Corporate Financial Reporting and Ethics
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AI Summary
This assessment evaluates understanding of preparing financial reports for corporations. It covers topics like AASB 108 adjustments for accounting errors, the confidentiality principle in professional accounting ethics, and conflicts of interest as outlined in APES 110. Students demonstrate their knowledge through interpreting scenarios, explaining accounting principles, and applying ethical guidelines.
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Prepare Financial Reports for Corporate Entities
This course is based on the nationally recognised unit of competency:
● FNSACC504 Prepare Financial Reports for Corporate Entities
It covers the skills and knowledge required to prepare, document and
manage budgets and forecasts, and encompasses forecasting estimates
and monitoring budgeted outcomes.
ASSESSMENT WORKBOOK
Participant Name:
Learner ID/Username:
This course is based on the nationally recognised unit of competency:
● FNSACC504 Prepare Financial Reports for Corporate Entities
It covers the skills and knowledge required to prepare, document and
manage budgets and forecasts, and encompasses forecasting estimates
and monitoring budgeted outcomes.
ASSESSMENT WORKBOOK
Participant Name:
Learner ID/Username:
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Assessment Workbook V
Prepare Financial Reports for Corporate Entities
V1.0
Produced 1 February 2016
Copyright © 2016
All rights reserved. No part of this publication maybe reproduced or distributed in any form or by
any means, or stored in a database or retrieval system other than pursuant to the terms of the
Copyright Act 1968 (Commonwealth).
Date Summary of Modifications
Made
Version
1/02/16 Version 1 produced following
assessment validation
V1.0
Page 1
Assessment Workbook V
Prepare Financial Reports for Corporate Entities
V1.0
Produced 1 February 2016
Copyright © 2016
All rights reserved. No part of this publication maybe reproduced or distributed in any form or by
any means, or stored in a database or retrieval system other than pursuant to the terms of the
Copyright Act 1968 (Commonwealth).
Date Summary of Modifications
Made
Version
1/02/16 Version 1 produced following
assessment validation
V1.0
Page 1
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Page 2
Page 2
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Getting Started
Instructions
This workbook contains one (1) assessment comprised of:
● Written Questions – A set of generic questions testing the student’s
general knowledge and understanding of the general theory behind
the unit.
● Exercises - A set of exercises to test the student’s knowledge,
analytical skills in problem solving and performing numerical
calculations.
● Case Study – A hypothetical exercise to test the student’s knowledge,
analytical skills in problem solving and performing numerical
calculations.
Requirements for satisfactory completion
For a ‘satisfactory’ result in this task, all questions must be answered to a
‘satisfactory’ standard. At Certificate IV level this means that:
● Provide responses using complete sentences, making direct
reference to the question.
● Specifically address all parts of the question providing examples
where appropriate.
Instructions for how to proceed in each component of the
assessment can be found at the start of each section.
Competency Based Assessment
Competency based assessment focuses on whether you are able to
perform the task to the standard expected in the workplace. It relies on
you providing evidence that supports your claim of competence. This
evidence is in the form of your completion of the assessments set for each
unit.
Once you have submitted your completed assessments, your instructor will
assess your submission to determine your competence. To be deemed
Page 3
Getting Started
Instructions
This workbook contains one (1) assessment comprised of:
● Written Questions – A set of generic questions testing the student’s
general knowledge and understanding of the general theory behind
the unit.
● Exercises - A set of exercises to test the student’s knowledge,
analytical skills in problem solving and performing numerical
calculations.
● Case Study – A hypothetical exercise to test the student’s knowledge,
analytical skills in problem solving and performing numerical
calculations.
Requirements for satisfactory completion
For a ‘satisfactory’ result in this task, all questions must be answered to a
‘satisfactory’ standard. At Certificate IV level this means that:
● Provide responses using complete sentences, making direct
reference to the question.
● Specifically address all parts of the question providing examples
where appropriate.
Instructions for how to proceed in each component of the
assessment can be found at the start of each section.
Competency Based Assessment
Competency based assessment focuses on whether you are able to
perform the task to the standard expected in the workplace. It relies on
you providing evidence that supports your claim of competence. This
evidence is in the form of your completion of the assessments set for each
unit.
Once you have submitted your completed assessments, your instructor will
assess your submission to determine your competence. To be deemed
Page 3
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
competent in each course, you are required to achieve a satisfactory result
for all of the assessment components that make up that unit. Where a ‘not
yet satisfactory’ judgement is made, you will be given guidance on steps to
take to improve your performance and provided the opportunity to re-
submit evidence to demonstrate competence. Once a ‘satisfactory’
judgement has been made on all components for a unit, you will be
deemed ‘competent’ in that unit.
Submission
Only submit your workbook once all activities inside are complete. Should
you have any questions regarding your assessments, or not understand
what is required for you to complete your assessment, please feel free to
ask your instructor.
Keep your answers succinct and make sure you are answering the
question. Re-read the question after you have drafted up your response
just to be sure you have covered all that is needed.
Your final assessment result will either be ‘Competent’ or ‘Not Yet
Competent’.
When submitting your assessments please ensure that
1. All assessment tasks within the workbook have been completed
2. You have proof read your assessment
Candidate Declaration
Submission of this workbook means you agree to abide by the terms of the
candidate declaration below.
By submitting this work, I declare that:
● I have been advised of the assessment requirements, have been
made aware of my rights and responsibilities as an assessment
candidate, and choose to be assessed at this time.
● I am aware that there is a limit to the number of submissions that I
can make for each assessment and I am submitting all documents
required to complete this Assessment Workbook.
● I have organised and named the files I am submitting according to
the instructions provided and I am aware that my assessor will not
Page 4
competent in each course, you are required to achieve a satisfactory result
for all of the assessment components that make up that unit. Where a ‘not
yet satisfactory’ judgement is made, you will be given guidance on steps to
take to improve your performance and provided the opportunity to re-
submit evidence to demonstrate competence. Once a ‘satisfactory’
judgement has been made on all components for a unit, you will be
deemed ‘competent’ in that unit.
Submission
Only submit your workbook once all activities inside are complete. Should
you have any questions regarding your assessments, or not understand
what is required for you to complete your assessment, please feel free to
ask your instructor.
Keep your answers succinct and make sure you are answering the
question. Re-read the question after you have drafted up your response
just to be sure you have covered all that is needed.
Your final assessment result will either be ‘Competent’ or ‘Not Yet
Competent’.
When submitting your assessments please ensure that
1. All assessment tasks within the workbook have been completed
2. You have proof read your assessment
Candidate Declaration
Submission of this workbook means you agree to abide by the terms of the
candidate declaration below.
By submitting this work, I declare that:
● I have been advised of the assessment requirements, have been
made aware of my rights and responsibilities as an assessment
candidate, and choose to be assessed at this time.
● I am aware that there is a limit to the number of submissions that I
can make for each assessment and I am submitting all documents
required to complete this Assessment Workbook.
● I have organised and named the files I am submitting according to
the instructions provided and I am aware that my assessor will not
Page 4
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
assess work that cannot be clearly identified and may request the
work be resubmitted according to the correct process.
● This work is my own and contains no material written by another
person except where due reference is made. I am aware that a false
declaration may lead to the withdrawal of a qualification or
statement of attainment.
● I am aware that there is a policy of checking the validity of
qualifications that I submit as evidence as well as the
qualifications/evidence of parties who verify my performance or
observable skills. I give my consent to contact these parties for
verification purposes.
Written Questions
The following questions are divided into two categories.
The first set of questions cover generic underpinning knowledge of basic
project management terms and concepts. These questions are all in a short
answer format. The longer questions requiring creative thought processes
are covered in the case studies assessment. You must answer all
questions using your own words.However you may reference your
learner guide, and other online or hard copy resources to complete this
assessment.
The second set of questions cover processes you would be likely to
encounter in a workplace. Ideally you should be able to answer these
questions based on the processes that are currently in place in your
workplace. If this is not the case, then answer the questions based on
processes that should be implemented in your workplace.
If you are currently working in an accountancy role, you may answer these
questions based on your own workplace. Otherwise consider what you
should do if you were working.
Generic Questions and Calculations
VQ1: Describe two (2) advantages of trading as a corporate entity as
opposed to a partnership. What is one (1) main disadvantage?
Page 5
assess work that cannot be clearly identified and may request the
work be resubmitted according to the correct process.
● This work is my own and contains no material written by another
person except where due reference is made. I am aware that a false
declaration may lead to the withdrawal of a qualification or
statement of attainment.
● I am aware that there is a policy of checking the validity of
qualifications that I submit as evidence as well as the
qualifications/evidence of parties who verify my performance or
observable skills. I give my consent to contact these parties for
verification purposes.
Written Questions
The following questions are divided into two categories.
The first set of questions cover generic underpinning knowledge of basic
project management terms and concepts. These questions are all in a short
answer format. The longer questions requiring creative thought processes
are covered in the case studies assessment. You must answer all
questions using your own words.However you may reference your
learner guide, and other online or hard copy resources to complete this
assessment.
The second set of questions cover processes you would be likely to
encounter in a workplace. Ideally you should be able to answer these
questions based on the processes that are currently in place in your
workplace. If this is not the case, then answer the questions based on
processes that should be implemented in your workplace.
If you are currently working in an accountancy role, you may answer these
questions based on your own workplace. Otherwise consider what you
should do if you were working.
Generic Questions and Calculations
VQ1: Describe two (2) advantages of trading as a corporate entity as
opposed to a partnership. What is one (1) main disadvantage?
