Financial Statement Reporting and Analysis

This assignment evaluates your competency in financial reporting and analysis. You'll need to demonstrate your ability to collect, evaluate, and code financial data, prepare accurate financial statements, calculate tax liabilities, identify discrepancies, and provide insightful recommendations for enhancing organizational functions. The assessment is divided into two tasks focusing on different aspects of financial activity reporting.

ASSESSMENT
Qualification: FNS40615 Certificate IV in Accounting
Unit of Competency: FNSBKG404 Carry out business activity and instalment
activity statement tasks
Student Name:
Student ID:
Assessment Due Date:

ASSESSMENT MAPPING
FNSBKG404 Carry out business activity and instalment activity statement
tasks
This unit describes the skills and knowledge required to identify and apply
compliance requirements to effectively process and complete business activity
statements (BAS), instalment activity statements (IAS) and other required reports.
Elements Performance Criteria
1. Identify
individual
compliance
and other
requirements
1.1. Research and document legislative, regulatory,
industry and organisational requirements relating to activity
statements and seek expert advice to clarify issues where
applicable
1.2. Review, interpret and apply legislation related to
taxes reported on activity statements, using relevant
materials when required and other resources supporting
legislation
1.3. Identify and document policies in relation to
compliance with Code of Professional Conduct as stipulated
in relevant legislation
1.4. Identify and access information, advice or services
outside individual’s scope of operation and establish and
use networks where necessary
1.5. Identify and document lodgement schedule
requirements
1.6. Assess entity’s cash flow and payment options and
initiate discussion with management to ensure sufficient
funds are available
2. Recognise
and apply
GST
implications
and code
transactions
2.1. Identify, apply and record goods and services tax
(GST) principles
2.2. Identify and code purchases and/or payments as per
GST classifications
2.3. Identify and code sales and/or receipts as per GST
classifications
2.4. Process accounting data to comply with tax reporting
requirements
3. Report on
payroll
3.1. Identify and reconcile total salaries, wages and other
payments for accounting period
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activities and
amounts
withheld
3.2. Identify and reconcile amounts withheld from salaries
and wages for accounting period in conjunction with payroll
department if applicable
3.3. Identify and reconcile amounts withheld from other
payments for accounting period in conjunction with other
departments if applicable
3.4. Verify or calculate pay as you go (PAYG) instalment
amount where applicable, or calculate for other payments
where applicable
4. Complete
and
reconcile
activity
statement
4.1. Generate, review and validate activity statement
reports, identify any errors and correct bookkeeping entries
where required
4.2. Make adjustments for previous quarters, months or
year-end where necessary
4.3. Complete BAS and/or IAS return in accordance with
current statutory, legislative, regulatory and organisational
schedule
4.4. Reconcile figures completed on BAS and/or IAS form
with journal entries, financial statements, GST and other
control accounts
5. Identify
individual
compliance
and other
requirements
5.1. Check activity statement and ensure sign off by
appropriate person as identified by statutory, legislative and
regulatory requirements
5.2. Lodge activity statement in accordance with
statutory, legislative and regulatory requirements
5.3. Process and record payments and refunds as
required
Performance Evidence
Evidence of the ability to:
 research, critically evaluate and apply any changes to current or new legislative
or professional conduct requirements relevant to the preparation of activity
statements
 identify financial transactions required to prepare activity statements and apply
goods and services tax (GST) principles and classifications
 prepare both business activity statements (BAS) and instalment activity
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statements (IAS) for a range of legal entities that comply with:
o Australian taxation law, Australian Taxation Office (ATO) rulings, Tax
Practitioner Board (TPB) requirements and any lodgement schedules
o accounting principles and practices
o organisational policy and procedures
 present activity statements for verification and approval
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
 Outline the research methods and sources of information used to update
knowledge of professional and legislative requirements relating to activity
statements
 identify the key requirements of current legislation, regulations and industry
codes of practice related to the preparation of activity statements, including:
 Tax Agent Services Act (TASA), including Code of Professional Conduct and
civil penalty provisions
o Fringe Benefits Tax Assessment Act
o Superannuation Guarantee (Administration) Act
o Superannuation Guarantee Charge Act
o A New Tax System (Goods and Services Tax) Act
o Income Tax Assessment Act
o Taxation Administration Act
o other taxation laws, including wine equalisation tax, luxury car tax and fuel
tax
o Privacy Act
 describe the ATO requirements and relevant accounting terminology for the
preparation and submission of BAS and IAS related to a range of business
types
 describe GST terminology, classifications, regulations and obligations with
reference to relevant materials
