Course Title: Provide financial and business performance information

Part B: Course Detail

Teaching Period: Term2 2017

Course Code: ACCT5378C

Course Title: Provide financial and business performance information

School: 650T Vocational Business Education

Campus: City Campus

Program: C5374 - Diploma of Accounting

Course Contact: Ben Sethia

Course Contact Phone: +61 3 9925 5982

Course Contact Email: ben.sethia@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

     

Sana Mahajan

+61 3 9925 5460

upasana.mahajan@rmit.edu.au

Building: 080
Level: 05
Room: 030

 

Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

None

Course Description

This unit describes the skills and knowledge required to analyse and report on a broad range of financial and business performance information and encompasses assessing clients’ needs, analysing data and preparing advice.

It applies to individuals who, within their level of authority, apply specialised knowledge, systematic approaches and analytical techniques to research and prepare customised information for clients.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC501 Provide financial and business performance information

Element:

1. Assess client needs

Performance Criteria:

1.1 Clarify and confirm expectations and objectives of client to ensure mutual understanding of client goals

1.2 Identify client’s specific legal and financial requirements when establishing, structuring and financing a business

1.3 Discuss financial options and processes with client to develop suitable plans for provision of information and achievement of client goals

1.4 Regularly review progress of plans against agreed criteria and clearly communicate results to client

1.5 Monitor client objectives to identify changes in client needs

1.6 Regularly obtain, analyse and incorporate feedback on client services

1.7 Investigate shortfalls in customer service and formulate and implement proposals for overcoming them

Element:

2. Analyse data

Performance Criteria:

3.1 Ensure advice provides client with realistic view of business financial performance and compliance, including significant taxation issues and comparisons of options

3.2 Use suitable methods of presentation and formats, language and forms of documentation to convey information to client

3.3 Provide advice about how risks and contingencies and future cash flows may be identified and quantified, and advise client of risk management options and rights and obligations

3.4 Advise client on new or alternative sources and features of short-term and long-term finance

Element:

3. Prepare advice

Performance Criteria:

2.1 Seek advice on reliability and accuracy of data from appropriate authorities and sources in accordance with organisational procedures

2.2 Compile and reconcile data to ensure statements are accurate and comply with organisational procedures, statutory requirements and standard financial reporting principles

2.3 Analyse revenues and costs in accordance with standard accounting techniques and consistent with organisation’s objectives

2.4 Analyse all data and reports in accordance with standard financial analysis techniques

2.5 Evaluate information in relation to financial performance of a business, specifically profitability, efficiency and financial stability

2.6 Ensure analysis is consistent with client’s business and personal objectives

2.7 Undertake evaluation to assess financial potential of the business, its future funding requirements and statutory obligations


Learning Outcomes



Details of Learning Activities

A range of learning activities are planned for this course including self paced and collaborative classroom based activities.

The self-paced activities will be delivered thought various technology platforms and include your contribution to activities, discussion threads, reflective journals on industry updates, presentations, quizzes and interactive sessions.


The collaborative classroom based activities will include role plays, group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.

You are expected to participate and contribute in all scheduled learning activities.

 

 


Teaching Schedule

Induction Session


Prior to training commencement a program level induction session will be conducted that comprises the following:

  • Program overview and requirements
  • MyRMIT/Blackboard
  • Overview of assessment requirements
  • Pre-Training Review including:
    • Recognition of Prior Learning and Credit Transfers
    • Assessment of current skills and knowledge
  • Competency/Grading Criteria
  • Plagiarism
  • Appeals
  • Extensions
  • Feedback
  • Privacy
  • Submission requirements
  • Resubmission policy
  • Where to get support
  • Student responsibilities 

The Teaching Schedule for this course is attached below but please note that it is subject to change.  

The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

 

Course Delivery:

 

 

Week

 

Week Commencing

Topics

Details of Topic Covered

Assessment

1

July 3 2017

Introduction to the course including:

·         Course requirements

·         Course support documents

·         Course Blackboard access

·         Accuracy of enrolment

·         Assessment requirements/Cover Sheets

·         Reminder re Plagiarism

·         Reminder re Appeals

·         Extensions/Resubmissions

·         Feedback in this course

·         Reminder re submission requirements

·         Getting help

·         Introduction to the course

 

Course Book – Provide Financial & Business Performance Information – Richard Hughes & Godfrey Senaratne

National Unit Code(s) and Name(s): FNSACC501 - Provide financial and business performance information

RMIT Code(s) and Name(s): ACCT5378C Provide financial and business performance information

 

 

2

July 10 2017

Financial Management /Major Sources of Finance

Financial Manager Objectives

Sources of Conflict – Management & Shareholders

The Financial Managers Role regarding Investment, Financing & Dividend Decisions

Business Structures

Forms Of Funding

Sources Of Finance

Chapter 1 & 2 Pages 5 – 21 ( Reading Compulsory)

Complete Review Questions for both Chapters

Assessment 1, 2 & 3

 

 

 

3

July 17 2017

Business Risk

Business Risk – Managing and Mitigating

Chapter 3 Pages 33 – 61 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 1, 2 & 3

 

 

4

July 24 2017

Business Mathematics

Simple Interest

Compound Interest

Investment Options

Calculating Effective Interest Rates

Annuities

Chapter 4 Pages 61 - 107 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 1, 2 & 3

 

 

5

August 7 2017

Management of Working Capital

Working Capital

Operating Cycle

Managing Cash & Liquid Assets

Costs associated with Collection policies

Concepts of Inventory Management

Economic Order Quantity

Assessment 1 to be submitted on Blackboard

Chapter 5 Pages 107 -141 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 1, 2 & 3