Page 5
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
The two advantages of trading as a corporate entity as opposed to a
partnership are as follows:
(i) Liability Protection: One of the biggest advantage a corporation
provides over the other business frameworks is the protection of
liability. The shareholders do not risk of losing their personal
assets due to the debt of the firm, as the organizations are
regarded as legal entities from the people who own them. The
partnership owners and the sole proprietors on the other hand
are held accountable for all the company debts and the legal
accountabilities and are subject to losing the personal assets of
the firm goes bankrupt or is caught up in expensive legal
situations.
(ii) Tax Benefits: The corporations enjoy certain tax advantages that
sole proprietorships and partnerships do not. The corporations
must file the taxes separately from the shareholders. The
owners of the corporation pay taxes on their salaries, dividends
and bonuses which they earn from the corporation. On the other
hand, there are loopholes are are existent that eases the burden
of the paying the taxes as an individual shareholders and as a
corporation. A corporation is not needed to pay tax on the
earnings as a paid compensation to the shareholders and the
employees and it can subtract the payments as a business
expenditure. The corporate tax rate is generally lower than the
personal rate of income tax. The owners of the sole
proprietorships and partnerships pay the income taxes at
general rates on the profits which they gain from their firms.
The main disadvantage is as given below:
Costs: One of the primary disadvantages of a corporation is the costs
associated with functioning a corporate business. It costs the money
to implement with the state where the business functions. After the
initial fees of incorporation, the corporate firms even has ongoing fees
related with it. The annual report fee can range up to $150 a year for
every year the corporation exists after the initial incorporation filing.
Page 6
The two advantages of trading as a corporate entity as opposed to a
partnership are as follows:
(i) Liability Protection: One of the biggest advantage a corporation
provides over the other business frameworks is the protection of
liability. The shareholders do not risk of losing their personal
assets due to the debt of the firm, as the organizations are
regarded as legal entities from the people who own them. The
partnership owners and the sole proprietors on the other hand
are held accountable for all the company debts and the legal
accountabilities and are subject to losing the personal assets of
the firm goes bankrupt or is caught up in expensive legal
situations.
(ii) Tax Benefits: The corporations enjoy certain tax advantages that
sole proprietorships and partnerships do not. The corporations
must file the taxes separately from the shareholders. The
owners of the corporation pay taxes on their salaries, dividends
and bonuses which they earn from the corporation. On the other
hand, there are loopholes are are existent that eases the burden
of the paying the taxes as an individual shareholders and as a
corporation. A corporation is not needed to pay tax on the
earnings as a paid compensation to the shareholders and the
employees and it can subtract the payments as a business
expenditure. The corporate tax rate is generally lower than the
personal rate of income tax. The owners of the sole
proprietorships and partnerships pay the income taxes at
general rates on the profits which they gain from their firms.
The main disadvantage is as given below:
Costs: One of the primary disadvantages of a corporation is the costs
associated with functioning a corporate business. It costs the money
to implement with the state where the business functions. After the
initial fees of incorporation, the corporate firms even has ongoing fees
related with it. The annual report fee can range up to $150 a year for
every year the corporation exists after the initial incorporation filing.
Page 6
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ2:
VQ2A List the three (3) characteristics that identify a small private
company from a large private company.
VQ2B How does a small proprietary company differ from a large
proprietary company with respect to its reporting obligations?
VQ2A
The three characteristics that identify a small private company from a
large private company are as follows:
(i) Employees: Small private companies have the benefit of smaller
teams of employees than the firms that function on a larger
scale. The smallest businesses are functioned entirely by single
individuals or the small teams. A larger small scale business can
often get away with engaging fewer than one hundred
employees by relying on the kind of business.
(ii) Revenue and profitability: The small scale business revenue is
usually lower than the firmsthat function on a larger scale. Small
business are considered as the firms that bring in less than a
distinct amount of revenue by relying on the kind of business.
The maximum revenue allowance for the small business
designation is set at $21.5 million per year for the service
businesses. The lower amount of revenue does not necessarily
interpret the lower profitability. The established small scale
businesses often own their equipment and facilities outright
which furthermore to the other factors aids in keeping the costs
lower than the more leveraged businesses.
(iii) Market Area: The small scale businesses function at a smaller
area than the corporations and large private organizations. The
small scale businesses serve as single communities like the
convenience store in a rural township. The definition of small
scale restricts the firms from serving areas much larger than a
local area since growing beyond that would increase the scale of
the operations of the small business and push it into a new
classification.
Page 7
VQ2:
VQ2A List the three (3) characteristics that identify a small private
company from a large private company.
VQ2B How does a small proprietary company differ from a large
proprietary company with respect to its reporting obligations?
VQ2A
The three characteristics that identify a small private company from a
large private company are as follows:
(i) Employees: Small private companies have the benefit of smaller
teams of employees than the firms that function on a larger
scale. The smallest businesses are functioned entirely by single
individuals or the small teams. A larger small scale business can
often get away with engaging fewer than one hundred
employees by relying on the kind of business.
(ii) Revenue and profitability: The small scale business revenue is
usually lower than the firmsthat function on a larger scale. Small
business are considered as the firms that bring in less than a
distinct amount of revenue by relying on the kind of business.
The maximum revenue allowance for the small business
designation is set at $21.5 million per year for the service
businesses. The lower amount of revenue does not necessarily
interpret the lower profitability. The established small scale
businesses often own their equipment and facilities outright
which furthermore to the other factors aids in keeping the costs
lower than the more leveraged businesses.
(iii) Market Area: The small scale businesses function at a smaller
area than the corporations and large private organizations. The
small scale businesses serve as single communities like the
convenience store in a rural township. The definition of small
scale restricts the firms from serving areas much larger than a
local area since growing beyond that would increase the scale of
the operations of the small business and push it into a new
classification.
Page 7
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ2B
The difference between the small proprietary business and the large
proprietary firms with respect to their reporting obligations explain that
large proprietary firms requires to lodge and prepare the financial report
and a director’s report for each of the financial year. The accounts must
be audited unless ASIC grants relief.
On the other hand, it has been observed that the small proprietary firms
have to lodge financial reports in certain situations.
VQ3:
VQ3A Describe three (3) features of a public company.
VQ3B Name the regulatory authorities listed and unlisted
companies are required to report to.
VQ3A
The features of a public company are as follows:
(i) Board of directors: The public limited companies are headed by
the board of directors. The composition of the board of directors
is set out in the articles of association of a firm. Generally it
consists of a minimum number of two members and a maximum
of 12. These are elected from the shareholders by the
shareholders during the annual general meeting. They act as an
agent of the shareholders in the management of the company.
(ii) Limited Liability: The shareholder liability for the losses of the
firm is restricted to their share contribution only. This is what it
makes them as a separate entity from their shareholders. The
business can be sued on its own and may not include their
shareholders. The firm does not belong to any person since one
individual can own only a part of it.
(iii) Transferable shares: The shares of a public limited company are
purchased and sold in a stock exchange market. They are
transferrable freely among their members and the individuals
who are trading in the stock exchange.
VQ3B
Page 8
VQ2B
The difference between the small proprietary business and the large
proprietary firms with respect to their reporting obligations explain that
large proprietary firms requires to lodge and prepare the financial report
and a director’s report for each of the financial year. The accounts must
be audited unless ASIC grants relief.
On the other hand, it has been observed that the small proprietary firms
have to lodge financial reports in certain situations.
VQ3:
VQ3A Describe three (3) features of a public company.
VQ3B Name the regulatory authorities listed and unlisted
companies are required to report to.
VQ3A
The features of a public company are as follows:
(i) Board of directors: The public limited companies are headed by
the board of directors. The composition of the board of directors
is set out in the articles of association of a firm. Generally it
consists of a minimum number of two members and a maximum
of 12. These are elected from the shareholders by the
shareholders during the annual general meeting. They act as an
agent of the shareholders in the management of the company.
(ii) Limited Liability: The shareholder liability for the losses of the
firm is restricted to their share contribution only. This is what it
makes them as a separate entity from their shareholders. The
business can be sued on its own and may not include their
shareholders. The firm does not belong to any person since one
individual can own only a part of it.
(iii) Transferable shares: The shares of a public limited company are
purchased and sold in a stock exchange market. They are
transferrable freely among their members and the individuals
who are trading in the stock exchange.
VQ3B
Page 8
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
The regulatory authorities the listed and the unlisted companies are
required to report is the Australian Securities and Investments
Commission (ASIC), Australian Securities Exchange, Financial Reporting
Panel, Australian Accounting Standards Board and Australian Taxation
Office
VQ4: Subsidiary companies are companies controlled by another entity.
Describe two (2) main features of a controlling entity and its reporting
obligations.
The two main features of a controlling and its reporting obligations include:
Accurately record and define its transactions and financial condition and
performance
Enable fair and true financial statements to be constructed and audited.
VQ5: Provide in your own words a brief description of the following
regulatory authorities and the role they play with respect to the reporting
obligations of corporate entities:
VQ5A Australian Securities and Investments Commission (“ASIC”);
Under the ASIC Act 2001, the ASIC took over the corporate law roles of
the State Corporate Affair Commissions. The ASIC Act provides the ASIC
body corporate consisting of three to eight members and is supervised by
a full time chairperson. The powers and functions of the ASIC are
consulted on it by the Corporations Act and the ASIC Act. The ASIC is the
regulator of the Australian financial and market service regulators and its
function is to make sure that the financial market of Australia are fair and
true.
Page 9
The regulatory authorities the listed and the unlisted companies are
required to report is the Australian Securities and Investments
Commission (ASIC), Australian Securities Exchange, Financial Reporting
Panel, Australian Accounting Standards Board and Australian Taxation
Office
VQ4: Subsidiary companies are companies controlled by another entity.
