Course Title: Prepare financial statements

Part B: Course Detail

Teaching Period: Offsh3 12

Course Code: ACCT5248C

Course Title: Prepare financial statements

School: 650T TAFE Business

Campus: Singapore Inst of Management

Program: C5205 - Diploma of Financial Services

Course Contact : Jenny Seiler

Course Contact Phone: +61 3 9925 1622

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


Name and Contact Details of All Other Relevant Staff

SIM Course Co-ordinator

Angelo Sellan
Phone 61 3 9925 5460
Email angelo.sellan@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

There are no pre-requisites for this unit.

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.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACCT405B Prepare financial statements

Element:

1. Compile data

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

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


Students should refer to the performance criteria in Part B of this course guide in regard to the learning outcomes of the course.

Data may include:
• budgets and forecasts
• financial/operational statements and reports (eg expenditures and receipts, statements of financial performance)

Organisational policies and procedures may include:
• reporting requirements
• recording and filing systems
• standard financial analysis techniques
• financial management manuals

Report formats may include:
• cash statements
• financial year reports
• statements of financial position
• operating statements (statements of financial performance)
• spreadsheets
• electronic forms

Organisations may include:
• sole traders
• partnerships
• not for profit

Relevant persons may include, but is not limited to:
• tax agents


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 via Blackboard and access to and use of the internet to collect, analyse and use information on a range of financial products and financial organizations.
The collaborative classroom based activities will include 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 including completion of tutorial exercises consisting of practical problems, short answer questions, multiple choice, case studies and extension exercises.

An initial introduction to topics and techniques via a lecture, including the principles of accounting and analysis of business reporting framework.

Practice exercises will be used to reinforce learning.  The self-directed exercises aim to provide students with feedback on their learning. Students can use this feedback to determine the progress of their learning, negotiate this with their teacher and set priorities in their workload.


Teaching Schedule

Class No Topic Content covered Elements
1 - 2 Financial Statements: Income statement, Balance Sheet & Cash Flow Statements Revisited • Purpose of statements
• Internal vs External Reports
• Accounting standards specific to financial statements
• Correct classification of items
• Completing a set of statements from Journals / Ledgers / Trial Balance (Financial Data)
• Checking accuracy of Data / Statements
• Correcting errors Element 1, 2

3- 4 Pro Forma Statements • Pro forma Statements (Income Statement, Balance Sheet, Cashflow Statement), for financial planning
• External Finance Required
• Return on asset, Return on Equity, Payout and Plough back ratios.
•Internal & sustainable growth rates.
• Capital intensity ratio Element 1, 2

5 Financial Statement Analysis • Calculation of ratios
• Interpretation of ratios
• Relationships between ratios
• Classification of ratios
• Extracting relevant information from publicly available reports
• Limitations of ratio analysis
• Preparation of reports Element 1, 2

6- 8 Management of working capital • What is working capital
• Indicate the importance of working capital from a profitability v financial stability perspective
• Explain the importance of the operating cycle and cash cycle and its connection to working capital
• Determine required levels of working capital at planned performance levels
• Inventory management, with particular emphasis on Economic Order Quantity.
• Reorder points
• Accounts receivable management, cost / benefit approach to determining credit policies
• Explain the reasons for holding cash and the basis of management and control of this asset. Element 1, 2

9 - 10 Capital Expenditure Analysis • Theory of capital budgeting
• Calculation of accounting rate of return & payback period.
• Calculation of net present value and the internal rate of return
• Identification and construction of relevant cash flows
• Report recommendations to management Element 1, 2

11 Cost Volume Profit Analysis
• Variable Vs Fixed Costs
• Contribution Margin
• Break Even Point
• Accept or reject special orders
• CVPA Charts Element 1

12 Revision


Learning Resources

Prescribed Texts

Accounting: An introduction by Atrill, P., McLaney, E., Harvey, D. & Jenner, M., Prentice Hall, 4th edition

Workbook for Accounting: An Introduction by Jenner, M. & Silvester, M. 4th edition


References


Other Resources

Learning 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.


Overview of Assessment

Assessments may include closed book tests,  individual and group assignments and a final examination.

