BSBFIN401 Report on financial activity

Write an additional 500 words into the attached LV2907 file based on the question’s requirements.

Assessment 1 – Coversheet
Students: Please fill out this cover sheet clearly and accurately. Make sure you have kept a
copy of your work.
Student and Submission Details
Student
Name
Unit Code
and Name
Student ID
Date
of
submission
BSBFIN401 Report on financial activity
STUDENT DECLARATION
I declare that
a.
b.
this assessment is my own work.
None of this work has been completed by any other person.
c.
I have not cheated or plagiarised the work or colluded with any other student/s.
d.
I have correctly referenced all resources and reference texts throughout these
assessment tasks.
e.
I understand that if I am found to be in breach of policy, disciplinary action may be
taken against me.
Student
Signature
Assessor To Complete
Assessment 1
Short Answer Questions
Assessment Result
Date
Type Of Submission
□ C (Competent)
☐ First submission
□ NYC (Not
Competent)
☐ First re-submission
Yet
□NA (Not Assessed)
☐
Second
submission
re-
Assessor feedback
BSBFIN401
9
Assessor Name
Assessor Signature
•
•
•
•
•
organisational policies, procedures and accounting
standards relating to preparation of financial reports
organisational financial data, including:
•
budget variances
budgets and forecasts
cash flow and profit reports
balance sheets
financial year reports
operating statements
expenditure and receipts
profit and loss statements
types of assets including property, plant and
equipment
comparative financial performance
financial discrepancies including:
•
•
•
BSBFIN401
Not Present
double-entry and accrual principles
provisions of relevant legislation, regulations, standards
and codes of practice relevant to financial operations,
taxable transactions and reporting requirements
components of organisational accounting systems
•
•
•
•
•
•
•
•
•
•
Unsatisfactory
Knowledge evidence
Satisfactory
This assessment meets the following Knowledge Evidence:
absence of auditable trail
expenditure report mismatches
incorrect payments and unreconciled cash flows
10
•
•
•
•
techniques used for financial forecasting and analysis
options, methods and practices for deductions,
benefits and depreciations
ethical requirements associated with preparing
financial reports for corporate entities, including
conflict of interest, confidentiality, and disclosure
requirements
industry-standard methods and formats used to
present financial data
Assessment 1 – Short Answer
Questions
 Assessment summary
☐ You are required to answer all the written questions in this assessment.
 Resources and equipment required to complete this assessment
o
o
Access to textbooks and other learning materials.
Access to a computer, printer, Internet and email software (if required).
☐
 When and where should the assessment be completed?
o
o
This assessment may be done in your own time as homework or you may
be given time to dothis task in class (where applicable).
Your assessor will provide you with the due date for this assessment.
☐
 What needs to be submitted?
o
☐
Your answers to each question in this assessment along with references.
 Instructions
o
o
o
This is an open book test – you can use your learning materials as reference.
You must answer all questions in this assessment correctly.
You must answer the questions by typing your answers in Microsoft Word
and converting it into a pdf.
o
Please include the following details in the header section of
each page of your assessment document:
☐
•
BSBFIN401
Student Name and ID
11
•
•
•
•
Course Code and title
Unit Code and title
Trainer and assessor name
Page numbers
☐
You are required to submit your assessment on the LMS
(Moodle). No submissions will be accepted via emails.
o
Short Answer Questions
Question 1
Describe the accounting principles in the table listed below:
Accounting Principle
Description of Accounting Principle
a. Double-entry accounting
b. Accrual principle of accounting
Question 2
Complete the table below:
a.
Identify at least one of each of the following items relevant to the financial activities
listed in the table below.
BSBFIN401
i.
Legislation
ii.
Regulations
12
iii.
Standards
iv.
Codes of Practice
b. For each identified item, outline at least one provision that applies to the
corresponding financial activity.