 

Assessment 1

6

August 14 2017

Financial Ratios

Interpreting Financial Reports

Classification of Ratios

Summary of Ratios

Analyse and Interpret Financial Statements

Compute and Interpret Ratios

Chapter 6 Pages 141-201 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 2

 

7

August 21 2017

Business Analysis

Limitations of Ratio Analysis

Interpreting Ratios

Time Series Analysis

Cross Sectional Analysis

Identifying Problems

Liquidity

Activity

Profitability

Leverage

Market Performance

Writing a Report

Feedback Assessment 1

Chapter 7 Pages 201-237 ( Reading Compulsory)

Complete Review Questions for this Chapter

 

Assessment 2

8

The Mid Semester break

The Mid Semester break is from August 28th to September 1st

 

 

9

September 4 2017

Assessment 2 Power Point Presentation

 

Assessment 2

10

September 11 2017

Weighted Average Cost of Capital

The cost of Capital

Estimating the weighted cost of capital

Chapter 8 Pages 237-257 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 1, 2 & 3

 

 

11

September 18 2017

Dividend Policy / Business Plans

Dividends and factors determining Dividend Policy

Types of Dividend Policy

Other Dividend Options

Steps in Dividend payment

Imputation and Capital Gains Tax

The Dividend Irrelevance theory

Business Plans – Format ,Process and Construction

Business Plan components

Role of planning in managing operations

Chapters 9 & 10 Pages 257 – 301 ( Reading Compulsory)

Complete Review Questions for both Chapters

Assessment 3

 

12

September 23 2017

Capital Budgeting

Capital Budgeting

Independent and mutually exclusive projects

Payback period

Accounting Rate of return

Determination of After Tax Cash Flows

Capital Rationing

Relevant Cash Flows

Feedback Assessment 2

Chapter 11 Pages 301 –350 ( Reading Compulsory)

Complete Review Questions for this Chapter

Assessment 3

 

13

October 2 2017

Revision for Assessment 3

Revise key areas of this semester

Chapter’s 1- 11 - Provide Financial & Business Performance Information

 

 

14

October 9 2017

Assessment 3 – In Class Supervised Assessment

 

Assessment 3 – In Class Supervised Assessment

15

October 16 2017

Resit and Resubmissions

Grading and Feedback

 

16

October 23 2017

Resit and Resubmissions

Resit and Resubmissions

 

 

 

The Mid Semester break is from August 28th to Septe

 

The Mid Semester break is from August 28th to September 1st


Learning Resources

Prescribed Texts

Richard Hughes & Godfrey Senaratne - Provide Financial and Business Performance Information ( Learn Now Publications 6 Ed 2016)

9781876124991


References


Other Resources

 

Online learning materials can be accessed by going into the RMIT web sites Online Learning Hub.

The online learning materials listed include:

  • Course outlines
  • Client files
  • Power point Presentations
  • Course Workbooks
  • Supporting Reading material
  • Industry relevant articles
  • Activities

 


Overview of Assessment

In order to achieve competency in this unit, you must provide:

Performance Evidence

Evidence of the ability to:

  • access clients’ needs and analyse their financial data
  • prepare and document appropriate advice for clients that:
    • complies with financial legislation and accounting standards, practices and principles
    • assesses taxation, compliance and business viability issues faced by clients
    • assesses risk management options and practices

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • explain the key requirements of taxation legislation relating to deductions, allowances and charges
  • list the key areas that can cause significant taxation issues
  • compare and contrast forecasting techniques
  • identify and explain the key features of government financial policy and secretary’s financial management instructions
  • explain the key requirements of relevant corporations and consumer legislation
  • describe a range of methods for presenting and formatting financial data
  • identify and explain the key principles of cash flow and budgetary control
  • identify and categorise sources of information on financial products and markets
  • outline a range of risks and contingencies and risk management options relating to financial and business performance
  • outline client rights and responsibilities

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

  • a range of common office equipment, technology, software and consumables

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.

Feedback

Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course. 


Assessment Tasks

Overview of Assessment

 

This course is delivered and assessed with the following competencies:

 

FNSACC501 Provide financial and business performance information

 

Critical Aspects of assessment are described above in the performance evidence for this course.

The assessments for this course have been designed to allow participants apply their learning to particular simulated work scenarios and demonstrate their competence in a variety of ways.

 

This Assessment is Task 1 of 3 Assessments for this course. Each of the 3 assessments must be completed to be deemed competent in this course.

 

 

Assessment Task/Title: Individual Assignment 1

 

This Assessment is to be completed individually in word and students must answer all questions in totality. The completed assessment must be submitted in Blackboard by the due date.

 

Students must answer the following ten questions and submit this completed assessment by the 4th of August 2017.

