Course Title: Prepare financial statements

Part B: Course Detail

Teaching Period: Term2 2009

Course Code: ACCT5237C

Course Title: Prepare financial statements

School: 650T TAFE Business

Campus: City Campus

Program: C4210 - Certificate IV in Financial Services

Course Contact : Jenny Seiler (city campus only)

Course Contact Phone: +61 3 9925 1621

Course Contact Email:jenny.seiler@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Jenny Seiler
Level 13, Building 108
Phone 99251621
Email jenny.seiler@rmit.edu.au

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 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:

FNSACCT405B Prepare financial statements

Element:

1. Compile Data  

1.1 Data is systematically coded, classified and checked for accuracy and reliability in  accordance with organisational policies and procedures
1.2 Internal and external financial data is checked to ensure consistency and accuracy

Performance Criteria:

1.1 Data is systematically coded, classified and checked for accuracy and reliability in accordance with organisational policies and procedures
1.2 Internal and external financial data is checked to ensure consistency and accuracy

Element:

2. Prepare Reports

2.1 Charts, diagrams and supporting data are presented in an appropriate manner
2.2 Reports are prepared following a clear and appropriate structure and format and conform to organisation requirements 2.3 Statements and data are error free and comprehensive
2.4 Report is cross checked against original data and accounting standards
2.5 Any necessary corrections are made
2.6 Corrections are verified and authorized by relevant persons

Performance Criteria:

2.1 Charts, diagrams and supporting data are presented in an appropriate manner
2.2 Reports are prepared following a clear and appropriate structure and format and conform to organisation requirements 2.3 Statements and data are error free and comprehensive
2.4 Report is cross checked against original data and accounting standards
2.5 Any necessary corrections are made
2.6 Corrections are verified and authorized by relevant persons


Learning Outcomes



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
• Locate company reports using the internet, industry contacts and prescribed/recommended references.
• Answers to be prepared for inclass activities that are based on materials covered in class
• Complete required assessment tasks


Teaching Schedule

WeekWeek CommencingTopic ElementsLearning Activities
16/7/2009 Overview & introduction of course including review of course guide, weekly program, assessment guide and online learning hub
Why have accounting?
1.1, 2.2, 2.3, 2.4, 2.5, 2.6 Analysing the needs of a business and distinguish between cash and accrual accounting
213/7/2009  Why have accounting?
Topic 1 Introduction to Accounting
1.1, 2.2, 2.3, 2.4, 2.5, 2.6Analysing the needs of a business and distinguish between cash and accrual accounting
320/7/2009 Topic 1 Introduction to Accounting
Topic 2 Introduction to Financial Statements (Balance Sheet)
1.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of balance sheets
427/7/2009 Topic 2 Introduction to Financial Statements (Balance Sheet and Income Statement)1.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of balance sheets and income statements
53/8/2009 Topic 2 Introduction to Financial Statements (Income Statement & Cash Flow)1.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of income statements and cash flow statements
610/8/2009 Topic 2 Introduction to Financial Statements (Cash Flow)
Topic 7 Analysis and Interpretation
1.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of cash flow statements, ratio calculations and reports
717/8/2009 Revision
TEST 1

  
8 24/8/2009 Topic 7 Analysis and Interpretation
Test Review

1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of ratio calculations and reports
  Mid Semester Break 29/8/2009-6/9/2009
   
9 7/9/2009 

 Topic 3 Analysing Transactions
1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.6,Double entry analysis and integrated exercises
1014/9/2009
 
Topic 4 Overview of accounting system
1.1, 1.2Completion of chart of accounts, recognizing control factors in the system
1121/9/2009
Topic 5 Ensuring Accuracy
1.1, 1.2, 2.2, 2.3, 2.4, 2.5, 2.5Double entry analysis to ensure accurate figures are reported
1228/9/2009

Revision
TEST 2


  
135/10/2009

Topic 5 Ensuring Accuracy
Test Review

1.1, 1.2, 2.2, 2.3, 2.4, 2.5, 2.5Double entry analysis to ensure accurate figures are reported

Completion of income statements for a business that undertakes various business activities
1412/10/2009
Topic 6 Varying activities and structures

1.1, 2.2, 2.3, 2.4, 2.5, 2.6Completion of income statements for a business that undertakes various business activities
1519/10/2009
Topic 8 Budgeting 1.1, 2.2, 2.3, 2.4, 2.5, 2.6 Complete a cash budgets and variance reports
1626/10/2009
Revision
TEST 3
 Complete a cash budgets and variance reports
172/11/2009
Test Review
Deferred Test 1/Retest 1
  
18 9/11/2009Deferred Tests 2 and 3/Retest 2 and 3  




Learning Resources

Prescribed Texts


References

Financial Services Resources Learner Guide, FNSACCT405A Prepare Financial Statements,(2007) Scope, Pearson Education Australia

URL: http://www.aasb.com.au/ AASB The Framework for the Preparation and Presentation of Final Reports (July 2004)


Other Resources

Weekly  Resources

Relevant learning resources will be placed on the online learning hub progressively throughout the semester. Students will need to access this site on a weekly basis, print the materials and bring them to class. COPIES OF MATERIALS WILL NOT BE HANDED OUT IN CLASS


Overview of Assessment

Assessments may include: class exercises, tests, and assignments (including reports produced on a spreadsheet)

Throughout the semester students will be able to gauge their progress with the completion and discussion about class exercises. 

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress.


Assessment Tasks

Overview of Assessment

Students must complete all 3 tests and achieve a mark of greater than 50% in each to achieve an overall pass in this course. The marks for the in class exercises will then be added to calculate your final grade. Their aggregate mark must then be greater than 50% to achieve a pass.

If a student fails a test the in class exercise marks will not be added in the calculation of their final grade. If students do not pass each assessment but achieve a grade of greater than 50%, they will be given an overall grade of NYC and need to repeat the course

Assessment Tasks - Closed Book Tests

Students must achieve a mark greater than 50% for each test to pass this course.

Where a student fails a test they will be given an opportunity to resit the test as scheduled. Under these circumstances the maximum grade available will be 50% of the total marks for the assessment.
If a student misses a test for ANY REASON, they must complete a special consideration application. Please note that applications must be submitted through the Hub on RMIT Melbourne campuses within 2 working days of the scheduled assessment .  IT IS EXPECTED THAT STUDENTS WILL SHOW THEIR TEACHER THE WRITTEN RECEIPT GRANTING A DEFERRED ASSESSMENT AS SOON AS IT IS RECEIVED so it can be recorded

Special Consideration (the full policy can be found at http://www.rmit.edu.au/browse;ID=g43abm17hc9w. This site includes a link to the application form)

In Class Exercises

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


Assessment Matrix

In class Exercises4x2.5=10 marks All topics
Test 130 marksTopics 1 & 2
Test 230 marksTopics 3, 4 & 7
Test 330 marksTopics 5, 6 & 8
 100 marks  

Other Information

Learning Outcomes

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 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 and justify 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:
 Purchase orders
 Goods Received Notes
 Delivery dockets
 Tax Invoices
 Credit notes
 Cheques
 Credit Card Vouchers
 Receipts
 Cash Register Summaries
 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.





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