Financial Operations
Legislation
Relevant Provision
Identify the title of the legislation
Regulation
Relevant Provision
Identify the title of the regulation
Standard
Relevant Provision
Identify the title of the standard
Code of Practice
Relevant Provision
Identify the title of the code of practice
Taxable Transactions
Legislation
Relevant Provision
Identify the title of the legislation
BSBFIN401
13
Regulation
Relevant Provision
Identify the title of the regulation
Standard
Relevant Provision
Identify the title of the standard
Code of Practice
Relevant Provision
Identify the title of the code of practice
Financial Reporting Requirements
Legislation
Relevant Provision
Identify the title of the legislation
Regulation
Relevant Provision
Identify the title of the regulation
BSBFIN401
14
Standard
Relevant Provision
Identify the title of the standard
Code of Practice
Relevant Provision
Identify the title of the code of practice
Question 3
Describe the purpose of the components of organisational accounting systems listed in the
table below.
Component of Accounting System
Description of Purpose of Component
a. Journal Entries
b. Trial Balance
c.
BSBFIN401
Audit of Financial Statements
15
Question 4
Describe each of the techniques used for financial forecasting and analysis, respectively,
listed in the table below.
Technique
Description of Technique
a. Econometric modelling for financial
forecasting
b. Trend analysis method for financial
analysis
Question 5
Answer the questions below on accounting of deductions, benefits, and depreciation.
a. Describe each listed option that can be considered when accounting for each of the
listed financial concepts.
Financial Concept
Description of Option
Option
Deductions
Deductions
expenses
Benefits
Holiday pay
Asset Depreciation
Instant asset write-off
BSBFIN401
for
operating
16
b. Describe how each listed method can be used when accounting for each of the listed
financial concepts.
Financial Concept
How Method Is Used
Method
Deductions
Mixed business and private
expenses
Employee Benefits
Employer
superannuation
guarantee contributions
Asset Depreciation
Prime
cost
depreciation
c.
method
of
Describe at least one way each listed practice can be implemented when accounting
for each of the listed financial concepts.
Financial Concept
How Practice Can Be
Implemented
Practice
Deductions
Record keeping
Employee Benefits
Salary sacrifice arrangement
Asset Depreciation
Depreciation
assets (pool)
BSBFIN401
of
low-value
17
Question 6
Describe each of the listed ethical requirements associated with preparing financial reports
for corporate entities.
Ethical Requirement
Description of Requirement
a. Conflict of interest
b. Confidentiality
c. Disclosure requirements
Question 7
Review the Accounting Standard AASB 101 Presentation of Financial Statements, found at
the AASB website.
AASB Accounting Standards
https://aasb.gov.au/pronouncements/accounting-standards/
Complete the table below:
a.
Describe how each listed industry standard method can be used to present
financial data
b.
Describe how each listed industry-standard format can be used to present financial
data
Industry-Standard Method
BSBFIN401
Description of How It Can Be Used
18
i.
Accrual basis of presenting
financial statements
ii.
Going concern
Industry-Standard Format
i.
Minimum information to
be presented on the face
the Balance Sheet as per
clause 68 of the AASB 101
ii.
Minimum information to
be presented on the face
the Income Statement as
per clause 81 of the AASB
101
Description of How It Can Be Used
Question 8
Describe the organisational financial information provided by each financial concept listed
in the table listed below:
Financial Concept
Description of Financial Information
Provided by Each Financial Concept
a. Budget variances
b. Budgets
BSBFIN401
19
c. Forecasts
d. Cash flow reports
e. Profit reports
f.
Balance sheet reports
g. Financial year reports
h.
Operating statements
i.
Expenditure
j.
Receipts
k. Profit and loss statements
BSBFIN401
20
l.
Types of assets
m. Property, plant and equipment
n. Comparative
performance
financial
Question 9
Describe the financial discrepancies listed in the table listed below:
Financial Discrepancy
a.
Description of Financial Discrepancy
Absence of auditable trail
b. Expenditure report mismatches
c. Incorrect payments
d.
Unreconciled cash flows
What to submit:
BSBFIN401
21
•
Answers to all questions
•
References
BSBFIN401
22
Assessment 1 – Coversheet
Students: Please fill out this cover sheet clearly and accurately. Make sure you have a copy of your work.
Student and Submission Details
Student
Name
Student ID
Unit Code
and Name
BSBFIN401 Report on financial activity
Date
of
submission
STUDENT DECLARATION
I declare that
a.
b.
this assessment is my own work.
None of this work has been completed by any other person.
c.
I have not cheated or plagiarised the work or colluded with any other student/s.
d.
I have correctly referenced all resources and reference texts throughout these assessment tasks.
e.
