please check the attachment for details i need each task number mentioned in the answer2000-2500 wordsmaximum 10\% plagiarismCOLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF PROFESSIONAL STUDIES
Assignment front sheet
Assignment – 1
Qualification
Unit number and title
Pearson BTEC Level 5 HND Diploma in Business
Unit 10: Financial Accounting and Reporting
Semester
Batch
IV
Spring 2015-16
Student name
Assessor name
Ms.Sujatha Bhat/Mr.Ali Al Asmi
Student No.
Internal Verifier (IV) name
Mr. Gnanendran
Date issued
Completion date
Submitted on
-Nov-2016 – Formative
-Nov-2016 – Summative
Assignment title
Learning
Outcome
LO 1
LO 2
Learning
Outcome
Regulatory framework for financial reporting and presentation of
information in accepted formats for publication
Assessment
Criteria
In this assessment you will have the
opportunity to present evidence that
shows you are able to:
Task
no.
Understand the
regulatory
framework for
financial
1.1
reporting
1.3
Assess the implications for users
3
1.4
Explain how different policies are dealt
with by accounting and reporting
standards
4
Be able to
prepare financial
statements from
complete or
1.2
2.3
Describe the different users of financial
statements and their needs
Explain the legal and regulatory
influences on financial statements
Prepare a consolidated balance sheet and
profit and loss account for a simple group
of companies
financial
Evidence
(Page no)
1
2
5
incomplete
records
LO 3
Be able to present
financial
information in
accepted formats
for publication
3.1
3.2
Explain how the information needs of
different user groups vary
Prepare financial statements in a form
suitable for publication by a sole trader,
partnership and limited company
1
6
Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Student signature:
Date:
1
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
To achieve M1, you will make effective judgements by comparing different
M1 Identify and apply strategies
to find appropriate solutions
users of financial statements as to how they use those information for
decision making by linking to various financial statements prepared by the
Effective judgements have company (Task 1).
been made.
To achieve M1 you have to make an effective judgment on application of
relevant IAS and IFRS. (Task 5).
To achieve M1, you should use effective judgment while making the
adjustments in the financial statements. ( task 6)
M2 Select / design and apply
appropriate methods /
techniques
M3 Present and communicate
appropriate findings
A range of methods and
techniques have been
To achieve M2 you will have to use range of information to explain the
applied
importance of consistency in accounting policy. (Task 4).
A range of sources of
information has been used
To achieve M3, you will have to explain a range of legal and regulatory
influence including the regulation for stock exchange listing. Also explain
both International and local Accounting Standards. (Task 2).
To achieve M3 you will have to use a coherent and logical approach
The appropriate structure
and approach has been
used
assessing the implication for the users of financial statement. (Task 3)
To achieve M3, you should use the appropriate structure as specified by
IAS/IFRS
in
preparing
the
consolidated
balance
sheet.
You
should
demonstrate the interdependence on Non-Controlling Interest, Goodwill and
retained earning calculation. You have to solve the problem accurately and
balance the consolidated SOFP. (Task 5)
2
To achieve M3, you should use an appropriate structure specified by
IAS/IFRS in preparing the SOFP and the income statement. You should
validate the result by balancing the SOFP. You will have to solve the
problem accurately and balance the SOFP by applying creative thinking
(Task 6)
To achieve D1, you have to make conclusions through synthesis of ideas
D1 Use critical reflection to
evaluate own work and justify
valid conclusions
and have been justified when assessing the implication of each accounting
concepts/assumptions/qualitative characteristics. You should explain the
Realistic improvements
have been proposed
against defined
characteristics for success
fundamental and enhancing qualitative characteristics and link how
enhancing characteristics strengthen the fundamental characteristics.(Task
3)
To achieve D1 you answer should reflect a critical evaluation on when a
firm can change its accounting policy and validate your conclusion. (Task 4).
D2 Take responsibility for
managing and organising
activities
To achieve D2, you will have to demonstrate autonomy and independence
Autonomy/independence
has been demonstrated
by bringing more information like how company legislation is linked to
Accounting standards for detailed accounting guidance. (Task 2).
