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FNSACC501 - Provide Financial and Business Performance Information

   

Added on  2020-04-13

21 Pages5565 Words172 Views
FinancePolitical Science
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Assessment DetailsQualification Code/Title Diploma of AccountingAssessment TypeAssessment -2Time allowedDue DateLocationAHICTerm / YearUnit of CompetencyNational Code/TitleFNSACC501-Provide Financial and Business Performance InformationStudent DetailsStudent NameStudent IDStudent Declaration: I declare that the work submitted is my own,and has not been copied or plagiarised from any person or source.Signature: ____________________________Date: _____/______/__________Assessor DetailsAssessor’s NameRESULTS (Please Circle)SATISFACTORYNOT SATISFACTORYFeedback to student:....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights.Signature: _______________________________Date: ______/_______/___________Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.Signature: ________________________________________Date: ______/_______/___________Instructions to the CandidatesThis 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.Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 1 of 21
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Project1Part 11.How are business expenses treated in regard to tax legislation? Discuss in 30 to 50 words.Answer: For the purpose of tax deductible expenditure expenses are generally considered tobe ordinary, necessary and reasonable expenses that assist in earning business income. therefore, business expenses can be subtracted from the income of the company prior to considered for taxation. 2.What allowance in tax legislation is there for businesses that are managed on behalf of a trust? Discuss in 80 to 100 words.Answer: A trust can be defined as the structure that where the trustee executes the business on behalf of the trust members or beneficiaries. The benefits that are available to the trust are as follows; a.Reduction in the liability particularly if the corporate is the trusteeb.A benefit is provided for the protection of the assets c.A benefit is provided relating to the flexibility of the asset and distribution of income 3.Describe forecast returns and set up and describe a simple table over several years for similar amounts. Discuss in 50 to 80 words.Answer: Forecast returns is the use of the historic information to determine the future trends. The forecasting model is used to cope up with the uncertainty future. For a data that is simple over the period of several years constructing portfolio should be adopted in choosing the bestavailable model to forecast the class of asset returns. 4.Describe (150 to 180 words) how NFP sector organisations adhere to government financial policies where the preparation of statutory returns are required.Answer: The NFP sector organizes and prepares the report in respect of the general government sector financial reporting under the AASB 102 Inventories, AASB 116 property plant andequipment’s AASB 138 intangible assets. Disclosure requirements in regard to the whole of the government and GGS financial reporting are stated under the 1049. The non-for profit subsidiary is anticipated to keep their information to facilitate the preparation for the disclosure of the financial statements with the non-for profit entities are required to present their financial disclosure in the Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 2 of 21
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non-for profit consolidated financial statements. The segment reporting by the Non-for-profit governments must be addressed in the AASB 1049 and AASB 1052 instead of reporting in AASB 8. In respect of the government compliance the non-for-profit entities are primarily concerned with the achievement of the objectives instead of generation of the profit. Disclosure needs concerning the whole of the government and GGS financial reporting must adhere with the AASB 1049 for the preparation of the statutory returns. 5.Your client is XYZ company. After discussions it is identified they require a spreadsheet summarising the repayment amounts and current balance for a long-term loan of $500,000 to be repaid over eight years at a rate of 10% per annum. They are interested in business information that will show the amount they need to repay each year.Show the calculations required for the loan.Prepare the spreadsheet for the loan. Include a summary section to comment on the table. Round the initial opening balance of the loan up to the nearest dollar and round up to present values in whole dollars.Answer: Periods (Payments) Per Year12Option A: Solve for the PAYMENTLoan Amount $ 5,00,000.00 Annual Interest Rate10.000%Term of Loan (in Years)8Monthly PAYMENT $ 7,587.08 Yearly Payments $ 91,044.98 Total Interest $ 2,28,359.88 6.List the four categories that client’s business performance objectives can be set up as.Answer: The four categories of clients business performance objectives that can be set are as follows; a.Customer oriented objectives b.Strategic Market Objectivesc.Financial focussed objectives Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 3 of 21
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d.Employee growth objectives 7.What does GPFRU’s mean? List three potential users.Answer: GPFRU’s represents general purpose of financial reporting which is issued all through the year to assist the investors and creditors in the process of their decision making. Three potential users of the GPFRU’s are as follows; a.Current and potential investors b.Lenders c.Other creditors8.What type of clients can expect state and territory charges? Discuss in 50 to 80 words.Answer: Clients that are included in the state and territory taxes comprises of the following; a.Not-for-profit companies b.Employers that are held accountable for payroll tax whose total Australian wages goes pastthe tax-free threshold limit. c.Non-for-profit societies, clubs and religious institutions 9.How can the amount of taxes and charges on land be calculated? Discuss in 50 to 80 words.Answer: Land tax is yearly amount of tax on land. It is based on the land that is owned from June 30 and it is computed on the unimproved value of the land that is determined by the valuer-general. Land tax is computed based on the aggregated taxable value of the land held in the ownership at themidnight of 30 June. 10.What practices should these businesses and those who pay Commonwealth taxes complete?Discuss in 80 to 100 words.Answer: Practices that businesses and those paying commonwealth taxes should complete are as follows; a.Ensuring that the adequacy of material is maintained Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 4 of 21
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b.General and administrative practices must be considered to make sure that the statement oftax return is based on the ground of non-applicability of the penalty. c.General and administrative practices must be established by making appropriatecommunications comprising of the wide range of the issues for the taxpayers d.To improve the certainty of the taxpayers by making the advice of the tax office morereliable and legally binding on the commissioner. Part 21.Use the supplied CIF to answer the questions listed.a.Where can information about client objectives be found?b.Describe (80 to 100 words) how the Type of business section on the supplied CIF is relevant to the client’s legal and financial requirements, explain how this is important to taxation.ABC Financial ManagementClient Information FormSurnameCitizenFirst nameJohnEmployment titleManagerOther key staffType of businessBuilding servicesSole proprietorAustralian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 5 of 21
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Financial information soughtProvide ongoing financial management especially in the reduction of annual income tax and checking goods and services tax (GST) and other legislative reports.SizeFour full-time or equivalent staff.Business assets$550,000Tools, vehicles, building inventoriesRevenue$ 1 MillionExpenses$ 680,000Cash flow–$50,000Number of years operatingCurrent informationInternal reports by part-time administrative staff. Includes fortnightly payroll and payment of accounts and banking.Answer to a:The information of the client objectives can be found under the section of “financial information sought” that defines the objectives of clients for the financial services sought. Answer to b: As evident from the section of type of business that is supplied on the CIF, it can be stated that financial information that is sought by the clients is stated for the business services undertaken by the sole proprietor. The services includes the information that is sought by the client in the areas of management particularly in the areas of reduction of taxation that is paid annually and keeping a check on the goods and service tax with other relevant legislative reports. 2.You have had discussions with the client who has explained that you were recommended through a colleague in the NFP sector who you have been providing acquittal services to.Describe the different types of financial options that are available for different clients related to the provision of business performance information. Discuss in 150 to 180 words.Answer: The types of financial options that are available for the clients associated to the provision ofthe business performance information are as follows; Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia |RTO NO: 41338 | CRICOS Provider Code: 03449JFilenameFNSACC501-Provide Financial and Business PerformanceInformationVersion 3.0/ July 2017Review Date: Aug2018Page 6 of 21
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