Manage Physical Assets in Hospitality Management - Assessment Task 2

This assessment task covers the management of physical assets in hospitality management. It includes business objectives, types of physical assets, long-term assessment, acquisition parameters, and asset register details.

Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
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Assessment Submission Sheet
Course SIT60316 Advanced Diploma of Hospitality Management
Unit Code SITXFIN005
Unit Name Manage physical assets
Assessor
Name
Student
Name
Student ID
Date Due
Please read and sign this assessment coversheet and submit it together with your assessment to
your Assessor by the due date.
Student Declaration
 I declare that the work submitted is my own, and has not been copied or plagiarised from any
person or source.
 I have read the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the
Student Handbook and I understand all the rules and guidelines for undertaking assessments.
 I understand that by typing my full name in the student field this is equivalent to a hand-written
signature.
 I give permission for my assessment material to be used for continuous improvement purposes.
Student
Signature
Date
Submitted
Assessor Use Only
Assessment Items Result
Task 1 Assessment Task 1 – Short Answers S NS
Task 2 Assessment Task 2 – Project S NS
Overall result for this unit C NYC
Student Declaration: I declare that I have
been assessed in this unit, and I have been
advised of my result. I am also aware of my
appeal rights.
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have
provided appropriate feedback
Signature Signatur
e
Date

AIC- SITXFIN005-AT1-V1.0 Page 2 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Assessor’s Comments

AIC- SITXFIN005-AT1-V1.0 Page 3 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Task 1
Assessment Instructions
This is an individual assessment. Please understand the questions before you start answering them.
Ask your trainer of you are unsure of any questions.
To be deemed competent you will need to successfully demonstrate the following:
You must submit:
 All questions must be answered satisfactorily
Procedure
1. How can the following business objectives influence the methods used for
managing physical assets in an organisation? Provide 1 example for each:
 Profitability
It is one of the main and the key goal of any organisation to remain in the market and attain
more physical assets. The rate of return of the capital which is invested is to be generated
and the total cost should be identified before taking any decision.
 Growth
It is expanding the business economically and in monetary terms as well. For this, the
lifecycle of the products and the utilization of the assets should be considered by checking on
the amount of work that is performed in the organization (Chattopadhyay, 2021).
 Providing quality products and services to customers
The resources, for example, furniture and offices accordingly impact the conceivable rating
that can be acquired. Essential arrangements will bring about a lower rating, which will affect
the value that can be placed on a room. Spending more and guaranteeing customary upkeep
exercises are done can bring about a higher rating, which will then, at that point, permit a
more exorbitant cost to be charged. The profit from speculation again should be determined
cautiously

AIC- SITXFIN005-AT1-V1.0 Page 4 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
 Adhering to:
1. codes of conduct
2. environmental sustainability philosophies and practices
Outside impacts may likewise be viewed as while settling on essential resource the board
choices. Industry Codes of Conduct and Accreditation Schemes might direct somewhat the
way that choice should be made. For instance, the Star Ratings Australia Accommodation
Classification Scheme covers a wide reach of accommodation and comprises appraisals from
one to five stars in Australia and New Zealand. One star offers clean fundamental
convenience, while five stars demonstrate exceptional worldwide guidelines.
 Industry accreditation schemes
When a major amount of capital is invested in the business, certain research is done before
investing. The expenditure which is to be made for the improvement in the organization is to
be justified strategically.

AIC- SITXFIN005-AT1-V1.0 Page 5 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
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3. Provide 8 examples for different types of physical assets required by
tourism, hospitality and event organisations:
Responses
1. Computer Systems
2. Gardens and related equipment's
3. Pools
4. Furniture's Fitting
5. Buildings
6. Equipment’s and Machinery
7. Games and rides
8. Swimming Pools
1. List 5 physical assets relevant to your workplace or training and provide the
maintenance details typically required for each:
Physical asset Maintenance requirements
1. Furniture’s and Fittings The standard of the furniture should match with
the interior and the space should be utilized
innovatively and stylishly.
2. Buildings Guests expect high-quality services from the
restaurant.
3. Computer Systems The voucher requirement with proper names
and the entries should be filled and stored with
full security.
4. Equipment and machinery The vessels and the crockery which are
essential for the making of the deliveries should
be utilized with full potential by maintaining the
quality standard.
5. Games and rides The fun zone should be made available so that
the customers could find the organization more
attractive.

AIC- SITXFIN005-AT1-V1.0 Page 6 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
2. List 6 key aspects which must be considered for the long-term assessment
of physical assets in terms of nature of requirements and necessity of
acquisition. Who could be typically involved in this in terms of feedback
and specialist advice?
Responses
1. Value of asset
2. Depreciation
3. Life - cycle
4. Cost - benefit analysis
5. Maintenance
6. Planning for the short and long haul of period
Involvement
The asset administration for the sustainability requires the planning for considering all the
implications that the business can suffer. The management have to be teamed up by ensuring
that the work should be completed by giving a valid amount of time (Wolfenden and et.al.,
2019).
1. The following are parameters which are used to guide the acquisition of
physical assets. Provide examples and details for what should be
considered, for each aspect.
Budget parameters
Is there already a budget set aside for this purchase? Is the chosen item under the monetary
capacity? If there is anything that needs to be reformed in the budget to support the
investment? What effect will this have on the company's other operational areas?
Environmental sustainability policies for the business
Asset purchases should be consistent with the company's environmental laws. To guarantee
that the right assets are picked, standards should indeed be prepared that detail carbon,
economization, and ongoing resource utilization, among other things.
Site plans
Physical limits, such as access point measurements or quiet areas for just a piece of
machinery to fit, may need to be addressed. Understanding how well the commodity will be
utilized in the company or whether it will improve or integrate into the process is critical. A new
collection of kitchenware, for example, may have to integrate into a specific region of the
restaurant so that it would not obstruct employee movement or item workflow.
Auxiliary items
Alternative scenarios for a specific asset might have to be investigated for additional related
goods that need to be purchased, preserved, or fitted. Decorations, accessories, and
equipment may be necessary to complete or improve the core property.
Performance requirements
If the resource is to be utilized in a develop a protocol or as a component of such a core
service, it will have to figure out the appropriate output levels as well as other elements of its
functioning. Aspects like the number of products produced every hour, the speed with which
operations are carried out, and the efficiency with which they are carried out are all factors to
consider.
Suitability to products and services offered

AIC- SITXFIN005-AT1-V1.0 Page 7 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
All commodities should be carefully evaluated that they are suitable for the target use. To
make sure the right quality of service and client outcomes can be reached, a company's
goods/services must always be assessed. For reference, an automobile must be fit for a
particular usage.
1. Which details need to be recorded in an asset register for each physical
asset?
Responses
The coding system issued to each object can be written down as a barcode scanner, with a
copy tangibly linked to the asset. This makes it simple to keep track of and identify each item.
This materialistic worldview of documenting aids in the prevention of theft and enhances the
productivity of stocktaking. The asset management registry will keep track of the history of
each asset

AIC- SITXFIN005-AT1-V1.0 Page 8 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
1. Provide an overview of the features, advantages and disadvantages of
each of the following financing options when acquiring assets:
1. Hire purchase
Pros Cons
Less incurring of capital
expenditure
Termination of the lease is
costly
The purchasing option is
available at the end of the
lease
Does not give full control on
the asset.
2. Lease
Pros Cons
Less incurring of capital
expenditure
Termination of a lease is
costly
The purchasing option is
available at the end of the
lease
Does not give full control on
the asset.
3. Purchase
Advantages Disadvantages
Elevation in the value of
equity
Maintenance costs
Ownership of asset High risk
4. Rent
Advantages Disadvantages
Tax deductions No ownership
No maintenance costs High cost for utilising

AIC- SITXFIN005-AT1-V1.0 Page 9 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
1. Explain the methods for calculating the depreciation of assets using each of
the following methods:
Prime cost method
It is also called the straight line method which is utilised for calculating the depreciable amount
on the asset. This method deducts the fixed amount every year till the asset is useful. It
considering the three item while computing the amount which are:
1. Cost price
2. Expected useful life
3. Expected residual value
Annual depreciation amount = (cost - residual value) ÷ life
Diminishing Value Method
It is also referred to as the amount which is deducted every year on the specific rate. It changes every
year.
The formula is:
Depreciation amount = base value * (days held ÷ 365) * (200% ÷ asset's effective life)
2. Go to the ATO website link provided below and source the information for
the current simplified depreciation rules which apply:
https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/simpler-
depreciation-for-small-business/ (checked on 14 Dec 2020)
Responses
Depreciation occurs for a variety of causes. Office furniture depreciates mostly due to software
degradation, which implies that better gear will rapidly outperform older machines. Industrial
deterioration happens whenever the assets are no longer required leading to a decline of
quantity demanded or service is offered. The depreciation of office furniture is mostly due to the
physical breakdown. Because advancements in technology in office equipment are
considerably slower than those in computing, depreciation plays a little influence. Regularly
used equipment may degenerate as a result of the damage that comes with it.
1. Provide 4 examples of sources for data to enable you to estimate reliable
acquisition costs. What does this need to consider in terms of contractual
obligations and ongoing maintenance?
Responses
1. Staffing required for maintenance
2. Maintenance that is required
3. Service location, for instance, that can be performed off after far from
high-traffic areas
4. Maintenance work is expected to take a certain amount of time
Aspects to consider
The goal of planned maintenance is to maintain the firm working smoothly
in all sectors. A firm must retain a particular standard of hygiene and a

AIC- SITXFIN005-AT1-V1.0 Page 10 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
professional image that visitors demand
It can only be carried out along with the least amount of disturbance to
routine maintenance although with the least amount of annoyance to guests
and workers.
1. List 3 examples for environmental sustainability that applies to physical
assets and outline the environmental and financial benefits as applicable:
Example Environmental and financial benefits
Using the recycled water Maintaining your vehicle on a routine
basis might also reduce pollution.
Take a machine that spills because of
a metal-binding defect
Dropping usage of power electricity This immediately leads to higher
usage of water by the company,
which is harmful to both the
environment and the water bill.
Because periodic inspection is not
performed, the break remains
unaddressed, resulting in a faster-
than-expected asset retirement
Sinking water wastage This has an impact on the
environment because of those
pollutants related to new cleaner's
production, as well as the net profit

AIC- SITXFIN005-AT1-V1.0 Page 11 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Task 2
Assessment Instructions
This is an individual assessment. There are three parts to this assessment. Please ask your trainer if
you need any information.
To be deemed competent you will need to successfully demonstrate the following:
You must submit:
 Resource acquisition plan for 3 different resources
 Completed asset register for 3 assets
 Resource management strategy
Procedure
Part A
Requires you to develop a resource acquisition plan for the acquisition of 3 different resources from
the following main categories:
 buildings
 computer systems
 equipment fixtures, fittings and furniture in one of the following:
1. accommodation establishments
2. commercial kitchens
3. restaurants and bars
4. storage areas
5. tourism, hospitality and event offices
6. transportation depots
 gardens
 pools
 rides and games
 vehicles
 vessels
Part B
Requires you to develop an asset register which needs to list the details for the 3 new physical assets
you have determined in Part A. You must include the maintenance requirements and schedule of
maintenance for each asset.
Part C
Requires you to develop a resource management strategy which provides details on how the
efficiency of each asset is monitored

AIC- SITXFIN005-AT1-V1.0 Page 12 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
PART A – Acquisition Plan
Task:
You are required to choose 3 different physical assets, relevant for an organisation in the Tourism,
hospitality or event industries, which may include any of the following:
 buildings
 computer systems
 equipment fixtures, fittings and furniture in one of the following:
1. accommodation establishments
2. commercial kitchens
3. restaurants and bars
4. storage areas
5. tourism, hospitality and event offices
6. transportation depots
 gardens
 pools
 rides and games
 vehicles
 vessels
1. Provide an overview of the business activities of the organisation relevant to the
physical assets selected.
2. List the purpose of the acquisition or replacement of the physical assets, providing
detailed information what informs the decision to acquire these new assets.
3. Write an overview of specifications for each asset which clearly outline what
requirements each asset needs to fulfil in terms of capacity, performance, size,
location requirements and maximum budget for each or for the overall budget
parameter.
4. Obtain 3 prices or quotes from different suppliers or sources for each asset. Attach the
correspondence and final quote received for each asset to this project.
5. Contact a financial institution and at least 2 different suppliers and obtain information
on 3 different financing options available and costs (attach copies of your
correspondence).
6. Calculate the finance variants offered to you and determine the best options for each
asset. Your options need to include potential factors for depreciation, consideration for
technology changes and financial impacts on the organisation and financial aspects

AIC- SITXFIN005-AT1-V1.0 Page 13 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
for which you will seek specialist advice. (Your depreciation calculations must consider
the current regulations published on the ATO website).
7. Based on your calculations in Q.8, explain the official process that now needs to be
followed to finalise the acquisition of each asset. This may include processes in your
existing workplace or common industry standards and needs to provide:
1. details for detailed specifications,
2. legal contracts,
3. requirements and documentation applicable to different acquisition and financing
methods,
4. preparation of documentation for disposal of assets that are being replaced including
tax obligations.
1. In the context of the hospitality sector, the company chosen is Bentley restaurant & company. It
offers Upscale Modern Australian cuisine with industrial interior design. Concerning the tourism
sector, the organisation taken is Intro travel. It is serving for many years by fulfiling people desire to
travel, explore and connect with ethnic taste. The event management company taken is Perfect story
wedding. It turns the dreams of its clients into reality by making their day as memorable and lavish.
2. In the hospitality sector, an organisation is required to use equipment
fixtures, fittings and furniture. For the smooth running of Bentley restaurant &
bar, NSW requires assets to set up the ambience. Another sector is tourism; it
is necessary to have vehicles(de Vet and Eriksen, 2020). In this industry, it is
crucial for Intro travel to move from one place to another. In the industry of
events, it mainly needs gardens to arrange marriages, birthday parties and
various social functions.
3.
Industry Asset Performance Size Location Maximum
budget
Hospitality Commercial
Kitchen
Able to contain all
the required
kitchen appliances
1051 square
feet
Bentley
restaurant &
bar,
Sydney,
Australia
Lease
amount of
5600 AUD
for a
quarter.
Event
Industry
Garden Able to hold 400
guests at a time
3200 square
feet
Brisbane
QLD,
Australia
25600 AUD
Tourism Vehicles (Bus) Able to travel 70
Km in an hour
20 Seats Sydney,
Australia
10000 AUD
4. Suppliers providing price quotations for Tourism based equipments :
Tourism (Bus) (I) Daniel (II) Ramus (III) Harry
Headlight 1500 1250 1550
Seat 1000 1500 2500
Bumper 1250 1580 1600
For tourism business, the price quotation offered by supplier Daniel will be considered

AIC- SITXFIN005-AT1-V1.0 Page 14 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
suitable. The reason is it is providing equipment such as seats and bumpers at lower prices in
comparison to other suppliers(Grafton and Wheeler, 2018). Ramus will be booked for supplying
headlight because it is providing it at the least possible prices among others.
Suppliers providing price quotations for Hospitality based equipment:
Hospitality
event(Commercial
Kitchen)
(I) Renaldo (II) David (III) Stephen
Oven 2500 3000 3500
Freezer 15000 20000 25000
Mixers 1300 1560 1800
For hospitality cause supplier Renaldo would be chosen since it is providing all equipment
required for commercial kitchen at lower prices than others present in the market(Robins, 2018).
Suppliers providing price quotations for Garden-based types of equipment:
Garden (I) Damon (II) Patrick (III) Ron
Spade 1350 2500 2200
Shovel 1600 1680 1700
Rake 1240 1650 1450
For choosing the best equipment useful for the garden area, a price
quotation provided by Damon would be chosen.
5. A financial institution such as banks and non-banking finance companies
can be contacted for borrowing, managing funds and getting equipment on a
credit basis as well. A financial institution that would serve as a helping hand
for the company would be the Bank of UK which can help in managing
operational work of restaurant, tourism, commercial kitchen and garden as
well (Wolfenden and et.al., 2019). Two suppliers which can be helpful for
lending equipment on credit can be Renaldo and Damon because they are
given priority among other available suppliers.
6. Finance variants offered are Fixed-rate mortgage, preventive maintenance and Depreciation. The
best variant considered is the diminishing value method which would help to find the disposal value of
the asset.
Factors that affect the assessment of depreciation value are salvage value, cost of the asset.
It is a factor that affects the value of an asset over a period considering changes in technology and
what would be financial impacts on restaurants as well. It helps to understand the exact value.
7. Details for detailed specifications: Detailed specifications specify the standards which are set by
industries and businesses which explains the boundaries in which it has to be operated. The
specification can be defined as qualitative measures taken by restaurants for serving food up to the
mark in comparison to other competitors, in the case of the event sector it can be explained as
managing activities according to expectations and needs of clients. It specifies details that must be
given utmost priority for carrying out operations well in time and define what has been considered in
the process as well.
Legal contracts: Legal contracts can be explained as legal formalities which every business
type must fulfil before starting a business. In the case of restaurants, it focuses on positive impacts on
the environment and society, health and safety as well. In case of the event, the legal formalities
include processing of payments, termination clauses.
Requirements and documentation applicable to different acquisition and financing methods:

AIC- SITXFIN005-AT1-V1.0 Page 15 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Certain methods are helpful in the case of acquisitions such as processing loans from banks, finding
private lenders for money. Documentation needed by every lender is their credit score and their ability
to pay back and documentation are the assurance of recovering debts in case the creditor fails to
pay(Whiteside, 2020).
Preparing documents for disposing of assets that are being replaced
including tax obligation: Diminishing return is being considered useful by the
company for better operations and functioning of restaurants in the market. It
is thus explained as preparing documents for assets that have not been fully
utilised and how they can be set off with the help of certain accounts.

AIC- SITXFIN005-AT1-V1.0 Page 16 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Part B – Asset Register
Task:
1. Develop an asset register which lists the 3 assets determined in Part A. Your asset
register needs to include the following details:
1. Asset Details
2. Asset description/model/type
3. Serial Numbers
4. Purchase date
5. Cost
6. Depreciation amount (from when you undertake this assessment to the end of the
financial year). If you have no current value, then base this calculation on the
approximate price you have determined using the ATO guidelines.
7. Closing Written Down Values (at the End of financial year where you undertake this
assessment)
8. Develop a maintenance register and identify the maintenance requirements for each
asset accordingly. For some assets that might be determined through lease clauses or
service contract agreements. If so, include these including the details. For the
remaining assets consult the user manuals or manufacturer’s recommendations with
consideration to frequency of use relevant to your organisation. For example, if a post-
mix machine or coffee machine is connected to water filter then this needs to be
reflected in the maintenance requirements.
Asset Register
Asset
Descripti
on
Model Serial
number
Purchase
cost
Date
Purchased
Location Current
Value
(If Known)
Land 2009 p-456 116000000 10/02/18 Canberra 146000000
Building 2010 k-553 105000000 15/05/20 Sydney 125000000
Machine
ry
2011 u-998 550000 12/06/19 Perth 450000
equipme
nt
2012 h-255 350000 13/07/21 Hobart 200000
Furniture 2013 k-855 210000 14/08/21 Darwin 105000
Vehicles 2014 m-987 100000 22/09/20 Newcastle 85000
Inventor
y
2015 b-250 75000 30/12/21 Albany 62000
Asset Register
Asset Serial Maintenance requirement Maintenance Responsible

