FNSACC504 Prepare financial reports for corporate entities

Assessment Task 2 Cover Sheet

Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded
with any other student(s).
 I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against
me according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student name

Student ID number

Student signature

Date

Assessor declaration
 I hereby certify that this student has been assessed by me and that the assessment has been carried
out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome S NS DNS Resubmission Y N

Feedback

Student result response

 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student signature

Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

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FNSACC504 Prepare financial reports for corporate entities

Assessment Task 2: Financial statements

Task summary
This assessment task requires students to prepare a Trial Balance, Income Statement, Balance Sheet and
Statement of Changes in Equity, along with notes according to financial reporting standards.
Following this you will be required to meet with your Manager (your assessor) to go through the statements
you have prepared. You will also be required to demonstrate your ability to calculate ratios and present your
findings in a report.

Required
 Access to textbooks and other learning materials
 Computer and Microsoft Office
 Hanks Tanks Student
 Access to AASB standards as follows:
o AASB101 Presentation of financial statements
http://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf
o AASB116 Property, plant and equipment
http://www.aasb.gov.au/admin/file/content102/c3/AASB116_07-04_ERDRjun10_07-09.pdf

Timing
The assessor will advise you of the due date of this submission.
Write in the due date below as advised by your assessor:

Submit
 An email to your assessor with an Excel Workbook attached containing the following Worksheets:
o Trial Balance
o Income Statement
o Balance Sheet
o Statement of changes in equity
 An email to your assessor with an Excel Workbook attached containing your adjusted Worksheets.

Assessment criteria
Students must complete all of the activities listed and will be assessed against the assessment criteria
included in the checklist included with this task.

Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task. If any parts of the task are not
satisfactorily completed your assessor will explain why and provide you written feedback along with
guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s)
will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.

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FNSACC504 Prepare financial reports for corporate entities

Assessment Task 2 Instructions

Complete the following activities:

1. Prepare financial statements

Completing this assessment will demonstrate your ability to prepare the required financial
statements according to organisational procedures, as well as AASB Standards.
It will also demonstrate your ability to use your problem solving skills by reviewing the additional
information and makes adjustments as required to ensure there is no negative impact for
reporting.
Based on the information provided in Hanks Tanks Student, you are required to prepare:
 An updated trial balance statement based on the trial balance and adjustments
provided
 An income statement
 A balance sheet
 A statement of changes of equity

Assume that you are an accountant for an accountancy company that has the following
organisational procedures for preparing financial statements:
 All financial statements are to be prepared using Microsoft Excel with a Worksheet
for each statement.
 Financial statements must be prepared within 3 working days of receipt of
information from client.
 Financial statements must be prepared as General Purpose Financial Statements
according to AASB 101 Presentation of financial statements.
 Valuations must be according to the AASB 116 Property, plant and equipment.

Answer to the question No.1

Hanks Tanks Pty Ltd

Balance Sheet
As at 30 June 2016

Particulars Amount ($)

Assets
Non-current assets
Land 25,875
Plant and equipment 6,300
Buildings 58,250
Investments 30,300

Total non-current assets       120,725

Current assets
Accounts receivable 12,550

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Advances 62
Cash at bank 12,438
Inventories 22,500

Total current assets         47,550

Total assets         168,275

Liabilities
Non-current liabilities
Mortgage on buildings 25,000

Total non-current liabilities       25,000

Current liabilities
Accounts payable 7,500
Provisions 10,650
Salaries Payable 300
Tax payable -

Total current liabilities       18,450

Total Liabilities         43,450

Total net assets         124,825

Hanks Tanks Pty Ltd

Income Statement
For the year ended on 30 June 2016

Particulars Amount ($)

Revenue 112,500
Cost of goods sold 51,250

Gross profit         61,250

General and Administrative expenses

Administrative salaries 4,750
Audit fees 1,925
Bad debts 3,450
Calls in arrears 3,000
Consultancy Fees 1,200
Depreciations 3,325

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Directors’ fees 5,000

Dividends 16,650
General expenses 5,750
Impairments 2,625
Interest on mortgage 5,250
Inventory written off 1,250

Total general and administrative expenses   54,175

Selling and distribution expenses

Marketing costs 3,000
Sales commission 4,000
Sales salaries 8,800

Total selling and distribution expenses     15,800

Other income         5,250

Profit/(loss) before tax       (3,475)

Income tax -

Profit/(loss) after tax       (3,475)

Hanks Tanks Pty Ltd

Statement of changes in equity
For the year ended on 30 June 2016

Revaluation Retained
Particulars Share capital reserve profits Total ($)

As at 1 July 1 1
2015 12,500 9,875 12,500 34,875
Profit/(loss) during
the year - - (3,475) (3,475)

Dividends - - - -
Changes during the
year - (6,575) - (6,575)

As at 30 June 1 1
2016         12,500 3,300 9,025 24,825

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FNSACC504 Prepare financial reports for corporate entities

1. Send an email to your Manager (your assessor).

The text of the email should be polite and in grammatically correct English. It should ask the
manager for a meeting at their convenience.
Send the completed financial statements as email attachments to the email.
Your assessor will reply to the email with the time and date of a meeting to discuss your
statements.

