Assessment-1

BSBFIA401 Prepare financial reports

Student Must Fill this Section
Student Name: Suman khadka

Student ID: Term: Year:

S201148
1 2021
“I give my permission for my assessment material to be
Privacy Release
used in the auditing, assessment validation &
Clause:
moderation Process”.
“I declare that:
 The material I have submitted is my own work;
AuthenticityDeclaratio
 I have given references for all sources of
n:
information that are not my own, including the
words, ideas and images of others”.

Student Signature: suman Date:6th march 2021

Assessment Outcome

Assessor Name: sunil jaye

Not Yet Assessor

Attempt Satisfactory Date
Satisfactory Signature

Initial attempt  

2nd attempt/Re-
assessment  

Information for Student:

 All work is to be entirely of the student.

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 General Information for this assessment:

 Read the instructions for each question very carefully.

 Be sure to PRINT your FIRST name & LAST name in every place that is provided.
 Short questions must be answered in the spaces provided.
 For those activities requesting extra evidence such as: research reports, essay reports, etc. The
student must attach its own work formatted in double space, Arial 12 pts.
 All activities must be addressed correctly in order to obtain a competence for the unit of
competency.
 If the student doesn’t understand the assessment, they can request help from the assessor to
interpret the assessment.
 Re-submission of assessment after the term will incur additional fees.

Re-assessment of Result& Academic Appeal procedures:

If a student is not happy with his/ her results, that student may appeal against their grade via a written letter,
clearly stating the grounds of appeal to the Chief Executive Officer. This should be submitted after
completion of the subject and within fourteen days of commencement of the new term.

Re-assessment Process:
 An appeal in writing is made to the Academic Manager providing reasons for re-assessment
/appeal.
 Academic Manager will delegate another faculty member to review the assessment.
 The student will be advised of the review result done by another assessor.
 If the student is still not satisfied and further challenges the decision, then a review panel is formed
comprising the lecturer/trainer in charge and the Academic Manager OR if need be an external
assessor.
 The Institute will advise the student within 14 days from the submission date of the appeal. The
decision of the panel will be deemed to be final.
 If the student is still not satisfied with the result, the he / she has the right to seek independent
advice or follow external mediation option with nominated mediation agency.
 Any student who fails a compulsory subject or appeals unsuccessfully will be required to re-enrol
in that subject.

The cost of reassessment will be borne by the Institute. The external assessor will base his/her judgement
based on principles of assessment. These principles require assessment to be reliable, fair, practical and
valid.

Academic Appeals:
 If you are dissatisfied with the outcome of the re-evaluation process, you have a right to appeal
through academic appeals handling protocol.
 To appeal a decision, the person is required to complete the WSC- Request for Appeal of a
Decision form with all other supporting documents, if any. This form is available via our website.
The completed Request for Appeal form is to be submitted to the Student Support Officer either in
hard copy or electronically via the following contact details:
Student Support Officer, Western Sydney College (WSC), 55 High St, Parramatta NSW 2150,
Email: Complaints@wsc.nsw.edu.au
 The notice of appeal should be in writing addressed to the Chief Executive Officer and submitted
within seven days of notification of the outcome of the re-evaluation process.
 If the appeal is not lodged in the specified time, the result will stand and you must re-enrol in the
unit.
 In emergency circumstances, such as in cases of serious illness or injury, you must forward a
medical certificate in support of a deferred appeal. The notice of appeal must be made within three
working days of the concluding date shown on the medical certificate.
 The decision of Chief Executive Officer will be final.
 Student would then have the right to pursue the claim through an independent external body as
detailed in the students’ complaint / grievance policy.

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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M
Please note you need to fully complete all tasks included in your assessment booklet
to gain competency in this unit.

Assessment Schedule

Task Due Date Learner Sign Trainer Sign Comments

Off

Task 1 Week 2

Comments/Feedback to Students

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RTO: 45360 | CRICOS: 03690M
TASK SUMMARY
You are to answer all written questions.

WHAT DO YOU NEED IN ORDER TO COMPLETE THIS TASK?

Resources

 Access to textbooks and other learning materials

 Access to a computer, printer, Internet and email software (if required)
 Access to Microsoft Word or similar program

WHEN AND WHERE DO I NEED TO COMPLETE THIS TASK?

 This task may be done in your own time as homework or you may be given time to do this
task in class (where applicable).
 Your assessor will provide you with the due date for this assessment.

WHAT DO I NEED TO DO IF I GET SOMETHING WRONG?

If your assessor marks any of your answers as incorrect, they will talk to you about
resubmission. You will need to do one of the following:
 Answer the questions that were incorrect in writing.
 Answer the questions that were incorrect verbally.

