Diploma of Accounting: Assessment 1-4

Running head: DIPLOMA OF ACCOUNTING
Diploma of Accounting
Name of the Student:
Name of the University:
Author’s Note

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DIPLOMA OF ACCOUNTING
Table of Contents
Assessment 1...................................................................................................................................4
Part 1................................................................................................................................................4
Insurance Needs...............................................................................................................................7
Implementation Strategies...............................................................................................................7
Part 2................................................................................................................................................8
Importance of Continuous Review of Financial Position................................................................8
Completeness of the Annual Report of Kogan ltd...........................................................................8
Changes in Financial Position.........................................................................................................8
Assessment 2...................................................................................................................................9
Accuracy of the Financial Data.......................................................................................................9
Vertical and Horizontal Analysis of Income Statement of Kogan Ltd..........................................10
Profit and Loss Statement and Debt Equity Ratio.........................................................................11
Problems Faced by Kogan Ltd......................................................................................................12
Analysis of Cash flow Statement...................................................................................................12
Analysis of Performance of the Business......................................................................................12
Increase in Profits..........................................................................................................................13
Funds Requirement........................................................................................................................13
Assignment 3.................................................................................................................................14
Corporate Governance Principles..................................................................................................16

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Risk faced by the Company...........................................................................................................17
Risk Management Strategies.........................................................................................................18
Investment Options........................................................................................................................18
Assessment 4.................................................................................................................................19
Different Types of Taxes...............................................................................................................19
Deductions allowable to a business...............................................................................................20
Rules for Claiming an Expenses as Deduction..............................................................................21
Deduction for Travel Expenses.....................................................................................................21
Simplified Depreciation Rules.......................................................................................................21
Tax Implications of Prepaid expenses...........................................................................................22
Time limit for Amending Tax Assessment....................................................................................23
Capital Gain Tax Concessions.......................................................................................................23
PAYG Installments........................................................................................................................23
GST Concessions...........................................................................................................................24
Areas Causing issues in Taxation..................................................................................................24
Financial Forecasting Techniques.................................................................................................24
Financial Risks...............................................................................................................................24
Managing Risks.............................................................................................................................25
Legal Rights of a Client.................................................................................................................25
Formats Used for Depicting Financial Information.......................................................................26

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Significant Acts.............................................................................................................................26
Important Reports..........................................................................................................................26
Cash Flow Statement Analysis......................................................................................................27
Budgeting in Business...................................................................................................................27
Financial Markets..........................................................................................................................28
Treasury’s Role..............................................................................................................................28
Reference.......................................................................................................................................29

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Assessment 1
Part 1
Tax Liabilities reduction goals
The information which is presented in this assessment is obtained by a process of
interview which is conducted with the board of directors of the business. The board of directors
of the company are responsible for formulation of policies and different strategies of the business
and therefore they are the best persons to get information about the working of the company.
The tax liabilities of the company as shown in the annual report for the year 2017 is
shown to be $ 2,384,500 which is shown in the financial statements. The tax liability of Kogan
Ltd has increased considerably when the tax liability of the business is considered for the
previous year. The tax liability of the company is shown to be $ 622,072 as per the financial
statements of 2016. The tax expenses which is shown in the income statements of the company is
comprised of both current tax expenses and deferred tax expenses of the business. The tax
reduction policies of the business involve effective optimization of taxes as per the policy of the
management1. The management of the company has already employed competent accountants
and tax advisor so as to ensure that all the provisions and legal requirement are followed when
the business is assessing the tax which the business needs to bear at the end of the financial year.
The GST components of the business which are concerned with operating and investing
activities which are either to be paid or received from the ATO is shown in the operating cash
1Kogancorporate.com. (2018). [online] Available at:
https://www.kogancorporate.com/document/73c43b2fa1cd4706851051ddaaced964/
KOG0004%20AR17_PFO_web.pdf [Accessed 29 Jun. 2018].

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flows of the business. The management of the company will also be availing the various
deductions which are available to the company if certain conditions are met.
Wealth Accumulation
As per the annual report of Kogan ltd, the management of the company focuses on
building up effective customer relationship and also improve the quality of the product which is
provided by the company. In addition to this, the management is committed towards generation
of wealth as per the annual report of the business. The most important role in the accumulation of
wealth for the business is that of the management who are involved in the planning process of
the business2. The wealth accumulation of the business can be clearly identified from the annual
report of the business which shows the asset such as property plants and equipment which are
under construction as shown in the notes to account section of the annual report3. As per the
annual report of the company for the year 2017, the annual report specifies that the effective
performance of the business during the year. Kogan company is engaged in a variety of business
and therefore has an effective portfolio of the services which is provided by the company
(Kogancorporate.com. 2018).
Asset Development
The assets which the company possess in the annual report of the business as per the year
2017. The assets of the business are shown in the profit and loss statements as prepared by the
business. The business has purchased assets during the year as shown in the notes to accounts of
the company. The business also had purchased assets from Dick Smith in the year 2017. The
2 McKernan, Signe-Mary, Caroline Ratcliffe, C. Eugene Steuerle, and Sisi Zhang. Less than equal: Racial
disparities in wealth accumulation. Washington, DC: Urban Institute, 2013.
3 Hills, John. Wealth in the UK: distribution, accumulation, and policy. Oxford University Press, 2013.

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business has shown significant amount of profit as shown in the annual report of the company for
the year 2017 which has increased tremendously in comparison to previous year’s estimate
which shows that the management of the business is focused towards generation of wealth for
the shareholders of the company.
Legal and Financial Requirements
The legal requirement of the business focuses on the compliance of all the legal
regulation which is applicable to the company as introduced by the government. In addition to
this, the annual reports of the business show that during the ordinary course of business, the
company has faced law suits which are other than for tax rules compliance. The code of conduct
of the business and management policies of the business are all governed by the legal
requirement of the business.
The financial regulations of the business are as per the standards of accounting which are
established by AASB which are applicable on the business. The other common accounting
policies and conventions which are followed by other businesses belonging to the same industry
is also applicable to the company.
Personal Investment Strategies
As per the cash flow statement which is prepared for Kogan ltd, the business has made
investment in intangibles. In addition to this, the management of the company is expecting
investments in the business. The strategies of the business is to maximize the investments of the
business. The management expects to increase the investments of the company in the coming
year 2018.

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Business Registration
In order to operate in the market, the business needs to register with the authorities. The
registration of the business needs to be handled by the legal team of the business and the
business also needs to comply with all rules and regulations of the corporation act.
Insurance Needs
The business is engaged in a variety of business, therefore the need for insurance for the
overall business is important. The insurance needs of the business are quite evident as the
business has various diversified business and certain retail and other service units might be
subjected to risks for which the business needs insurance cover.
Tax Issues and Requirements
In order to achieve the long-term goals and business objectives of the business, the
management of Kogan ltd need to comply with the legal requirements of tax. Due to the
diversified business of the company, various taxes are applicable on the company which the
business needs to consider in order to proceed with the business and overall operation of the
company.
Implementation Strategies
Strategies will be adopted by the business in order to ensure that all other strategies of the
business are effectively implemented which will be formulated by the top-level management.
The management has already as per the annual report of 2017 established different committee
which will be looking after different roles of the business. In addition to this, the management