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Financial reporting standards - Financial statements

Assessment Task : Financial statements

Task summary

This assessment task requires students to prepare a Trial Balance, Income Statement, Balance Sheet and Statement of Changes in Equity, along with notes according to financial reporting standards.

Following this, they will be required to meet with their Manager (assessor) to go through the statements that they have prepared. They will also be required to demonstrate their ability to calculate ratios and present company information to an established standard.

This assessment is to be completed in the simulated work environment in the RTO.

Required

∑         Access to textbooks/other learning materials

∑         Computer with Microsoft Office and internet access

∑         Hanks Tanks Information

∑         Hanks Tanks Workbook Template

∑         Access to AASB standards as follows:

o    AASB101 Presentation of financial statements http://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf

o    AASB116 Property, plant and equipment http://www.aasb.gov.au/admin/file/content102/c3/AASB116_07-04_ERDRjun10_07-09.pdf

Timing

Advise the student of the due date of these submissions.

Submit

∑         Email with Hanks Tanks Worksheet attached

∑         Email with Hanks Tanks Revised Worksheet attached

Assessment criteria

Students must complete all of the activities listed and will be assessed against the assessment criteria included in the checklist included with this task.

Re-submission opportunities

If a student submits work that is not satisfactory, the assessor will provide written feedback explaining why, as well as timelines for resubmission.

Assessment Task 2 Instructions as provided to students

Carefully read the following:

You are an accountant for an accountancy company that has the following organisational procedures for preparing financial statements:

∑         All financial statements are to be prepared using Microsoft Excel with a Worksheet for each statement.

∑         Financial statements must be prepared within 3 working days of receipt of information from client.

∑         Financial statements must be prepared as General Purpose Financial Statements according to AASB 101 Presentation of financial statements. 

∑         Valuations must be according to the AASB 116 Property, plant and equipment.

∑         The company complies with the Privacy Act 1988, the Australian Privacy Principles and the APER 110 Code of Ethics.

One of your clients is Hanks Tanks.

Complete the following activities:

1.             Prepare financial statements

Completing this assessment will demonstrate your ability to prepare the required financial statements according to your companyís organisational procedures, as well as AASB Standards.

It will also demonstrate your ability to use your problem-solving skills by reviewing the additional information and making adjustments as required to ensure there is no negative impact for reporting.

Enter the information in Hanks Tanks Information into the Hanks Tanks Workbook Template, preparing the following:

∑         An updated trial balance statement based on the trial balance and adjustments provided

∑         An income statement

∑         A balance sheet

∑         A statement of changes of equity

2.             Send an email to your Manager (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment and ask the Manager for a meeting at their convenience.

Attach your Hanks Tanks Worksheet to the email.

Your assessor will reply to the email with the time and date of a meeting to discuss your statements.

3.             Participate in a meeting to discuss financial statements

Begin the meeting by discussing how an accountant could have a conflict of interest or issues with confidentiality when performing such work as you have done in Activity 1. This should be a general discussion that shows that you understand how the companyís organisational procedures could influence the way that you have compiled, and could share, the data.

You are required to meet with your Manager and to go through each of the financial statements with them to check your coding, classifications, and calculations to ensure any errors are identified and rectified. You are also required to confirm with your manager that the structure and format of the reports are in compliance with statutory and organisational requirements.  

At the end of the meeting, you will also be asked to explain the adjustments you made and the rationale for these.

During the meeting, you are required to demonstrate effective interpersonal and communication skills including:

∑         Speaking clearly and concisely

∑         Using effective non-verbal communication skills to encourage audience interest

∑         Responding to questions

∑         Asking questions to seek feedback

∑         Use of active listening techniques to confirm and clarify understanding.

4.             Revise your financial statements.

Update your statements to reflect any changes discussed with your Manager.

Save this file as Hanks Tanks Workbook Revised.

5.             Send an email to your Manager (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should mention the meeting that you had and summarise any changes that you have made to your Hanks Tanks Workbook.

Attach your Hanks Tanks Revised Worksheet to the email.

Ensure that this email is sent within the time limit given in your accounting companyís organisational procedures.

6.             Participate in a meeting with the client to present financial statements

Assume that you have now been asked to meet with the CEO of Hanks Tanks to present the financial statements.

You are required to meet with the CEO (your assessor) and go through each of the financial statements with them,  including an explanation of key financial information.

