Reference no: EM132245940

Assessment Plan

Assessments for this unit have been developed by taking into account assessment guidelines as provided in the Training Package FNS (2015) and evidence requirements stipulated in this unit of competency. Assessment is an ongoing process of gathering evidence to determine what each student/learner knows, understands and can do in order to inform teaching and support learning of the intended curriculum.

The purposes of this assessment are;

– To collect evidences that demonstrate competency in the performance criteria of the unit and satisfy skill, knowledge and employability skills requirements
– To provide feedback to the learners/trainees indicating the areas of improvement and professional development
– To measure the effectiveness of the delivery plan and evaluate the learning outcomes

Evidence guidelines are provided to assessors in the following sections of this guide. Assessors must ensure that all the required evidences have been collected through applicable assessment methods to achieve competency in this unit. The required assessment criteria are provided in each assessment task for learner's information.

Assessment Task 1:

Description:

A partially owned subsidiary is a wholly or partially owned company that is part of a large corporation. A subsidiary's financial results are carried on the parent company's books. A company that is publicly-traded but has more than half its stock owned by another company, is known as the parent company (Financial dictionary, 2012).

A controlled entity is one that satisfies the test of control in section 50AA of the Corporations Act 2001 and includes:

– An entity which the parent company wholly owns ("wholly owned subsidiary"); or
– An entity in which the parent company holds an interest of any kind (including a shareholding interest or membership interest) and the parent company has control of the entity

In this assessment task, you will be a consolidated financial report of an ASX listed public company with wholly or partially owned subsidiaries. Analyse the financial reports with the following consideration;

1. Research the company and briefly explain the business/company structure including its subsidiaries

2. A summary of accounting principles, standards and legal framework used in the reports (with references); especially in notes to the financial statement

3. Comparison of financial performance of the subsidiaries/segments; or the subsidiary and the parent company

4. Calculate Liquidity Analysis, Asset Turnover, Leverage, and Operating Performance/Profitability ratios for each of the subsidiary

5. Identify any performance issue from the analysis

6. Outline how you would report these issues if you were part of the accounting team at the company

Using the annual report and/or financial statements provided, write a brief report covering the above aspects. The report must be work processed and formatted as a formal business document.

Assessment Task 2:

Description:

Acquisition is a corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own (Investopedia, 2012).

In this assessment task, you will assume the role of an M&A project team given the responsibility to prepare for acquisition of a rival firm in the market. The acquisition is friendly and the target firm has expresses its agreement to be acquired. Both the companies are ASX listed. The target firm has provided a copy of their financial statements for consideration. You company has agreed to set a share price for acquisition based on valuation.

Your task is to;

1. Research and compile business and market information on the target company
2. Research and download the target company's historic share prices (last 12 months)
3. Calculate Valuation Ratios from the financial statements
4. Conduct an Altman Z-Score analysis and predict health status
5. Calculate Sustainable Growth Rate (SGR) analysis
6. Suggest an appropriate valuation method that your company can use in determining market value of the target company
7. Identify and articulate any performance issue or concerns from the analysis
8. List and articulate applicable laws, standards, regulations and responsibilities of both the parties
9. Develop a "Controlled Entities Policy" (or similar) that outlines governance principles, role and composition of the board, accountability, and approval and review of controlled entities

Assessment Task 3:

Description:

In this summative task, you will be required to prepare consolidated financial statements of two merging companies used in Assessment Task2.

Continuing in your role of an M&A project team given the responsibility to prepare for acquisition of a rival firm in the market, prepare sample consolidated financial statements for your company consolidating company's current financial position and target company's current year financial figures from the annual reports provided.

– Analyse each annual report and write brief summaries
– Summarise all references to AASB standards in the notes
– List applicable organisational requirements (in your view), policy reference and legal requirements for acquisition
– For sample purpose (what the data might look like after the acquisition), merge 2011 financial statements of both the companies and prepare key consolidated statements: Balance sheet, and Income statement
– Prepare notes to the financial statement as per the AASB requirements and standards
– Research and identify possible taxation implications of acquisition for your company (based on the consolidated statement)
– Create graphs to show your company's key financial positions before and after consolidation You may obtain additional information from ASX and company's respective websites.

Assessment Task 4:

Description:

You would have completed a number of activities and practical tasks during this unit. Most of those activities contribute towards assessment for this unit of competency.

Submit your complete portfolio with copies of all activities and tasks completed, including any handwritten notes or copies of reference documents.

All the documents contained within the portfolio must be relevant to the class activities and tasks completed during each learning session during the course of this unit.

Note: Need only task 1,2,3

Attachment:- Prepare Complex Corporate Financial Reports.rar