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

1. Class Test.  Students will be required to complete a set of Financial Statements including Income Statement, Balance Sheet and Cash Flow Statement.

Students will also be required to cross check completed statements to source financial data to determine correct classification and accuracy of statements, appropriate corrections will need to be made.

2. The group assignment is due in week 8. It will comprise the analysis and interpretation of the most recent annual report of a listed public company. Each group will be assessed on their analysis of the financial statements of their selected company.

3. The final exam will be of two (2) hours duration and be closed book. It will comprise multiple choice, calculations and short answer questions.


Assessment Matrix

Assessment No. and Week No.Assessment DescriptionMaximum % grade allocated
Test; week 6Students will be required to complete a set of Financial Statements including Income Statement, Balance Sheet and Cash Flow Statement. Students will also be required to cross check completed statements to source financial data to determine correct classification and accuracy of statements, appropriate corrections will need to be madeCA / NYC
20%
Group assignment / project. Due in week 8.The group assignment is due in week 8. It will comprise the analysis and interpretation of the most recent annual report of a listed public company. Each group will be assessed on their analysis of the financial statements of their selected company.CA / NYC
40%
ExaminationThe final exam will be of two (2) hours duration and be closed book. It will comprise multiple choice, calculations and short answer questions.Graded assessment 40%

Other Information

Competency and grading requirements:
To be deemed competent students must demonstrate an understanding of all elements of a competency. Assessment methods have been designed to measure achievement of each competency in a flexible manner over multiple tasks. 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.

All competency based assessments for this course must be completed to achieve CA. Each assessment task will also carry a numerical weighting to be used for grading purposes. The grade applied to this weighting will only be awarded if a CA has been achieved in all compulsory assessment tasks.

If a student has been marked NYC (Not Yet Competent) in any of the assessment tasks, the weighting will carry no value until the student has obtained CA.
A final examination will be offered to students who have achieved CA. The final examination is for grading purposes only and is intended for students requiring a grade for articulation into higher education programs.

Assignment Submission Procedure
All assignments must be submitted online through the course Blackboard. They must be accompanied by an assignment cover sheet and submitted though Tunitin, a plagiarism checking tool. For information on Turnitin see;

Student FAQ, http://www.rmit.edu.au/academicintegrity/studentfaq
Student procedures and account setup (pdf),
http://www.rmit.edu.au/academicintegrity/studentprocedures

Turnitin student information page, https://www.turnitin.com/static/training/student.php
Turnitin will assess your work in approximately one minute, and return a colour coded response for the originality of the text.

Penalties for late submission
All assignments will be marked as if submitted on time then the mark awarded will be reduced by 10% for each day (or part of a day) it is late.
Assignments that are late by 7 days or more will not be marked and will be assessed as Not Yet Competent and awarded zero marks.

Final Grades table:

HD Competent with High Distinction
DI Competent with Distinction
CR Competent with Credit
PA Competency Achieved – Graded
NN Not Yet Competent
DNS Did Not Submit for assessment

Competency / Grading Criteria
In addition to the above statement on competency and grading, grades for this course will be awarded on the following basis:

Not Yet Competent / Fail (NN):
The submitted/presented work does not meet the criteria set for the assessment tasks; and the elements and crtieria of the unit / course.

Competent / Pass (PA) 50-59%:
The submitted/presented work meets the criteria for the set assessment tasks. Assessments have met the requirement for competence / pass against the elements and criteria for the unit / course. This includes clear evidence of understanding of the required knowledge and skills of the unit and the application of this knowledge and skills.

Competent with Credit / (CR) 60-69%:
In addition to satisfying the conditions for competency, the submitted/presented work shows evidence that exceed the required standards / criteria for competence. This includes the ability to apply the knowledge and skills of the of the unit / course with more relevant detail and accuracy. Calculations and reports are completed with few errors and examples are provided to illustrate greater understanding of the issues / problems in questions and case studies.