 

Task 1 – Individual Assignment Weeks 1-5

 

  1. Students must answer the following 10 questions and submit this completed assessment by the 4th of August 2017.

     

    1. Outline the key fundamentals of Financial Management? Specify 3 examples of the responsibilities that fall under the jurisdiction of Financial Management?
    2. Your Company has accumulated excessive losses and struggled with liquidity issues that threaten the company’s future viability. Outline what solutions you could implement to address your Company’s issues?
    3. There are many forms of Funding available to Financial Management in the market place that are strategically put in place to address certain issues. Your company has an issue whereby debtors are falling way behind payment terms offered and it is affecting the cashflow of your business. Detail a form of funding that would address this issue and why you have picked this type of funding?
    4. What are the dangers for a business not keeping track of when liabilities fall due? Detail a mitigation strategy to overcome this
    5. Briefly discuss the following statement – “Investment returns should be evaluated against risk”
    6. Calculate the value in 10 years of an investment of $25000 earning 7% simple interest per year. John earns $500 interest over 4 years on his investment of $4000. What interest rate does this represent?
    7. You borrow $25000 at annual simple interest of 12%. The loan is to be repaid with equal quarterly instalments over 2 years? What is the repayment amount?
    8. What will $5000, be worth in 4 years if invested at 9.5% compound p.a? Draw up a table to show the growth of the investment
    9. Calculate the Principal and Interest repayments (separately) on a Business loan of $500,000 over 15 years at 8%
    10. Your Company’s Total Current Assets are $2,500,000 and your Company’s Total Current Liabilities are $1,127,978. Calculate the Working Capital Ratio and give an overview your Company’s position.

Overview

 

This Assessment is Task 2 of 3 Assessments for this course. Each of the 3 assessments must be completed to be deemed competent in this course.

 

 

Assessment Task/Title: Assignment 2 - Group PowerPoint Presentation

 

This Assessment is to be presented in class in groups 3 - 4 students in the form of a Power Point Presentation. Students must answer all questions in totality. The completed Power Point must be submitted in Blackboard by the due date.

 

Students must present this Power Point Presentation in their Scheduled Class Week 9.

  

Task 2 – Group Assignment – Group Presentation

 

  1. Task 2 – Group Assignment – Group Presentation

     

    1. Refer to R. Cooke Ltd Balance Sheet below and answer the following questions.
    • Comment on the Liquidity of the business over the 2 years. For e.g. Have they got cash flow to cover current liabilities?
    • Would the collection of all receivables cover current liabilities in 2016?
    • What options would be available to the company - to cover short term debts any liquidity problems?
    • The company has received an offer to purchase its motor vehicle above the cost price in the Balance Sheet. If this asset is not required by the company, should the consider this option as an immediate source of funds?
    1. Answer the following question on the Balance Sheet below.

 

 

  • Fundamental concept of accounting is that the cash figure as at the end of the year in a cash flow statement must reconcile to which figure in the balance sheet?
  • From the question above and in your opinion, what does a cashflow statement depict or illustrate?
  • Based on each of the 3 elements of the cash flow, comment on the financial position of Cooke Ltd?
  1.  

    Cashflow from operating Activities

    2015

    Cash Sales

    $100,000

    Payment from Debtors

    $20,000

    Payment of creditors

    -$30,000

    Interest Paid

    -$10,000

    Wages and Salaries

    -$67,000

    Total

    $13,000

     

     

    Cashflow from financing activities

    2015

    Bank Loan

    $20,000

    Share Capital

    $50,000

    Total

    $70,000

     

     

    Cashflow from investing activities

    2015

    Purchase of Land & Buildings

    -$70,000

    Purchase of Shop Plant and Equipment

    -$19,000

    Total

    -$89,000

    Net Cashflow for 2015

    -$6,000

    Cashflow at the start of the year

    $0

    Cashflow at the end of the year

    -$6,000

     

    Below is the consolidated Balance Sheet of R. Cooke Ltd as at 30 June 2015 & 2016

     

     

    2015

    2016

    Accounts Receivable

    $ 7,300

    $ 8,000

    Inventory

    $19,000

    $20,000

    Petty Cash

    $0

    $ 2,500

    Land & Buildings

    $70,000

    $70,000

    Motor Vehicles

    $14,000

    $ 9,000

    Shop Plant & Equipment

    $19,000

    $21,500

    Office Equipment

    $ 5,700

    $ 6,500

    Total Assets

    $135,000

    $137,500

    Accounts Payable

    $14,000

    $16,500

    Bank Overdraft

    $ 6,000

    $0

    Mortgage Loan

    $20,000

    $15,000

    Equity

    $95,000

    $106,000

    Total Liabilities & Equity

    $135,000

    $137,500

     

     

     

    Additional Information

    Gross profit for 2015 is $36,700 and for 2016 is $37,000

    C.O.G.S 2015 is $76,700 & 2016 is $87,300

    Opening Inventory 01/07/2014 was $37,000

    Credit Sales for both years are 60% of total sales

    Total expenses for 2015 are $25,300 and for 2016 $23,000

    Opening balance of Accounts Receivable 01/07/2014 was 7,000

    Company Tax Rate 30%

     

    Question 4A - Calculate the following for both years using the above information

     

    Question

    To be completed

    Industry Average

    Part 1

    Current Ratio

    2:1

    Part 2

    Liquid Ratio

    1:1

    Part 3

    Average Collection Period

    40 days

    Part 4

    Inventory Holding Days

    60 days

    Part 5

    Return on Equity

    25%

     

    Question 4B – Comment on the Liquidity and Efficiency as revealed by these results

     

    Asset A

    Initial Purchase

    -$250,000

    Asset B

    Initial Purchase

    -$375,000

    Year

    Cash flow

    Accumulative Cash Flow

    Year

    Cash Flow

    Accumulative Cash Flow

    1

    $50,000

    $50,000

    1

    $200,000

    $200,000

    2

    $100,000

    $150,000

    2

    $200,000

    $400,000

    3

    $100,000

    $250,000

    3

    $300,000

    $700,000

     

     

     

     

     

     

     

     

    1. Case Study
    2.  
    1. Explain with reference to the 2 forecasting techniques indicated below the difference in each technique and the theory behind their application. The 2 forecasting techniques are 1. Pay Back Period – Which asset which the organisation choose using this technique      2. Net Cashflow Technique – Which asset which the organisation choose using this          3 years 
    2.  
    3.          Technique, from the prospective of the Asset that gives the highest Net Cash Flow after
    4.  