INSTRUCTIONS
 This is an open book test – you can use your learning materials as reference.
 You must answer all questions in this task correctly.
 You must answer the questions bytyping your answers in Microsoft Word or a similar
program – your assessor will advise as to whether you must email them your completed
assessment, submit the file on a USB drive or hand in a hard copy.
 If there are tables included in your task that you need to fill out, you may choose to
recreate them in a word processing application. If you have been provided with an
electronic version of this booklet, you may prefer to type your answers directly into the
document.

WRITTEN ANSWER QUESTION GUIDANCE

The following written questions may use a range of ‘instructional words’, such as ‘identify’ or
‘explain’. These words will guide you as to how you should answer the question. Some
questions will also tell you how many answers you need to give – for example, ‘Describe three
strategies…’.
 Describe – when a question asks you to ‘describe’, you will need to state the most
noticeable qualities or features. Generally, you are expected to write a response of two or
three sentences in length.
 Explain – when a question asks you to ‘explain’, you will need to make clear how or why
something happened or the way it is. Generally, you are expected to write a response of
two or three sentences in length.

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RTO: 45360 | CRICOS: 03690M
 List – when a question asks you to ‘list’, this means you will need to briefly state
information in a list format, often with a specific number of items indicated.
 Outline – when a question asks you to ‘outline’, this means giving only the main points.
Generally, you are expected to write a response of two or three sentences in length.

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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M
Question 1
Explain the basic principles of double entry bookkeeping
The basic principles of double entry book keeping are:
 The finacial transactions are recorded in at least two ledger account
 The debit and credit side of the account should be equal

QUESTION 2
Explain the three golden rules of accounting and how they apply to double entry accounting?

The three golden rules of accounting are:

Real Account
If the item is coming into the business then it is Debit and If the item is going out of the
business then it is Credit

Personal Account
If the person, legal body or group is receiving something it is Debit. If the person, legal body,
or group is giving something it is Credit

Nominal Account
If it is an expense or loss for the business, it is Debit. If it is an income or gain for the business
,it is Credit

Relation with double book keeping

The three golden rules is related to double book keeping as assets is calculated ny combining
liabilities and equity, and the principle for debit and credit is same as real account.

QUESTION 3
Explain the purpose of a general journal in accounting and give at least two examples of
transactions that may be recorded in this journal.

A general journal is used to record unique journal entries that cannot be processed in a more
efficient manner. Examples of its transactions are as follows:
 Sales invoice issued
 Purchase invoice received

There are four special journals in general journals

 Sales journal
 Purchase journal
 Cash receipt journal
 Cash disbursements journal

QUESTION 4
Explain the purpose of a general ledger in accounting and give at least two examples of
transactions that may be recorded in this journal.
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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M
The general ledger provides a record of each financial transaction that takes place during the
life of an operating company. Two examples of its transactions are:
 Cash
 equipment

QUESTION 5
Describe what is meant by “Fair Value” under AASB 116.

Under AASB 116 Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement
date.

QUESTION 6
When working as an accountant you will spend many hours seated at your desk and at the
computer, possibly doing lots of data entry. List three OHS issues you might need to consider,
ensuring you are working safely and are not at risk of accident, injury or illness.

The three OHS issues that we should consider are as follows:

 The feets should firmy touch the ground
 The chair should be properly adjusted
 The computer screen should be adjusted in clear and visible distance

QUESTION 7
Research the Internet and find out how the Privacy Act 1988 will be changed in regard to
storage of client data on cloud servers. What would an accounting firm need to do if it stores
client data on an online/cloud accounting system?
In regards to privacy act 1988 Cloud providers must take reasonable steps to delete or de-
identify personal information that is no longer needed for the purpose for which it was
collected.
Accounting firms or cloud providers should offer encryption services to give customers an
additional level of protection for their stored data. Encryption services may be offered as a
standard feature, or as an additional feature (for a fee) upon request.

The information must be disclosed by the firm to the clients about the storage of the data on
the cloud server and the particular country in which the server is located.

QUESTION 8
Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain
what a Member of Business should do if they are not satisfied that the financial statements of
an employing organisation are presented in line with Australian Accounting Standards.

In this scenario, you must inform about all the charges to the government and also declare the
entire documentation while communicating with the government. You must also inform the
party involved about their compliance with the reporting of the organisation and the legislation
requirement.

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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M
QUESTION 9
Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain
how threats to compliance with the fundamental principles occur.
APES 110 The Code of Ethics for Professional Accountants sets out fundamental principles of
ethics for Members, reflecting the profession’s recognition of its public interest responsibility.
These principles establish the standard of behaviour expected of a Member. The fundamental
principles are: integrity, objectivity, professional competence and due care, confidentiality, and
professional behavior.

Threats to compliance occurs with a number of fundamental principles, such as objectivity,

confidentiality and professional behavior.

QUESTION 10
Explain the Australian Securities & Investments Commission’s (ASIC’s) role in approving
codes of practice for the financial services sector. List their criteria for approval.