Describe two (2) main features of a controlling entity and its reporting
obligations.
The two main features of a controlling and its reporting obligations include:
Accurately record and define its transactions and financial condition and
performance
Enable fair and true financial statements to be constructed and audited.
VQ5: Provide in your own words a brief description of the following
regulatory authorities and the role they play with respect to the reporting
obligations of corporate entities:
VQ5A Australian Securities and Investments Commission (“ASIC”);
Under the ASIC Act 2001, the ASIC took over the corporate law roles of
the State Corporate Affair Commissions. The ASIC Act provides the ASIC
body corporate consisting of three to eight members and is supervised by
a full time chairperson. The powers and functions of the ASIC are
consulted on it by the Corporations Act and the ASIC Act. The ASIC is the
regulator of the Australian financial and market service regulators and its
function is to make sure that the financial market of Australia are fair and
true.
Page 9
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ5B Australian Securities Exchange (“ASX”);
The role of the ASX is to unite in one market place, the investors who
give out capital and organizations that need capital. The ASX facilitates
this capital formation procedure by giving out a well regulated secondary
trading market. The ASIC has a contract with the ASX to share data and a
supervisory role as the ASX is a listed company. The listed companies
have reporting obligations under the ASX Listing Rules.
VQ5C Financial Reporting Panel (“FRP”);
The FRP is a statutory body constructed to ascertain the contested issues
between the ASIC and entities who are concerned with the application of
accounting standards and the true and fair view need in the financial
reports. The FRP plays an independent third party which permits disputes
between the ASIC and entities constricting the financial reports which is
to be resolved without the cost of the proceedings of the court.
VQ5D Australian Accounting Standards Board (“AASB”).
The AASB is a corporate body with everlasting succession. Their roles are
given in S277 of the ASIC Act. These roles are inclusive of:
● To construct a conceptual model for the intention of assessing the
proposed accounting and international standards;
● To construct accounting standards with respect to S334 of the
Corporations Act;
● To participate in and to contribute towards the enhancement of a
single set of accounting standards for global use.
AASB101 provides the requirements in accordance to the presentation of
financial reports.
VQ6:
VQ6A What legislation governs the preparation of financial reports?
VQ6B List four (4) entities that are required to prepare financial
reports.
Page 10
VQ5B Australian Securities Exchange (“ASX”);
The role of the ASX is to unite in one market place, the investors who
give out capital and organizations that need capital. The ASX facilitates
this capital formation procedure by giving out a well regulated secondary
trading market. The ASIC has a contract with the ASX to share data and a
supervisory role as the ASX is a listed company. The listed companies
have reporting obligations under the ASX Listing Rules.
VQ5C Financial Reporting Panel (“FRP”);
The FRP is a statutory body constructed to ascertain the contested issues
between the ASIC and entities who are concerned with the application of
accounting standards and the true and fair view need in the financial
reports. The FRP plays an independent third party which permits disputes
between the ASIC and entities constricting the financial reports which is
to be resolved without the cost of the proceedings of the court.
VQ5D Australian Accounting Standards Board (“AASB”).
The AASB is a corporate body with everlasting succession. Their roles are
given in S277 of the ASIC Act. These roles are inclusive of:
● To construct a conceptual model for the intention of assessing the
proposed accounting and international standards;
● To construct accounting standards with respect to S334 of the
Corporations Act;
● To participate in and to contribute towards the enhancement of a
single set of accounting standards for global use.
AASB101 provides the requirements in accordance to the presentation of
financial reports.
VQ6:
VQ6A What legislation governs the preparation of financial reports?
VQ6B List four (4) entities that are required to prepare financial
reports.
Page 10
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ6A
The Section 292 of the Corporations Act 2001 is the legislation that
governs the the preparation of the financial reports.
VQ6B
The four entities that are required to prepare the financial report are:
Australian Accounting Standards Board (AASB).
Australian Securities and Investments Commission (ASIC)
Australian Securities Exchange (ASX)
Financial Reporting Panel (FRP)
VQ7: After 1 July 1998, under the Corporations Act, a company’s internal
management system or rules may be governed by a constitution,
replaceable rules or a combination of both. List three (3) entities that are
required to adopt a constitution under the Corporations Act and the ASX
Listing Rules.
The three entities that are required to adopt a constitution under the
Corporations Act and the ASX Listing Rules are:
No liability companies
Companies that are limited by guarantee that wants to be
registered without the word “Limited” in the name;
Public companies that are listed on the ASX.
VQ8: Name the nine (9) components of a financial report required under
ss295 t0 308 of the Corporations Act 2001 (Cth).
The nine components of a financial report required under ss 295 to 308 of
the Corporations Act 2001 are as follows:
Statement of financial position as at the end of the year (if
consolidated accounts are not required) of 295 (2) and 296 (1)
Statement of comprehensive income for the year (if consolidated
Page 11
VQ6A
The Section 292 of the Corporations Act 2001 is the legislation that
governs the the preparation of the financial reports.
VQ6B
The four entities that are required to prepare the financial report are:
Australian Accounting Standards Board (AASB).
Australian Securities and Investments Commission (ASIC)
Australian Securities Exchange (ASX)
Financial Reporting Panel (FRP)
VQ7: After 1 July 1998, under the Corporations Act, a company’s internal
management system or rules may be governed by a constitution,
replaceable rules or a combination of both. List three (3) entities that are
required to adopt a constitution under the Corporations Act and the ASX
Listing Rules.
The three entities that are required to adopt a constitution under the
Corporations Act and the ASX Listing Rules are:
No liability companies
Companies that are limited by guarantee that wants to be
registered without the word “Limited” in the name;
Public companies that are listed on the ASX.
VQ8: Name the nine (9) components of a financial report required under
ss295 t0 308 of the Corporations Act 2001 (Cth).
The nine components of a financial report required under ss 295 to 308 of
the Corporations Act 2001 are as follows:
Statement of financial position as at the end of the year (if
consolidated accounts are not required) of 295 (2) and 296 (1)
Statement of comprehensive income for the year (if consolidated
Page 11
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
accounts are not required) 295 (2) and 296 (1)
Statement of cash flows for the year (if consolidated accounts are
not required) 295 (2) and 296 (1)
Statement of changes in equity (if consolidated accounts are not
required) 295 (2) and 296 (1)
Consolidated financial statements, if required by accounting
standards- which may include parent entity financial information
295 (2) and 296 (1)
Notes to financial statements (disclosure required by the
regulations, notes required by the accounting standards, and any
other information necessary to give a true and fair view) 295 (3)
Directors' declaration that the financial statements comply with
accounting standards, give a true and fair view, there are
reasonable grounds to believe the company/scheme/entity will be
able to pay its debts, the financial statements have been made in
accordance with the Corporations Act 295 (4)
Directors' report, including the auditor's independence declaration
298-300 A
Auditor’s report 301 and 308
VQ9: In your own words provide a description of the auditing
requirements and information that must be presented in the auditor’s
report.
With respect to the S 301 of the Corporations Act, a firm, registered
scheme and declaring entity requires to have the financial report audited
and gather an auditor’s report. An auditor who undertakes audit of the
financial report must create an belief to the members of the entity about
whether:
The financial records are adequate to enable the financial report
that is to be constructed and audited
All explanation, information and assistance essential to conduct
the audit was provided
The registers and the records have been maintained
The reports is in compliance with the accounting standards and
presents a true and fair view of the accounts of the entity
Page 12
accounts are not required) 295 (2) and 296 (1)
Statement of cash flows for the year (if consolidated accounts are
not required) 295 (2) and 296 (1)
Statement of changes in equity (if consolidated accounts are not
required) 295 (2) and 296 (1)
Consolidated financial statements, if required by accounting
standards- which may include parent entity financial information
295 (2) and 296 (1)
Notes to financial statements (disclosure required by the
regulations, notes required by the accounting standards, and any
other information necessary to give a true and fair view) 295 (3)
Directors' declaration that the financial statements comply with
accounting standards, give a true and fair view, there are
reasonable grounds to believe the company/scheme/entity will be
able to pay its debts, the financial statements have been made in
accordance with the Corporations Act 295 (4)
Directors' report, including the auditor's independence declaration
298-300 A
Auditor’s report 301 and 308
VQ9: In your own words provide a description of the auditing
requirements and information that must be presented in the auditor’s
report.
With respect to the S 301 of the Corporations Act, a firm, registered
scheme and declaring entity requires to have the financial report audited
and gather an auditor’s report. An auditor who undertakes audit of the
financial report must create an belief to the members of the entity about
whether:
The financial records are adequate to enable the financial report
that is to be constructed and audited
All explanation, information and assistance essential to conduct
the audit was provided
The registers and the records have been maintained
The reports is in compliance with the accounting standards and
presents a true and fair view of the accounts of the entity
Page 12
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ10: In your own words describe the obligations as set out in ss 285-
291 of the Corporations Act with respect to providing and maintaining
financial data and records. How long must financial records be kept for
after transactions are completed?
The accountabilities to record and maintain the financial records or the
data are given in SS 285-291 of the Corporations Act. A firm must
maintain a written financial records that:
Correctly record and define its transactions and financial scenario
and the performance
Enable fair and true financial statements that is constructed and
audited
The financial statements and records requires to be kept in any mode of
language but an English translation requires to be made available within
a reasonable time to an individual who is entitled to examine the records.
The financial records can be maintained in an electronic copy and a hard
copy requires to be made available to an individual who is eligible for
examining the records. The firm may undertake the decision of where to
keep the records and on the other hand if any records are kept outside
Australia adequate written data about the topics that must be stored in
Australia in order to enable a fair and true financial reports. The financial
records must be kept for a minimum of 7 years after the completion of
the transaction.
VQ11:
VQ11A List the five (5) basic accounting principles with respect to the
recognition, reporting and recording of data and information.
VQ11B Provide a brief explanation of the accrual concept of accounting.
Page 13
VQ10: In your own words describe the obligations as set out in ss 285-
291 of the Corporations Act with respect to providing and maintaining
financial data and records. How long must financial records be kept for
after transactions are completed?
The accountabilities to record and maintain the financial records or the
data are given in SS 285-291 of the Corporations Act. A firm must
maintain a written financial records that:
Correctly record and define its transactions and financial scenario
and the performance
Enable fair and true financial statements that is constructed and
audited
The financial statements and records requires to be kept in any mode of
language but an English translation requires to be made available within
a reasonable time to an individual who is entitled to examine the records.
The financial records can be maintained in an electronic copy and a hard
copy requires to be made available to an individual who is eligible for
examining the records. The firm may undertake the decision of where to
keep the records and on the other hand if any records are kept outside
Australia adequate written data about the topics that must be stored in
Australia in order to enable a fair and true financial reports. The financial
records must be kept for a minimum of 7 years after the completion of
the transaction.
VQ11:
VQ11A List the five (5) basic accounting principles with respect to the
recognition, reporting and recording of data and information.
VQ11B Provide a brief explanation of the accrual concept of accounting.
Page 13
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ11A
The five basic accounting principles have been given below:
Double entry: Every transaction is entered twice in the books of
account
Recording: All the accounting entries originate from a source
document
Determination of profit: The life of a business is segmented into
time periods. The revenue and the expenditure from the periods
are compared in order to ascertain whether the profit or loss has
been made
Reporting: The accounting information is to be revealed in a logical
and clear format
Control: The bookkeepers and the accountants must make sure
that the accounting practices are incompliance with the accounting
standards and the organizational practices and the processes in
order to mitigate the error risk and frauds.
VQ11B
The accrual accounting involves the matching of the expenses and the
revenues when it is incurred rather than when it is received or is paid.
The balance day adjustments are applicable to the accrual process of
accounting and this process complies with the requirement to account for
those items that associate to a specific financial year. The Goods and
Services Act legislation permits any business with a yearly turnover of $2
million or less and to maintain their accounts under cash system in which
the cash is accounted for when it is received and not paid when it is
incurred.
VQ12: AASB101 prescribes the basis for the presentation of financial
reports. List the four (4) financial statements and four (4) requirements
with respect to the presentation of the financial statements.
The components of the financial statementsare:
Statement of comprehensive income
Statement of changes in the equity of the owners
Page 14
VQ11A
The five basic accounting principles have been given below:
Double entry: Every transaction is entered twice in the books of
account
Recording: All the accounting entries originate from a source
document
Determination of profit: The life of a business is segmented into
time periods. The revenue and the expenditure from the periods
are compared in order to ascertain whether the profit or loss has
been made
Reporting: The accounting information is to be revealed in a logical
and clear format
Control: The bookkeepers and the accountants must make sure
that the accounting practices are incompliance with the accounting
standards and the organizational practices and the processes in
order to mitigate the error risk and frauds.
VQ11B
The accrual accounting involves the matching of the expenses and the
revenues when it is incurred rather than when it is received or is paid.
The balance day adjustments are applicable to the accrual process of
accounting and this process complies with the requirement to account for
those items that associate to a specific financial year. The Goods and
Services Act legislation permits any business with a yearly turnover of $2
million or less and to maintain their accounts under cash system in which
the cash is accounted for when it is received and not paid when it is
incurred.
VQ12: AASB101 prescribes the basis for the presentation of financial
reports. List the four (4) financial statements and four (4) requirements
with respect to the presentation of the financial statements.
The components of the financial statementsare:
Statement of comprehensive income
Statement of changes in the equity of the owners
Page 14
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Statement of the cash flows
Statement of the financial position
The four requirements with respect to the presentation of the financial
statements are:
To be presented fairly
Comply with the accounting standards and policies
To be prepared consistently
Include comparative information
VQ13: In your own words describe the purpose of the directors’
declaration under s 295(4) of the Corporations Act.
The declaration of the directors is an integral section of the financial
report. The declaration is explained in 295 (4) of the Corporations Act
needs the directors to declare that:
The financial statements and the notes that comply with the
accounting standards
The financial statements and the notes provides a fair and true
view
The organization will be able to pay their debts when it is due.
VQ14: The directors’ report must contain general information as set out
in ss 299 to 300 of the Corporations Act. List four (4) requirements under
this legislation.
Page 15
Statement of the cash flows
Statement of the financial position
The four requirements with respect to the presentation of the financial
statements are:
To be presented fairly
Comply with the accounting standards and policies
To be prepared consistently
Include comparative information
VQ13: In your own words describe the purpose of the directors’
declaration under s 295(4) of the Corporations Act.
The declaration of the directors is an integral section of the financial
report. The declaration is explained in 295 (4) of the Corporations Act
needs the directors to declare that:
The financial statements and the notes that comply with the
accounting standards
The financial statements and the notes provides a fair and true
view
The organization will be able to pay their debts when it is due.
VQ14: The directors’ report must contain general information as set out
in ss 299 to 300 of the Corporations Act. List four (4) requirements under
this legislation.
Page 15
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
The director’s report must have the general data as given in the ss 299
and 300 of the Corporations Act as given below:
Information of the reporting entity e.g. company, registered
scheme, disclosing entity or consolidated entity;
An overview of the entity’s operations and results for the year;
The principal activities of the entity including any vital changes in
the principal activities;
Details of any key events that have taken place since the end of
the accounting year that may have an impact on the state of affairs
of the entity;
Details and likely improvements in the activities of the entity in
the future accounting years;
Disclosure if the details of the entity’s performance in regard to
environmental regulations affecting its operations;
Information regarding the dividends paid or declared;
The names of directors of the firm at any time during the year;
The names of officers of the firm at any time during the year;
Details of options issued to directors;
Indemnities provided and insurance premiums paid during the year
for an officer who is or has been an officer or auditor of the entity.
VQ15:
VQ15A What information needs to be disclosed in a remuneration report?
VQ15B What entities are required to present a remuneration report?
VQ15A
The remuneration report discloses:
Information regarding the policy of the board in association to the
nature and the remuneration amount of the executives and the
directors
Page 16
The director’s report must have the general data as given in the ss 299
and 300 of the Corporations Act as given below:
Information of the reporting entity e.g. company, registered
scheme, disclosing entity or consolidated entity;
An overview of the entity’s operations and results for the year;
The principal activities of the entity including any vital changes in
the principal activities;
Details of any key events that have taken place since the end of
the accounting year that may have an impact on the state of affairs
of the entity;
Details and likely improvements in the activities of the entity in
the future accounting years;
Disclosure if the details of the entity’s performance in regard to
environmental regulations affecting its operations;
Information regarding the dividends paid or declared;
The names of directors of the firm at any time during the year;
The names of officers of the firm at any time during the year;
Details of options issued to directors;
Indemnities provided and insurance premiums paid during the year
for an officer who is or has been an officer or auditor of the entity.
VQ15:
VQ15A What information needs to be disclosed in a remuneration report?
VQ15B What entities are required to present a remuneration report?
VQ15A
The remuneration report discloses:
Information regarding the policy of the board in association to the
nature and the remuneration amount of the executives and the
directors
Page 16
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
The details of any performance scenarios that must be met
VQ15B
The entities that are required to present a remuneration report are as
follows:
Register of members (s 169)
Register of charges (s 271)
Register of the debenture holders (s 171)
Register of the option holders (s 170)
Minute book (s 251 A)
VQ16: “Shares” are described as being parts into which the capital of a
corporate entity is divided. Provide a description of the following types of
shares and rights of the shareholder:
VQ16A ordinary shares;
VQ16B preference shares;
VQ16C how can shares be transferred to another party?
Description Rights of the shareholder
VQ16A
Ordinary Shares: These are
ordinary shares that are issued by a
firm to their investors
No special rights or privileges. The
holder of the ordinary shares would
receive a notice of the general
meetings and would have one vote
for every share purchased and an
entitlement to a share of any
Page 17
The details of any performance scenarios that must be met
VQ15B
The entities that are required to present a remuneration report are as
follows:
Register of members (s 169)
Register of charges (s 271)
Register of the debenture holders (s 171)
Register of the option holders (s 170)
Minute book (s 251 A)
VQ16: “Shares” are described as being parts into which the capital of a
corporate entity is divided. Provide a description of the following types of
shares and rights of the shareholder:
VQ16A ordinary shares;
VQ16B preference shares;
VQ16C how can shares be transferred to another party?
Description Rights of the shareholder
VQ16A
Ordinary Shares: These are
ordinary shares that are issued by a
firm to their investors
No special rights or privileges. The
holder of the ordinary shares would
receive a notice of the general
meetings and would have one vote
for every share purchased and an
entitlement to a share of any
Page 17
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
dividend fund that is remaining
after the preference shareholders
have been paid out.
VQ16B
Preference Shares: A firm can issue
preference shares only if the rights
are attached to the shares are
given in the constitution or have
been permitted by a special
resolution
The shareholders are given
preference with respect to the
dividends or the capital return or
sometimes both.
VQ16C
Transfer of shares take place when
an individual is going through
mental incapacity, transparency or
death of a member
The transfer of the shares is only
taken as legal and valid once the
transfer of the shares have been
registered.
VQ17: With respect to disclosing offers of securities to investors:
VQ17A What are the requirements under s 727 of the Corporations Act?
Under the S 727 of the Corporations Act, an individual may not offer
securities of a corporation for the subscription or buying unless an
unsuitable disclosure of the document like the prospectus, profile
statement or offer data statement that has been lodged with the ASIC.
The provisions relating to the disclosure of the documents are not
pertinent to the proprietary firms.
Page 18
dividend fund that is remaining
after the preference shareholders
have been paid out.
VQ16B
Preference Shares: A firm can issue
preference shares only if the rights
are attached to the shares are
given in the constitution or have
been permitted by a special
resolution
The shareholders are given
preference with respect to the
dividends or the capital return or
sometimes both.
VQ16C
Transfer of shares take place when
an individual is going through
mental incapacity, transparency or
death of a member
The transfer of the shares is only
taken as legal and valid once the
transfer of the shares have been
registered.
VQ17: With respect to disclosing offers of securities to investors:
VQ17A What are the requirements under s 727 of the Corporations Act?
Under the S 727 of the Corporations Act, an individual may not offer
securities of a corporation for the subscription or buying unless an
unsuitable disclosure of the document like the prospectus, profile
statement or offer data statement that has been lodged with the ASIC.
The provisions relating to the disclosure of the documents are not
pertinent to the proprietary firms.
Page 18
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ17B Are private companies required to comply with this legislation?
The private companies does not require to comply with this legislation as
Section 113 (3) of the Corporations Act provides that a private firm must
not engage in any operations that needs to disclose the investors. In case
of in breach of the Section 113 by the firm, then it must be converted into
a public company
VQ17C What is the procedure to be followed where there is an over
subscription or under subscription of shares?
When there is an oversubscription of shares, the firm will issue shares to
the successful applicants. When the shares are issued the shareholders
receives:
Holding statement
A security holder reference numbers
VQ18:
VQ18A In your own words provide a brief description and the information
that must be disclosed in a “prospectus”.
VQ18B When would an offer information statement be used in place of a
prospectus?
VQ18A
A prospectus is aninscribed notice or other equipment that invites
applications or offers to subscribe for or purchase of securities. It has
information in accordance to the financial affairs of the firm and the
security that is being offered to investors. Under S726 of the Corporations
Page 19
VQ17B Are private companies required to comply with this legislation?
The private companies does not require to comply with this legislation as
Section 113 (3) of the Corporations Act provides that a private firm must
not engage in any operations that needs to disclose the investors. In case
of in breach of the Section 113 by the firm, then it must be converted into
a public company
VQ17C What is the procedure to be followed where there is an over
subscription or under subscription of shares?
When there is an oversubscription of shares, the firm will issue shares to
the successful applicants. When the shares are issued the shareholders
receives:
Holding statement
A security holder reference numbers
VQ18:
VQ18A In your own words provide a brief description and the information
that must be disclosed in a “prospectus”.
VQ18B When would an offer information statement be used in place of a
prospectus?
VQ18A
A prospectus is aninscribed notice or other equipment that invites
applications or offers to subscribe for or purchase of securities. It has
information in accordance to the financial affairs of the firm and the
security that is being offered to investors. Under S726 of the Corporations
Page 19
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Act it is illegal to issue an application form for securities or to give out
securities in a firm that has not been formed.
The information that is disclosed in the prospectus are as follows;
set out the terms and conditions of the offer;
disclose the interests of directors, proposed directors and
promoters in the promotion of the company;
set out the fees of those persons (s711(3) Corporations Act); ●
state that no securities will be issued after the expiry date which
must be no later than thirteen (13) months after the date of the
prospectus
VQ18B
An offer information statement can be utilized in place of a prospectus if
the amount of money that can be raised by the securities issues, when
added to all the amounts earlier raised, is $5 million or less. A present
reportof the auditors is required to be added and a disclosure document
must be inclusive of the date the document that was lodged with the
ASIC.
VQ19:
VQ19A Describe the meaning of the term “debenture” under s 9 of the
Corporations Act.
VQ19B What is the difference between “secured” and “unsecured”
debentures?
VQ19A
Under the Corporations Act, a debenture is defined “choice in action”
which is inclusive of an undertaking by the firm to repay, in the form of a
debt, money lent or deposited to it (s9 Corporations Act).
Page 20
Act it is illegal to issue an application form for securities or to give out
securities in a firm that has not been formed.
The information that is disclosed in the prospectus are as follows;
set out the terms and conditions of the offer;
disclose the interests of directors, proposed directors and
promoters in the promotion of the company;
set out the fees of those persons (s711(3) Corporations Act); ●
state that no securities will be issued after the expiry date which
must be no later than thirteen (13) months after the date of the
prospectus
VQ18B
An offer information statement can be utilized in place of a prospectus if
the amount of money that can be raised by the securities issues, when
added to all the amounts earlier raised, is $5 million or less. A present
reportof the auditors is required to be added and a disclosure document
must be inclusive of the date the document that was lodged with the
ASIC.
VQ19:
VQ19A Describe the meaning of the term “debenture” under s 9 of the
Corporations Act.
VQ19B What is the difference between “secured” and “unsecured”
debentures?
VQ19A
Under the Corporations Act, a debenture is defined “choice in action”
which is inclusive of an undertaking by the firm to repay, in the form of a
debt, money lent or deposited to it (s9 Corporations Act).
Page 20
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VQ19B
The difference between a secured and unsecured debentures are as
follows:
Secured debentures are secured by a charge on the fixed assets of the
firm and if the company is unable to pay off eitherthe principal or the
interest amount, the assets can be sold in order to repay the liability to
the investors.
Unsecured debentures are tools where if the firms defaults on payment of
the interest or principal value, the investor will be paid on similar terms
as applicable to other unsecured creditors of the firm.
VQ20: List five (5) registers that must be maintained by corporate
entities.
The five registers that must be maintained by the corporate entities are
as follows:
Registers of the members (s 169)
Registers of charges ( s 271)
Register of the debenture holders (s 171)
Register of option holders (s 170)
Minute book (s 251 A)
Page 21
VQ19B
The difference between a secured and unsecured debentures are as
follows:
Secured debentures are secured by a charge on the fixed assets of the
firm and if the company is unable to pay off eitherthe principal or the
interest amount, the assets can be sold in order to repay the liability to
the investors.
Unsecured debentures are tools where if the firms defaults on payment of
the interest or principal value, the investor will be paid on similar terms
as applicable to other unsecured creditors of the firm.
VQ20: List five (5) registers that must be maintained by corporate
entities.
The five registers that must be maintained by the corporate entities are
as follows:
Registers of the members (s 169)
Registers of charges ( s 271)
Register of the debenture holders (s 171)
Register of option holders (s 170)
Minute book (s 251 A)
Page 21
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Page 22
Page 22
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Workplace Exercises
Instructions
These exercises relate to the workplace of an incorporated entity.
Exercises
VE1: A company’s net profit at the end of the financial year was $75,000.
The tax assessment notice received from the Australia Taxation Office
(“ATO”) for the financial period for income tax payable is $20,000. There
is a debit balance in the Provision for income tax account of $21,500
which represents the four quarterly instalments forwarded to the ATO
throughout the year. The company tax rate is 30%.
VE1A You are required to prepare the journal entries to record:
VE1A1 the actual ATO tax assessment
VE1A2 the refund cheque received from the ATO
representing the over provision for income tax
Date Particulars Amount Amount
Income Tax Expense A/c. Dr. 2500
To, Tax Payable A/c. 2500
Profit & Loss A/c. Dr. 22500
To, Income Tax Expense A/c. 22500
Profit & Loss A/c. Dr. 52500
To, Retained Earnings A/c. 52500
Date Particulars Amount Amount
Tax Payable A/c. Dr. 1000
To, Provision for Income Tax A/c. 1000
Tax Payable A/c. Dr. 1500
To, Bank A/c. 1500
Provision for Income Tax A/c. Dr. 1000
To, Profit & Loss A/c. 1000
Page 23
Workplace Exercises
Instructions
These exercises relate to the workplace of an incorporated entity.
Exercises
VE1: A company’s net profit at the end of the financial year was $75,000.
The tax assessment notice received from the Australia Taxation Office
(“ATO”) for the financial period for income tax payable is $20,000. There
is a debit balance in the Provision for income tax account of $21,500
which represents the four quarterly instalments forwarded to the ATO
throughout the year. The company tax rate is 30%.
VE1A You are required to prepare the journal entries to record:
VE1A1 the actual ATO tax assessment
VE1A2 the refund cheque received from the ATO
representing the over provision for income tax
Date Particulars Amount Amount
Income Tax Expense A/c. Dr. 2500
To, Tax Payable A/c. 2500
Profit & Loss A/c. Dr. 22500
To, Income Tax Expense A/c. 22500
Profit & Loss A/c. Dr. 52500
To, Retained Earnings A/c. 52500
Date Particulars Amount Amount
Tax Payable A/c. Dr. 1000
To, Provision for Income Tax A/c. 1000
Tax Payable A/c. Dr. 1500
To, Bank A/c. 1500
Provision for Income Tax A/c. Dr. 1000
To, Profit & Loss A/c. 1000
Page 23
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VE2: You are employed in the accounting department of a corporate
entity and you are required to prepare the journal entries for the
following transactions at the end of the financial period:
VE2A a transfer of $10,000 from retained earnings to the general
reserve;
VE2B a transfer to asset revaluation reserve of an increase in the
value of plant and equipment in an amount of $10,000.