I understand that if I am found to be in breach of policy, disciplinary action may be taken against me.
Student
Signature
Assessor To Complete
Assessment 1
Assessment Result
Date
□ C (Competent)
Short Answer Questions
□ NYC
(Not
Competent)
□NA (Not Assessed)
Assessor feedback
BSBFIN401
Type Of Submission
☐ First submission
Yet
☐ First re-submission
☐
Second
submission
re-
Assessor Name
Assessor Signature
•
double-entry and accrual principles
•
provisions of relevant legislation, regulations, standards and codes of
practice relevant to financial operations, taxable transactions and
reporting requirements
components of organisational accounting systems
•
•
organisational policies, procedures and accounting standards
relating to preparation of financial reports
•
organisational financial data, including:
•
BSBFIN401
•
budget variances
•
budgets and forecasts
•
cash flow and profit reports
•
balance sheets
•
financial year reports
•
operating statements
•
expenditure and receipts
•
profit and loss statements
•
types of assets including property, plant and equipment
•
comparative financial performance
financial discrepancies including:
•
absence of auditable trail
•
expenditure report mismatches
•
incorrect payments and unreconciled cash flows
Not Present
Unsatisfactory
Knowledge evidence
Satisfactory
This assessment meets the following Knowledge Evidence:
•
techniques used for financial forecasting and analysis
•
options, methods and practices for deductions, benefits
and depreciations
•
ethical requirements associated with preparing financial
reports for corporate entities, including conflict of interest,
confidentiality, and disclosure requirements
•
industry-standard methods and formats used to present
financial data
Assessment 1 – Short Answer
Questions
 Assessment summary
☐ You are required to answer all the written questions in this assessment.
 Resources and equipment required to complete this assessment.
o
o
☐
Access to textbooks and other learning materials.
Access to a computer, printer, Internet and email software (if required).
 When and where should the assessment be completed?
o
This assessment may be done in your own time as homework or you may be given time to do
this task in class (where applicable).
o
Your assessor will provide you with the due date for this assessment.
☐
 What needs to be submitted?
o
☐
Your answers to each question in this assessment along with references.
 Instructions
o
o
o
This is an open book test – you can use your learning materials as reference.
You must answer all questions in this assessment correctly.
You must answer the questions by typing your answers in Microsoft Word and converting
it into a pdf.
o
Please include the following details in the header section of each page of
your assessment document:
☐
•
BSBFIN401
Student Name and ID
☐
o
•
Course Code and title
•
Unit Code and title
•
Trainer and assessor name
•
Page numbers
You are required to submit your assessment on the LMS (Moodle). No
submissions will be accepted via email.
Short Answer Questions
Question 1
Describe the accounting principles in the table listed below:
Accounting Principle
a. Double-entry accounting
b. Accrual principle of accounting
Description of Accounting Principle
The double-entry accounting system is a
foundational concept in accounting that ensures
the accounting equation is always balanced, that is,
assets = liabilities + equity. Every transaction affects
at least two accounts. For example, when a
business takes out a loan, its assets (Cash) increase,
but its liabilities (Loan Payable) also increase by an
equal amount.
The accrual principle is one of the main accounting
principles, requiring that revenues and expenses be
recorded when they are earned or incurred, not
when the cash is received or paid. Under the
accrual principle, even if a business haven’t
received or paid cash, if it provided a service or
consumed a service, they record income. This
allows for a more accurate representation of a
company’s financial health, as it captures all
financial activities when they occur, regardless of
the cash movement.
Question 2
Complete the table below:
f at least one of each of the following items relevant to the financial activities
listed in the table below.
Legislation
Regulations
BSBFIN401
Financial Operations
Legislation
Relevant Provision
Identify the title of the legislation
Corporations Act 2001
Provides a basis for the operation and management
of companies in Australia, including financial
dealings and officer responsibilities.
Regulation
Relevant Provision
Identify the title of the regulation
Australian Securities and Investments Commission
(ASIC) Regulations 2001
Details the specific obligations of companies and
their officers under the Corporations Act.
Standard
Relevant Provision
Identify the title of the standard
Australian Accounting Standards (AASB)
Provides guidelines on how various financial
operations should be recognized, measured,
presented, and disclosed.
