Assignment Front Sheet Qualification Unit Number And Title
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The document provides instructions for an assignment assessing a student's understanding of financial accounting and reporting. It includes 5 tasks assessing the student's ability to: 1) understand regulatory frameworks and present on users' needs; 2) prepare financial statements from incomplete records; 3) prepare consolidated financial statements; 4) explain information needs, and prepare financial statements; and 5) interpret financial statements using ratios. The student must submit a single document of 4000-5000 words completing all tasks, citing sources, and declaring their work as authentic. Late submissions will be considered with valid reasons.
Assignment Front Sheet Qualification Unit Number And Title
- 1. Assignment Front Sheet Qualification Unit number and title Pearson BTEC Level 5, HND Business (Accounting) Unit 10: Financial Accounting and Reporting Unit code: F/601/0864 Credit value: 15 credits Student name Assessor name Sajid Saeed Khan Date issued Completion date Submitted on Validity 3rd December 2013 3rd January 2014 3rd April 2014 Assignment title Preparation of financial statements, complying with relevant legal and regulatory provisions Assignment no 10- F/601/0864-13IND Hand-in Policy You must complete this assignment on time. If you experience difficulties, you must inform your tutor accordingly. Late Work Policy Consideration will be given to students who have valid reasons for late submission (eg, illness). Plagiarism In cases of plagiarism, college regulations will be applied. You must declare that this assessment is your own work by signing the following statement: Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date:
- 2. Assessment Criteria Learning Outcome Learning outcome Assessme nt Criteria In this assessment you will have the opportunity to present evidence that shows you are able to: Task no. Evidence (Page no) LO1 Understand the regulatory framework for financial reporting 1.1 Describe the different users of financial statements and their needs 1 1.2 Explain the legal and regulatory influences on financial statements 1 1.3 Assess the implications for users 1 1.4 Explain how different laws/regulations are dealt with by accounting and reporting standards 1 LO2 Be able to prepare financial statements from complete or incomplete records 2.1 Prepare financial statements for a variety of businesses from a trial balance, making appropriate adjustments 2,4 2.2 Prepare financial statements from incomplete records 2 2.3 Prepare a consolidated balance sheet and profit and loss account for a simple group of companies 3 LO3 Be able to present financial information in accepted formats for publication 3.1 Explain how the information needs of different user groups vary 4 3.2 Prepare financial statements in a form suitable for publication by a sole trader, partnership and limited company 4 LO4 Be able to interpret financial Statements 4.1 Calculate accounting ratios to assess the performance and position of a business 5 4.2 Prepare a report incorporating and interpreting accounting ratios, including suitable comparisons 5
- 3. In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades Grade Descriptor Indicative characteristic/s Contextualisation M1 Identify and apply strategies to find appropriate solutions Effective judgements have been made. An effective approach to study and research has been applied. To achieve M1, an effective approach to study and research has been applied (Task 1) To achieve M1, an effective approach to study and research has been applied. (Task 2) To achieve M1, an effective approach to study and research has been applied. (Task 3) To achieve M1, effective judgements have been made (Task 4) To achieve M1, effective judgements have been made. (Task 5) M2 Select / design and apply appropriate methods / techniques A range of sources of information has been used a range of methods and techniques have been applied Complex information/data has been synthesised and processed To achieve M2 a range of sources of information has been used. (Task 2) To achieve M2, complex information/data has been synthesised and processed (Task 3) To achieve M2 a range of methods and techniques have been applied (Task 4) To achieve M2, relevant theories and techniques have been applied (Task 5) M3 Present and communicate appropriate findings Coherent, logical development of principles/concepts for the intended audience To achieve M3, coherent, logical development of principles/concepts for the intended audience. (Task 1) D1 Use critical reflection to evaluate own work and justify valid conclusions Conclusions have been arrived at through synthesis of ideas and have been justified The validity of results has been evaluated using defined criteria To achieve D1, conclusions have been arrived at through synthesis of ideas and have been justified. (Task 1) To achieve D1 the validity of results has been evaluated using defined criteria. (Task 2) D2 Take responsibility for managing and organising activities Autonomy/independence has been demonstrated Activities have been managed To achieve D2, autonomy/independence has been demonstrated. (Task 1) To achieve D2, autonomy/independence has been demonstrated. (Task 2)