 explain the TPB requirements for registration as a BAS agent
Foundation Skills
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Reading  Analyses and interprets relatively complex regulatory and
legislative texts and other sources of information to
identify and clarify requirements
Writing  Documents research information and accurately records
required tax data and financial transactions
Oral
Communication
 Elicits the views and opinions of others and obtains
information by questioning and active listening, and uses
clear and detailed language to clarify and confirm
understanding
Numeracy  Uses developed mathematical skills to interpret and
assess business accounting records, identify, reconcile
and correctly process relevant data and calculate
required taxation instalments in compliance with
reporting requirements
 Prepares accurate numerical data for activity statements
that is adjusted and corrected as required and reconciled
to bookkeeping system entries
 Defines timeframes in accordance with schedule
requirements
Navigate the world
of work
 Takes responsibility for adherence to legal and
regulatory requirements
 Uses research and consultation to ensure fully informed
and compliant work practice
Interact with others  Cooperates and collaborates with others as part of
familiar routine activities and contributes to activities
requiring joint responsibility and accountability
Get the work done  Plans, organises and completes work according to
defined requirements, taking responsibility for
sequencing tasks to meet organisational deadlines and
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legislative requirements
 Uses systematic, analytical processes in complex,
routine and non-routine situations, gathering information
and identifying and evaluating potential solutions
 Uses digital tools to conduct research, design work
processes and to complete work tasks
ASSESSMENT INFORMATION:
To be deemed competent for this unit of competency, you are required to
satisfactorily complete two (2) assessments:
 Assessment 1: Written questions
 Assessment 2: Skills Assessment
Assessment Instructions
Your assessment will be required to be typed in Arial font size 12 only. You will
provide your completed assessment for all of questions in one document and MUST
be uploaded into MOODLE (No other method of submission will be accepted).
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You are required to professionally format your document including spell-check and
indicating each Task answer [e.g. Task 1 (a.) then the answer, Task 1 (b.) then the
answer etc.] according to this Assignment requirement. You may lose marks if you
have not spell-checked your document (as this is a professional formatting
requirement, a business skill).
This assessment can be completed in one of several ways. Assessment candidates
may identify unit requirement within their own work environment or organisation, or
with reference to a scenario provided by the trainer/assessor.
Be sure to properly reference your sources of information using the Harvard
referencing system. For more information go to:-
 Student Handbook - latest version
 Ask your Trainer/Assessor to provide you with this information
In order to determine if you are addressing this assignment adequately in terms of
competency/comprehension (prior to due date) a draft copy of your assessment
should be discussed during class time in consultation with your
Trainer/Assessor. For this feedback/ support from your Trainer/Assessor, you will
need to bring to class your “draft copy” with any evidence of the research you have
conducted to produce the assessment.
If, as a student you feel you have special needs that require your Trainer/Assessor to
apply a reasonable adjustment – please discuss this with your Trainer/Assessor at
the beginning of the subject studies.
Your Assignment must:
a. Be of a professional standard (spelling, grammar, punctuation)
b. Size 12, Arial Font
c. 1.5 Spacing
d. All pages must have a Header/Footer with the following details:
o Name
o Student ID
o The course & unit of competency
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o Date
o Page numbering
e. Title page
f. Index page
g. Body of work
h. Referencing
How to upload your answered assessment into MOODLE
To upload your assignment into Moodle, follow these steps.
1. Log-in to Moodle and access the subject that you will be submitting the
assignment in.
2. Locate the assessment you will be uploading into by scrolling down to the week
that the assessment is due in and then click on the assessment submission link.
3. Click on the name of the assignment.
4. Click the Browse button.
5. Select the file and click Open.
6. Click the Upload this file button.
7. If you have more than one file, repeat the process (steps 4-6) to attach
additional files up to the assignment's limit.
8. Once happy with your submission click the Send for marking button. The
files are locked and the student can no longer delete, or upload more, files.
Note: The date and time of the submission is recorded when the files are sent for
marking, not when they are first uploaded.
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ASSESSMENT 1: WRITTEN QUESTIONS
QUESTIONS
1. What are the three main categories of tax obligations?
Answer: The three main tax obligations for the taxpayer are as follows;
a. Registration
b. Lodgement
c. Reporting and Payment
Irrespective of the type of entity an individual, big organization or SMSF all the
tax payers are required to make an application for the TFN and a large number of
them are required to lodge a yearly tax return.
