Assessment Details
Qualification Code/Title Diploma of Accounting
Assessment Type Assessment -2 Time allowed
Due Date Location AHIC Term / Year
Unit of Competency
National Code/Title FNSACC501-Provide Financial and Business Performance Information
Student Details
Student Name Student ID
Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ____________________________
Date: _____/______/__________
Assessor Details
Assessor’s Name
RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY
Feedback to student:
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights.
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.
Signature: ________________________________________
Date: ______/_______/___________

Instructions to the Candidates
? This assessment is to be completed in class supervised by assessor.
? Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
? If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
? Please refer to the College re-submission and re-sit policy for more information.
? If you have questions and other concerns that may affect your performance in the examination please inform the assessor immediately.
Project 1
Part 1
1. How are business expenses treated in regard to tax legislation? Discuss in 30 to 50 words.
2. What allowance in tax legislation is there for businesses that are managed on behalf of a trust? Discuss in 80 to 100 words.
3. Describe forecast returns and set up and describe a simple table over several years for similar amounts. Discuss in 50 to 80 words.
4. Describe (150 to 180 words) how NFP sector organisations adhere to government financial policies where the preparation of statutory returns are required.
5. Your client is XYZ company. After discussions it is identified they require a spreadsheet summarising the repayment amounts and current balance for a long-term loan of $500,000 to be repaid over eight years at a rate of 10% per annum. They are interested in business information that will show the amount they need to repay each year.
Show the calculations required for the loan.
Prepare the spreadsheet for the loan. Include a summary section to comment on the table. Round the initial opening balance of the loan up to the nearest dollar and round up to present values in whole dollars.
6. List the four categories that client’s business performance objectives can be set up as.
7. What does GPFRU’s mean? List three potential users.
8. What type of clients can expect state and territory charges? Discuss in 50 to 80 words.
9. How can the amount of taxes and charges on land be calculated? Discuss in 50 to 80 words.
10. What practices should these businesses and those who pay Commonwealth taxes complete? Discuss in 80 to 100 words.
Part 2
1. Use the supplied CIF to answer the questions listed.
a. Where can information about client objectives be found?
b. Describe (80 to 100 words) how the Type of business section on the supplied CIF is relevant to the client’s legal and financial requirements, explain how this is important to taxation.
ABC Financial Management
Client Information Form
Surname Citizen
First name John
Employment title Manager
Other key staff
Type of business Building services Sole proprietor
Financial information sought Provide ongoing financial management especially in the reduction of annual income tax and checking goods and services tax (GST) and other legislative reports.
Size Four full-time or equivalent staff.
Business assets $550,000 Tools, vehicles, building inventories
Revenue $ 1 Million
Expenses $ 680,000
Cash flow –$50,000
Number of years operating
Current information Internal reports by part-time administrative staff. Includes fortnightly payroll and payment of accounts and banking.
2. You have had discussions with the client who has explained that you were recommended through a colleague in the NFP sector who you have been providing acquittal services to.
Describe the different types of financial options that are available for different clients related to the provision of business performance information. Discuss in 150 to 180 words.
3. Prepare an example of a forecast versus actual for XYZ company for an operational project. Include columns to show forecast returns versus actual on a multi period report. Include a summary section.
4. At what stage of financial management would you discover that the actual rates of returns are significantly lower than those returns forecasted? Discuss in 30 to 50 words.
5. What would be the agreed criteria and what other steps would need to be taken? Discuss in 30 to 50 words.
6. You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly on the 1st July, thanking you for the satisfaction of current objectives in line with the financial plan. Current objectives are reporting annual financial reports including preparing the BAS.
The client asks that this now ceases as the finance officer will take over the duties. The client asks that you prepare a manual to assist the finance officer in their new duties. The client also asks that you now assist with preparing for and recording monthly governance board meetings.
a. Prepare a quarterly financial management questionnaire for the current quarter to show the current and proposed new objectives as if they had been discovered as a result of the quarterly questionnaire process.
b. Prepare a file note to properly record the main points of your phone call with the CEO.
7. Your client contact is the finance officer of XYZ company. They phone you briefly on 1.10.20xx and say that the financial position detail report contains too much detail. They also state that there is no explanation for the changes in financial position even though they know that several new desks were purchased in the previous quarter because they recorded them on the asset register. Prepare a file note to show how the feedback will be incorporated into services to the client.
8. Your client is XYZ company. They phone you on 15.11.20xx and question what has caused them to pay higher than normal GST. Your investigation shows that the income amount included the previous year’s income. Record a file note to implement improved customer services.
9. Consider the two sets of financial data shown.
GEF Organisation BAS Summary Sheet
Prepared by the Financial Officer
For the period ending 30.9.20xx
GST Received on income $2,500
GST Paid on expenses $2,500
Plus PAYG on wages $10,000
GST Payable/ (Receivable) $10,000
From the ATO
GEF Organisation BAS Summary Sheet
Prepared by the Financial Officer
For the period ending 30.12.20xx
GST Received on income $100,000
GST Paid on expenses $2,500
Plus PAYG on wages $10,000
GST Payable/ (Receivable) $107,500
From the ATO
a. What would be of interest to the financial manager responsible for preparing the BAS based on the reports? Discuss in 30 to 50 words.
b. For what reason would this be of interest? Discuss in 30 to 50 words.
c. What steps should the financial manager take in this scenario? Discuss in 50 to 80 words.