AIC- SITXFIN005-AT1-V1.0 Page 17 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Description number schedule
Coffee
Machine
A147-
Yf54
Clean the steam wand,
full backflush, Clean the
draining hose, clean the
portafilters, filter basket,
and drip tray, check the
water filter
Daily Barista
Microwave
oven
p457-
pp9
Replacing gasoline,
cleaning burners and
racks
weekly Oven cleaner
Refrigerator u855-
ou9
Cleaning coils,
maintaining the correct
temperature
monthly Cleaning agent
Beds/sofas l90-kj7 Vacuum regularly,
polishing
Yearly Carpenter
pool b77-vo9 filters, vacuum and
preventing bacteria
weekly Colloquially
Fitness
equipment
f90-lo8 Disinfectant wipes for
machines
Daily cleaner

AIC- SITXFIN005-AT1-V1.0 Page 18 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Part C – Resource management strategy
Task:
1. Develop a maintenance regime for each asset based on the maintenance
requirements you have determined in Part B.
2. The maintenance regime needs to include the following details and outline how
each aspect is affected and as a result addressed:
1. Reporting and monitoring mechanisms to ensure assets are functioning effectively and issues
are reported by using correct and suitable procedures including provisions for specialist advice
for complex issues.
2. Provisions for collecting feedback from customers and reports from staff.
3. Types of maintenance required including common routine maintenance based on the
organisation’s activities for example adjusting doors, fixing furniture, cleaning air-
conditioning filters in guest rooms, etc.
4. Location of maintenance, e.g. can it be done off-site or away from heavily-trafficked
areas?
5. Expected duration of maintenance works
6. Timing of scheduled maintenance, e.g. slow periods such as during the day for a
nightclub, or during the night in high frequency areas.
7. Likely disruption to operations – what are the disruptions and what are the expected
impacts?
8. WHS issues
9. Legal and regulatory requirements which apply for the physical assets during the
course of the financial year (for example for vehicles carrying passengers, electrical
equipment or as relevant to the specifc assets)

AIC- SITXFIN005-AT1-V1.0 Page 19 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
10. Summary of cost impacts for human resources (for examples where maintenance
would, e.g. require penalty rates for maintenance staff) or the costs where contractors
are engaged for specific maintenance requirements
11. Costs of scheduled maintenance in terms of parts, required equipment to perform the
maintenance and consumables
12)Provisions for monitoring of financial performance of the assets over the budget
period.
13)Occurrences based on the details outlined in the questions above which would
inform to review or audit the performance or viability of the assets.
1.
Asset tools used corrective action
Microwave oven Sturdy towel, screwdriver and nut
driver
Temperature is stabilised and
reheating of food items is
corrected.
Bus Bumper, seat covers, engine oil Increased speed and ability to
cover more distance in one km per
hour.
2. Issues of the Maintenance
Physical assets require continuous monitoring of the assets which improves the efficiency of
the assets.
Difficult repair - From the above taken physical assets, the commercial bus is vital for the tourism
industry. In case, the bus requires a monthly or weekly check of all its parts. The different parts of the
bus such as bumper protectors, bus flooring and headlights are carrying huge costs in their repairs.
Uncertainties - There is risk associated with each physical asset such as bus, kitchen and garden.
Natural disasters such as floods, fires and earthquakes can affect the assets of the organisation.
2) Provision for collecting feedback from customers and reports from staff
Feedback surveys - surveys from customers can be derived by providing them google forms, online
questionnaires and diary entries.
3. In the commercial kitchen, there is a requirement to clean the vent, hood and
duct. It should be cleaned every six months. The vapour is collected on these
parts which create a hurdle in its working. For effective maintenance of the
garden, it requires the removal of weeds which are unwanted plants and hamper
the growth of other plants as well. The commercial bus engine requires frequent
check-ups which consist of an alternation of the cooling system and inspection of
tires is also mandatory.