2. What do you need to do in order to identify individual compliance and other
requirements?
Answer: Obeying to the lawful requirements and obligations or systematically and
preventively protecting the individual taxpayer in the field of taxes is known as the
tax compliance. Government with the help of the tax administrations, usually seek to
reduce their own system of taxation operating cost whereas at the same time
keeping the compliance cost for taxpayers as minimum as possible. In order to attain
this, an equilibrium should be created between the cost borne by the individual in
complying with the regulations of tax and the cost that is shouldered by the revenue
authority in running the system. Enforcing compliance through constant checks,
substantial audits and prosecution is considered as an expensive method of making
sure that adequate compliance is attained where the taxpayer is stimulated to co-
operate and actively comply with the regulations of taxation.
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3. How would you recognise and apply GST implications and code transactions?
Answer: Recognizing and applying GST implications and code transactions are as
follows;
a. The fundamentals of GST are recognized, applied and recorded.
b. Purchases and payments are recorded, coded in accordance with the GST
classifications and they are split in capital and non-capital as considered
appropriate.
c. Sales and other receipts are recognized and coded according to the GST
classifications
d. Accounting data is processed to adhere with the reporting requirements of
taxation.
4. What do you need to do to report on payroll activities?
Answer: Reporting on payroll activities are as follows;
a. An employer under the payroll activities is required to report to the ATO
regarding all the payments on or prior to the payday, through the payroll
event.
b. When the payment is made through electronic means, the day of payment is
either considered as the date that is stipulated in the electronic transactions or
else no date is specified, the data on which the payment is proposed to be
made in the employees bank account.
c. The report should take into the account the employee, with the amount that is
subjected to withholding in the regular cycle of pay.
d. Total amount of salaries and other types of payments during the period of
accounting are recognized and reconciled.
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e. The sum that is to be withhold from the salaries, wages and other payments
during the period of accounting are recognized and reconciled in the
conjunctions with the department of payroll if it is applicable.
5. What do you need to do in order to report on other amounts withheld, PAYG
instalments and taxes?
Answer: The requirements of reporting on the other amount withheld, PAYG
instalments and taxes are as follows;
a. An employer having a branch for PAYG for withholding purpose, the employer
is required to report separately the payroll events for each of the PAYG
withholding branch that is established with the ATO.
b. Amounts that are withheld from other payments during the period of
accounting are recognized and identified and reconciled in accordance with
other subdivisions provided they are applicable.
c. The instalment amount of PAYG should be verified or wherever applicable
should be computed.
d. Instalments amounts must be verified wherever applicable and must be
computed for other taxes.
6. What tasks must be performed when completing and reconciling the activity
statement?
Answer: Tasks that needs to be executed at the time of completing and reconciling
the activity statement are as follows;
a. Activity statement report should be generated whenever required and should
be checked and validated.
b. Errors should be identified and correct bookkeeping entries must be
generated.
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c. Adjustment for previous quarter should be made, or months or end of the year
whenever it is necessary.
d. BAS and IAS return must be completed in compliance with the up to date
statutory, regulatory and legislative organisational schedule.
e. Figures must be completed on the BAS and IAS form and must be reconciled
with the journal entries profit and loss statement, GST and other forms of
control accounts.
7. What tasks are required when lodging an activity statement?
Answer: Task required at the time of lodging activity statements are as follows;
a. Activity statement must be checked and signed off by an appropriate
individual as identified by the statutory legislation and regulations
requirements
b. Activity statements must be dispatched in compliance with the statutory
requirements, legislative and regulatory requirements.
c. Payment or any form of refund that is processed must be recorded.
8. What steps are involved in completing a BAS reconciliation?
Answer: Steps involved in completed BAS reconciliation are as follows;
Step 1: Preparing the information: Under this step the taxpayer is required to
reconcile their books of accounts to make sure that all the information is correct and
up to date.
Step 2: Entering Missing Transactions: An individual is required to record any
missing transaction for which they have receipts and invoices. For each of the
missing transactions the taxpayer will be needing a date, total sum of the
transaction, amount of GST and description.
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Step 3: Totalling all records: Once the information is appropriately entered an
individual can either run the activity statement in their software or if an individual is
using a manual method then all the numbers must be added up to determine the
amount of GST that is owed during the period of tax.
Step 4: Updating the records and lodge: Once the taxpayer has completed the BAS,
they are required to update their records with new information and make the copies
of all the necessary documents. Then in the later stages either the taxpayer should
mail the hard copy of the BAS form to the ATO or they can file through electronic
means to the portal of ATO or have their agent to lodge the report on behalf of the
taxpayer.
9. How can you calculate the amount of GST that needs to be paid or will be
refunded?
Answer: GST is payable if an individual makes a taxable supply. A taxable supply is
the supply that an individual has paid for or receive considerations for in the course
of running their business. GST is computed as the 10 per cent of the amount of the
supply. The worth of the taxable supply represents the considerations that is payable
during the supply.
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10. What is GST?
Answer: GST can be defined as the goods and service tax which represents a broad
based tax of 10 per cent on large number of goods, service and other items that are
sold and consumed in Australia. GST is applicable to most of the production in
Australia however it is refunded to all the parties that are involved in the chain of
production other than the final consumers. All the Australia business whose turnover
is beyond the minimum threshold limit of $75,000 per annum are required to get
registered for the purpose of GST.
11. When does PAYG apply?
Answer: When an individual makes payments to the employees and some
contractors they are required to withhold the amount and send it to the Australia
Taxation Office at the regular intervals. An individual has the withholding obligations
if any of the following is applicable;
a. If an individual has employees
b. An individual has other workers, such as contractors and they enter into
voluntary agreement to withholding amounts from their payment to them.
c. If an individual makes payment to the business that do not quote their
Australian business number.
12. What advantages are there in using the activity statement functions in the
portal?
Answer: The business portal is considered as the gateway to the Australian
government online service for business. It is regarded as the easy and convenient
method of accessing information and managing the business tax affairs. The benefits
of having activity statement portal on the portal are as follows;
a. An individual can view, prepare, lodge and revise their activity statements
b. An individual can update and view their details of the business registration
c. An individual can view their statement of account and options of payment
d. An individual can request for refunds and transfer credits
e. Send messages to the office of taxation on the selected matters.
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13. Can you use your accounting software package to lodge without having to
manually re-key the data on to the activity statement showing in the portal?
Answer: Yes, an individual can make the use of the accounting software package to
lodge the tax return without entering manually the re-key on the business activity
statements that is showing in the portal.
14. State the purpose of the Tax Agent Services Act 2009.
Answer: The purpose of the tax agent service act 2009 are as follows;
a. The main purpose of the tax agent services Act 2009 is to make sure that the
agent services are offered to the public in compliance with the correct
standards of professional and ethical code of conduct.
b. The purpose of this act is to establish a national board in order to register tax
agents and BAS agents
c. The purpose of tax agent service act 2009 is to introduce a code of
professional conduct for agents that are tax registered and BAS agents
d. Providing for a permission to self-control registered tax agents and BAS
agents.
15. Under the TASA 2009, what is a BAS service?
Answer: A BAS service can be defined as the tax agent service which is related to
the ascertainment of the liabilities, obligations or entitlements of an entity which arise
or might arise under the provision of the BAS. It provides an advise to the entities
regarding the liabilities, obligations or entitlements of the entity or any other entity
that originate or might arise under the provision of the BAS.
16. Can you complete a BAS return using Xero?
Answer: Yes, an individual tax payer can complete the BAS by using the Xero. This
is because the activity statement that is generated by the Xero for the Australian
taxation office is based on the PAYG withholding and the frequency of GST
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reporting. Therefore, using the BAS serves as the advantage for multiple users that
are working in the organization.
17. What can be included in a BAS?
Answer: Items that can be included in the BAS are as follows;
a. Gross fees for services
b. Gross amount of sales
c. Trade-in and barter transactions
d. Amount of interest earned
e. Rents
f. Overseas income
g. Commissions
h. Fees relating to membership and subscriptions
i. Grants received from government and specific grants from private sector
j. Amount derived from the sale of business assets namely office equipment’s.
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18. What is the difference between Cash & Non-Cash reporting options?
Answer: The main difference between non-cash and cash basis of accounting
reporting lies during the time when the revenue and expenses are identified. Under
the cash method of reporting it is largely used by the small business and for personal
finance. The cash method of accounts for revenue is considered when the amount of
money is received and for the expenditure when the money is paid out. In contrast to
this, the accrual method of accounts for revenue represents when the revenue is
earned and expenses for goods and services when they are incurred. The amount of
revenue is recorded even though the cash is not received or the expenditure have
been incurred but no cash has been paid. Non-cash method of reporting is the most
common method of reporting that is used by the business.
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ASSESSMENT 2: SKILLS ASSESSMENT
Task 1 – Financial Activity Reporting #1
A. Using the accounts following, complete the GST Worksheet for BAS. Complete
the BAS Statement (copy may be downloaded from the Australian Taxation Office at
https://www.ato.gov.au/uploadedFiles/Content/CAS/downloads/BUS25199Nat4189s.
pdf).
Trial balance
Trial balance
Trial balance as at 30 June 20xx
Details Dr Cr
Cash at bank 87527.00
Stock 3000.00
Debtors control 6072.00
GST paid 1973.00
Office equipment 3000.00
Premises 50000.00
Mortgage on premises 30000.00
Loan from B Burns 20000.00
Creditor control 5500.00
GST collected 1622.00
Purchases 14600.00
Capital - C Mahr 93000.00
Sundry creditor - C Smythe 3300.00
Discount income 100.00
Drawings - C Mahr 540.00
Discount expense 30.00
Sales 13920.00
Commission income 200.00
Wages 800.00
Advertising 300.00
Insurance 1200.00
Sales returns & allowances 600.00
Purchases returns & allowances 2000.00
$169,642.00$169,642.00
Profit and Loss A/C
Profit and Loss Account
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For the year ended 20XX
Dr Cr
Particulars
Amount
($)
Amount
($) Particulars
Amount
($)
Amount
($)
Purchase 14600 Sales 13920
Less: Purchase
Return 2000 12600 Less: Sales Return 600 13320
Discount Income 100
Discount
Expense 30 Commission Income 200
Wages 800
Net Loss- Transferred to
Capital A/c 1661
Advertising 300 Gst Collected 1622
Insurance 1200
GST Paid 1973
16903 16903
Balance Sheet:
Balance Sheet as on
For the Year Ended 20XX
Dr Cr
Particulars
Amount
($)
Amount
($) Particulars
Amount
($)
Amount
($)
Liabilities Assets
Mortgage on
Premises 30000 Cash at Bank 87527
Loan From B Burns 20000 Closing Stock 3000
Creditor Control 5500 Debtor Control 6072
Capital Premises 50000
C Mahr 93000
Office
Equipment 3000
Less: Drawings C
Mahr 540 92460
Sundry Creditor 3300
Less: Net Loss 1661
149599 149599
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Complete Option 1 OR 2 OR 3
(indicate one choice with an X)
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Option 1: Calculate GST and
report quarterly
O
R
Option 2: Calculate GST and report
annually
Total sales
G
1 $
14,5
20 Total Sales
G
1 $
14,52
0
Does G1 include
GST Yes
N
o
O
R
Does G1 include
GST Yes
N
o
Export Sales
G
2 $
O
R
report GST on sales at 1A and GST
on purchases at 1B in the summary
section over the page
Other GST - free
sales
G
3 $ 0 O
R
Capital
purchases
G
1
0 $ 0
O
R
Option 3: Pay GST
instalment amount
ATO
instalment
amount
G
2
1 $ $0
Non-capital
purchases
G
1
1 $
16,6
00 O
R
Write the G21 amount at 1A in
summary over the page (leave 1B
blank)
OR if varying this amount, complete
G22, G23, G24
Estimated net
GST for the year
G
2
2 $
report GST on sales at 1A and
GST on purchases at 1B in the
summary section over the page
Varied amount
for the quarter
G
2
3 $
Write the G23 amount at 1A in
summary section over the page
(leave 1B
blank)
Reason code for
variation
G
2
4 $
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PAYG Tax withheld PAYG income tax installment
Total Salary,
wages and other
payments
W
1
$
Complete Option
1 OR 2
Amount withheld
from payments
shown at W1
W
2
$
Option 1: Pay a PAYG
instalment amount
ATO Instalment
amount
T
7
$ 0
Amount withheld
where no ABN is
quoted W
4 $
Write the T7 amount at 5A in
summary section below OR if
varying this amount, complete
T8,T9,T4
Other amounts
withheld
W
3
$ Estimated tax for
year
T
8
$
Total amounts
witheld
(W2+W4+W3)
W
5
$ 0
Varied amount for
the quarter
T
9
$
Write the W5 amount in the
Summary section below
Write the T9 amount at 5A in the
Summary section below
Reason code for
variation
T
4
OR
Option 2: Calculate PAYG instalment
using income x rate
PAYG instalment
income
T
1 $
13,20
0
Commissioner's
rate
T
2 0.00% %
OR
New varied rate
T
3 %
T1 x T2 (or T3)
T
1
1 $ 0
Reason for code
variation
T
4
Summary
Amounts you
owe the ATO
Amounts the ATO
owes you
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GST on sales or
GST Installment
1
A $
1,320
GST of purchases
1
B $ 1509
Do not complete 1B if using GST
installment amount (Option 3)
PAYG tax
withheld 4 $ 0
Credit from PAYG
income tax
installment
variation
5
B $
PAYG income tax
installment
5
A $ 0
Deferred
company/fund
installment 7 $ 0
1A + 4 + 5A + 7
8
A $ 1,320
1B +
5B
8
B $ 1509
Payment or Refund?
Is 8A more
than 8B? Yes, then write the result of 8A
minus 8B at 9. This amount is
Payable to the ATO 9 $ -189
No, then write the result of 8B minus
8A at 9. This amount is
Refundable to you by the ATO
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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B. Review the financial statement(s)
Analyse the data in the financial statement included in A to determine the financial
position of the organization. Re-organise and present financial data including budget
variances, budgets and forecasts, cash flow/profit reports, balance sheets, financial
year reports, operating statements, expenditure and receipts and profit and loss
statements to highlight relevant features and meet workplace requirements as can
be extracted from the provided data.
Where applicable identify, resolve or refer discrepancies such as absence of
auditable trail, expenditure report mismatches, incorrect payments and unreconciled
cash flows.
Using your analysis, provide financial business recommendations, applying
knowledge of relevant legislation and regulations, presented a business report.
Answer:
By taking into the considerations the sales revenue that has been reported by the
company at the it was found that 13920 stood for sales and the amount of purchase
that stood for the company is 14600. Other forms of income that is reported by the
company stood income from commission of $200. Concurrently, it has also been
found that the company reported several other expenses which comprised of the
discount expenses, wages and advertisement expenses. Furthermore, it is has been
noticed that the business has reported a figure of loss with the amount of loss
standing 1661 at the end of the financial year. The amount of cash and cash
equivalent under the current asset that is reported by the company arrived at 87527.
Additionally, the current asset comprised of the closing stock and debtor control
account which stood 3000 and 6072. The non-current asset of the company that was
reported stood 500,000 and 3,000 respectively. It can be stated that the business
has stated a liabilities of mortgage on premises of 30000 and loan accounts which
comprised of the 20000. As understood from the financial assessment it is important
to consider that the organization reported a loss from the business operations
because the reported amount of expenses was higher than the amount of revenue
generated by the business.
On the other hand, the discrepancies of the business can be found in the areas of
the misstatement of the expenses in relation to the amount of the expenses reported
by the firm. As evident the business has reported a higher amount of expenses than
the revenue. Because of this a discrepancy has arose in relation to the revenue and
spending mismatch.
Recommendations:
a. A recommendation in this respect can be bought forward by stating that the
business has reported a loss from its earnings. It is recommended that a
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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financial regulatory framework can be applied to eliminate the chances of loss
by enhancing the financial system through implementing financial integrity.
b. The business can be recommended to implement the effective management
in order to promote the accounting supervision because this would help in
meeting the needs of the organization to achieve the company’s goals.
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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Task 2 – Financial Activity Reporting #2
A. Using the accounts following, complete the GST Worksheet for BAS. Complete
the attached BAS (copy may be downloaded from the Australian Taxation Office at
https://www.ato.gov.au/uploadedFiles/Content/CAS/downloads/BUS25199Nat4189s.
pdf).
