FNSACC504 Prepare Financial Reports For

Corporate Entities

FNSACC504 – Assessment

Assessment Summary

Unit Details: FNSACC504 Prepare financial reports for corporate entities

 Prerequisite Units: Nil

Possible
Co-Requisite Units: Nil

This is a summative assessment, which requires each student to have adequate prac
undertaking this assessment
Assessment Type: This assessment Must also be undertaken in a real or simulated office environment.

This unit describes the performance outcomes, skills and knowledge required to prep
reports for a reporting entity and encompasses compiling and analysing data and mee
reporting requirements.

This unit has application to a variety of financial services sectors and is applicable
working within enterprises and job roles subject to licensing, legislative, regulatory o
requirements so the varying Commonwealth, State or Territory requirements should
with the relevant body.

The unit has application to any job roles that have responsibility for producing financ
corporate entities.
Unit Summary:

Assessment 1
(Acquisition updated balance sh
Observation / Project calculations)

Assessment 2
Observation / Project (Preparation of financial reports)

Assessment 3
(Individual research into bus
Written Research requirements)

Assessment 4
Assessment Methods Online Assessment (Online Quiz)

Due Date: 07/09/2017

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 p
students file.

Student results are not to be entered onto the Student Database unless all relevant paperwork is completed and attached to this fo

Student Name:

Student ID No:

Final Completion Date

Unit Code: FNSACC504 | Prepare financial reports for corporate entities

Res
S = Satisfactor

NS = Not Satis

NA = Not Asse
Please attach the following documentation to this form

q Balance sheet attached

q Income tax calculations attached

q Checklist attached
Assessment 1 S | NS

q Cash flow statement attached

q Statement of financial position attached

q Statement of financial performance attached

q Checklist attached
Assessment 2 S | NS
 q Business legal requirements report attached (group report)
q Legislation and accounting standards report attached (individual
report)

q Checklist attached
Assessment 3 S | NS

Assessment 4 q Online Assessment S | NS

Final Assessment Result for this unit C / N

Assessor Declaration: I declare that I have

Student Declaration: I declare that I have been conducted a fair, valid, reliable and flexible
assessed in this unit, and I have been advised of my assessment with this student, and I have provided
result. I also am aware of my appeal rights. appropriate feedback
Name: _________________________________ Name: ____________________________

Signature: _________________________________ Signature: ____________________________

Date: ____/_____/_____ Date: ____/_____/_____

Administrative use only

q __________________ _______________
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.

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:

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

2. Unrealized profit in the inventory:
 At 1st July 2015, $1,000
 At 30 June, 2016, $700
1. 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.
2. TMH Ltd charged RDL Ltd a management fee of $7,000 for the year ended 30 June, 2016.
3. Goodwill is tested annually for impairment goodwill has been impaired by $5,000 for the year ended 30
June, 2016.
TMH Ltd RDL Elimination Consolidation S

DR. Cr

Consolidation worksheet 30 June 2016 $ $ $ $

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

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

 Motor vehicle 35,000 60,000

Accumulated depreciation 7,900

Plant 50,000 40,000

Accumulated depreciation 15,500

Account payable 55,860

Accrued salaries and wages 790

Taxation payable 21,300

Dividend payable 30,000

Debenture –

Share capital 300,000

Retained earnings 21,940

Sales 675,000

Cost of goods sold 350,000 386790

Commission income received –

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

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

1. Cash sales are $86,000 out of total sales in above trial balance.
2. All the expenses except depreciation and bad debts are cash expenses.
3. Dividend payable of 2015 is paid.
4. Company paid interim dividend $20,000.
5. Revaluation value of land and building is $260,000 at June end 2016.
6. 10% of retained earning transferred to General Reserve.
7. 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: