Course Title: Prepare financial reports for a reporting entity
Part B: Course Detail
Teaching Period: Term1 2010
Course Code: ACCT5256C
Course Title: Prepare financial reports for a reporting entity
School: 650T TAFE Business
Campus: City Campus
Program: C5178 - Diploma of Accounting
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
Phone 9925 5701
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 development and preparation of financial reports for a reporting entity. A reporting entity is where there is public interest in the entity and these parties do not have the power to demand information.
If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title:
FNSACCT504B Prepare financial reports for a reporting entity
1. Compile Reports
1.1 Data is systematically coded, classified and checked for accuracy and reliability in accordance with organisational policies, procedures and accounting standards
2. Prepare Reports
2.1 Charts, diagrams and supporting data are presented in an appropriate format
Details of Learning Activities
Each week students will be introduced to the accounting theory and relevant accounting standards and legislation related to each topic. A demonstration of the practical application of the theory and standards will also be given. (e.g. case studies)
Discussion of current issues related to the topics, student completion of practical exercises including company accounts and company reports and investigation and discussions of examples of published reports will also be completed.
|Week||Week Commencing||Topic||Elements||Learning Activities|
|1||8/2/2010 ||Introduction |
1 - Finalization P/L and retained earnings
|1.1, 1.3, 1.4 |
1 - Finalization P/L and retained earnings
2 - Tax effect accounting
|1.1, 1.3, 1.4 ||Journals and ledgers to finalize accounts|
2 - Tax effect accounting
3 - GPFR
|1.1, 1.4||Calculate tax liabilities, tax assets and tax expense. Complete journals and ledgers|
|4||1/3/2010||3 - GPFR |
4 – Income Statements & Statement sof Change in Equity
|1.1, 1.3, 1.4, 2.1, 2.2, 2.3||
Recognise a reporting entities and differentiate between GPFR and SPFR. Complete an income statement and change of equity
|5||8/3/2010 ||4 – Income Statements & Statement of Change in Equity||1.1, 1.3, 1.4, 2.1, 2.2, 2.3||Complete income statements and change of equity
|6||15/3/2010 ||5 – Balance Sheets||1.1, 1.3, 1.4, 2.1, 2.2, 2.3||Complete an integrated exercise
|7||22/3/2010 ||5 – Balance Sheets||1.1, 1.3, 1.4, 2.1, 2.2, 2.3||Complete an integrated exercise
Revision & Test
|Mid Semester Break 1/4/2010 – 7/4/2010|
|9||12/4/2010 ||6 – Cash Flow Statements||1.1, 1.3, 1.4, 2.1, 2.2, 2.3||Complete cash flow statement s and reconciliations
6 – Cash Flow Statements
10 - Current Reporting Trends
|1.1, 1.3, 1.4, 2.1, 2.2, 2.3||Complete cash flow statements and reconciliations
|11||26/4/2010 ||7 - Amalgamations and Takeovers ||1.1, 1.3||Complete journals, ledgers and balance sheet
|12||3/5/2010 ||8 - Consolidated Reporting||.1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3||Complete consolidated reports|
|13||10/5/2010 ||8 - Consolidated Reporting||1 .1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3||Complete consolidated reports|
8 - Consolidated Reporting
|1 .1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3||Complete consolidated reportsand segment reports|
|15||24/5/2010 ||9 - Segment Reporting ||1 .1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3||Complete a segment report|
Revision & Test 2
|Review Test 2 and Deferred Tests/Retests |
A hard copy of a current annual company report. Each student will be allocated a company and will refer to their report across the semester.
De Lange P., Rodgers R., Clarke E. A., Company Accounting & Financial Statements (5th Edition), Thomson Publishing
Wilson M., & Brooker H., Corporate Accounting –An Australian Perspective (2002)
National Institute of Accountants, Corporate Accounting and Reporting – A Practical Approach (2007), Pearson Prentice Hall
Woodford, WL & Mills AD, Company Accounting (2008), Pearson Prentice Hall
All relevant learning resources will be placed on the online learning hub (http://www.rmit.edu.au/learninghub) progressively throughout the semester. Students will need to access this site on a weekly basis, print off materials and bring them to class
Overview of Assessment
Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.
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
Students must complete both tests and the assignment and achieve a mark of greater than 50% in each to achieve an overall pass in this course. 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.
Test - If a student receives a mark of less than 50% for a test they have completed, they will be given the opportunity to resit the test for a maximum grade of 50% as per the teaching schedule.
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)
Assignments - All assignments must be submitted using the faculty cover sheet for assignments. These are available from the foyer on level 13 or at http://prodmams.rmit.edu.au/wcy2b1ka2ioo1.pdf
If a student receives a mark of less than 50% for an assignment they have completed, they will be given the opportunity to resubmit the assignment to achieve a pass grade.
Students seeking an extension of seven calendar days of less (from the original due date) must complete an application for extension to time, available at level 13 reception. Except in exceptional circumstances the application must be lodged with your teacher no later than one working day before the official due date.