Accumulated depreciation for this asset is currently $2,500;
VE2C Depreciation on a motor vehicle valued at cost in the amount
of $22,000. Depreciation is calculated at 20% using the straight
line method. The residual value of the asset stands at $4,000;
VE2D Prepaid rent for the period in the amount of $1,200 currently
allocated to Rent;
VE2E Setting aside funds for the payment of final dividends in the
next financial year (200,000 shares@8¢ per share).
VE2A
Dr. Cr.
Date Particulars Amount Amount
Retained Earnings A/c. Dr. 10000
To, General Reserve A/c. 10000
VE2B
Dr. Cr.
Date Particulars Amount Amount
Accumulated Depreciation A/c. Dr. 2500
Plant & Equipment A/c. Dr. 7500
To, Asset Revaluation Reserve A/c. 10000
Page 24
VE2: You are employed in the accounting department of a corporate
entity and you are required to prepare the journal entries for the
following transactions at the end of the financial period:
VE2A a transfer of $10,000 from retained earnings to the general
reserve;
VE2B a transfer to asset revaluation reserve of an increase in the
value of plant and equipment in an amount of $10,000.
Accumulated depreciation for this asset is currently $2,500;
VE2C Depreciation on a motor vehicle valued at cost in the amount
of $22,000. Depreciation is calculated at 20% using the straight
line method. The residual value of the asset stands at $4,000;
VE2D Prepaid rent for the period in the amount of $1,200 currently
allocated to Rent;
VE2E Setting aside funds for the payment of final dividends in the
next financial year (200,000 shares@8¢ per share).
VE2A
Dr. Cr.
Date Particulars Amount Amount
Retained Earnings A/c. Dr. 10000
To, General Reserve A/c. 10000
VE2B
Dr. Cr.
Date Particulars Amount Amount
Accumulated Depreciation A/c. Dr. 2500
Plant & Equipment A/c. Dr. 7500
To, Asset Revaluation Reserve A/c. 10000
Page 24
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
VE2C
Dr. Cr.
Date Particulars Amount Amount
Depreciation on Vehicle A/c. Dr. 3600
To,
Accumulated Depreciation -
Vehicle A/c. 3600
VE2D
Dr. Cr.
Date Particulars Amount Amount
Rent Expense A/c. Dr. 1200
To, Prepaid Rent A/c. 1200
VE2E
Dr. Cr.
Date Particulars Amount Amount
Retained Earnings A/c. Dr. 16000
To, Dividend Payable A/c. 16000
VE3: On 21 May XX Leichhardt Enterprises Limited acquired all of the
Page 25
VE2C
Dr. Cr.
Date Particulars Amount Amount
Depreciation on Vehicle A/c. Dr. 3600
To,
Accumulated Depreciation -
Vehicle A/c. 3600
VE2D
Dr. Cr.
Date Particulars Amount Amount
Rent Expense A/c. Dr. 1200
To, Prepaid Rent A/c. 1200
VE2E
Dr. Cr.
Date Particulars Amount Amount
Retained Earnings A/c. Dr. 16000
To, Dividend Payable A/c. 16000
VE3: On 21 May XX Leichhardt Enterprises Limited acquired all of the
Page 25
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
share capital in Bosworth Pty Ltd for an amount of $80,000. Bosworth’s
net assets are recorded at fair value. The statement of financial position
for both companies at that date is as follows:
Leichhardt Bosworth
Shares in Bosworth Holdings $80,000
Non current assets $138,000 $85,000
Current assets $16,000 $4,000
Total assets $154,000 $89,000
Non current liabilities $58,000 $10,000
Current liabilities $8,000 $4,000
Total liabilities $66,000 $14,000
Net Assets $88,000 $75,000
Share capital $88,000 $48,000
General reserve $12,000
Retained earnings $15,000
Total equity $154,000 $75,000
Prepare a consolidated worksheet for the two companies to record the
amounts in the consolidated statements and the eliminations including
any impairment of goodwill or gain on the acquisition.
Particulars Amount Amount
Purchase Consideration $80,000
Equity Capital of Bosworth:
Share Capital $48,000
General Reserve $12,000
Retained Earnings $15,000 $75,000
Goodwill on Acquisition $5,000
Page 26
share capital in Bosworth Pty Ltd for an amount of $80,000. Bosworth’s
net assets are recorded at fair value. The statement of financial position
for both companies at that date is as follows:
Leichhardt Bosworth
Shares in Bosworth Holdings $80,000
Non current assets $138,000 $85,000
Current assets $16,000 $4,000
Total assets $154,000 $89,000
Non current liabilities $58,000 $10,000
Current liabilities $8,000 $4,000
Total liabilities $66,000 $14,000
Net Assets $88,000 $75,000
Share capital $88,000 $48,000
General reserve $12,000
Retained earnings $15,000
Total equity $154,000 $75,000
Prepare a consolidated worksheet for the two companies to record the
amounts in the consolidated statements and the eliminations including
any impairment of goodwill or gain on the acquisition.
Particulars Amount Amount
Purchase Consideration $80,000
Equity Capital of Bosworth:
Share Capital $48,000
General Reserve $12,000
Retained Earnings $15,000 $75,000
Goodwill on Acquisition $5,000
Page 26
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Elimination
Particulars
Leichhar
dt
Boswor
th Dr. Cr.
Consolidated
Statement
Shares in Bosworth Holdings $80,000 $80,000 $0
Non Current Assets $138,000 $85,000 $223,000
Current Assets $16,000 $4,000 $20,000
Goodwill on Acquisition $5,000 $5,000
Total Assets $234,000 $89,000 $248,000
Non-Current Liabilities $58,000 $10,000 $68,000
Current Liabilities $8,000 $4,000 $12,000
Total Liabilities $66,000 $14,000 $80,000
Net Assets $168,000 $75,000 $168,000
Share Capital $88,000 $48,000 $48,000 $88,000
General Reserve $12,000 $12,000 $0
Retained Earnings $80,000 $15,000 $15,000 $80,000
Total Equity $168,000 $75,000 $80,000 $80,000 $168,000
Case Studies
Instructions
These case studies are hypothetical situations which will not require you to
have access to the workplace, although your past and present workplace
experiences may help with the responses you provide.
Bromich Limited ACN 42 178 234 765 is an Australian company registered
with the ASIC. You are employed as an assistant accountant with the
entity. In accordance with Bromich’s annual reporting obligations with the
ASIC, the requirements of Australian Professional Ethical Standards Board
(“APESB”) and organisational practices and procedures, you are required to
prepare the following financial statements.
Note: “20XX” refers to the current year.
Case Study Tasks
VCS1: Statement of comprehensive income as at 30 June 20XX.
Page 27
Elimination
Particulars
Leichhar
dt
Boswor
th Dr. Cr.
Consolidated
Statement
Shares in Bosworth Holdings $80,000 $80,000 $0
Non Current Assets $138,000 $85,000 $223,000
Current Assets $16,000 $4,000 $20,000
Goodwill on Acquisition $5,000 $5,000
Total Assets $234,000 $89,000 $248,000
Non-Current Liabilities $58,000 $10,000 $68,000
Current Liabilities $8,000 $4,000 $12,000
Total Liabilities $66,000 $14,000 $80,000
Net Assets $168,000 $75,000 $168,000
Share Capital $88,000 $48,000 $48,000 $88,000
General Reserve $12,000 $12,000 $0
Retained Earnings $80,000 $15,000 $15,000 $80,000
Total Equity $168,000 $75,000 $80,000 $80,000 $168,000
Case Studies
Instructions
These case studies are hypothetical situations which will not require you to
have access to the workplace, although your past and present workplace
experiences may help with the responses you provide.
Bromich Limited ACN 42 178 234 765 is an Australian company registered
with the ASIC. You are employed as an assistant accountant with the
entity. In accordance with Bromich’s annual reporting obligations with the
ASIC, the requirements of Australian Professional Ethical Standards Board
(“APESB”) and organisational practices and procedures, you are required to
prepare the following financial statements.
Note: “20XX” refers to the current year.
Case Study Tasks
VCS1: Statement of comprehensive income as at 30 June 20XX.
Page 27
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Bromich recorded the following transactions in 20XX:
Sales $600,000; cost of sales $102,000; gain on sale of machinery
$10,000; delivery charges $52,000; advertising $8,000;rates $30,000;
repairs $55,500; wages and salaries$165,500; depreciation on plant and
equipment $5,000; interest on loan $3,000; bad debts $5,000. Income
tax is to be calculated at a rate of 30% of net profit. Other
comprehensive income includes a valuation increase of $10,000 in a
building which is recognised directly in equity and will not be recognised
in profit and loss until the amount is realised.
Expenses are to be classified by function on the face of the statement
however additional information regarding the nature of the expenses
must be disclosed in the notes. Four (4) explanatory notes are to be
provided as follows: Summary of significant accounting policies; how
profit for the period was calculated; income tax expense and gains or
losses recognised directly in equity.
Statement of Comprehensive Income
for the period ended 30 June 20XX
Particulars
No
te Amount Amount
Sales $600,000
Cost of Sales
($102,000
)
Gross Profit $498,000
Distribution Expenses:
Delivery Charges ($52,000) ($52,000)
Marketing Expenses:
Advertising ($8,000) ($8,000)
Occupancy Expenses:
Rates ($30,000)
Repairs ($55,000) ($85,000)
Administrative Expenses:
Wages & Salaries
($165,500
)
Depreciation on Plant & Equipment ($5,000)
($170,500
)
Financial Expenses:
Interest on Loan ($3,000) ($3,000)
Page 28
Bromich recorded the following transactions in 20XX:
Sales $600,000; cost of sales $102,000; gain on sale of machinery
$10,000; delivery charges $52,000; advertising $8,000;rates $30,000;
repairs $55,500; wages and salaries$165,500; depreciation on plant and
equipment $5,000; interest on loan $3,000; bad debts $5,000. Income
tax is to be calculated at a rate of 30% of net profit. Other
comprehensive income includes a valuation increase of $10,000 in a
building which is recognised directly in equity and will not be recognised
in profit and loss until the amount is realised.
