Certificate IV Accounting: BAS/IAS Activity Statement Tasks

This document presents a comprehensive solution to an assessment focusing on the FNSBKG404 unit, which is part of the FNS40615 Certificate IV in Accounting. The assignment addresses the skills and knowledge required to carry out business activity statements (BAS) and instalment activity statements (IAS) tasks. The solution covers key aspects such as identifying individual compliance requirements, researching and documenting legislative and organizational requirements, applying GST implications, reporting on payroll activities, and completing and reconciling activity statements. The document answers specific questions related to tax obligations, GST implications, payroll reporting, PAYG installments, and the tasks involved in completing and reconciling activity statements. It emphasizes the importance of adhering to current legislation, regulations, and industry codes of practice, including the Tax Agent Services Act (TASA) and the Australian Taxation Office (ATO) requirements.

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
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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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
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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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
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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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.
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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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.
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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