Code of Practice
Relevant Provision
Identify the title of the code of practice
Provides guidelines on how various financial
operations should be recognized, measured,
presented, and disclosed.
Financial Services Code of Practice
Taxable Transactions
Legislation
Identify the title of the legislation
BSBFIN401
Relevant Provision
Income Tax Assessment Act 1997
Provides the basis for taxation on income, including
definitions of assessable income and allowable
deductions.
Regulation
Relevant Provision
Identify the title of the regulation
Goods and Services Tax (GST) Regulations 1999
Standard
Details the specifics of how GST is to be applied and
administered
Relevant Provision
Identify the title of the standard
AASB 112 Income Taxes
Provides guidelines on the accounting treatment of
income taxes.
Code of Practice
Relevant Provision
Identify the title of the code of practice
ATO Taxpayer’s Charter
Outlines the rights, obligations, and guarantees
provided by the Australian Tax Office to taxpayers.
Financial Reporting Requirements
Legislation
Relevant Provision
Identify the title of the legislation
Corporations Act 2001
Regulation
Stipulates the reporting requirements for different
types of entities, including annual financial reports.
Relevant Provision
Identify the title of the regulation
ASIC Class Order [CO 14/1000]
BSBFIN401
Provides relief from certain financial reporting
requirements for proprietary companies and others
under specific circumstances.
Standard
Relevant Provision
Identify the title of the standard
AASB 101 Presentation of Financial Statements
Code of Practice
Sets out the overall requirements for the
presentation of financial statements, guidelines for
their structure, and minimum requirements for
their content.
Relevant Provision
Identify the title of the code of practice
Accounting Professional & Ethical Standards Board Offers guidelines and standards to ensure ethical
(APESB) Code
and professional behavior in financial reporting and
other accounting practices.
Question 3
Describe the purpose of the components of organisational accounting systems listed in the
table below.
Component of Accounting System
a. Journal Entries
b. Trial Balance
c. Audit of Financial Statements
Description of Purpose of Component
Journal entries ensure that the double-entry
accounting system’s principle (every debit has a
corresponding credit) is maintained. They serve as a
basis for posting transactions to the general ledger
and eventually creating financial statements.
The main purpose of a trial balance is to ensure
that the total debits equal the total credits in the
ledger accounts. This is a preliminary step in the
preparation of financial statements and assists in
identifying any potential errors or discrepancies in
the accounting records.
The primary purpose is to provide assurance to the
users of financial statements (like investors,
lenders, and other stakeholders) that they present
a true and fair view of the financial position,
financial performance, and cash flows of an entity.
An audit can also identify weaknesses in internal
controls and provide recommendations for
improvement. An external audit increases the
credibility and reliability of the financial statements.
Question 4
Describe each of the techniques used for financial forecasting and analysis, respectively,
listed in the table below.
Description of Technique
Technique
Econometric modelling uses statistical methods to
test hypotheses and forecast future financial
a. Econometric modelling for financial
trends. It combines economic theory, mathematical
forecasting
models, and historical data to predict future
financial outcomes. Commonly, it deals with
relationships between variables, such as how a
change in interest rates might affect a company’s
growth.
Trend analysis involves examining historical data to
identify patterns or trends over time. By analyzing
b. Trend analysis method for financial analysis past financial information (like revenues, expenses,
or profitability), this method helps in predicting
future performance or identifying anomalies. It’s
often visualized using line graphs to see upward or
downward trends.
Question 5
Answer the questions below on accounting of deductions, benefits, and depreciation.
a. Describe each listed option that can be considered when accounting for each of the listed
financial concepts.
Financial Concept
Deductions
Benefits
Asset Depreciation
Deductions
expenses
Option
Description of Option
for
Amounts subtracted from gross
income related to costs incurred
in the normal course of business
operations, like rent, utilities, and
salaries.
operating
Holiday pay
Instant asset write-off
Additional compensation provided
to employees for the holiday
period or days off as mandated by
employment agreements or local
regulations.
A provision that allows businesses
to immediately deduct the full
value of certain assets in the year
they are purchased and used,
rather than depreciating over
multiple years.
b. Describe how each listed method can be used when accounting for each of the listed financial
concepts.