Expenses are to be classified by function on the face of the statement
however additional information regarding the nature of the expenses
must be disclosed in the notes. Four (4) explanatory notes are to be
provided as follows: Summary of significant accounting policies; how
profit for the period was calculated; income tax expense and gains or
losses recognised directly in equity.
Statement of Comprehensive Income
for the period ended 30 June 20XX
Particulars
No
te Amount Amount
Sales $600,000
Cost of Sales
($102,000
)
Gross Profit $498,000
Distribution Expenses:
Delivery Charges ($52,000) ($52,000)
Marketing Expenses:
Advertising ($8,000) ($8,000)
Occupancy Expenses:
Rates ($30,000)
Repairs ($55,000) ($85,000)
Administrative Expenses:
Wages & Salaries
($165,500
)
Depreciation on Plant & Equipment ($5,000)
($170,500
)
Financial Expenses:
Interest on Loan ($3,000) ($3,000)
Page 28
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Other Expenses:
Bad Debts ($5,000) ($5,000)
Profit before Tax 2 $174,500
Income Tax Expenses 3 ($52,350)
Profit for the period $122,150
Gain/(Losses) recorded directly in equity 4 $10,000
Net Comprehensive Income $132,150
Note 1:
The summary of the key accounting policies: Land and buildings are
explained at the re-valued amounts. All the other property classes, plant
and equipment are computed at the cost. The depreciation is charged so
as to write off the cost over the projected useful life of the asset by
making use of the straight line method. The depreciation rates are 5% of
building and 20% of plant and equipment.
Note 2: Cash or cash equivalent
Note 3: Receivables
Receivables less allowance for doubtful debts
Note 4: Investments
Listed shares at fair value held for trading
Note 5: Other financial assets
Debentures (held to maturity) at amortized cost
Loans to associated entities at amortized cost
Commonwealth bonds at amortized cost
VCS2: Statement of changes in equity as at 30 June 20XX.
The opening balances of the accounts as at 1/7/20xx were as follows:
Retained Earnings $160,000; General Reserve $120,000; Asset
Revaluation $50,000, Share capital $600,000. The following transactions
are also to be recorded: Transfer of $10,000 from retained earnings to
General Reserve; dividends declared at $50,000; issue of share capital of
$100,000.
Page 29
Other Expenses:
Bad Debts ($5,000) ($5,000)
Profit before Tax 2 $174,500
Income Tax Expenses 3 ($52,350)
Profit for the period $122,150
Gain/(Losses) recorded directly in equity 4 $10,000
Net Comprehensive Income $132,150
Note 1:
The summary of the key accounting policies: Land and buildings are
explained at the re-valued amounts. All the other property classes, plant
and equipment are computed at the cost. The depreciation is charged so
as to write off the cost over the projected useful life of the asset by
making use of the straight line method. The depreciation rates are 5% of
building and 20% of plant and equipment.
Note 2: Cash or cash equivalent
Note 3: Receivables
Receivables less allowance for doubtful debts
Note 4: Investments
Listed shares at fair value held for trading
Note 5: Other financial assets
Debentures (held to maturity) at amortized cost
Loans to associated entities at amortized cost
Commonwealth bonds at amortized cost
VCS2: Statement of changes in equity as at 30 June 20XX.
The opening balances of the accounts as at 1/7/20xx were as follows:
Retained Earnings $160,000; General Reserve $120,000; Asset
Revaluation $50,000, Share capital $600,000. The following transactions
are also to be recorded: Transfer of $10,000 from retained earnings to
General Reserve; dividends declared at $50,000; issue of share capital of
$100,000.
Page 29
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Statement of Change in Equity:
for the year end 30 June 20XX
Reserves
Total Equity at the beginning of
the year
Retaine
d
Earning
s
General
Reserve
Asset
Revaluation
Share
Capital
Total
Equity
Total equity at the beginning of
the year
$160,00
0
$120,00
0 $50,000
$600,00
0
$930,00
0
Transfer to General Reserve
($10,00
0) $10,000 $0
Dividend Declared
($50,00
0)
($50,00
0)
Issue of Share Capital
$100,00
0
$100,00
0
Total Equity at the end of the
year
$100,00
0
$130,00
0 $50,000
$700,00
0
$980,00
0
VCS3: Statement of financial position as at 30 June XX.
The balances of the following accounts as at 30 June were as follows:
Cash $240,000; Accounts receivable $324,000; Allowance for doubtful
debts $12,000; Goodwill $50,000; Accounts Payable $76,000; tax payable
$10,160; Dividends paid $50,000; Long term loan$100,000; Inventories
$460,000; Land and buildings $250,000; property plant and equipment
$55,000; Accumulated depreciation on plant and equipment $5,000;
Short term loan $55,000; Debentures $50,000; Financial assets $90,780,
share capital $700,000; General Reserve $130,000; Asset revaluation
reserve $60,000; retained earnings $221,620.
Page 30
Statement of Change in Equity:
for the year end 30 June 20XX
Reserves
Total Equity at the beginning of
the year
Retaine
d
Earning
s
General
Reserve
Asset
Revaluation
Share
Capital
Total
Equity
Total equity at the beginning of
the year
$160,00
0
$120,00
0 $50,000
$600,00
0
$930,00
0
Transfer to General Reserve
($10,00
0) $10,000 $0
Dividend Declared
($50,00
0)
($50,00
0)
Issue of Share Capital
$100,00
0
$100,00
0
Total Equity at the end of the
year
$100,00
0
$130,00
0 $50,000
$700,00
0
$980,00
0
VCS3: Statement of financial position as at 30 June XX.
The balances of the following accounts as at 30 June were as follows:
Cash $240,000; Accounts receivable $324,000; Allowance for doubtful
debts $12,000; Goodwill $50,000; Accounts Payable $76,000; tax payable
$10,160; Dividends paid $50,000; Long term loan$100,000; Inventories
$460,000; Land and buildings $250,000; property plant and equipment
$55,000; Accumulated depreciation on plant and equipment $5,000;
Short term loan $55,000; Debentures $50,000; Financial assets $90,780,
share capital $700,000; General Reserve $130,000; Asset revaluation
reserve $60,000; retained earnings $221,620.
Page 30
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
In accordance with AASB101 the assets and liabilities are to be classified
as current and noncurrent on the face of the statement of financial
position.
The following information is to be disclosed in the notes: Land and
buildings are recorded at fair value; property, plant and equipment at
cost- depreciation is charged over the useful life of the asset at a rate of
20% using the straight line method. An allowance has been made for
doubtful debts from receivables. Goodwill is represented by the excess
purchase consideration over the fair value of the net assets. Debentures
and loans are held at amortised cost. Financial assets are recorded at
fair value.
Balance Sheet
as on 30 June 20XX
Particulars Amount Amount
Current Assets:
Cash $240,000
Accounts Receivable
$324,00
0
Allowance for Doubtful Debts
($12,000
) $312,000
Inventories $460,000
Total Current Assets
$1,012,00
0
Non-Current Assets:
Land & Buildings $250,000
Property,Plant & equipment $55,000
Less: Accumulated Depreciation ($5,000) $50,000
Goodwill $50,000
Financial Assets $90,780
Total Non-Current Assets $440,780
Total Assets
$1,452,78
0
Current Liabilities:
Accounts Payable $76,000
Tax Payable $10,160
Short-Term Loan $55,000
Dividend Payable $50,000
Page 31
In accordance with AASB101 the assets and liabilities are to be classified
as current and noncurrent on the face of the statement of financial
position.
The following information is to be disclosed in the notes: Land and
buildings are recorded at fair value; property, plant and equipment at
cost- depreciation is charged over the useful life of the asset at a rate of
20% using the straight line method. An allowance has been made for
doubtful debts from receivables. Goodwill is represented by the excess
purchase consideration over the fair value of the net assets. Debentures
and loans are held at amortised cost. Financial assets are recorded at
fair value.
Balance Sheet
as on 30 June 20XX
Particulars Amount Amount
Current Assets:
Cash $240,000
Accounts Receivable
$324,00
0
Allowance for Doubtful Debts
($12,000
) $312,000
Inventories $460,000
Total Current Assets
$1,012,00
0
Non-Current Assets:
Land & Buildings $250,000
Property,Plant & equipment $55,000
Less: Accumulated Depreciation ($5,000) $50,000
Goodwill $50,000
Financial Assets $90,780
Total Non-Current Assets $440,780
Total Assets
$1,452,78
0
Current Liabilities:
Accounts Payable $76,000
Tax Payable $10,160
Short-Term Loan $55,000
Dividend Payable $50,000
Page 31
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Total Current Liabilities $191,160
Non-Current Liabilities:
Long-Term Loan $100,000
Debentures $50,000
Total Non-Current Liabilities $150,000
Total Liabilities $341,160
Net Assets
$1,111,62
0
Equity Capital:
Share Capital $700,000
General Reserve $130,000
Asset Revaluation Reserve $60,000
Retained Earnings $221,620
Total Equity
$1,111,62
0
Notes:
Land and buildings are recorded at the fair value; property, plant and
equipment at cost- depreciation is charged over the useful life of the
asset at a rate of 20% using the straight line method. An allowance has
been made for doubtful debts from receivables. Goodwill is represented
by the excess purchase consideration over the fair value of the net
assets. Debentures and loans are held at amortized cost. Financial
assets are recorded at fair value.