Competent with Distinction / (DI) 70-79%:
In addition to satisfying the conditions for a credit, the submitted/presented work shows analysis of relevant material beyond that covered in the class, the ability to engage in more detailed qualitative research, and applies relevant professional and theoretical reading.. This will include the ability to apply the knowledge and skills of the of the unit / course with relevant detail and accuracy. Calculations and reports are completed with minor error and examples are provided to illustrate greater understanding of the complexity of issues / problems in questions and case studies.

Competent with High Distinction / (HD) 80%:
In addition to satisfying the conditions for a distinction, the submitted/ presented work shows evidence of high order critical analysis and insightful use of wide and relevant theoretical reading as well as thorough attention to preparation, and presentation. The submitted/presented work demonstrates the capacity to understand and apply the required knowledge and skills to complex problems. Calculations and reports are accurate and examples are provided that illustrate excellent understanding of the complexity of issues / problems in questions and case studies.

Changes to assessment scheme
Changes to the method of assessment described above may be made with the documented consent of 70% of students enrolled in the course. Students will receive written notification of any such changes.

Borderline policy
All borderline fail assignments and examination papers will be marked by a second examiner. Assessment within 5% of the pass mark is considered to be borderline for this purpose. Students who are dissatisfied with their assessment outcomes have the right to clarification from the School of how their assessment was determined
Feedback
Feedback will be provided throughout the semester in class and/or on Blackbaord. Individual and group feedback on specified learning activities as required. You are encouraged to ask and answer questions during the lecture and tutorials so that you can obtain feedback on your understanding of the concepts and issues being discussed.

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

Written Reports and Essays:
Students should consult the Guidelines for Referencing and Presentation in RMIT Business. This document is the standard RMIT Business reference for Higher Education and TAFE students.

In addition to these resources, RMIT provides academic skills support and resources through the Study and Learning Centre (https://www.dlsweb.rmit.edu.au/lsu/) and the library (http://www.rmit.edu.au/library).

Plagiarism
Plagiarism: the practice of claiming, or implying, original authorship or incorporating material from someone else’s written or creative work, in whole or in part, into ones own without adequate acknowledgement. Plagiarised material can be drawn from, and presented in, written, graphic and visual form, including electronic data, and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited.
Examples of plagiarism include:
• Copying sentences or paragraphs word-for-word from one or more sources, whether published or unpublished, which could include but is not limited to books, journals, reports, theses, websites, conference papers, course notes, etc. without proper citation;
• Closely paraphrasing sentences, paragraphs, ideas or themes without proper citation;
• Piecing together text from one or more sources and adding only linking sentences;
• Copying or submitting whole or parts of computer files without acknowledging their source;
• Copying designs or works of art and submitting them as your original work;
• Copying a whole or any part of another student’s work;
• Submitting work as your own that someone else has done for you; and
• Enabling plagiarism: the act of assisting or allowing another person to plagiarise or to copy your own work.
Advice and activities are available to help you cite and quote your sources correctly, and avoid plagiarism, see for example
http://www.dlsweb.rmit.edu.au/lsu/content/1_StudySkills/02referencing.htm
Further information on academic integrity:
http://www.rmit.edu.au/academicintegrity

Special consideration in assessment
Special consideration is a process that takes account of unexpected or extenuating circumstances such as serious illness, serious injury or bereavement of a close family member that severely affects a student’s performance in assessment.
The RMIT University policy on special consideration in assessment can be viewed on the RMIT University website at www.rmit.edu.au/policies .

How to apply for special consideration:
You must apply for special consideration no later than two working days after the relevant examination or assessment deadline. For available lodgement methods and the current version of the application form see the special consideration website at www.rmit.edu.au/students/specialconsideration.

Your application must be supported by a medical impact statement completed by an independent qualified practitioner and/or relevant independent substantiating documentation. A medical certificate alone is not sufficient. If you do not have the impact assessment statement completed or you do not have your supporting documentation ready when you lodge your application, you should lodge an incomplete application and provide the additional documents within five working days.

All communication about your application will be through your RMIT student email account. It is your responsibility to check your RMIT student email account regularly, promptly respond or action any requests for information and ensure your account can receive incoming emails. RMIT will advise you of the outcome via your RMIT student email account.

Course Overview: Access Course Overview