 

  

Overview

 

This Assessment is Task 3 of 3 Assessments for this course. Each of the 3 assessments must be completed to be deemed competent in this course.

 

Assessment Task/Title: Assignment 3 – In class Supervised Assessment

 

This Assessment is an in class Supervised Assessment, to be completed in the scheduled class week 15.

 

 

Task 3 – Supervised Assessment

 

  1. Name two sources of debt finance available to UDSC? Briefly describe each source and why they would be advantageous to UDSC.
  2. What Businesses Risk do you think UDSC would face? Explain, outline and include how you would mitigate these risks.
  3. What are UDSC’s key obligations under The Corporations Act 2001 & The Australian Consumer Legislation?
  4. Under the Tax Legislation outline what deductions UDSC could legally claim to reduce their taxable income and give an analysis as to why?.
  5. List 2 key areas that can cause significant taxation issues for UDSC and give explanation?
  6. Please complete the following ratios for UDSC and analyse each ratio giving an explanation as to what each ratio has revealed ? Gross Profit Ratio, Net Profit Ratio, Liquidity Ratio & Current Ratio
  7. Outline one strategy by looking at UDSC’s profit and loss statement, as to how you could increase its profit margin?
  8. What are UDCS’s rights and responsibilities in relation to Government Financial policy ?
  9. Give an overview of UDSC’S Balance Sheet and Profit and Loss Reports and outline its performance in relation to these Financial Statements?

 

 

 

Upside Down Ski Club. ABN 79

352 124 898

 

 

 

 

 

Financial Statements

For the year ended 30 September 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lorikeet Accounting Services

PO Box 212

Warrandytc          3113

 

 

Phone: 03 9844 3651 Fax: 03 9844 2648

Email:        info@lorikeetaccountants.com.au


 

 

 

 

 

 

 

 

 

 

 

 

Contents

 

Income and Expenditure Statement Detailed Balance Sheet Depreciation Schedule

Pool Depreciation Report

 

Statement by Members of the Committee Compilation Report


 

 

 

 

 

Upside Down Ski Club. ABN 79

352 124 898

 

Income and Expenditure Statement For the year ended 30 September 2016

 

 

2016

$

 

2015

$

 

 

Income

 

 

 

 

Interest received - ING Bus. Optimiser

1,586.74

 

4,034.88

 

Interest received - CBA Online Saver

 

 

1,379.77

 

Interest received - Term Deposit

4,297.44

 

2,139.23

 

Lodge fees - Trekset

10,181.82

 

22,909.08

 

Lodge fees (net)

81,720.17

 

73,584.74

 

Membership fees

44,800.00

 

44,400.00

 

Cash in lieu work party

3,000.00

 

4,000.00

 

Membership transfer fees

 

 

1,000.00

 

Total income

145,586.17

 

153,447.70

 

 

Expenses

 

 

 

 

Accountancy

880.00

 

660.00

 

Adve1tising and promotion

207.27

 

 

 

Administration

 

 

259.74

 

Affiliation & Licenses Fees

802.32

 

916.30

 

Bathroom Hygiene Service

1,612.54

 

1,600.00

 

Cleaning/rubbish removal

2,380.00

 

2,420.00

 

Club Dinners

457.40

 

472.70

 

Committee meals

2,711.09

 

2,041.30

 

Depreciation - plant

26,811.70

 

37,436.70

 

Depreciation- buildings

10,930.00

 

9,205.00

 

Electricity

4,849.50

 

5,810.63

 

Fire service levy

884.55

 

1,073.60

 

Fire Protection Inspection

1,253.18

 

1,516.00

 

Firewood

477.27

 

 

 

Gas

11,006.67

 

13,238.24

 

Honoraria

6,400.00

 

6,000.00

 

Ins1u·ance

9,080.92

 

9,044.77

 

Laund1y expenses

834.00

 

1,195.50

 

Work party labour

22,500.00

 

22,000.00

 

Legal fees

 

 

680.18

 

MV Fuel - Reimbursed

1,079.68

 

119.37

 

 

 

These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.


Income and Expenditure Statement For the year ended 30 September 2016

 

 

2016

$

 

2015

$

 

Painting

 

 

26,933.50

 

Postage and stationery

338.47

 

368.90

 

Provisions

1,820.54

 

4,050.18

 

Rates & land taxes

26,940.23

 

25,967.76

 

Rental

15,176.32

 

14,961.20

 

Repairs & maintenance

4,360.51

 

4,288.20

 

Replacements of depreciable contents

2,465.45

 

 

 

Telephone

989.21

 

937.08

 

Website

1,411.86

 

545.46

 

Total expenses

158,660.68

 

193,742.31

 

Profit (loss) from ordinary activities before

income tax

 

(13,074.51)

 

 

(40,294.61)

 

Income tax revenue relating to ordinary activities

 

 

 

 

Net profit (loss) attributable to the association

 

(13,074.51)

 

 

(40,294.61)

 

Total changes in equity of the association

(13,074.51)

 

(40,294.61)

 

 

 

Opening retained profits

(305,994.13)

 

(265,699.22)

Net profit (loss) attributable to the association

(13,074.51)

 

(40,294.61)

Closing retained profits

(319,068.64)

 