Profit and Loss Statement
Total revenue $ 1,000,000 100%
Less Cost of Goods Sold $ 426,200 42.6%
Gross Profit $ 573,800 57.4%
Less Expenses
Accounting and legal fees $ 11,700
Advertising $ 15,000
Depreciation $ 38,000
Electricity $ 2,700
Insurance $ 15,200
Interest and bank charges $ 27,300
Postage $ 1,500
Printing and stationery $ 8,700
Professional memberships $ 1,800
Rent for premises $ 74,300
Repairs and maintenance $ 21,100
Training $ 6,900
Vehicle operating costs $ 20,000
Wages and salaries $ 223,500
Workers compensation $ 6,500
All other expenses $ 14,100
Less Total Expenses $ 488,300 48.8%
Equals Net Profit (BOS) $ 85,500 8.6%
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BOS = Before owners salary
Balance Sheet
ASSETS
Current Assets
Cash $ 20,000
Accounts receivable $ 15,000
Inventory $ 150,000
Total Current Assets $ 185,000
Non-Current Assets
Plant and equipment $ 50,000
Business premises $ 650,000
Vehicles $ 70,000
Total Non-Current Assets $ 770,000
TOTAL ASSETS $ 955,000
Current Liabilities
Accounts payable $ 25,000
Bank overdraft $ 10,000
Credit card debt $ 5,000
Tax liability $ 30,000
Total Current Liabilities $ 70,000
Non-Current Liabilities
Long term business loan 1 $ 450,000
Long term business loan 2 $ 50,000
Total Non-Current Liabilities $ 500,000
TOTAL LIABILITIES $ 570,000
NET ASSETS $ 385,000
OWNERS EQUITY $ 385,000
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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Goods and
services tax
(GST)
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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for the above mentioned QUARTER
Complete Option 1 OR 2 OR 3
(indicate one choice with an X)
Option 1: Calculate GST and
report quarterly
O
R
Option 2: Calculate GST and report
annually
Total sales
G
1 $
10,0
0,00
0 Total Sales
G
1 $
10,00,
000
Does G1
include GST Yes
N
o
O
R
Does G1 include
GST Yes
N
o
Export Sales
G
2 $
O
R
report GST on sales at 1A and GST
on purchases at 1B in the summary
section over the page
Other GST -
free sales
G
3 $ 0 O
R
Capital
purchases
G
1
0 $ 0
O
R
Option 3: Pay GST
instalment amount
ATO
installment
amount
G
2
1 $ $0
Non-capital
purchases
G
1
1 $
4,88,
300 O
R
Write the G21 amount at 1A in
summary over the page (leave 1B
blank)
OR if varying this amount, complete
G22, G23, G24
Estimated net
GST for the year
G
2
2 $
report GST on sales at 1A and GSt
on purchases at 1B in the
summary section over the page
Varied amount for
the quarter
G
2
3 $
Write the G23 amount at 1A in
summary section over the page
(leave 1B
blank)
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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Reason code for
variation
G
2
4 $
PAYG Tax withheld PAYG income tax installment
Total Salary,
wages and other
payments
W
1 $
Complete Option
1 OR 2
Amount withheld
from payments
shown at W1
W
2 $
Option 1: Pay a PAYG
installment amount
ATO Installment
amount
T
7 $ 0
Amount withheld
where no ABN is
quoted
W
4 $
Write the T7 amount at 5A in
summary section below OR if
varying this amount,complete
T8,T9,T4
Other amounts
withheld
W
3 $
Estimated tax for
year
T
8 $
Total amounts
witheld
(W2+W4+W3)
W
5 $ 0
Varied amount for
the quarter
T
9 $
Write the W5 amount in the
Summary section below
Write the T9 amount at 5A in the
Summary section below
Reason code for
variation
T
4
OR
Option 2: Calculate PAYG instalment
using income x rate
PAYG instalment
income
T
1 $
9,09,0
91
Commissioner's
rate
T
2 0.00% %
OR
New varied rate
T
3 %
T1 x T2 (or T3)
T
1
1 $ 0
Reason for code T
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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variation 4
Summary
Amounts you
owe the ATO
Amounts the ATO
owes you
GST on sales or
GST Installment
1
A $
90,909
GST of purchases
1
B $ 44391
Do not complete 1B if using GST
installment amount (Option 3)
PAYG tax
withheld 4 $ 0
Credit from PAYG
income tax
installment
variation
5
B $
PAYG income
tax installment
5
A $ 0
Deferred
company/fund
installment 7 $ 0
1A + 4 + 5A + 7
8
A $ 90,909
1B +
5B
8
B $ 44391
Payment or Refund?
Is 8A more
than 8B? Yes, then write the result of 8A minus
8B at 9. This amount is Payable to
the ATO 9 $ 46,518
No, then write the result of 8B minus
8A at 9. This amount is Refundable
to you by the ATO
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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B. Review the financial statement(s)
Analyse the data in the financial statement included in A to determine the financial
position of the organization. Re-organise and present financial data including budget
variances, budgets and forecasts, cash flow/profit reports, balance sheets, financial
year reports, operating statements, expenditure and receipts and profit and loss
statements to highlight relevant features and meet workplace requirements as can
be extracted from the provided data.
Where applicable identify, resolve or refer discrepancies such as absence of
auditable trail, expenditure report mismatches, incorrect payments and unreconciled
cash flows.
Using your analysis, provide financial business recommendations, applying
knowledge of relevant legislation and regulations, presented a business report.
