Course Title: Prepare financial statements
Part B: Course Detail
Teaching Period: Term1 2008
Course Code: ACCT5195C
Course Title: Prepare financial statements
School: 650T TAFE Business
Campus: City Campus
Program: C4170 - Certificate IV in Financial Services
Course Contact : Jenny Seiler
Course Contact Phone: +61 3 9925 1621
Course Contact Email:firstname.lastname@example.org
Name and Contact Details of All Other Relevant Staff
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
This unit covers the competency to identify skills and outcomes associated with the development of financial reports. This unit requires the application of skills and knowledge required to prepare financial statements. The unit encompasses compiling data and preparing reports. The unit can be applied across all sectors of the financial services sector.
As there are no pre-requisites for this unit the course will also include an introduction to accounting and the accounting process.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title:
FNSACCT405A Prepare financial statements
1.1 Data is systematically coded, classified and checked for accuracy and reliability in accordance with organisational policies and procedures
2.1 Charts, diagrams and supporting data are presented in an appropriate manner<o:p></o:p>
Upon completion of this course students will have covered the following topics:
• Introduction to accounting
• Introduction to financial statements
• Analysing accounting transactions and determination of the effect on financial reports
• Overview of the accounting system
• Ensuring accuracy of accounting reports
• Financial statements for varying activities or business structures
• Analysis and interpretation of company reports
• Cost volume profit analysis
• Cash budgets and performance reporting
Details of Learning Activities
In order to achieve learning outcomes, students will participate in the following activities:
• Attend and prepare notes during scheduled classes
• Participate in class discussions and problem solving exercises
• Research using the internet, industry contacts and prescribed/recommended references.
• Prepare out of class answers to class exercises involving theory based tasks, problem solving tasks, case studies/simulations or multiple choice questions
• Complete required assessment tasks
|Week||Week Commencing||Learning Outcome||Elements|
|1||11/2/2008||Overview & introduction of course including review of course guide, weekly program, assessment guide and online learning hub |
Why have accounting?
|2||18/2/2008||Why have accounting? |
Topic 1 Introduction to Accounting
|1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|3||25/2/2008||Topic 1 Introduction to Accounting |
Topic 2 Introduction to Financial Statements (Balance Sheet)
|1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|4||3/3/2008||Topic 2 Introduction to Financial Statements (Balance Sheet and Income Statement)||1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|5||10/3/2008||Topic 2 Introduction to Financial Statements (Income Statement & Cash Flow)||1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|6||17/3/2008||Topic 2 Introduction to Financial Statements (Cash Flow) |
Topic 7 Analysis and Interpretation
|1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|Easter Break 20/3/08 - 26/3/08|
Topic 7 Analysis and Interpretation, Topic 3 Analysing Transactions
|1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|8||7/4/2008||Revision & TEST 1|
|9||14/4/2008||Test Review, Topic 4 Overview of accounting system||1.1, 1.2|
|10||21/4/2008||Topic 4 Overview of accounting system||1.1, 1.2|
|11||28/4/2008||Topic 5 Ensuring Accuracy||1.1, 1.2, 2.2, 2.3, 2.4, 2.5, 2.5|
|12||5/5/2008||Topic 5 Ensuring Accuracy||1.1, 1.2, 2.2, 2.3, 2.4, 2.5, 2.5|
|13||12/5/2008||TEST 2, Topic 6 Varying activities and structures||1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|14||19/5/2008||Topic 6 Varying activities and structures |
|1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|15||26/5/2008||Topic 9 Budgeting||1.1, 2.2, 2.3, 2.4, 2.5, 2.6|
|17||9/6/2008||Test review |
Deferred Test 1/Retest 1
|18||16/6/2008||Deferred Tests 2 and 3/Retest 2 and 3|
**The weekly schedule may be subject to change. Students will be advised on the DLS and in class should any changes occur.
Relevant learning resources will be placed on the learning hub (DLS) progressively throughout the semester. Students will need to access this site on a weekly basis, print the materials and bring them to class.
Atrill, P., McLaney, E., Harvey, D., Jenner, M., “Accounting an Introduction”, Prentice Hall, 2nd Edition, (2003).
Overview of Assessment
Throughout the semester students will be able to gauge their progress with the completion of and discussion about class exercises. This formative feedback will highlight to students areas in which they may need to do more work to achieve competency.
Assessments may include: short in class exercises, closed book class tests, question and answer activities, assignments and closed book exams.
Students must achieve a mark greater than 50% for each test to pass this course.
Where a student is unable to attend the test on the required day they must provide a medical certificate within 48 hours. Where a medical certificate is not provided, students will be treated as failing that test. Students who provide a medical certificate can sit the retest as scheduled without any penalty.
Where a student fails a test they will be given an opportunity to resit the test as scheduled. Under these circumstances the maximum marks available will be 50% of the total marks for the assessment.
Across the semester each teacher will select five class exercises that will be completed IN class by the student, corrected by the student and then submitted in the same class. It is expected that students will have the pro-forma to complete their work on to receive marks. Of the 5 exercises students will have to submit four exercises to obtain full marks. THERE WILL BE NO ALTERNATIVE CHANCE TO RESUBMIT. STUDENTS MUST ATTEND THE CLASS THEY ARE ENROLLED IN
Students must complete all 3 tests and achieve a mark of greater than 50% in each to achieve an overall pass in this course
|Inclass Exercises||4x2.5=10 marks||All topics
|Test 1||30 marks||Topic 1 & 2|
|Test 2||30 marks||Topic 3, 4 & 7|
|Test 3||30 marks||5, 6, & 8|
Refer to the RMIT policy at
Where there doubt in respect to originality, an additional task will be given under exam conditions to validate that it is your work before a result is allocated to that task. Remember that sharing your work with others implicates you. Extreme care must be taken to safe guard your work at all times.