(305,993.83)


 

 

 

 

Upside Down Ski Club. ABN 79

352 124 898

1.1.1     

 

Detailed Balance Sheet as at 30 September 2016

 

 

Note

2016

$

 

2015

$

 

 

Current Assets

 

 

 

 

 

Cash Assets

 

 

 

 

 

Cash At Bank

 

7,271.12

 

1,995.96

 

ING Business Optimiser

 

17,643.62

 

199,034.88

 

ING Term Deposit

 

170,000.84

 

 

 

 

 

194,915.58

 

201,030.84

 

 

Receivables

 

 

 

 

 

Membership fees receivable

 

1,760.00

 

880.00

 

Lodge fees receivable

 

490.00

 

 

 

Work paiiy labour owing

 

3,000.00

 

2,500.00

 

Interest receivable

 

2,274.60

 

 

 

Heat project deposit receivable

 

 

 

500.00

 

 

 

7,524.60

 

3,880.00

 

 

Current Tax Assets

 

 

 

 

 

GST payable control account

 

(42,636.51)

 

(28,666.50)

 

Input tax credit control accotmt

 

34,641.56

 

23,446.77

 

GST clearing

 

10,059.00

 

4,793.00

 

 

 

2,064.05

 

(426.73)

 

 

Other

 

 

 

 

 

Prepaid expenses - Insurance

 

6,037.90

 

6,061.97

 

Prepaid expenses - Rent

 

1,264.61

 

1,265.58

 

Prepaid expenses - Rates

 

2,251.16

 

2,177.43

 

 

 

9,553.67

 

9,504.98

 

 

 

 

 

 

 

Total Current Assets

 

214,057.90

 

213,989.09

 

 

 

 

 

 

 

 

 

 

These financial statements are unaudited. They must be read in conjunction with the attached Accountant's

Compilation Report and Notes which form part of these financial statements.


Detailed Balance Sheet as at 30 September 2016

 

 

Note

2016

$

 

2015

$

 

 

Non-Current Assets

 

 

 

 

 

Property, Plant and Equipment

 

 

 

 

 

Ski lodge Buildings - at cost

 

291,001.00

 

291,001.00

 

Less: Accumulated depreciation

 

(177,301.00)

 

(170,026.00)

 

Basement project

 

84,056.59

 

27,997.27

 

Less: Accumulated depreciation

 

(2,677.00)

 

(576.00)

 

Improvements - since revaluation

 

62,856.84

 

60,991.96

 

Less: Accumulated depreciation

 

(4,865.00)

 

(3,311.00)

 

Plant & equipment - at cost >$1000

 

55,157.65

 

55,157.65

 

Less: Accmnulated depreciation

 

(21,540.00)

 

(12,595.00)

 

Plant & Equipment Low Value Pool < $1000

 

157,095.72

 

156,744.81

 

Less: Accumulated depreciation

 

(127,142.81)

 

(109,275.81)

 

 

 

316,641.99

 

296,108.88

 

 

 

 

 

 

 

Total Non-Current Assets

 

316,641.99

 

296,108.88

 

 

 

 

 

 

 

Total Assets

 

530,699.89

 

510,097.97

 

 

Current Liabilities

 

 

 

 

 

Payables

 

 

 

 

 

Unsecured:

Committee dinners payable

 

 

360.00

 

 

159.00

 

Gas payable

 

911.81

 

2,440.44

 

Honoraria payable R & M Payable

 

6,400.00

 

 

1,142.34

 

Provisions payable

 

82.04

 

 

 

Telephone payable

 

89.89

 

85.90

 

Work party labour credits

 

1,000.00

 

1,000.00

 

Website payable

 

118.55

 

 

 

Member locker room payable

 

6,542.12

 

 

 

 

 

15,504.41

 

4,827.68

 

 

 

 

 

 

 

Total Current Liabilities

 

15,504.41

 

4,827.68

 


 

 

 

 

Upside Down Ski Club. ABN 79

352 124 898

1.1.2     

 

Detailed Balance Sheet as at 30 September 2016

 

 

 

Note

2016

$

 

2015

$

 

 

 

 

 

 

Total Liabilities

 

15,504.41

 

4,827.68

 

 

 

 

 

 

 

Net Assets

 

515,195.48

 

505,270.29

 

 

 

 

 

Members' Funds

 

Issued Capital

 

Capital contributed

105,912.00

 

105,912.00

Reserves

 

 

 

Assets revaluation reserve

205,324.12

 

205,324.12

Work party labor

523,028.00

 

500,028.00

Accumulated surplus (deficit)

(319,068.64)

 

(305,993.83)

Total Members' Funds

515,195.48

 

505,270.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

These financial statements are unaudited. They must be read in conjunction with the attached Accountant's

Compilation Report and Notes which form part of these financial statements.


