Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 1 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Assessment Cover Sheet
Course
Certificate IV in Accounting FNS40615
Term/Block
Unit Code
BSBFIA401
Unit Name
Prepare financial reports
Assessment Type
Assessment Task 1– Case study
Time allowed
Date
Room
Instructions for completing this form
• Complete Sections A and B
• Attach this two-page cover sheet to your assessment submission
• Submit your assessment to your trainer/assessor
• Retain Section B as proof of submission
• Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information.
Section A – Student Details (student to complete)
Student Name
Student ID
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 Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments.
• I give permission for my assessment material to be used for continuous improvement purposes.
Signature: ____________________________ Date submitted: ____/_____/_____
Section B – Receipt (student to keep a signed copy of this section as proof of submission)
(Student to complete)
(Assessment receiver to complete)
Student name:
Date received:
____/_____/_____
Student no:
Received by:
Task No.:
Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 2 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Section C – Assessment Result (Assessor to complete)
Assessment Completion Status (Please Circle)
Satisfactory
Not Satisfactory
Assessor name:
Assessor signature:
Date assessed:
____/_____/_____
Comments (Assessor to complete)
Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 3 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Task 1
Assessment Instructions
This is an individual assessment. Using the scenario information supplied, the candidate will determine the effective life, determine the appropriate depreciation method, complete depreciation calculations and complete Asset Registers for two fixed assets and one associated depreciation schedule for the specified organisation. If you need help understanding any questions, ask your assessor to explain.
Procedure
1. Read the Hair Style Designs scenario provided.
2. Using the information in the scenario, the Hair Style Designs Policies and Procedures Manual, and the templates provided in the appendices of this task, complete the Asset Registers and associated Depreciation Schedule for Hair Style Designs Pty Ltd:
a. Determine the effective life using the Hair Style Designs Policy and Procedure for Fixed Assets.
b. Determine the appropriate method of calculating depreciation for each asset listed in accordance with the policies and procedures provided.
c. Calculate and record the initial value of the assets (excluding GST)
d. Calculate and record yearly accumulated depreciation.
e. Complete Asset Registers and associated Depreciation Schedule in accordance with accounting requirements, particularly with respect to what is recorded as a debit and what as a credit.
3. Submit all documents to your assessor as per the specifications below. Ensure you keep a copy of all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
two Asset Registers, one for each asset listed in the scenario
one Depreciation Schedule
calculations showing how you arrived at your figures for the value of the asset excluding GST, accumulated depreciation for each year (including part years) and residual value using the appropriate equations.
completed fields on the asset register
demonstration that you accurately calculated depreciation using the correct method of calculation as outlined in the policies and procedures, which will be demonstrated through your completion of the two Asset Registers and one Depreciation Schedule.
Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 4 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Appendix 1 – Hair Style Designs scenario
You are employed by Hair Style Designs as Assistant Accountant. Your duties include creating and maintaining Asset Registers for each of the company’s fixed assets and an associated Depreciation Schedule.
In the 2009/10 financial year, Hair Style Designs purchased two assets. The details are below:
Hair Style Designs Pty Ltd
Fixed Assets List
Asset ID No.
Asset Description
General Ledger Acct.
Date Purchased
Cost including GST
Disposal
Residual Value
Person Responsible
1
Motor Vehicle
1-2300
1/1/2010
66,000
Sold by Auction for $20, 000 on 1/07/ 2013
(Candidate)
2
Display Shelf Unit
1-2400
1/7/2009
11,000
(Candidate)
It is now 30 June 2013. In preparation for balance day, the Senior Accountant requires you to create asset registers for each of the two assets and an associated depreciation schedule. The listed cost of the assets includes GST, but you will need to calculate depreciation from the asset cost excluding GST.
Appendix 2 – Hair Style Designs Pty Ltd Policy and Procedure for Fixed Assets
Policy
Hair Style Designs Pty Ltd has implemented this policy to allow the organisation to meet legislated tax requirements and meet Accounting Standards AASB101 mandated financial reporting requirements with regard to Fixed/ Non-Current Assets.
Responsibilities and Accountabilities (Asset management and financial reporting)
The primary responsibilities and accountabilities in relation to asset management and reporting rest with the:
● CEO
● Senior accountant or Finance Manager
● Assistant accountant
CEO
The CEO is responsible for providing correct and timely advice on organisational actions such as major fixed asset purchases and disposals to the Senior Accountant for preparation of the financial statements.
Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 5 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Senior Accountant
The Senior Accountant is responsible for:
● ensuring the assistant accountant responsible for asset management operations has appropriate training to fulfil the functions of their duties
● ensuring that the requirements of these procedures are being met
● developing the timetable and procedures for stocktakes
● ensuring asset revaluation exercises are conducted as appropriate
● ensuring all IT related capital works in progress are accounted for correctly
● preparing the General Ledger
● preparing the financial statements
● notifying the CEO of errors or discrepancies in the prepared financial statements.
The Senior Accountant is also responsible for authorising:
● disposal information and balance day adjustments entered into MYOB
● correction of errors or discrepancies.
Assistant Accountant
The assistant accountant is responsible for:
● maintaining the organisation’s Assets Registers
● recording asset acquisitions and disposals
● recording balance day adjustments
● seeking approval from the Senior Accountant to record balance day adjustments in MYOB.
Depreciation and Disposal of Fixed Assets
Documentation:
Asset documentation should be kept for two years before being archived or destroyed.
● Assets Register An Assets Register will be used to record the details of each asset including the cost, yearly depreciation and disposal information.
● Depreciation Schedule A Depreciation Schedule will be used to record the summary depreciation details of all assets.
Company asset acquisitions
The asset acquisition cost will include the total of:
● purchase price from supplier
● delivery where applicable
● installation and commissioning costs where applicable.
As Hair Style Designs is registered for GST, GST must be accounted for on asset purchases.
Educating for Excellence
AIC-UP- BSBFIA401 –V2.0 Page 6 of 2
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected]
Website: www.idealcollege.com.au
Valuation of assets
Accounting Standard AASB101 mandates the existence of a clear policy for the measurement bases of asset valuation. Non-current assets in the Asset Register will be measured on the basis of historical cost.
Accounting for asset acquisition and disposal
Financial transactions that affect the asset acquisition and disposal will be processed in the company’s accounting software MYOB and use the company’s Chart of Accounts for coding transactions for journal entries.
Effective life
For depreciation purposes, the effective life of an asset should be determined by checking the Taxation Ruling available at the year of an asset’s purchase – currently TR 2013/4 – provided by the Australian Taxation Office. The effective life should be taken from the relevant industry category (Hairdressing and beauty services – 95110) where possible. If the asset is not specified in the relevant industry category, its effective life should be taken from Table B (Asset Categories).
Approval to dispose of assets
All disposals of fixed assets must be authorised by the CEO.
Account for disposal revenue
Revenue from asset disposal must be treated in accordance with the accounting policy. Hair Style Designs is registered for GST. GST must be collected on the sale of assets as per ATO requirements.
Recording and filing systems
Security
Access to the accounting information systems is restricted by locked keys for paper based data and password and encryption for electronic data (MYOB).
System Backup
For electronic data, fully backed up overnight. The system is backed up nightly and weekly (both to disk and tape).
Recordkeeping
All records of financial transactions will be kept and maintained in accordance with the taxation and corporations law. Records will be taken to include both hard copy records and records stored electronically (MYOB).
Records will be grouped and managed in the following manner:
● Bank Account Records
● Debtors
● Ledgers and Journals
● Creditors
● Financial Statements
● Payroll
● Rate
Educating for Excellence
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected] Website:
www.idealcollege.com.au
AIC-UP- BSBFIA401 –V2.0 Page 7 of 2
Appendix 3 – Asset Register
Asset Register
Hair Style Designs Pty Ltd
Asset Description: ..................................................................................................................................................................................
Person Responsible (Your Name): .........................................................................................................................................................
General Ledger Acct: ...................................................................
Value: ...........................................................................................
Depreciation Method: ...................................................................
Depreciation Rate: ........................................................................
Estimated Life: .............................................................................
Residual Value: ............................................................................
Authorisation
Asset ID No.
Date
Details
$Asset
$Accumulated Depreciation
Dr.
Cr.
Bal
Dr.
Cr.
Bal
Disposal
Authorisation
Asset ID No.
Date
Details
Disposal Method
Disposal Amount
Educating for Excellence
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected] Website:
www.idealcollege.com.au
AIC-UP- BSBFIA401 –V2.0 Page 8 of 2
Asset Register
Hair Style Designs Pty Ltd
Asset Description: ..................................................................................................................................................................................
Person Responsible (Your Name): .........................................................................................................................................................
General Ledger Acct: ...................................................................
Value: ...........................................................................................
Depreciation Method: ...................................................................
Depreciation Rate: ........................................................................
Estimated Life: .............................................................................
Residual Value: ............................................................................
Authorisation
Asset ID No.
Date
Details
$Asset
$Accumulated Depreciation
Dr.
Cr.
Bal
Dr.
Cr.
Bal
Disposal
Authorisation
Asset ID No.
Date
Details
Disposal Method
Disposal Amount
Educating for Excellence
Australian Ideal College
Registered as Australian Ideal College Pty. Ltd.
ABN: 15 126 592 756
RTO No.: 91679 CRICOS Provider Code: 03053G
Campus: Level 8, 75 King St, Sydney NSW 2000 Australia
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: [email protected] Website:
www.idealcollege.com.au
AIC-UP- BSBFIA401 –V2.0 Page 9 of 2
Appendix 4 – Depreciation Schedule
Depreciation Schedule 30/6/2013
Hair Style Designs Pty Ltd
Description of asset
Date of acquisition
Cost
Opening adjusted value
Effective life
Deductible
Adjustable value at end of year