The role of ASIC is to ensur that the primary subscribers to the code will be AFS license
holder. It applies to their representatives and/or product issuers as well. The criteria for
approval are as follows:
 The code as proposed to be varied should not be inconsistent with the Law (or any
other law of the Commonwealth
 It will be approved if the ability of the applicant to ensure that persons who claim to
comply with the code will comply with the code as in force from time to time
 Independent administration including the companies monitoring

QUESTION 11
Explain whether financial services industry associations have to seek approval from ASIC
regarding their codes of practice. Give examples of at least two financial services industry
codes of practice.

ASIC never oversees the administration, and has a formal set of codes developed by the
financial service industries. These are also useful for the customers. the two examples of
code of conduct are as follows:
 compliance to WHS policies
 continuing business in accordance to commonwealth laws.

QUESTION 12
List four types of laws that ASIC administers.
the four types of laws are:
 Australian Securities and Investments Commission Act 2001 (ASIC Act)
 Business Names Registration Act 2011.
 Corporations Act 2001 (Corporations Act)
 Insurance Contracts Act 1984.

QUESTION 13
Explain two posting methods used in computerised accounting systems.

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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M
The two posting methods used in computerised accounting systems are
 Real time posting
 Batch posting.

QUESTION 14
You need to prepare end of month financial reports. How would you make sure you have all
the data you need?

You can make sure you have all the data you need by reviewing company policies and
procedures and by going through required documentation.

QUESTION 15
Assume that you have been provided with the data for the end of financial month report.
However, you have found some errors. What should you do in this situation and whom would
you speak to?

The following steps should be followed in case of error in end of financial month report
 Reflect the cumulative effect of the error on periods prior to those presented in the
carrying amounts of assets and liabilities as of the beginning of the first period
presented
 Make an offsetting adjustment to the opening balance of retained earnings for that
period
 Adjust the financial statements for each prior period presented, to reflect the error
correction.

In case of error, supervisor in charge should be informed.

QUESTION 16
Explain the difference between balance day adjustments required for accruals and balance
day adjustments required for prepayments. Give an example of each.

In balance day adjustment, accruals are expenses incurred but not yet paid, so they will be
labelled as liability whereas prepayments are expenses that are not yet occurred so they will
be labelled as an asset.

For example:
Accrual, staff bonus with held
Prepayments, parking space rent paid for three months.

QUESTION 17
Outline the reasons why an adjustment for depreciation expense is required at the end of
each reporting period.

The reason why the adjusting entries are needed at the end of an accounting period isso that
the financial statements reflect the revenues that have been earned and the expenses that
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RTO: 45360 | CRICOS: 03690M
 were incurred during the accounting period. In case of adjusting depreciation expense,
adjusting these entries are needed to ensure the account balances are updated before the
financial statements are generated.

QUESTION 18
Distinguish between an allocation approach and a valuation approach to depreciation
according to AASB1021 and AAS4.

According to AASB1021 and AAS4, under the allocation approach, the depreciable amount of
a depreciable asset must be allocated on a systematic basis over its useful life. The
depreciation method applied to an asset must reflect the pattern in which the asset's future
economic benefits are consumed or lost by the entity. The allocation of the depreciable
amount must be recognised as an expense, except to the extent that the amount allocated is
included in the carrying amount of another asset.

QUESTION 19
Explain why it is important for estimates of the useful lives and expected residual values of
depreciable non-current assets to be reviewed annually.

To review annually the estimated useful life and expected residual values of depreciable non-
current assets is important because they affect the size of a company's depreciation or
amortization expense. It is important to note, however, that useful lives are merely estimates.
After all, nobody knows what an asset will be worth 10 years in advance or whether it will
actually last that long.

WHAT MUST BE SUBMITTED FOR TASK 1:

 Your answers to each question.

Assessment Record Checklist

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 ASSESSMENT TASK 1: WRITTEN QUESTIONS

Yes No
Did the student answer all questions correctly? (Please note which questions were answered
incorrectly, if applicable.)
If ‘no’ to the above, did you identify gaps in the student’s understanding and knowledge?
If ‘yes’ to the above, what arrangements have been made for reassessment?
Please add any feedback to the student about this task on the Assessment Cover Sheet. Keep a copy of the
completed Assessment Task Cover Sheet.
Please note any reasonable adjustments for this task below.

¨ I have reviewed the mapping to this task.

¨ I have analysed the evidence gathered against the requirements of this task and am satisfied that the student
has satisfactorily demonstrated the knowledge required of this unit.
Where any items above are marked ‘No’, please provide comments and outline the gaps below. Ensure feedback
is provided to the student on their Assessment Task Cover Sheet. Note actions that will be taken to correct the
gaps.

Assessment Task 1 outcome: Satisfactory  Not Satisfactory 

Date: ___________________________________

Student name: ______________________________________________________________________________

Assessor name: _____________________________________________________________________________

Assessor signature: __________________________________________________________________________

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International College of Australia Pty Ltd T/A Western Sydney College
RTO: 45360 | CRICOS: 03690M