 

 

 

 

Total

 

 

Priv

 

 

OWDV

DISPOSAL

Date        Consid

ADDITION

Date          Cost

DEPRECIATION

Value   T     Rate      Depree

 

 

Priv

 

 

 

CWDV

PROFIT

Upto     +   Above

 

LOSS

Total -

 

 

Priv

Ski lodge building (BMT valuation)

Ski lodge building (BMT                   291,001.00

 

 

291,001

 

 

0.00

 

 

120,975

 

 

0

 

 

 

0

 

120,975 P           2.50               7,275

 

 

0

 

 

 

113,700

 

0

 

0

 

 

0

 

 

0

valuation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

291,001

 

 

120,975

 

0

 

 

0

 

120,975                                       7,275

 

0

 

 

113,700

 

 

 

 

Deduct Private Portion                  O

 

 

Net Depreciation            7,275


 


 

 

Plant & Equipment > $1000


DISPOSAL               ADDITION                                  DEPRECIATION                                                 PROFIT                              LOSS

      Tota!       Priv       OWDV        Date        Consid            Date          Cost     Value T          Rate       Depree              Priv           CWDV          Upto   + Above          Total -      Priv


Billiard Tables

2,145.00 30/09/11

2,145

0.00

1,863

 

 

0

0

1,863 D

5.00

93

0

 

1,770

0

0

0

0

Dish washer

4,586.00 30/09/11

4,586

0.00

2,494

 

 

0

0

2,494 D

20.00

499

0

 

1,995

0

0

0

0

Stoves

10,563.00 30/09/11

10,563

0.00

6,412

 

 

0

0

6,412 D

16.70

1,071

0

 

5,341

0

0

0

0

Hydronic Heating

8,000.00

8,000

0.00

5,688

 

 

0

0

5,688 D

13.30

756

0

 

4,932

0

0

0

0

Carpet project

4,545.46 09/02/14

4,545

0.00

3,816

 

 

0

0

3,816 D

25.00

954

0

 

2,862

0

0

0

0

Carpet project

25,054.55 09/04/14

25,055

0.00

22,052

 

 

0

0

22,052 D

25.00

5,513

0

 

16,539

0

0

0

0

Carpet project

263.64 08/05/14

264

0.00

238

 

 

0

0

238 D

25.00

59

0

 

179

0

0

0

0

 

 

 

55,158

 

 

42,563

 

 

 

0

 

0

 

42,563

 

 

8,945

 

0

 

 

33,618

 

 

 

 

Deduct Private Portion                                                                           0

 

 

Net Depreciation                                                       8,945


 


 

 

Improvements - since revaluation


DISPOSAL                  ADDITION                              DEPRECIATION                                                 PROFIT                        LOSS

Total          Priv       OWDV       Date        Consid           Date           Cost         Value T      Rate           Depree               Priv         CWDV          Upto   + Above           Total             Priv


Improvements - since                          18,458.71                                                              18,459

revaluation

0.00

17,306

0

0

17,306 P

2.50

461

0

16,845

0

0

0

0

Windows                                   718.73 10102113   719

0.00

690

0

0

 

690 P

2.50

18

 

0

 

672

 

0

 

0

 

0

 

0

Windows                                2,033.00 20/07(13                                                                2,033

0.00

1,972

0

0

1,972 P

2.50

51

0

1,921

0

0

0

0

Room 13 renovation                              1,864.88 10/02115                                                                1,865

0.00

0

0 10/02/15

1,865

1,865 P

2.50

30

0

1,835

0

0

0

0

Roof project

8,522.52 18/03/14

8,523

0.00

8,408

0

0

8,408

P

2.50

213

0

8,195

0

0

0

0

Drainage and Rock Wall

31,259.00

31,259

0.00

29,306

0

0

29,306

P

2.50

781

0

28,525

0

0

0

0

                ---

                                                                                                                            

62,858                            57,682                                          0                                  1,865            59,547                                        1,554                 0                                         57,993

Deduct Private Portion                                    0

 

 

Net Depreciation                          1,554


 

 

 

 

Total

 

 

Priv

 

 

OWDV

DISPOSAL

Date              Consid

ADDITION

Date          Cost

 

 

Value T

DEPRECIATION

Rate             Depree

 

 

Priv

 

 

CWDV

PROFIT

Upto   + Above

LOSS

Total -

 

 

Priv

Basement project

Basement project

 

15,000.00 23/07/13

 

15,000

 

0.00

 

14,553

 

 

0

 

 

0

 

14,553 P

 

2.50

 

 

375

 

 

0

 

 

14,178

 

 

0

 

 

0

 

 

0

 

 

0

Store room

270.00 02/12/13

270

0.00

263

0

0

263 P

2.50

7

0

256

0

0

0

0

Basement project

10,027.00 29/04/14

10,027

0.00

9,921

0

0

9,921 P

2.50

251

0

9,670

0

0

0

0

Basement project

2,700.27 04/07/14

2,700

0.00

2,684

0

0

2,684 P

2.50

67

0

2,617

0

0

0

0

Member lockers 2015

50,614.27 01/07/14

50,614

0.00

0

0 01/07/14

50,614

50,614 P

2.50

1,265

0

49,349

0

0

0

0

Store room

5,445.05 01/07/14

5,445

0.00

0

0 01/07/14

5,445

5,445 P

2.50

136

0

5,309

0

0

0

0

                 

 

                                                                                                                                                                                        

 

84,056                            27,421                                          0                                56,059           83,480                                          2,101                                             0                                81,379

Deduct Private Portion                                                                           0

 

 

Net Depreciation                                                       2,101


 

Depreciation Pools for the year ended 30 September, 2016

 


1.1.3    Pool : Low Value Pool

Opening Value of the Pool:

Plus the taxable use percentage of assets allocated to the pool for the income year

Less deduction for the decline in value of depreciating assets of the pool for the income year

Less deduction for the decline in value of depreciating assets allocated to the pool for the   income year

Less the taxable use percentage of the termination value of pooled assets disposed of during the income year Closing Value of the Pool


 

327

351

123

66

0

489


 

 

DISPOSAL                   ADDITION                                                         DEPRECIATION

 