Learning Outcomes Assessment Criteria
1 Introduction to Accounting 1.1 Explain what accounting is and why accounting is considered an information system.
1.2 Identify potential users of accounting information
1.3 Discuss the potential information requirements of each user
1.4 Distinguish between internal and external users of accounting information
1.5 Explain the role of accounting in decision-making, planning and control.
1.6 Distinguish between general-purpose financial reports and special purpose financial reports.
1.7 Discuss potential limitations on meeting users information requirements.
1.8 Identify the role of accounting standards and the conceptual framework in the preparation of general purpose financial reports.
1.9 Outline the considerations necessary in designing an accounting system and the relevance of each consideration
1.10 Specify the sources of information for an accounting system
1.11 Outline the stages in the accounting process.
2 Introduction to Financial Statements 2.1 Discuss the definition and purpose of the balance sheet as per the AASB Framework.for the Preparation and Presentation of Financial Statements.
2.2 Define assets, liabilities and equity as per the Framework
2.3 Identify and justify from a list of accounts which accounts are assets, liabilities and equity items
2.4 Distinguish between current assets and non current assets and current liabilities and non current liabilities for a sole proprietor,
2.5 Prepare a classified balance sheet for a sole proprietor from a list of accounts.
2.6 Discuss and describe the income statement as per the Framework
2.7 Discuss definitions of income and expenses as per the Framework.
2.8 Classify items as asset, liability, equity, income or expense.
2.9 From a list of account balances prepare the income statement and balance sheet for a sole proprietor for either a service business or merchandising business.
2.10 Describe the purpose of the cash flow statement as per the Framework.
2.11 From a list of transactions or summaries of cash payments and cash receipts prepare a simple statement of cash flow
2.12 Explain possible uses of each of these statements including limitations in financial decision making.
3 Analysing accounting transactions and determination of the effect on financial reports. 3.1 Define the entity convention, the accounting equation and the profit equation.
3.2 Using a work sheet, analyse transactions to determine their impact on individual accounting items (accounts) and the accounting equation for a service concern.
3.3 Prepare financial reports after completing an analysis of a set of transactions for a service concern
3.4 Using a work sheet, analyse transactions to determine their impact on individual accounting items (accounts) and the accounting equation for a merchandising concern (perpetual inventory).
3.5 Prepare financial reports after completing an analysis of a set of transactions for a merchandising concern using perpetual inventory.
4 Overview of the accounting system 4.1 Describe or prepare a diagram giving an overview of the accounting process using manual accounting.
4.2 Describe the purpose of the following source documents and there role in the verification of accounting data:Ø Purchase ordersØ Goods Received NotesØ Delivery docketsØ Tax InvoicesØ Credit notesØ ChequesØ Credit Card VouchersØ ReceiptsØ Cash Register SummariesØ Statements
4.3 List the type of journals used in manual accounting and the purpose of each journal
4.4 Describe ledgers maintained in a manual accounting system and the purpose of each ledger.
4.5 Describe the role of the trial balance and its role in relationship to the preparation of reports.
4.6 Describe the purpose of the chart of accounts
4.7 Given a description of an entity or required information requirements of a user of the entities reports determine necessary accounts in the chart of accounts.
4.8 Describe processes and procedures to ensure accuracy of data entered into the accounting system.
4.9 Explain the changes in the accounting process when using an accounting package.
5 Ensuring accuracy of accounting reports 5.1 Distinguish between current assets and expenses and make necessary adjustments
5.2 Distinguish between current liabilities and expenses and make necessary adjustments
5.3 Distinguish between current assets and income and make necessary adjustments.
5.4 Distinguish between current liabilities and income and make necessary adjustments.
5.5 Describe other common adjustments to the accounts (employee entitlements, doubtful debts, depreciation) prior to the preparation of financial statements.
5.6 Describe the difference between accrual accounting and cash accounting.
6 Financial statements for varying activities or business structures. 6.1 Distinguish between a profit and cost centre
6.2 Using specified techniques allocate income and/or expenses across cost centres
6.3 Using relevant information regarding the activities of a profit entity prepare a profit report by profit/cost centres.
6.4 Distinguish between profit entities and not for profit entities giving examples of each.
6.5 Using relevant information prepare financial statements for a not for profit entity
6.6 Distinguish between a sole proprietor, partnership and company
6.7 Using relevant information prepare the financial statements for a partnership.
6.8 From relevant information prepare the financial statements for a company.
7 Analysis and interpretation of company reports 7.1 Describe the role and purpose of ratio analysis
7.2 Classify ratio by profitability, efficiency, liquidity, activity, leverage and valuation.
7.3 Determine appropriate comparative information (benchmarks) for interpreting and evaluating financial ratios
7.4 Calculate ratios and prepare reports for management that interpret and evaluate the results
7.5 Given comparative information prepare and comment on trend graphs
7.6 Discuss the limitations of ratio analysis
8 Cash budgets and performance reporting. 8.1 Outline reasons for budgeting.
8.2 Explain the reasons for cash control within an organization.
8.3 Prepare a cash budget including schedules for collections from customers and payments to suppliers.
8.4 Formulate strategies to solve cash flow problems.
8.5 Prepare a performance report comparing budgeted cash flow to actual highlighting variances.
8.6 Prepare a report outlining possible causes of variances from actual
8.7 Describe causes of differences between profit and net cash flow.
Employability Skills The following employability skills will be integrated in the course:
- Problem Solving
- Planning & Organization
- Self Management
Course Overview: Access Course Overview