Financial Concept
Method
Deductions
Mixed business and private
expenses
Employee Benefits
Employer superannuation
guarantee contributions
Asset Depreciation
Prime cost method
of depreciation
How Method Is Used
When an expense has both a
personal and business
component, a portion of the
expense is deductible. Proper
allocation methods should be
used to accurately differentiate
and claim the business portion.
Employers are required to make
contributions to a
superannuation fund on behalf
of their employees at a rate set
by the government. This
provides employees with
retirement benefits and is a
mandatory component of
employee compensation.
Assets are depreciated evenly
over their useful life. The
annual depreciation is
calculated by dividing the
asset’s cost by its expected
useful years.
c. Describe at least one way each listed practice can be implemented when accounting for each
of the listed financial concepts.
Financial Concept
Practice
Deductions
Record keeping
Employee Benefits
Salary sacrifice arrangement
Asset Depreciation
Depreciation of low-value
assets (pool)
How Practice Can Be
Implemented
Maintain thorough and
accurate documentation of all
financial transactions, receipts,
and invoices. Proper recordkeeping ensures verifiable proof
for any deductions claimed.
An agreement between an
employer and an employee
where the employee agrees to
forego a portion of their pre-tax
salary in exchange for benefits
like additional superannuation
contributions or other non-cash
benefits.
Low-value assets can be
grouped together in a pool and
depreciated at a set rate. This
simplifies the process and
allows for consistent
depreciation rates across
multiple smaller assets.
Question 6
Describe each of the listed ethical requirements associated with preparing financial reports
for corporate entities.
Ethical Requirement
Description of Requirement
a. Conflict of interest
Individuals preparing financial reports should avoid
situations where their personal interest’s conflict
with their professional duties. They should make
unbiased decisions and act in the best interest of
stakeholders.
b. Confidentiality
Information used in or derived from financial
reports must be kept confidential unless there is a
legal or professional obligation to disclose.
Unauthorized sharing can harm the organization
and its stakeholders.
c. Disclosure requirements
All relevant financial information must be disclosed
in a transparent and comprehensive manner. This
ensures that stakeholders can make informed
decisions based on complete and accurate data.
Question 7
Review the Accounting Standard AASB 101 Presentation of Financial Statements, found at the AASB
website.
AASB Accounting Standards
https://aasb.gov.au/pronouncements/accounting-standards/ Complete the
table below:
a.
Describe how each listed industry standard method can be used to present financial
data.
b.
Describe how each listed industry-standard format can be used to present financial data
Industry-Standard Method
BSBFIN401
Description of How It Can Be Used
i.
Accrual basis of presenting
financial statements
ii.
Going concern
Industry-Standard Format
The accrual basis requires companies to record financial
transactions when they are incurred rather than when cash is
exchanged. This method ensures revenues and expenses are
matched in the same period, providing a more accurate picture
of a company’s financial health.
The going concern concept assumes that an entity will
continue its operations indefinitely. Financial statements are
prepared with the expectation that the business will remain
operational, and not liquidate, in the foreseeable future. If this
is not the case, it must be disclosed.
Description of How It Can Be Used
The Balance Sheet, or Statement of Financial Position, must
include certain line items as mandated by AASB 101, such as
assets, liabilities, equity, and other relevant items. Presenting
this minimum information ensures consistency and clarity for
financial statement users, enabling comparisons across
companies and industries.
The Income Statement should include specific line items like
ii. Minimum information to be
revenues, expenses, profits or losses, and other key indicators
presented on the face the of financial performance. By adhering to the industry-standard
Income Statement as per format, entities can ensure their financial statements are
comprehensive and readily understandable.
clause 81 of the AASB 101
i. Minimum information to be
presented on the face the
Balance Sheet as per clause
68 of the AASB 101
Question 8
Describe the organizational financial information provided by each financial concept listed in the
table listed below:
Financial Concept
Description of Financial Information Provided
by Each Financial Concept
a. Budget variances
b. Budgets
BSBFIN401
Highlight the differences between the budgeted
amounts and the actual amounts. It helps in
understanding where the organization over-spent
or under-spent relative to the planned budget.
Provide a detailed plan of the expected income and
expenses over a specific period. They serve as a
financial roadmap for organizational operations and
capital activities.
c. Forecasts
d. Cash flow reports
Detail the inflow and outflow of cash in an
organisation over a period. This helps in
understanding the liquidity position and ensuring
there’s enough cash to meet obligations.
e. Profit reports
Indicate the profitability of an organization over a
specified period, highlighting revenue and the costs
associated with earning that revenue.
f.