Items less than $1000

Total

Priv

OWDV

Date

Consid

Date

Cost

Value

T

Rate

Depree

Priv

CWDV

Beddings                                               3,570.00

3,570

0.00

871

 

0

 

0

871

D

37.50

327

0

544

Cooking utensils                                 5,625.00

5,625

0.00

1,374

 

0

 

0

1,374

D

37.50

515

0

859

Glassware                                             1,235.00

1,235

0.00

302

 

0

 

0

302

D

37.50

113

0

189

Housekeeping assets                              525.00

525

0.00

128

 

0

 

0

128

D

37.50

48

0

80

linen                                                          298.00

298

0.00

73

 

0

 

0

73

D

37.50

27

0

46

Shower curtains                                        408.00

408

0.00

99

 

0

 

0

99

D

37.50

37

0

62

Balcony light                                             540.00

540

0.00

171

 

0

 

0

171

D

37.50

64

0

107

Kanade Micro Hifi                                     258.00

258

0.00

82

 

0

 

0

82

D

37.50

31

0

51

Microwave                                                 185.00

185

0.00

59

 

0

 

0

59

D

37.50

22

0

37

Low Value Pool BMT                         143,457.00

143,457

0.00

43,983

 

0

 

0

43,983

D

37.50

16,494

0

27,489

Soft furnishing quiet                                 218.35 29/06/13

218

0.00

111

 

0

 

0

111

D

37.50

42

0

69

room

 

 

 

 

 

 

 

 

 

 

 

 

 

Lamp                                                          325.46 29/06/13

325

0.00

165

 

0

 

0

165

D

37.50

62

0

103

Cot                                                             100.00 01/01/13

100

0.00

51

 

0

 

0

51

D

37.50

19

0

32

Ipod                                                            350.91 26/06/15

351

0.00

0

 

0

26/06/15

351

351

D

18.75

66

0

285


 

 

 

 

 

Upside Down Ski Club. ABN 79

352 124 898

 

Statement by Members of the Committee For the year ended 30 September 2016

 

The Committee has determined that the association is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.

In the opinion of the Committee the Income and Expenditure Statement, Statement of Financial Position, and Notes to the Financial Statements:

  1. Presents fairly the financial position of Upside Down Ski Club Inc. as at 30 September 2016 and its performance for the year ended on that
    1. At the date of this statement, there are reasonable grounds to believe that the association will be able to pay its debts as and when they fall

This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by:

 

 

 

 

 

President

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.


Upside Down Ski Club. ABN 79

352 124 898

 

Compilation Report to Upside Down Ski Club Inc.

 

We have compiled the accompanying special purpose financial statements of Upside Down Ski Club Inc., which comprise the Income and Expenditure Statement and Balance Sheet as at 30 September 2016, a summary of significant accounting policies and other explanatory notes. The specific purpose for which the special purpose financial statements have been prepared is to provide financial information to the committee of management.

The Responsibility of the Committee of Management

The committee of management is solely responsible for the information contained in the special purpose financial statements, the reliability, accuracy and completeness of the information and for the determination that the basis of accounting adopted is appropriate to meet the needs of the committee   of management for the purpose of complying with the association's constitution.

Our Responsibility

On the basis of information provided by the committee of management, we have compiled the accompanying special purpose financial statements in accordance with the financial reporting framework described in Note I to the financial statements and APES 315 Compilation of Financial Information.

We have applied our expertise in accounting and financial reporting to compile these financial statements in accordance with the financial reporting framework described in Note I to the financial statements. We have complied with the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants.

Assurance Disclaimer

Since a compilation engagement is not an assurance engagement, we are not required to verify the reliability, accuracy or completeness of the information provided to us by management to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on these financial statements.

The special purpose financial statements were compiled exclusively for the benefit of the committee of management who are responsible for the reliability, accuracy and completeness of the information used to compile them. We do not accept responsibility for the contents of the special purpose financial statements.

 

 

 

 

 

 

 

Lorikeet Accounting Services PO Box 212

Warrandyte

 

5 November, 2016


 

 

 

Upside Down Ski Club. ABN 79

352 124 898

Notes to the Financial Statements For the year ended 30 September 2016

 

 

 

 

1.2    Note 1: Summary of Significant Accounting Policies

 

This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporation Reform Act 2012. The committee has determined that the association is not a reporting entity.

The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets.

The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report.

 

(a)         Property, Plant and Equipment (PPE)

The lodge building and improvements and plant and equipment are carried at cost less, where applicable, any accumulated depreciation unless otherwise disclosed.

 

(b)         Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of twelve months or less.

 

(c)   Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue.

 

Interest revenue is recognised  on an accrual  basis.

 

(d)         Goods and Services Tax (GST)

The Association was required to register for GST as from 1/10/2012 as it was more likely than not that GST turnover would exceed the threshold for compulsory registration of $150,000. GST is reported to the ATO quarterly on a cash basis.

 

(e)       Accounts Receivable

Accmmts Receivable represents income brought to account in the Income and Expenditure Statement that remains unpaid at the end of the financial year. The amounts unpaid represent obligations owing by members for unpaid membership fees, work party levies and lodge fees.