10.Use the following information to prepare a bank reconciliation for KLM company.
Closing account balance 30.6.20xx, $68,000
Unpresented cheques:
Number 100 $5,000
Number 101 $5,000
Number 102 $3,000
Number 103 $4,000
KLM Bank Statement extract
June 20xx
Date Detail Dr Cr Balance
20.6.20xx Cheque number 98 $10,000 $80,000
25.6.20xx Deposit $10,000 $90,000
30.6.20xx Cheque number 99 $5,000 $85,000
11. Consider the financial performance comparisons. Provide analysis (150 to 180 words) to describe the comparisons.
KLM Company
Comparison of financial performance
2012 and 2013
Account 2012 2013 $ Difference Per Cent Common Size (per cent of sales income)
2012 2013
Sales Income $230,000 $320,000 $90,000 39 100 100
Cost of sales $115,000 $165,000 $50,000 43 50 51.6
Wage Costs $30,000 $45,000 $15,000 50 13 14
Transport Costs $25,000 $35,000 $10,000 40 10.9 10.9
Marketing Costs $15,000 $20,000 $5,000 33 6.5 6.3
Total costs $185,000 $265,000 $80,000 43 80.4 82.8
Profit $45,000 $55,000 $10,000 22 19.6 17.2
12. Consider the supplied cost–benefit analysis.
a. Complete the cash flows in the table.
b. Considering the effect on cash flow, is the analysis worthwhile? Discuss in 30 to 50 words.
QRS Co. Motor vehicle expense account
Cost–benefit analysis using
Budget versus Actual Variance Reporting
October 20xx
Month Existing Estimate Change to Effect on:
Income Expenses Cash Flow
July $700
Aug $750
Sept $800
Oct $900
Nov $950 $830
Dec $800 $680
Jan $800 $680
Feb $800 $680
Mar $800 $680
Apr $800 $680
May $800 $680
June $800 $680
Total $9,700 $5,590
13. Which ratio is used to measure financial stability? Discuss in 80 to 100 words.
14. Use the financial statement to calculate the debt ratio including a discussion (80 to 100 words).
XYZ Ltd
Financial Statement Extract
As at 30.6.20xx
Item Financial year 20xx
Total assets $1,500,000
Current assets $300,000
Total liabilities $250,000
Profit $200,000
15. Consider this report. At what stage of the financial management process would the report be prepared? Discuss in 50 to 80 words.
TUV Co - Extract
September 20xx
Expectations and Objectives Analysis
Analyse the business financial performance Reports have been prepared analysing the client’s business in comparison to industry averages.
Summary:
TUV Co’s owners have asked that their business be analysed to determine if the financial performance is acceptable. The review has been performed annually for the previous three years.
The business analysis consists of performing ratio analysis on the financial statements supplied by the client’s finance officer. The analysis identified that the business was: profitable, stable and efficient compared with other businesses in the same industry.
The analysis is currently prepared in a one-page executive summary and sent to the owners of TUV. As a result, the client has continued operations. The client has consistently made reference to the interest of the finance officer through phone calls and on the annual client questionnaire.
Actions:
The client recently commented that they would prefer a more comprehensive report that describes the analysis with the aim of promoting the finance officer to manager. The client would like to effectively hand over the business operations to the FO.
Therefore, the ratio analysis summary will be expanded to include all workings and explanations. The financial plan will need to be updated and formally agreed to by the client. A letter will be prepared by the financial manager and sent to the client suggesting that they book an interview at their earliest convenience.
16. It is the end of the financial year and your client is XYZ company. From the following file note summary prepare an evaluation report.
File note summary XYZ company. Financial potential $33,000 annually for the previous three years. Accumulated surplus $100,000. Statutory requirements: prepare and lodge BAS and IT. Compilation assurance. Reports provided by XYZ’s CEO. Preference to invest in government bonds. No contingency cash expected.
17. You work for ABC financial management. What are the consequences for clients of not meeting reporting deadlines? Discuss in 50 to 80 words.
18. Prepare a fictitious financial plan extract that includes sections on financial information sought, compliance and reporting deadlines.
19. Prepare a column graph from the following table. Computer applications which produce charts can be used if you prefer.
Month Activity Level:
Patient - Days
January 5,600
February 7,100
March 5,000
April 6,000
May 7,300
June 8,000
July 6,200
Your client, XYZ company enters transactions which they send to you to prepare their tax return. They have had difficulty in identifying which transactions to record. Expenses have been underreported and this has resulted in over taxation. The main expense underreported is for motor vehicle fuel expenses which occur away from the business. How would this situation affect your preparation of the financial plan? Discuss in 30 to 50 words.
20. It is the end of the financial year. Your client, XYZ company requires assistance identifying and managing the risks of taxation compliance.
Prepare a financial extract to identify and manage risks by advising your client which transactions to collect and enter in the accounting system. Include revenues and expenses. Specifically mention livestock selling expenses that are incurred away from the business and for which the manager often forgets to collect a receipt. Describe how bank accounts can be set up to ensure this type of transaction is recorded.
21. On the 30th June 20xx you advise your client, XYZ company to take out a loan. The business contact requires a loan to fund a long-term amount where $100,000 is borrowed and compounded at 10% annually for five years. The formula is:
FV = PV (1+i)n
Perform the calculation to achieve the total amount of the loan over the five years. What is the annual repayment amount?
Present the loan in an appropriate table showing the zero closing balance at the end of five years.