AIC- SITXFIN005-AT1-V1.0 Page 20 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
4. The commercial Kitchen maintenance can be done on the site because it
requires less technical treatment such as cleaning of oven, fixing thermostats to
the proper temperature. In the case of the garden, the activities of maintenance
are performed at the same place because it is an immovable asset and require
continuous care by the adequate amount of sunlight, manures and irrigation
facilities. For maintaining the bus, its tasks are conducted off-site because it may
involve the use of hazardous chemicals, gases and heavy tools as well.
5. Appliances of the commercial kitchen require fortnightly inspection which helps to run the
operations of the hospitality sector smoothly. The lawn requires daily inspection for maintaining its
greenery. The commercial bus requires maintenance on monthly basis.
6. Commercial kitchen - Its activities related to maintenance are done in the nighttime after the
completion of daily operations of the hotels.
Garden - The task for improving lawns is conducted in the early morning so that each activity can be
done transparently.
Bus - The work related to repair, replacement and modification of parts can be done in the daytime.
7. The following disruption can be observed in the activities of maintenance -
Overlapping of activities - There may be possible that the accumulation of various activities involved
in the maintenance can create ambiguity.it becomes difficult to identify which activity should be
prioritised or how much expense a specific activity requires.
Impact of disruptions -
The Bentley restaurant company faces several issues which hurt its performance. It can be
understood by the following points -
Increased cost- While conducting operations of maintenance it exceeds the allowed budget in respect
of maintenance activities. This may lead to increased expenses for the organisation. These
operations demand a good amount of time which leads to wastage of time.
High workforce - The projects of maintenance require high labour for which an
enterprise has to pay wages and other compensatory perks to its personnel.
8. WHS aims to promote the welfare of employees and its customers for protecting the interest of its
personnel. Its main goal is to safeguard its employees from hazardous tools and chemicals. Bentley
restaurant is facing numerous issues while following WHS which can be elaborated as given below-
At the time of covid-19, it was difficult to maintain hygiene in the working environment which
affects the health of its customers and employees. Even though, sanitisers and gloves used while
working also increase the cost of the organisation.
9. Leasing agreement - Bentley restaurants assets which are taken on lease are required to maintain
the leasing contracts and follow all the regulations compiled in the contract
Environmental safety - While rendering its services to its target audience, it is vital to follow the
environmental protocols for achieving sustainability in the organisation.
10. Recruitment cost - With the rise in employee turnover, an organisation has to acquire human
resource continuously which increase the cost of the enterprise.
Penalty cost - For effective management, it is crucial to strictly adhere to its rules while
performing maintenance of the assets. Discipline can be enhanced among employees to include the
provision of penalties.

AIC- SITXFIN005-AT1-V1.0 Page 21 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
11. Prime cost - It includes direct material. labour and overheads
selling and packaging cost - Bentley restaurant incur its expenditure on the
packaging of its food items for home delivery (Wrigley, Nusem and Straker,
2020).
12. Bentley restaurants use several measures to correct the deviations of the financial statements.
Several key factors are considered as a yardstick to compute the performance of the restaurant. This
can be described as given below-
Working capital - For performing daily operations it is vital to maintain the liquidity in the organisation
which helps in the smooth conduct of day to day operations.
Optimum capital structure- A firm should maintain the correct proportion of the
debt and equity in the business which boost the value of the firm.
13. The auditors conduct a proper inspection of the policies related to the replacement and acquisition
of the physical assets. By keeping a check on the assets, an auditor improves the overall
performance of the organisation.