Describe the principles of accounting and financial systems

Assignment Help Financial Management

Reference no: EM132263385 , Length: word count:2000

Manage Finances Assignment -

Assessment 1: Research Questions

You are required to research and write answers to each of the following questions are topic areas. There are six topics. You must complete them all. Indications of required length are included with the questions.

You may use various sources of information including your workbook, internet and other documents. Your assessor will advise when this is due. For each response you must correctly site your source/s.

Question 1 - List the obligations under the Corporations Act 2001 List at least six (6) obligations).

Question 2 - Briefly explain the following Australian, international and local legislation and conventions that are relevant to financial management in the organisation

(a) Australian Accounting Standards

(b) Australian Securities and Investments Commission

(d) International regulations (a brief overview)

Question 3 - Research tax law compliance and outline statutory requirements related to each of the following:

(a) Goods and Services Tax

(b) Payroll tax

(d) Fringe benefit tax

(e) PAYG withholding payable

(f) Company tax

Question 4 - Describe the "principles of accounting" and financial systems.

Question 5 - Describe the requirements and implications of "financial probity".

Question 6 - Recommend commercially available software that is suitable for financial management.

Assessment 2: Case Study - Stage One

Case study Scenario: Habitania Pty Ltd (Stage One)

Overview - For this assessment you are to demonstrate that you have the skills and knowledge to:

Plan for financial management
establish budgets and allocate funds

This assessment is the first of two stages in this case study, each of which has several parts. You must complete them all.

For this stage you are to read the business scenario and complete the tasks or answer the questions.

There are two parts to this assessment. You must complete them both.

Tasks:

Part A - Read and analyse the case study information that follows and complete the tasks or answer the questions.

Make sure you analyse the business plan summary, and the previous year's financial data.

Now complete the following.

1. Develop a:

(a) Sales Budget,

(b) Profit Budget,

(d) Debtor Ageing Summary

Instructions:

You must use electronic spreadsheets, for example MS Excel, and each budget must be in a separate worksheet
Each budget must be divided into quarterly periods
Make sure that you use the previous year's financial data to determine allocations for resources.
Ensure each budget you prepare complies with the organisational and policies and procedures as provided.

2. Now provide written responses under the following headings:

(a) Previous year's profits and losses - Identify the reasons for the previous year's profits and losses.

(b) Financial management approaches - Comment on the effectiveness of existing financial management approaches.

(d) Implementation and monitoring of budget - What relevant thoughts do you have regarding the implementation and monitoring of budget expenditure?

Part B - Based on the information provided in the case study answer the following questions in the space provided below: You must read and analyse the information in the case study on page 12

1. Identify the current statutory requirements for tax compliance and list and calculate the tax liabilities for Habitania Pty Ltd under taxation legislation.

2. Identify the current compliance requirements and liabilities for this organisation under the Corporations Act 20XX.

3. Review commercially available financial management software to select the most suitable software for Habitania Pty Ltd.

Ensure you diagnose software options by comparing two commercially available software titles against the capabilities of the existing technology for the organisation and against the prioritised requirements, and outline the reasons that lead you to this recommendation.

4. Explain how you can apply the following principles of accounting in developing the budgets required for this task:

(a) matching principle

(b) account groups

5. Explain and discuss the implications of probity when preparing and revising budgets.

6. List the critical dates and initiatives that will require or generate resources for Habitania Pty Ltd in the next financial cycle.

7. List the additional items you would recommend for inclusion in the budgets for Habitania Pty Ltd.

8. List the new or modified internal controls that could improve risk management for Habitania Pty Ltd including the maintenance of audit trails.

9. Case study situation: The CEO of Habitania Pty Ltd, Tom Salinas explained that he prefers to discuss the budgets with all senior managers prior to their distribution in order to ensure a corporate view of the strategic plans. He then meets with each group separately to answer questions and concerns about their particular area. Eventually the budgets will be printed in hard copy and bound as well distributed as an electronic spreadsheet.

Upon completion of the budgets you meet with Tom to provide an overview of the information contained within the budgets, the budget notes and recommendations regarding the internal controls to prepare him for the meetings with the senior managers. To clarify his understanding of the information, Tom asks you a series of questions, which you are to answer orally to Tom (played by your assessor).

Assessment Criteria - Your assessor will be looking for:

evidence you have reviewed the case study information provided by submitting an appropriate budget with budget notes
evidence that you understand, and can explain, the required legislative requirements of financial management (and outline statutory requirements of ATO, GST, company tax, PAYG) (Refer to online resources)
evidence that you can outline compliance requirements for the Corporations Act 2001 (Refer to online resources)
evidence that you can identify and recommend use of suitable software for financial management
evidence that you have clearly communicated information regarding the budget and correctly responded to a series of questions (e.g. describe the principles of accounting and financial systems)
evidence that you can describe implications of financial probity
evidence that you can outline the critical dates/initiatives that will require or generate resources
evidence that you have provided for additional items (as necessary and appropriate) in the budget
evidence that you have recommended new or modified internal controls that could improve risk management and maintenance of audit trails
evidence that you have developed an annual budget, as appropriate
evidence that you have developed appropriate budget notes
evidence that you have responded appropriately to the questions presented by 'Tom Salinas, the CEO in the case study in this assessment task.

Assessment 2: Case Study - Stage Two

Case Study: Habitania Pty Ltd

Overview - For this assessment you are to demonstrate that you have the skills and knowledge to:

Monitor the implementation of a budget
Report on the variances, trends and performance
Provide recommendations for ongoing financial viability

For this assessment, using the case study information, you will: • Present your analysis and project plan to management for approval

There are two parts. You must complete them both.