VCS4: Statement of cash flows.
The following transactions were recorded for the financial year:
Cash flows from operating activities: Receipts from customers $596,000;
Payments to suppliers $250,000; Payments to employees $120,000;
Page 32
Total Current Liabilities $191,160
Non-Current Liabilities:
Long-Term Loan $100,000
Debentures $50,000
Total Non-Current Liabilities $150,000
Total Liabilities $341,160
Net Assets
$1,111,62
0
Equity Capital:
Share Capital $700,000
General Reserve $130,000
Asset Revaluation Reserve $60,000
Retained Earnings $221,620
Total Equity
$1,111,62
0
Notes:
Land and buildings are recorded at the fair value; property, plant and
equipment at cost- depreciation is charged over the useful life of the
asset at a rate of 20% using the straight line method. An allowance has
been made for doubtful debts from receivables. Goodwill is represented
by the excess purchase consideration over the fair value of the net
assets. Debentures and loans are held at amortized cost. Financial
assets are recorded at fair value.
VCS4: Statement of cash flows.
The following transactions were recorded for the financial year:
Cash flows from operating activities: Receipts from customers $596,000;
Payments to suppliers $250,000; Payments to employees $120,000;
Page 32
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
payment of operating expenses $109,000; income tax paid $52,000.
Cash flows from investing activities: proceeds from the sale of machinery
$10,000.
Cash flows from finance activities: Dividends paid $50,000; loan paid
$95,000; proceeds from share issue $200,000.
Opening cash balance as at 1/7/20xx was $110,000. You are required to
calculate the net increase in cash for the year and reconcile cash flows
with cash balance in Statement of Financial Position.
Statement of Cash Flow
as on 30 June 20XX
Particulars Amount
Cash Flow from Operating Activities:
Receipts from Customers
$596,00
0
Payments to Suppliers
($250,00
0)
Payment to Employees
($120,00
0)
Payment of Operating Expenses
($109,00
0)
Income Tax Paid
($52,000
)
Net Cash Flow from Operating Activities $65,000
Cash Flow from Investing Activities:
Proceeds from Sale of Machinery $10,000
Net Cash Flow from Investing Activities $10,000
Cash Flow from Financing Activities:
Dividends Paid
($50,000
)
Loan Paid
($95,000
)
Proceeds from Share Issue
$200,00
0
Net Cash Flow from Financing Activities $55,000
Net Increase/(Decrease) in Cash
Balance
$130,00
0
Page 33
payment of operating expenses $109,000; income tax paid $52,000.
Cash flows from investing activities: proceeds from the sale of machinery
$10,000.
Cash flows from finance activities: Dividends paid $50,000; loan paid
$95,000; proceeds from share issue $200,000.
Opening cash balance as at 1/7/20xx was $110,000. You are required to
calculate the net increase in cash for the year and reconcile cash flows
with cash balance in Statement of Financial Position.
Statement of Cash Flow
as on 30 June 20XX
Particulars Amount
Cash Flow from Operating Activities:
Receipts from Customers
$596,00
0
Payments to Suppliers
($250,00
0)
Payment to Employees
($120,00
0)
Payment of Operating Expenses
($109,00
0)
Income Tax Paid
($52,000
)
Net Cash Flow from Operating Activities $65,000
Cash Flow from Investing Activities:
Proceeds from Sale of Machinery $10,000
Net Cash Flow from Investing Activities $10,000
Cash Flow from Financing Activities:
Dividends Paid
($50,000
)
Loan Paid
($95,000
)
Proceeds from Share Issue
$200,00
0
Net Cash Flow from Financing Activities $55,000
Net Increase/(Decrease) in Cash
Balance
$130,00
0
Page 33
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
Add: Opening Cash Balance
$110,00
0
Closing Cash Balance
$240,00
0
VCS5: What are your obligations under AASB108 with respect to
recording changes or errors in the financial statements?
AASB108 explains that material errors that associate to reporting periods
be rectified by adjusting the opening balance of the retained earnings
and re-explaining the comparative data. The adjustment is not revealed
in the profit and loss for the period. AASB108 also needs the disclosure of
the nature of the volume of the error and the financial report line item
impacted.
VCS6: In your own words describe the provisions of;
VCS6A Section 140 – Confidentiality
The principle of confidentiality levies an responsibility on skilled
accountants to abstain from:
(a) Revealing outside the firm or employing organizational confidential
data acquired due to business and professional relationships without
specific and proper authority or unless there is a professional or legal
right or duty to disclose; and
Page 34
Add: Opening Cash Balance
$110,00
0
Closing Cash Balance
$240,00
0
VCS5: What are your obligations under AASB108 with respect to
recording changes or errors in the financial statements?
AASB108 explains that material errors that associate to reporting periods
be rectified by adjusting the opening balance of the retained earnings
and re-explaining the comparative data. The adjustment is not revealed
in the profit and loss for the period. AASB108 also needs the disclosure of
the nature of the volume of the error and the financial report line item
impacted.
VCS6: In your own words describe the provisions of;
VCS6A Section 140 – Confidentiality
The principle of confidentiality levies an responsibility on skilled
accountants to abstain from:
(a) Revealing outside the firm or employing organizational confidential
data acquired due to business and professional relationships without
specific and proper authority or unless there is a professional or legal
right or duty to disclose; and
Page 34
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
(b) Using confidential data gained due to business and professional
relationships to their personal advantage or the benefits of the third
parties.
VCS6B Section 200 – Conflicts of Interest in APES110 – Code of Ethics for
Professional Accountants.
By looking at the circumstances giving rise to the conflict and application
of one of the following security and the safeguards that are essential.
Page 35
(b) Using confidential data gained due to business and professional
relationships to their personal advantage or the benefits of the third
parties.
VCS6B Section 200 – Conflicts of Interest in APES110 – Code of Ethics for
Professional Accountants.
By looking at the circumstances giving rise to the conflict and application
of one of the following security and the safeguards that are essential.
Page 35
Assessment Workbook V: Prepare Financial Reports for Corporate Entities
COURSE REVIEW
Provide a short overview of what you have learnt in “course V - Prepare financial
reports for corporate entities” and how it will assist you in your role as a
bookkeeper. (Your response must be at least 250 words).
In this course extensive knowledge can be gained with respect to the
preparation of the financial reports for the corporate entities. The
preparation of the financial report is useful for understanding the process
and the regulations that are used for the financial transactions that are
taking place within an organization. This course has helped me to
develop an extensive knowledge about the process of how to prepare a
financial report making me competent enough to become a bookkeeper.
The construction of the financial report has helped me to understand the
basic features that are required for the organizational function and in
that manner helping me develop various other knowledge. This course
has even helped in understanding the principles of bookkeeping and to
make use of the data entry mechanisms. This course has even aided me
to understand the various government bodies with respect to which the
financial reports have to be constructed. The course has even helped me
in gaining understanding about the various accounting process
techniques that are used for the purpose constructing the financial
report. The knowledge about the same will be useful for becoming a
professional and skilled bookkeeper. The knowledge about the corporate
entities and the various sections and rules that have been framed by the
government bodies and can gain knowledge about the changes that have
been made for making amendments in the financial reports of the
organization. This course has even helped me gaining knowledge about
the various tools and mechanism that are used for the purpose framing a
financial report and hence this has helped in gaining experiences about
bookkeeping.
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COURSE REVIEW
Provide a short overview of what you have learnt in “course V - Prepare financial
reports for corporate entities” and how it will assist you in your role as a
bookkeeper. (Your response must be at least 250 words).
In this course extensive knowledge can be gained with respect to the
preparation of the financial reports for the corporate entities. The
preparation of the financial report is useful for understanding the process
and the regulations that are used for the financial transactions that are
taking place within an organization. This course has helped me to
develop an extensive knowledge about the process of how to prepare a
financial report making me competent enough to become a bookkeeper.
The construction of the financial report has helped me to understand the
basic features that are required for the organizational function and in
that manner helping me develop various other knowledge. This course
has even helped in understanding the principles of bookkeeping and to
make use of the data entry mechanisms. This course has even aided me
to understand the various government bodies with respect to which the
financial reports have to be constructed. The course has even helped me
in gaining understanding about the various accounting process
techniques that are used for the purpose constructing the financial
report. The knowledge about the same will be useful for becoming a
professional and skilled bookkeeper. The knowledge about the corporate
entities and the various sections and rules that have been framed by the
government bodies and can gain knowledge about the changes that have
been made for making amendments in the financial reports of the
organization. This course has even helped me gaining knowledge about
the various tools and mechanism that are used for the purpose framing a
financial report and hence this has helped in gaining experiences about
bookkeeping.
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Page 36
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Assessment Workbook V: Prepare Financial Reports for Corporate Entities
The assessment has been a blend of theoretical and practical questions
and in this way has provided vast knowledge about corporate entities
and construction of the financial reports. The factors that are associated
with the financial reports are even given in this assessment and in this
manner have enhanced the role and functions of bookkeeping. This
assessment can be improved by bringing in facts and figures that have
changed in the economy with the course of time.
Page 37
The assessment has been a blend of theoretical and practical questions
and in this way has provided vast knowledge about corporate entities
and construction of the financial reports. The factors that are associated
with the financial reports are even given in this assessment and in this
manner have enhanced the role and functions of bookkeeping. This
assessment can be improved by bringing in facts and figures that have
changed in the economy with the course of time.
Page 37
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