Answer:
The financial data that has been derived an important assertion can be bought
forward by stating that the total amount of sales generated by the organization stood
1,000,000 and the cost of goods sold accounted for 426,000. The cost of goods sold
that has been reported by the company accounted 42.6% of the total amount of
sales. On the other side, it is noted that the gross profit of the company stood
573,000 respectively and accounted 57.4% of the total sales. Conversely, the total
amount expenses that has been reported by the company consisted of the 488,300
that summed up around 48.8% of the total revenue and the final amount of net profit
that is reported by the company stood 8.6% of the total revenue.
Taking into the considerations the financial position statement, it has been found that
the total amount of total asset reported by the company stood 995,000 with the
amount of business premises standing 650,000. The amount of non-current liabilities
that has been reported by the firm stands 500.000. The amount of reportable net
asset comprised of the 385,000 and the analysis provides the organization has
sufficient amount of cash to meet the position of liquidity. Furthermore, the company
is sound enough to meet the business objectives in the long and short run to meet its
debt.
By taking into the consideration the discrepancies the organization is required to
apply the auditable trail with the help of sufficient documentations of the files while
performing audit. The company can eliminate the discrepancies by reducing the error
through appropriate identification of records of transactions that are handled by the
firm at the time of audit. An auditable trial with the help of electronic means can be
applied which would help in sufficient documentations of the transaction.
Recommendations:
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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The recommendations are provided below for the above stated analysis which are as
follows;
a. The organization can improve the functional efficiency by lowering the amount
of long term business loan.
b. The obligations concerning the debt could be eliminated by increasing the
functional efficiency.
c. A check can be implemented by the business which would help the business
in increasing the net profit prior to the owners salary.
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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OVERALL ASSESSMENT RECORD
Student Name:
Student Number:
Unit of Competency: FNSBKG404 Carry out business activity and instalment
activity statement tasks
Assessor Name:
Assessment Date
Assessment 1:
Did student satisfactorily answer the following questions? (tick if yes; cross if no)
1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17 18
Assessment 1 Outcome: Satisfactory Not Satisfactory
Assessment 2:
Task 1 – Financial Activity Reporting #1
Observation Criteria S NS
Collected, evaluated and coded current financial data to
ensure consistency, quality and accuracy in accordance
with organisational requirements
Used conversion and consolidation procedures to compile
analysis in accordance with organisational requirements
Made, recorded and disclosed asset and liability valuations
in accordance with organisational requirements
Ensured that discrepancies, unusual features or queries
are identified, resolved or referred to the appropriate
authority
Correctly recorded income and expenditure to ensure
compliance with statutory requirements
Calculated liabilities for tax in accordance with current
legislation and revenue gathering practices
Correctly identified relevant receipts, revenue
documentation and payments
Ensured that statements and claims took full advantage of
available benefits and allowances in accordance with
statutory requirements
Submitted statutory requirement reports to appropriate
authorities within stated deadlines
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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Ensured that recommendations are logically derived and
supported by evidence in report
Provided recommendations to propose constructive actions
to enhance the effectiveness and efficacy of functions and
services
Ensured recommendations are concise and facilitate
direction and control of organisation’s operations
Identified and prioritise significant issues in statements
including comparative financial performances for review
and decision making
Ensured structure and format of reports are clear and
conform to organisational and statutory requirements
Task 2 – Financial Activity Reporting #2
Observation Criteria S NS
Collected, evaluated and coded current financial data to
ensure consistency, quality and accuracy in accordance
with organisational requirements
Used conversion and consolidation procedures to compile
analysis in accordance with organisational requirements
Made, recorded and disclosed asset and liability valuations
in accordance with organisational requirements
Ensured that discrepancies, unusual features or queries
are identified, resolved or referred to the appropriate
authority
Correctly recorded income and expenditure to ensure
compliance with statutory requirements
Calculated liabilities for tax in accordance with current
legislation and revenue gathering practices
Correctly identified relevant receipts, revenue
documentation and payments
Ensured that statements and claims took full advantage of
available benefits and allowances in accordance with
statutory requirements
Submitted statutory requirement reports to appropriate
authorities within stated deadlines
Ensured that recommendations are logically derived and
supported by evidence in report
Provided recommendations to propose constructive actions
to enhance the effectiveness and efficacy of functions and
services
Ensured recommendations are concise and facilitate
direction and control of organisation’s operations
Identified and prioritise significant issues in statements
including comparative financial performances for review
and decision making
Ensured structure and format of reports are clear and
conform to organisational and statutory requirements
FNSBKG404 Carry out business activity and instalment activity statement tasks Assessment – Version: 2.0 (Created: 18/09/17; Printed: 15/08/24)
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