Reference no: EM132801865

Unit 6 Financial Accounting - BTEC level 3 Extended diploma Business

Assignment - Financial Regulations and Legislation

Scenario: You have recently been employed at Jack's Accountant's and have been asked to complete the tasks below as part of your probationary period. You will need to carry out a range of research to complete this assignment. in doing so you need to complete task 1 and task 2 which reflects question land.

P1. Describe how legislation and accounting concepts affect an organisation's accounting policies.

M1. Compare the final accounts of two organisations explaining the similarities and differences.

D1. Justify the application of accounting conventions and regulations to ensure that the financial statements meet their users' needs.

P2. Explain how a limited company's financial statements are influenced by the legal and regulatory framework.

Question 1

A. CO Describe the key features of the Companies Act 2006 and Partnership Act of 1390.
Companies Act 2006 covering the following:
- Duty to keep accounting records
- Time frame to keep records
- Determine the financial year and accounting reference period - Director's responsibilities of a company partnership Act 1890 covering,the following:

- Formation
- Profits and losses
- Death of partner

(ii) Describe 5 accounting concepts/conventions and comment on the impacts it will have on the business when following the accounting policies.
(500 words)

B. Using the accounts of a sole trader AND partnership accounts below (Janet and Rossiis partnership) compare their similarities and differences in the preparation of financial statements in terms of (possible valuation of assets,. matching of income and expenditure,
depreciation, bad debts, provision for doubtful debts, accruals, prepayments and stock valuat[on etc),

Note
You can use your own examples of figures to Show the effects on each so of accounts. Much of the information will have to come from general research).
(Approximately 6O words}

Part C

(i) Describe the six key users of financial statements, their interests and requirements.(200 words)

(ii) Using examples, explain the importance of abiding by the accounting conventions by businesses and regulations to ensure that the financial statements can be trusted by the stakeholders. (500 words)

Question 2

A. Explain the importance and need to follow the regulatory framework when preparing Companies financial statements using:

(International Accounting Standards (1AS) AND International Financial Reporting Standards (IFRS)

(International accounting standards, the following should be covered: LAS 1, lAS 2, lAS 7, IAS 16, FAS 18 and IA S 38. (500 words)

Attachment:- Financial Accounting.rar