- 4. To Achieve D2 autonomy/independence has been demonstrated. (Task 3) To Achieve D2 autonomy/independence has been demonstrated. (Task 4) To achieve D2, autonomy/independence has been demonstrated, activities have been managed (Task 5) D3 Demonstrate convergent /lateral / creative thinking
- 5. Assignment brief Unit Name number and title Unit 10: Financial Accounting and Reporting Unit code: F/601/0864 Credit value: 15 credits Qualification Pearson BTEC Level 5, HND Business (Accounting) Start date 3rd December 2013 Deadline/hand-in 3rd January 2014 Assessor Sajid Saeed Khan Assignment title Preparation of financial statements, complying with relevant legal and regulatory provisions Task 1 (LO1, 1.1, 1.2, 1.3, 1.4 and M1, M3, D1 and D2) You are working as a Senior Accounts Manager in a joint stock company, ABC Limited. Your company is conducting a seminar on the topic of “Understand the regulatory framework for financial reporting’’. You have been asked to present the following on behalf of your company: 1. Prepare a presentation on the topic ‘‘Users of financial statements and their needs''. 2. Prepare and present a detailed report on the following: a) Explain the legal and regulatory influences on financial statements and assess its implications for different users? b) Explain in detail how different laws/regulations are dealt with by accounting and reporting standards?
- 6. Task 2 (LO2, 2.1, 2.2 and M1, M2, D1, D2) Mr. Shujrah run a small business for many years, he has never kept adequate accounting records. He requires final accounts for the year ended 31 August 2003 to obtain a bank loan for the expansion of the business. As a result, the following information has been obtained after a careful research: All takings have been banked after deducting; cash drawings of £8,000, labour of £1,200 and Purchase of goods for resale for £1,800. (Takings have been the source of all amounts banked). Gross profit of 33(1/3) % on cost has been obtained on all goods sold. Despite the availability of minimum accounting records, Mr. Shujrah confirmed that he has taken goods costing £600 out of the business during the year for his own use. Mr. Shujrah’s business assets and liabilities are as follows: As at '1 September 2002 '31August 2003 £ £ Stock in trade 8,600 16,800 Debtors for sales 3,900 4,300 Creditors for purchases 7,400 8,900 Rent prepaid 300 420 Electricity accrued 210 160 Balance at bank 2,300 1,650 Cash in hand 360 330 Bank payments during the year ended 31 August 2003 have been summarized as follows: £ Purchases 101,500 Rent 5,040 Electricity 1,390 Delivery costs (to customers) 3,000 Casual labour 6,620 Required: (a) Calculate total purchases for the year ended 31 August 2003. (b) Prepare a trading and profit and loss account for the year ended 31 August 2003 and a balance sheet as at that date. Task 3 (LO2: 2.3 and M1, M2, D2) The following figures for the year to 30 September 1997 have been extracted from the books and records of two companies, A-One Ltd and its subsidiary, B-One Ltd, which form a group: Profit and Loss Accounts for the year to 30 September 1997 A-One Ltd B-One Ltd £(In £(In Millions)
- 7. Millions) Turnover 1,700 450 Cost of sales ( 920) (75) Gross profit 780 375 Administration expenses (300) (175) Income from shares in group company 120 –___ Profit on ordinary activities before taxation 600 200 Tax on profit on ordinary activities ( 30) (20) Profit on ordinary activities after taxation 570 180 Dividends: paid ( 90) (50) proposed (270) (100) Retained profit for the year 210 30 Retained profit brought forward 220 70 Retained profit carried forward 430 100 Balance Sheets at 30 September 1997 A-One Ltd B-One Ltd £(In Millions) £(In Millions) Fixed tangible assets 1,280 440 Investments: Shares in group company 400 – Current assets Stocks 300 250 Debtors (including, for A-One Ltd, The dividend proposed by the subsidiary) 280 150 Cash at bank and in hand 40 10 620 410 Creditors (amounts falling due within one year) Trade creditors ( 80) (160) Other creditors, taxation and social security ( 160) ( 70) Proposed dividend ( 270) (100) ( 510) (330) Net current assets 110 80 Total assets less current liabilities 1,790 520 Provisions for liabilities and charges Taxation, including deferred taxation ( 460) ( 20) 1,330 500 Capital and reserves Called-up share capital (ordinary shares of £1 each) 900 400 Profit and loss account 430 100 1,330 500 Additional information: (a) A-One Ltd acquired 80 per cent of the shares in B-One Ltd on 1 October 1994. B-One Ltd’s Profit and loss account balance as at that date was £40,000. (b) Goodwill arising on acquisition is to be written off against the group’s retained profits. (c) A-One Ltd takes credit within its own books of account for any dividends receivable from B-One Ltd. Required: Prepare A-One Ltd & its subsidiary B-One Ltd consolidated profit and loss account for the year to 30 September 1997 and a consolidated balance sheet as at that date.
