Financial Planning and Forecasting Techniques

Assessment Details
Qualification Code/Title Diploma of Accounting
Assessment Type Assessment -1 Time allowed
Due Date Location AHIC Term / Year
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have provided appropriate feedback.
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Instructions to the Candidates
 This assessment is to be completed in class supervised by assessor.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will
be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-submission and re-sit policy for more information.
 If you have questions and other concerns that may affect your performance in the examination please inform the assessor
immediately.
Question 1
Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename FNSACC501-Provide Financial and Business Performance
Information
Version 3.0/ July 2017 Review Date: Aug
2018
Page 1 of 12
Unit of Competency
National Code/Title FNSACC501-Provide Financial and Business Performance Information

In what section of the financial plan are compliance obligations found? List the common forms that
have resulted from government financial policies.
a. Where can financial management instructions be found in meeting compliance obligations
and for identifying changes in legislation?
b. How can clients’ liabilities to state government charges be calculated?
c. List the five common taxes or charges levied by state or territory governments.
Discuss in 120 to 150 words.
Response:
Question 1
In a financial plan, we generally find the compliance obligations in the objectives/ financial information
sought part.
Some of the common forms which are a result of governmental policies are listed below in point form:
 Income Tax Forms (IT)
 Business Activity Statement (BAS)
 Superannuation Forms
 Tax Withholding Forms
 GST Filing and Registration Forms
Part a
All financial management instruction for effectively meeting compliance obligations and for recognizing
change in regulations can be found in governmental websites. All changes made to legislations are made
in the official website of Australian Tax Office. In addition to this, information relation to taxes can be
collected from statutory returns.
Part b
The computation of the liability of the client can be computed considering the state taxes levy on
individuals and the same can be assessed by checking the assets and income which is generated by the
individual. For instance, in order to claim property tax, the state government would firs value the
property and then the amount of annual fees can be computed considering the value of the property.
Part c
The five common types of taxes whose charges are levied by state or territory governments are listed
below in point form:
 Goods and Service Tax
 Property Taxes
 Payroll Taxes
 Fringe Benefit Taxes
 Taxes on Gambling (Lotteries)
Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename FNSACC501-Provide Financial and Business Performance
Information
Version 3.0/ July 2017 Review Date: Aug
2018
Page 2 of 12

Question 2
List and describe four areas that are likely to cause taxation issues for clients.
Response:
The four areas which are related to tax and which are likely to cause issues with the clients are listed
below:
a. Low Interest Loans on Superannuation funds: There is a significant controversy when it is
associated with whether low interest rate or nil interest rate should be applied when borrowing
from self-managed superannuation fund. There are two private rulings which are provided by
ATO which are mostly like to result in more conflicts.
b. Stamp Duty in SMSF: There is a conflict in the rulings for stamp duty which is associated with
Super funds. Section 67 of the Superannuation Industry (Supervision) Act, 1993 prohibits a SMSF
from borrowing money. However, there is an exception to this ruling which states that SMSF can
enter into a limited resource borrowing arrangement. The expectation to be applicable requires
assets to be kept in trust which makes stamp duty payment less and a conflict is created when
client takes advantage of the concession by transferring property.
c. Application for Deductions: There is wide range of conflicts between the clients and the ATO
when it comes to claiming of deductions which are applicable on the assessable income of the
client. There are various provisions where deductions are negotiable and therefore in most of the
situation conflicts arises.
Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename FNSACC501-Provide Financial and Business Performance
Information
Version 3.0/ July 2017 Review Date: Aug
2018
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d. Private Rulings and Tax Audit: There are often negotiation and conflicts when a private ruling is
given by the ATO. There is also a degree of negotiation in the private ruling process, as taxpayers
and the Australian Taxation Office (ATO) attempt to determine the correct application of the law
Question 3
Conduct the appropriate research and compare and contrast forecasting techniques. Discuss your
findings in 150 to 180 words.
Response:
The different types of forecasting techniques which are used by businesses are listed below in details:
 Qualitative and Quantitative Forecasting Techniques: This is an important technique in
forecasting of information. Qualitative forecasting techniques considers opinions of the
individuals for forecasting whereas quantitative forecasting involves use of past numerical data
for predicting the future. Simple exponential smoothing, multiplicative seasonal indexes, simple
and weighted moving averages are techniques used in quantitative forecasting.
Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename FNSACC501-Provide Financial and Business Performance
Information
Version 3.0/ July 2017 Review Date: Aug
2018
Page 4 of 12