Provide a snapshot of an organization’s assets,
liabilities, and equity at a specific point in time,
reflecting the financial position of the organisation.
Balance sheet reports
g. Financial year reports
Summarise all financial activities of an organisation
during a full financial year, providing a
comprehensive overview and typically including all
the major financial statements.
h. Operating statements
Present operational revenues and expenses,
providing insights into the profitability from core
business activities.
i.
Expenditure
Detail the amounts spent by an organisation,
including both operational and capital expenses,
helping to monitor and control costs.
Receipts
Represent amounts received by the organisation,
typically from sales or other income sources,
contributing to cash inflows.
j.
k. Profit and loss statements
BSBFIN401
Predict future financial outcomes based on
historical data, trends, and assumptions. They
provide an estimate of what to expect in upcoming
periods.
Show revenues, costs, and expenses over a period,
giving a clear picture of the operational profitability
of an organisation.
20
l.
Categorize the resources owned or controlled by an
organization. Common types include current assets
(like cash and accounts receivable) and non-current
assets (like buildings and equipment).
Types of assets
m. Property, plant and equipment
Represent tangible, long-term assets used in the
operations of a business. They are typically subject
to depreciation over their useful lives.
n. Comparative
performance
Analyzes financial metrics over multiple periods or
contrasts them against other businesses. It provides
insights into performance trends and how an
organization is doing relative to its past or peers.
financial
Question 9
Describe the financial discrepancies listed in the table listed below:
Financial Discrepancy
a. Absence of auditable trail
b. Expenditure report mismatches
Description of Financial Discrepancy
This refers to the lack of sufficient documentation
or records to trace financial transactions. An
auditable trail is essential to verify the accuracy and
legitimacy of transactions, and its absence can
signal potential errors or fraud.
These mismatches occur when there’s a difference
between recorded expenditures and the actual
supporting documents, like receipts or invoices. It
might indicate errors, omissions, or fraud.
c. Incorrect payments
This discrepancy arises when a payment made does
not match the agreed or expected amount, either
being overpaid or underpaid. It can be due to
clerical errors, miscommunications, or intentional
wrongdoing.
d. Unreconciled cash flows
This refers to differences between recorded cash
transactions and actual cash movement, often
noticed when comparing the cash book and bank
statements. Causes can range from timing
differences to errors or fraud.
What to submit:
•
Answers to all questions
•
References
1.
Commonwealth of Australia. (2001). Corporations Act 2001. Federal Register of Legislation.
2.
Australian Securities and Investments Commission. (2001). ASIC Regulations 2001. Federal Register of Legislation.
3.
Australian Accounting Standards Board (AASB). (n.d.). Australian Accounting Standards.
4.
Financial Services Council. (n.d.). Financial Services Code of Practice
5.
Commonwealth of Australia. (1997). Income Tax Assessment Act 1997. Federal Register of Legislation.
6.
Commonwealth of Australia. (1999). Goods and Services Tax (GST) Regulations 1999. Federal Register of Legislation.
7.
Australian Accounting Standards Board (AASB). (n.d.). AASB 112 Income Taxes.
8.
Australian Taxation Office. (n.d.). ATO Taxpayer’s Charter.
9.
Australian Securities and Investments Commission. (2014). ASIC Class Order [CO 14/1000].
10. Australian Accounting Standards Board (AASB). (n.d.). AASB 101 Presentation of Financial Statements.
11. Accounting Professional & Ethical Standards Board (APESB). (n.d.). APESB Code.
12. Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2019). Introduction to financial accounting (12th ed.). Prentice Hall.
13. Arens, A. A., Elder, R. J., Beasley, M. S., & Hogan, C. E. (2020). Auditing and assurance services: An integrated approach
(17th ed.). Pearson.
14. International Federation of Accountants. (2020). Handbook of international quality control, auditing, review, other
assurance, and related services pronouncements. IFAC.
15. Australian Auditing and Assurance Standards Board. (n.d.). Auditing standards.
16. Institute of Internal Auditors. (2021). International Professional Practices Framework (IPPF). IIA.
BSBFIN401