How can the organisation remain compliant

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Reference no: EM132802132

BSBFIM801 Manage Financial Resources - Strathfield College

Assessment 1 - Written Questions

Question 1. Explain the following five important principles of modern accounting, with relevant examples, in no more than 100 words each.
a) The Revenue Principle
b) The Expense Principle
c) The Matching Principle
d) The Cost Principle
e) The Objectivity Principle

Question 2. Describe the three financial statements and at least 3 key features of each. Explain how they are all linked and dependent on each other. Respond in no more than 750 words.

Question 3. In the context of an organisation's internal communication needs, (a) explain what written and verbal communication entail and when each is most effective (b) state 5 principles an organisation should follow when communicating information to employees (c) state 3 effects of poor organisational communication with suitable examples. Respond in no more than 500 words.

Question 4. Answer the following in the context of financial reporting compliance requirements of a public-listed organisation with an annual GST turnover of $19.50 million:
(a) The organisation has lodged the following documents to the Australian Security and Investment Commission (ASIC), based on the corresponding legislative obligations of the Corporations Act 2001. Summarise 5 additional documents that must also be lodged for the organisation to be compliant and fully meet the requirements of sections 295(2), 296(1), 295(4), 298-300A, 301 & 308 of the Corporations Act 2001.

Document	Section of the Corporations Act
1. Statement of financial position as at the end of the year (if consolidated accounts are not required by Accounting Standards)	295(2) & 296(1)
2. Statement of cash flows for the year (if consolidated accounts are not required by Accounting Standards)	295(2) & 296(1)
3. Statement of changes in equity if consolidated accounts are not required by Accounting Standards)	295(2) & 296(1)
4. Notes to financial statements (disclosure required by the regulations, notes required by the accounting standards, and any other information necessary to give a true and fair view)	295(3)

(b) What is the organisation's ATO-mandated GST reporting and payment cycle?

Question 5. Answer the following questions:
a) In the context of financing a business, define the cost of capital and explain how it is a crucial variable in determining the company's capital structure. Respond in no more than 100 words.

b) In the context of investing in a business, investor A wants to invest in Company X. A sees that the Weighted Average Cost of Capital of Company X is 10% and the return on capital at the end of the period is 9%. Should investor A invest in the business? Why or why not?

c) What is working capital and how is it different from using a company's capital for longer-term investments in fixed assets or R&D? Respond in no more than 150 words.

Question 6. In the context of a finance manager's role in making corporate decisions, identify and classify the following activities as related to either financing or investment decisions. One has been done for you as an example.

Activity	Financing/Investment Decision
(a) Analysing whether the resources adapt to the optimal size desired for the company.	Investment
(b) Deciding the company's "financing mix".
(c) Defining the optimal size of the company.
(d) Defining the types of assets that the company must acquire, or otherwise sell or get rid of, in order to achieve efficient management.
(e) Ensuring continuity of the business over the long term.
(f) Maintaining a constant inflow of capital.
(g) Studying the sources willing to offer credit to the organisation and define the best financing options for operations.

Question 7. Financial management deals with the management of all the financial resources of an organisation to help achieve the organisational goals. In this context, explain:
a) the goal of profit maximisation
b) the goal of shareholder wealth maximisation
c) at least 3 fundamental differences between the two goals
Respond in no more than 250 words.

Question 8. Conduct your own research and briefly explain the following three principles of finance in relation to an organisation's operations:
a) Principles of risk and return, and their correlation
b) Time value of money
c) Cash flow principle
Your response should be no longer than 200 words.

Attachment:- Assessment_Task - Project.rar

Reference no: EM132802132

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