Students should note that schools are not required to accept late submissions, but if it is determined the assignment will be accepted a 10% PER DAY PENALTY will be deducted from the final assessment mark.
|Presentation of company report and company details (due 25/7/2009)||5||Communication Skills|
|Assignment (due week beginning 28/9/2009)||25||1,2,3,4,5,6,8 9,10
|Test 2||35|| 6,7,8,9,10
1. Complete a profit and loss account and retained earnings account
1.1. Explain why it is necessary to make adjustments to intangibles and investments in accordance with applicable standards.
1.2. Differentiate between reserves from profit and capital reserves and how each is accounted for in the books of a company.
1.3. Prepare journal entries and post to the profit and loss account any entries relating to the write off or amortisation of intangibles, treatment of goodwill and adjustments to the value of investments.
1.4. Prepare journal entries and post to the profit and loss account entries relating to income tax expense.
1.5. Close the profit and loss to the retained earnings account
1.6. Prepare journal entries and post to the retained earnings account entries for interim dividends paid and proposed final dividends and transfers to and from reserves.
1.7. Prepare entries to account for capital reserves including issuing of bonus shares from capital reserves.
2. Using tax effect accounting, create, calculate and record a company’s income tax expense and income tax liability in accordance with applicable standards
2.1. Explain the balance sheet method of tax effect accounting as per applicable standards.
2.2. Distinguish between income tax expense for a period and the current taxation liability relating to that period
2.3. Identify and calculate temporary differences
2.4. Calculate current tax liability
2.5. Calculate current tax expense after taking into account temporary differences
2.6. Record general journal entries relating to income tax.
3. Review the purpose of preparing general purpose financial reports
3.1. Describe the objective of preparing general purpose financial reports and the purpose of generally accepted accounting principles.
3.2. Identify users of the general purpose financial reports and their information needs
4. Prepare an Income Statement and a Statement of Change in Equity in conformity with applicable standards and the Corporations Law from a Profit and Loss account and additional information
4.1 Outline the effect on the preparation of final reports of a reporting entity of the current standards, the Corporations Law and the ASX listing rules.
4.2 Prepare a company’s Income Statement and a Statement of Change in Equity in accordance with applicable standards and laws.
4.3 Prepare notes to accompany the Income Statement in accordance with applicable standards and laws.
5. Prepare a Balance Sheet in conformity with applicable standards and the Corporations Law from an adjusted Trial Balance and additional information
5.1 Outline the effect on the preparation of final reports of a reporting entity of the current standards, the Corporations Law and the ASX listing rules.
5.2 Prepare a company’s Balance Sheet in accordance with the requirements of applicable standards and laws.
5.3 Prepare notes to accompany the Balance Sheet in accordance with applicable standards and laws.
6. Prepare a reporting entities Statement of Cash Flows in accordance with current relevant accounting standards from cash records.
6.1 Evaluate the relevance of the Statement of Cash Flow
6.2 Prepare a company’s Statement of Cash Flows in accordance with the requirements of applicable accounting standards and laws.
6.3 Prepare notes to the Statement of Cash Flows including:
 Reconciliation of cash at end.
 Reconciliation of cash flows from operating activities with net operating profit after tax.
7. Prepare the accounting entries that cover an amalgamation and takeover in the books of both the vendor company and in the books of the purchasing company.
7.1 Outline the differences between an amalgamation and a takeover.
7.2 Discuss the reasons why companies may consider entering into a merger
7.3 Calculate purchase consideration in respect to fully paid shares at an agreed value, in relation to an amalgamation or a take-over.
7.4 Calculate and record goodwill, as required by applicable standards
7.5 Prepare in relation to an amalgamation or take-over, the accounting entries in both the books of the vendor and the purchasing entity.
7.6 Prepare a balance sheet following the amalgamation or take-over for both the vendor and the purchasing entity.
8. Prepare a consolidated report for a group where there is a single wholly owned subsidiary.
8.1 Identify the factors, which indicate control exists over another entity.
8.2 Differentiate between a parent/holding company and a subsidiary within the group
8.3 Prepare eliminations and adjustments in the appropriate columns of a consolidated worksheet and a consolidation journal covering the following:
 Pre-acquisition equity.
 Goodwill/Negative Goodwill on acquisition.
 Inter-company loans.
 Payment for inter-company services.
 Inter-company sales.
 Unrealised profit on inter-company transfers of stock at beginning and/or end
 Tax adjustments on unrealised profits.
 Dividends paid and proposed by subsidiary.
 Inter-company transfer of assets
8.4 Prepare consolidated figures for the group with a single wholly owned subsidiary in accordance with applicable standards.
9. Review the disclosure requirements for operating segments and prepare simple oeprating performance and position figures
9.1 Discuss why reporting entities must disclose by operating according to current relevant accounting standards
9.2 Prepare operating segment figures for revenue, expenses, assets and liabilities
10. Analyse current General Purpose Financial Reports identifying common trends in reporting
10.1 Describe methods used to adhere to disclosure including format/presentation styles
10.2 Using current annual reports describe the trends in the type of additional information (non mandatory), companies are providing to interested users.
10.3 Describe the additional types of reports being prepared by companies and the trends towards additional reporting.
10.4 Analyse why companies are reporting non mandatory information to interested parties.
10.5 Identify methods of presentation of information being used to highlight significant facts or trends within general purpose financial reports.
10.6 Identify the type of information that is deemed significant and warrants highlighting
10.7 Analyse likely reasons why such information is being bought to the attention of interested parties.
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