Assume that the CEO has limited accounting knowledge and explain the statements in a clear and concise manner, using concepts that the CEO can understand.

During the meeting, you are required to demonstrate effective interpersonal and communication skills including:

∑         Speaking clearly and concisely

∑         Using effective non-verbal communication skills to encourage audience interest

∑         Responding to questions

∑         Asking questions to seek feedback

∑         Use of active listening techniques to confirm and clarify understanding.

Assessment Task 2 Checklist


Studentís name:
Did the student: Completed successfully Comments
Yes No
Correctly code and classify all data from the trial balance sheet and show in a: ∑       Balance Sheet ∑       Income Statement ∑       Statement of changes in equity        
Correctly record adjustments according to additional information provided?        
Demonstrate problem solving skills by reviewing the additional information and making the required adjustments to ensure there is no negative impact for reporting?        
Develop financial statements according to organisational procedures and accounting standards including: ∑       Using Microsoft Excel with a worksheet for each type of statement. ∑       In accordance with AASB 101 Presentation of Financial Statements ∑       Using valuation methods according to the AASB 116 Property, plant and equipment.        
Develop financial statements within 3 working days of receipt of information from client?      
Correctly transfer all data from the trial balance in Hanks Tanks Information into an Excel file with a separate work sheet for each component of the financial statement?        

Record valuations in financial statements according to the AASB 116 Property, plant and equipment?  
     
Identify and record applicable taxes so that profit before income tax as well the income tax expense and profit after tax is shown?        
Provide final copy of statements following meeting, with errors corrected as required?        
At the meeting, explain financial statements prepared and adjustments made, including options for resolution, and rationale for adjustments made to ensure no negative impact on reporting?      
During the meeting, demonstrate effective communication skills including: ∑         Speaking clearly and concisely ∑         Using non-verbal communication to assist with understanding ∑         Asking questions to identify required information ∑         Responding to questions as required ∑         Using active listening techniques to confirm understanding      
Explain the financial statements to the Hanks Tanks CEO in a clear and concise manner using non-technical terminology?      
During the meeting with the CEO, demonstrate effective communication skills including: ∑         Speaking clearly and concisely ∑         Using non-verbal communication to assist with understanding ∑         Asking questions to identify required information ∑         Responding to questions as required ∑         Using active listening techniques to confirm understanding      
Task Outcome: Satisfactory   ® Not Satisfactory   ®
Assessor signature  
Assessor name  
Date  

 

Assessment Task : Cash flow statement project

Task summary

This assessment task requires students to prepare a cash flow statement for a fictional business, Bobís Machinery. Students are also required to prepare a reconstructed cash flow statement because of missing information.

This assessment is to be completed in the simulated work environment in the RTO.

Required

∑         Access to textbooks/other learning materials

∑         Computer with Microsoft Office and internet access

∑         Bobís Machinery Information

∑         Azar Trading Information

∑         AASB107 Statement of Cash Flows

http://www.aasb.gov.au/admin/file/content105/c9/AASB107_08-15.pdf

Timing

Advise the student of the due date of these submissions.

Submit

∑         Email with the following attachments:

o    Bobís Machinery Cash Flow Workbook

o    Azar Trading Cash Flow Workbook

Assessment criteria

Students must complete all of the activities listed and will be assessed against the assessment criteria included in the checklist included with this task.

Re-submission opportunities

If a student submits work that is not satisfactory, the assessor will provide written feedback explaining why, as well as timelines for resubmission.

Assessment Task 3 Instructions as provided to students

Carefully read the following:

You are an accountant for an accountancy company that has the following organisational procedures for preparing financial statements:

∑         All financial statements are to be prepared using Microsoft Excel with a worksheet for each type of statement.

∑         Cash flow statements must be prepared in accordance with AASB107 Statement of Cash Flows. Formulas should be used for all calculations. Worksheets should be formatted appropriately. Charts must be saved in a different worksheet and appropriately labelled.

∑         Cash flow statements must be prepared within 3 working days of receipt of information from client.

One of your clients is Bobís Machinery, and another is Azar Trading.

Complete the following activities:

1.          Prepare a cash flow statement

This task requires you to prepare a cash flow statement for Bobís Machinery for the year ended 2017.

Create a new Excel Workbook for Bobís Machinery.

Review the AASB107 Statement of Cash Flows document, as well as the balance sheet and income statement provided to you in Bobís Machinery Information. You are also required to use charts in a different workbook to show comparison of Bobís balance sheet for a period of 2016 and 2017.