- 8. Task 4 (LO2 2.1 and LO3, 3.1, 3.2and M1, M2, D2) A). Explain the importance of financial information of the company for different stakeholders. B). You are to draw up a trading and profit and loss account for the year ending 31 March 2012, and a balance sheet as at that date from the following trial balance and details of: Description Amount in £(000) Bank 8,100 Debtors 321,219 Creditors 237,516 Stock at 31 March 2011 290,114 Buildings at cost 800,000 Equipment at cost 320,000 Profit and loss account as at 31 March 2011 136,204 General reserve 120,000 Foreign exchange reserve 20,000 Authorized and issued share capital 800,000 Purchases 810,613 Sales 1,606,086 Carriage inwards 2,390 Carriage outwards 13,410 Salaries 384,500 Business rates 14,800 Office expenses 9,100 Sundry expenses 2,360 Provisions for depreciation at 31 March 2011: Buildings 80,000 Equipment 96,000 Directors’ remuneration 119,200 Notes at 31 March 2012: 1. Stock £317,426. 2. Business rates owing £1,700; Office expenses owing £245. 3. Dividend of 15 per cent proposed. 4. Transfers to reserves: General £70,000; Foreign exchange £30,000. 5. Depreciation on cost: Buildings 5 per cent; Equipment 15 per cent.
- 9. Task 5 (LO4, 4.1,4.2 and M1, M2, D2) The following are the summarized Profit Statements and Balance Sheets for A2Z Motors Ltd, a manufacturing company, and Fashion Do-Do Ltd, a retailer. A2Z Motors Ltd Fashion Do-Do Ltd 2009 2010 2009 2010 £000 £000 £000 £000 Sales 500 610 425 460 Cost of sales (245) (355) (210) (230) Operating costs (225) (230) (190) (200) Loan interest paid (7) (10) (7) (3) Net profit 23 15 18 27 Fixed Assets at Net Book Value 150 225 220 175 Stock 50 60 27 20 Debtors 20 30 – – Bank 10 (35) 13 57 Creditors (25) (20) (35) (50) 205 260 225 202 Share capital 50 50 50 50 Retained profit 95 110 100 127 Long term loans 60 100 75 25 205 260 225 202 Required 1. Use ratios to compare the management’s performance from 2009 to 2010 for each company. (Use year ended figures to calculate ratios) 2. Prepare a report incorporating and interpreting accounting ratios, suitable comparisons, weaknesses and limitations of ratio analysis.
- 10. Evidence checklist Summary of evidence required by student Evidence presented Task 1 Presentation on the topic ‘‘Users of financial statements and their needs'' and report on legal and regulatory influences on financial statements Task 2 Calculate total purchases and prepare a trading and profit and loss account Task 3 Prepare A-One Ltd & its subsidiary B-One Ltd consolidated profit and loss account Task 4 Report on the importance of financial information of the company for different stakeholders and draw up a trading and profit and loss account for the year Task 5 Comparison of the management’s performance and prepare a report incorporating and interpreting accounting ratios, suitable comparisons, weaknesses and limitations of ratio analysis.
- 11. Submission guidelines You must: Complete all tasks Present your work in one business report-style document which should include a table of contents, references list, foot or end notes if any and appendices if any. Complete, sign and submit the usual statement of authenticity. Submit your work in a single word processed document of 4000-5000 approx .words. This word limit is only for guidance and is not applied on grading. Produce clear specific reasoning and arguments in support of your answers. Make appropriate reference to the relevant concepts, techniques and theories. Appropriately cite all information success (in the text and bibliography) as per references guidelines given to you before.