost of goods sold	170,000	110,000
Gross profit	160,000	130,000
Operating expenses	113,000	94,000
	47,000	36,000
Add: Profit on sale of plant	-	4,000
Management fee received from RDL	7,000	-
Dividend received from RDL	4,000	-
Profit before tax	58,000	40,000
Less: Income tax expenses	10,000	18,000
Profit	48,000	22,000
Retained earnings 1-7-2015	20,000	16,000
Available for appropriation	68,000	38,000
Appropriation:
Interim dividend paid	8,000	4,000
Declared final dividend	10,000	6,000
General reserve	10,000	4,000
Total appropriation	28,000	14,000
Retained earnings 30-6-1016	40,000	24,000
Share capital	200,000	60,000
General reserve	72,000	15,000
Non-current liabilities	2,000	16,000
Current liabilities	56,000	27,000
	370,000	142,000
Share in RDL Ltd	110,000	-
Other non-current assets	150,000	90,000
Inventory	46,000	20,000
Other current assets	64,000	32,000
Goodwill on consolidation	-	-
Accumulated impairment- goodwill
	370,000	142,000

Required: Complete the consolidation worksheet

Students should use appropriate tax rate as stated by ATO for their tax calculations.

Appendix 2

You are provided the following trial balance of Atlanta Company Limited. This is just draft prepared by your accountant where company has provided the additional information that need to be incorporated in your final financial report.

Atlanta Company Limited Trial Balance
	2015	2016
	Debit	Credit	Debit	Credit
Cash at bank	17,560		65,880
Call on deposit	-		200,000
Account receivable	86,810		91,590
Commission income accrued	400		600
Inventory	77,520		73,190
Land and building	250,000		210,000
Accumulated depreciation- Building		14,000		19,400
Motor vehicle	35,000		60,000
Accumulated depreciation		7,900		20,800
Plant	50,000		40,000
Accumulated depreciation		15,500		19,800
Account payable		55,860		59,440
Accrued salaries and wages		790		1,030
Taxation payable		21,300		35,920
Dividend payable		30,000		40,000
Debenture		-		100,000
Share capital		300,000		400,000
Retained earnings		21,940		21,940
Sales		675,000		759,220
Cost of goods sold	350,000		386790
Commission income received		-		3,030
Salaries and wages	157,860		197,800
Superannuation	15,000		7,900
Motor vehicle expenses	30,000		14,700
General expenses	20,140		18,300
Depreciation- Building	4,000		5,400
Depreciation- Motor vehicle	11,000		12,900
Depreciation- Plant	5,000		6,800
Advertising expenses	2,000		500
Bad debts	5,000		2,310
Income tax expenses	25,000		35,920
Total	1,142,290	1,142,290	1,480,580	1,480,580

Additional information for the June end 2016.

1. Cost of goods sold of June end 2016 in above trial balance is consist of:

Opening inventory $77,520

Purchase ($34,500 cash and $347,960 credit) $382,460

Closing stock $73,190

Cost of goods sold ($77,520+$382,460 - $73,190) $386,790

2. Cash sales are $86,000 out of total sales in above trial balance.

3. All the expenses except depreciation and bad debts are cash expenses.

4. Dividend payable of 2015 is paid.

5. Company paid interim dividend $20,000.

6. Revaluation value of land and building is $260,000 at June end 2016.

7. 10% of retained earning transferred to General Reserve.

8. Company issued share capital $100,000 at June end 2016

ASSESSMENT 4 - Online Assessment

Please read the assessment requirements below.

Online Assessment Quiz

You will be able to access this online for this unit, you need to talk to your facilitator/teacher on how to access this resource.

This assessment is due on: __________________________________