Answer to the question No:2

Date: 1 July.2016
From: Shahriar Ahmed shahriarahmed@gmail.com
To: Assessorassessor@gmail.com

Subject: Financial Statements

Dear sir,

Hope you are well. Asp per as your instructions, I have already prepared a drafted financial statement
considering all the adjustments when preparing this financial statement.

I have the attached financial statements files here. I will remain grateful to you if you review this and inform
me if any mistakes happen. I am looking forward to meeting with you to finalize the financial statements.
please let me know when you are free.

Thank you.

Sincerely yours,
Shahriar Ahmed

Attachment: Financial Statements_V1

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2. Participate in a meeting to discuss financial statements

You are required to meet with your Manager to go through each of the financial statements to
check your coding, classifications, and calculations. You will also be asked to explain the
adjustments you made, the rationale for these, and that existed.

During the meeting, you are required to demonstrate effective interpersonal and communication
skills including:
 Speaking clearly and concisely
 Using effective non-verbal communication skills to encourage audience interest
 Responding to questions
 Asking questions to seek feedback
 Use of active listening techniques to confirm and clarify understanding.

Ansswer to the question No:3

Me: Hello sir. How are you?

Manager: I am well. What about you? Sit down.

Me: Thank you, sir. I am too well. Did you find any mistakes in financial statement?

Manager: No. But I think that few changes are needed to make this financial statement
perfect.

Me: Sure, sir. Please share.

Manager: It is very difficult to understand that all the equity balance is equal to the
financial statements amount.

Me: What can be the solution, Sir?

Manager: I think that you can make a reference of the balance from which statement
you collect which amount. Besides you can reckon the difference to ensure that the
financial statements are right.

Me: sure sir. Thank you for helping me.

Manager: welcome. Let me send the revised copy

Me: Obviously sir. I will send you a revised Email.

Manager: Ok.

Me. Thank you sir for giving your valuable time and advice.

Manager: welcome.

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3. Revise your financial statements, including any changes as discussed with your assessor
Send your final revised copy to your assessor as an email attachment.

Answer to the question No:4

Date: 7 July.2016
From: Shahriar Ahmed shahriarahmed@gmail.com
To: Assessorassessor@gmail.com

Subject: Financial Statements

Dear sir,

Hope that you are fine. The instructions that you gave me, as per this instructions, I have made all the
changes and prepared this financial statement. I have attached the modified financial statement.

I will remain grateful to you if you check this and inform me. If any further modification is required, please
let me know.

Thank you.

Sincerely yours,
Shahriar Alam

Attachment: Financial Statements_V1

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Assessment Task 2 Checklist

Student’s name:

Completed
successfully Comments
Did the student: Yes No
Correctly code and classify all data from the trial balance sheet
and show in a:
 Balance Sheet
 Income Statement
 Statement of changes in equity
Correctly record adjustments according to additional information
provided?
Demonstrate problem solving skills by reviewing the additional
information and making the required adjustments to ensure there
is no negative impact for reporting?
Develop financial statements according to organisational
procedures and accounting standards including:
 Using Microsoft Excel with a worksheet for each type of
statement.
 In accordance with AASB 101 Presentation of Financial
Statements
 Using valuation methods according to the AASB 116 Property,
plant and equipment.
 Within 3 working days of receipt of information from client.
Correctly transfer all data from the trial balance into an excel file
with a separate work sheet for each component of the financial
statement?
Record valuations in financial statements according to the AASB
116 Property, plant and equipment?
Identify and record applicable taxes so that profit before income
tax as well the income tax expense and profit after tax is shown?
At the meeting, explain financial statements prepared and
adjustments made, including options for resolution, and rationale
for adjustments made to ensure no negative impact on reporting?
Provide final copy of statements following meeting, with errors
corrected as required?

Task Outcome: Satisfactory  Not Satisfactory 

Assessor signature

Assessor name
Date

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