Tasks -

Part A - Study the Case Study Scenario. To complete this task, you will need to:

1. Undertake a cost-benefit analysis for high-priority change requirements.

2. Undertake a risk analysis, identify barriers, and develop mitigation strategies.

3. Develop a change management project plan, assign resources and develop a reporting process.

You will then:

4. Submit a complete "actual to budget" variance report in relation to organisational requirements.

5. Submit a completed debtor ageing ratio for required periods.

6. Submit a report detailing significant issues, reasons for variances, performance and recommendations.

7. Research and provide responses under the following headings:

Implications of financial probity.
Implications of principles of accounting.
Recommendations for ongoing financial viability.
Evaluation of financial management processes.

8. Provide recommendations for ongoing financial viability.

The following key areas can be considered for recommendations - study the Case Study:

Review the discount policy to protect the gross profit margin.
Reduce loans to reduce exposure to rising interest rates.
Review salaries and wages to reduce costs and improve viability.
Budgets should be prepared for all cost centres.
Monitoring and reporting could be shortened to monthly.
Restructure loan into fixed interest rate to take out the volatility in results.

Part B - You are to undertake a role-play presentation of your Variance Report:

Deliver a summary of findings (issues, variances, financial performance)
Present your prioritized recommendations

1. Read the case study.

2. Develop a variance report based on the format and template provided by Habitania.

3. Written report:

Examine the sales budget, profit budget, cash flow budget and debtor ageing summary to identify the following in a written report:

(a) Issues:

i. Identify, describe and prioritise significant issues that are evidenced in the provided case study information and describe reasons or causes for these issues. Include in this, issues of financial probity that you have identified or considered when monitoring these budgets.

(b) Variances:

ii. Complete an actual-to-budget variance report, using the template provided in the case study.

iii. Identify variances by comparing actual results with the established budget, and provide reasons why these variances may have occurred.

iv. Compare financial performance of the organisation (according to financial information provided) to industry benchmarks for this organisation in line with the retail trade sector.

v. Respond to the performance questions provided by the CEO, as provided by the Board of Habitania

vi. Determine a trend of the average debtor days and the impact to the cash flow of Habitania.

(d) Recommendations:

vii. Outline your recommendations for ongoing financial viability for the organisation, based on your assessment of the issues, reasons for variances and organisational performance you have identified (Steps 1-3).

viii. Include in this section your plans for a revised budget, effectively managing contingencies and issues that have been identified in feedback and monitoring of the budgets.

(e) Evaluation:

ix. Provide a summary review of the financial management processes in place for the organisation, in light of your assessment of the issues, reasons for variances and organisational performance you have identified. Include in this section any recommendations you have for modifying management processes.

4. Role Play

Prepare for and undertake a role-play presentation in which you present your report to the CEO of the company (played by your assessor). At the end of the presentation you will be asked two questions by Tom.

(a) Arrange a time with Tom Salinas, CEO of Habitania Pty Ltd (your assessor), to present an oral explanation of your variance report. Ensure that your assessor has copies of or access to documents you will be referring to.

(b) Deliver the presentation of your variance report

x. Summarise your findings (issues, variances, financial performance)

xi. Prioritise and present your recommendations.

xii. demonstrate your oral communication skills

xiii. use questioning and listening techniques

xiv. demonstrate competent exchange of information

xv. use appropriate conventions and protocols

xvi. ensure the manager/CEO is clear about budgets

(d) Respond to these orally to the CEO (your assessor)

(e) Seek approval (or discuss as required) of your recommendations in the report.

Attachment:- Assignment Files.rar

Reference no: EM132263385

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Reviews

len2263385

3/22/2019 2:35:34 AM

Words: As per the requirements around 2000. There are two assessments for this unit: 1. Research Questions - Students are to read the questions and respond in writing with the most suitable answer. There are six questions, all of which must be completed. Most questions require short answers although some questions require a more detailed response. Students may use various sources of information including workbooks, internet and other documents, but must list and reference their sources. Suggested sources and websites are provided. You need to advise students when this is due. Model answers and a record sheet are provided.

3/22/2019 2:35:25 AM

2. Case Study - For this assessment students are to undertake budgeting, financial forecasting and reporting and to allocate and manage resources to achieve the required outputs for a simulated business. The case study is in two stages each with 2 parts. Students must complete them all. Stage One: – based on the given financial information about the simulated business, students are to prepare a number of budgets and then using appropriate formulae, to analyse financial data to assess and manage risk and identify discrepancies. Stage One – requires students to analyse discrepancies and produce a report in which they account for variations. They are then required to participate in a role play, with you, acting in the role of company CEO in which they discuss the variances and make financial recommendations in relation to the company’s financial situation.

3/22/2019 2:35:17 AM

Instructions and roles for the role play are provided. You need to advise students when this is due. A marking guide and record sheet are provided. A model budget and Sample report and ratios are provided in the Appendices. Students will need access and are expected to use suitable financial management software. Submission Requirements - You must submit: a completed annual budget in a single spread sheet with a separate sheet for each budget component (Refer to instructions under Task 1) budget notes and question answers in a written format. (Refer to instructions under Task 1).

3/22/2019 2:35:05 AM

Submitting Assessment Tasks - All written assessment tasks must be typed and submitted with the provided cover sheet. Your trainer/assessor will tell you when assessments are due. It is your responsibility to ensure that assessment tasks are submitted on or before their due date. Extensions for individual assessment tasks may be negotiated with your trainer in specific circumstances. You must request this prior to the due date, and extensions due to illness will require a medical certificate. Extensions will be confirmed by your trainer/assessor. Where assessment tasks are submitted following the conclusion of the unit of competency without a medical certificate or extension, a late submission fee for each assessment task will be charged.

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