Save this document as Bobís Machinery Cash Flow Workbook

2.         Reconstruct cash flow statement

Azar Trading Pty Ltd, who has advised you that they do not have some of the information required to prepare the cash flow statement.

Create a new Excel Workbook for Bobís Machinery.

You are required to use your problem-solving skills to reconstruct the cash flow account for operating activities from Azar Trading Student to determine the following:

∑         Purchases

∑         Payment to accounts payable

∑         Receipts from accounts receivable

∑         Wage expenses paid

∑         Cash flow from operating activities

Show all of your working for purchases, accounts payable, accounts receivable and wages expenses.

Save this document as Azar Trading Cash Flow Workbook.

3.          Write an email to your assessor.

The text of the email should be in correct and appropriate English. It should give a brief summary of the contents of the attachment.

Attach the following to the email:

∑         Bobís Machinery Cash Flow Workbook

∑         Azar Trading Cash Flow Workbook

Ensure that this email is sent within the time limit given in your accounting companyís organisational procedures.

Assessment Task 3 Checklist


Studentís name:
Did the student: Completed successfully Comments
Yes No
Correctly code and classify all data from the income statement and balance sheet and show in a cash flow statement?      
Develop a cash flow statement according to organisational procedures and accounting standards including the AASB107 Statement of Cash Flows?      
Present charts to show comparison of 2016 and 2017 balance sheet.      
Develop financial statements within 3 working days of receipt of information from client.      
Demonstrate the ability to use problem solving skills to reconstruct a cash flow statement for operating activities?      
Task Outcome: Satisfactory   ® Not Satisfactory   ®
Assessor signature  
Assessor name  
Date  

Assessment Task : Consolidation

Task summary

For this assessment task, students are required to prepare a consolidation worksheet for Mullum Machinery Pty Ltd and Byron Machinery Pty Ltd Pty Ltd based on the extracts of trial balance and additional information provided to them.

This assessment is to be completed in the simulated work environment in the RTO.

Required

∑         Access to textbooks/other learning materials

∑         Computer with Microsoft Office and internet access

∑         Consolidation Information

∑         Access to AASB101 Presentation of financial statements:

http://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf

Timing

Advise the student of the due date of these submissions.

Submit

∑         Email with Consolidation Workbook attached.

Assessment criteria

Students must complete all of the activities listed and will be assessed against the assessment criteria included in the checklist included with this task.

 

Re-submission opportunities

If a student submits work that is not satisfactory, the assessor will provide written feedback explaining why, as well as timelines for resubmission.

 

Assessment Task 4 Instructions as provided to students

Carefully read the following:

You are an accountant for an accountancy company that has the following organisational procedures for preparing financial statements:

∑         All financial statements are to be prepared using Microsoft Excel with a worksheet for each type of statement.

∑         Financial statements must be prepared within 3 working days of receipt of information from client.

∑         Financial statements must be prepared as General Purpose Financial Statements according to AASB 101 Presentation of financial statements. 

Complete the following activities:

1.          Prepare a consolidation worksheet

Review the AASB 101 Presentation of financial statements document.

Create an Excel Workbook that has one Worksheet titled Consolidation Worksheet.

In that Worksheet, complete a consolidation worksheet for Mullum Machinery Pty Ltd and Byron Machinery Pty Ltd using the data in Consolidation Information.

Save this file as Consolidation Workbook.

2.         Send an email to your assessor.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Attach your Consolidation Workbook to the email.

Ensure that this email is sent within the time limit given in your accounting companyís organisational procedures.

 

Assessment Task 4 Checklist


Studentís name:
Did the student: Completed successfully Comments
Yes No
Correctly code and classify all data from the Consolidation Information document?      
Correctly record adjustments according to additional information provided?      
Demonstrate problem-solving skills by reviewing the additional information and making the required adjustments to ensure there is no negative impact for reporting?      
Develop Balance sheet according to organisational procedures and accounting standards including: ∑       Using Microsoft Excel with a worksheet for each type of statement. ∑       In accordance with AASB 101 Presentation of Financial Statements      
Develop financial statements within 3 working days of receipt of information from client.      
Task Outcome: Satisfactory   ® Not Satisfactory ®
Assessor signature  
Assessor name  
Date  

Financial reporting standards - Financial statements

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