 

 

 

 


 

 

(f)        Accounts Payable

Accounts Payable represents the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period, that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

 

1.2.1.1    Note 2: Valuation of the Ski Lodge Building and Plant & Equipment

 

In January 2012 the Committee engaged the services of Quantity Surveyors, BMT Tax Depreciation Pty Ltd for the purpose of undertaking a review of the value which the ski lodge building was carried forward in the club's fmaucial statements. In addition, an audit and valuation of all of the ski lodge contents of plant and equipment was also undertaken in order to provide an up to date record and cost base for updating the asset values carried forward in the financial statements. This information is reflected in the attached depreciation schedules denominated as follows:

Ski Lodge Building (BMT valuation)

Plaut & Equipment > $1000 Pool: Low Value Pool

 

The methodology employed by BMT according to their report was as follows:

"Actual cost information for the building structure and fit-out was not available for all items. The building structure together with Plant & Equipment items for which actual costs were not available, have been estimated using BMT Tax Depreciation cost advice as at March 27th 2012. These figures were then adjusted to date of construction via the application of Building Price Indices."

 

The value of the building was established at 9/12/1989 to be $269,677 aud additions valued at $21,324 taken up on 1/7/1994 to give a total value of $291,001. These values have been depreciated at the rate of 2.5% per annum on a straight line basis as from 9/12/1989 and resulted in au upward revaluation adjustment of $108,835.50 which was credited to Building Revaluation Reserve in Members Funds in 2012.

 

1.2.1.2    Note 3: Lodge Improvements

 

Further improvements to the lodge building since January 2012 including the drainage project along the rear of the lodge building costing $31,259, the dining room windows project costing $21,211 and the basement project costing $78, 109 have been capitalised and included in the cost of the ski lodge as separate items. The rear section of the roof was replaced at a cost of $8,523 and room 13 has been renovated at a cost of $1,865. All of the above improvements to the building are subject to depreciation at the rate of 2.5% per annum.

 


 

 

 

Upside Down Ski Club Inc.

Notes to the Financial Statements For the year ended 30 September 2016

 

1.2.1.3    Note 4: Depreciation of Plant & Equipment

Also contained in the report is a complete listing of all items of Plant & Equipment which has been split into three  categories  for depreciation  purposes:

  1. Items valued in excess of $1,000 are separately identified and have a total cost of $55,158. Each of these items is depreciated on the basis of their effective life using the diminishing value method and for this purpose the Commissioner of Taxation's estimate of their effective life has been used.
  1. Items having a value of less than $1000 but greater than $300 or forming a group such as bedding or furnishings, each item of which has a value of less than $1000, have been assigned to a Low Value Pool and depreciated using the diminishing value basis at 37.5% per annum. The cost of items comprising this Low Value Pool has been established at $157,096.
    1. Items costing less than $300 are depreciated at the rate of 100% in the year of

As a result of the BMT survey identifying and valuing all items of the club's Plant & Equipment in January 2012, an upward revaluation amounting to $130,536.87 has been credited to a Plant & Equipment Valuation Reserve in Members Funds.

 

1.2.1.4   Note 5: Valuation of Property Plant & Equipment

  1. Book Value of the Lodge Building

As at 30/9/2016 the value of the lodge building in the books (at depreciated adjusted historical cost) is $253,071.43 and  $206,076 (2015).

The original building structure was constructed in 1973 using member labour and expertise.

In 1978 the basement was excavated to create a drying room, games room, day ski store, member's store and  supplies  storage with  club labour.

In 1980 the new plant room was constructed with club labour.

In 1985 the eastern extension of the building comprising the downstairs lounge room and frreplace and four additional bedrooms was completed by an external contractor.

In 1992 the lower dining room, cool room, small quiet room lounge, conversion of old plant room to bedroom 13 and the present day balcony were constructed primarily with club labour and expertise.

In2012 the drainage system along the rear of the lodge was constructed and completed by Murray Smith with some assistance from club labour and excavation of the basement storeroom commenced by Murray Smith with assistance from club labour.

The whole of the exterior of the lodge was painted by an external contractor at a cost of

$20,630 which was fully expensed being in the nature ofrepairs & maintenance.

In 2013 further work in progress on the basement storeroom by Murray Smith with assistance from club labour. (completion delayed due to restricted access to Mt Hotham during and following the bushfire and subsequent closure of the Harrietville -Mt Hotham access.)

In 2015 underpinning work was completed in the basement storeroom at a cost of $12,727 and the rear roof was replaced at a cost of $8,523. The lodge interior was painted at a cost of $26,933 and fully expensed.

In 2016 the new member's locker room, member's lockers and the provisions store were completed at a cost of $50,112.


 

b)                   Book Value of plant & Equipment

As at 30/9/2016 the value oflodge contents in the books (at depreciated adjusted historical cost) is $63,570.56 and $83,241 (2015). All items costing less than $100 including bed linen are expensed in full inthe year of purchase.

c)                    Insured Value

Lodge Building $1,430,000 Lodge Contents                 $200,000

 

d)         Valuer General's Valuation at:

1/1/2016

 

1/1/2015

Site Value               $425,000

$355,000

Lodge Building       $440,000

$390,000

Capital Improved $865,000

$745,000

 

 

1.2.1.5    Note 6: Work Party Labour

 

Work party labour provided by members or member's proxies is treated in the accounts as having a value of $500 per annual member obligation being the equivalent of the cash in lieu charge net of GST. Being a non-monetary contribution of value no GST is applicable. As the vast majority of club work party labour is employed in carrying out regular maintenance and cleaning tasks the value of this labour is taken lip in the Income & Expenditure Statement as an expense and credited to Members Funds as a non-monetary capital contribution. Ifmembers did not volunteer their labour each year to undertake these routine maintenance and cleaning tasks the club would be obliged to contract labour externally with the consequent charge against cash and reduction in members funds.

 

 

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Final Grades table:


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CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment


Further information regarding the application of the grading criteria will be provided by your teacher.
 

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