To achieve D3, you should show convergent and lateral thinking on how
D3 Demonstrate convergent
/lateral / creative thinking
different user groups use the financial statement for decision making. You
Innovation and creative
should illustrate conflicting interest of different user groups in using the
thought have been applied
financial statement for decision making. Also describe why businesses need
A range of sources of
to produce financial statements and why company has to follow accounting
information has been used
procedures in order to produce financial information. (Task 1).
3
Assignment Brief
Purpose of this assignment
The manner in which items and transactions are treated and presented in the financial
statements may affect an investors perception of the position and performance of the
business. Whilst individual accounting standards can be developed to deal with specific issues
it is also important that there is a framework that sets out the wider purposes that accounting
standards are intended to achieve. This assignment will help you understand the importance of
accounting regulations, the importance of accounting information to different user groups with
varied needs and the need to present financial statements in standardized formats
Task 1 – LO1 & 3 – Assessment Criteria 1.1 & 3.1 (M1, D3):
Describe the different users of financial statements and their needs.
Explain how the information needs of different user groups vary
The objective of financial reporting is to provide information about the reporting entity that is
useful for certain group of people who need to know that information. The regulatory
framework does not only prevent preparers of financial statements from misleading users; but
is also developed to ensure that the information in the financial statements actually does meet
users’ needs.
Describe, Who exactly are these users of financial statements?
Also, what information do they need and what decisions do they make?
To achieve pass you must;
List out and describe the different users of financial statements
Identify different components of financial statements to be prepared by the company
Explain how the information needs of different user group vary
To achieve M1, you will make effective judgements by comparing different users of financial
statements as to how they use those information for decision making by linking to various
financial statements prepared by the company
To achieve D3, you should show convergent and lateral thinking on how different user groups
use the financial statement for decision making. You should illustrate conflicting interest of
different user groups in using the financial statement for decision making. Also describe why
do businesses need to produce financial statements and why company has to follow
accounting procedures in order to produce financial information
4
Task 2 – LO1 – Assessment Criteria 1.2 (M3, D2):
Explain the legal and regulatory influences on financial statements
The preparation of financial statements of Limited Liability Companies is closely regulated.
The regulation comes from three main sources: Company Law, Accounting standards and
Stock exchange listing requirements.
Explain
clearly
the
regulatory
framework
relating
to
Company
Legislation,
Accounting standards and other sources of regulations.
To achieve pass you must;
Identify legal and regulatory influences.
Explain how legal and regulatory aspects influence the content and the form of the
financial statements.
To achieve M3, you have to explain a range of legal and regulatory influence including the
regulation for stock exchange listing. Also explain both International and Local Accounting
Standards.
To achieve D2, you will have to demonstrate autonomy and independence by bringing more
information like how company legislation is linked to Accounting standards for detailed
accounting guidance.
Task 3 – LO4 – Assessment Criteria 1.3 (M3,D1):
Assess the implications for users.
The general objective of financial reporting is to provide useful information to the users of Financial
statements. Therefore, the Framework for the Preparation and Presentation of Financial
Statements requires financial statements to be prepared on the basis that they comply with
certain accounting concepts, underlying assumptions and (qualitative) characteristics”.
Identify four accounting concepts/assumptions/qualitative characteristics and
assess the implication of each of the above concepts/assumptions/qualitative
characteristic on the users of financial statements
5
To achieve pass you must;
Identify four accounting concepts/assumptions/qualitative characteristics.
Explain each of the concepts/assumptions/Qualitative characteristics, which you have
selected for users of financial statement and Assess the implication of the above for the
users.
To achieve M3 you will have to use a coherent and logical approach assessing the implication
for the users of financial statement.
To achieve D1, you have to make conclusions through synthesis of ideas and have been
justified when assessing the implication of each accounting concepts/assumptions/qualitative
characteristics. You should explain the fundamental and enhancing qualitative characteristics
and link how enhancing characteristics strengthen the fundamental characteristics.
Task 4 – LO1 – Assessment Criteria 1.4 (M2,D1):
Explain how different policies are dealt with by accounting and reporting standards.
The accounting policies are the specific policies and procedures that are used by a company to
prepare its financial statements.
Describe with examples, how different policies are dealt with by accounting and reporting
standards referring to Inventory (IAS 2) and Depreciation (IAS 16)
To achieve pass you must;
Explain the relevant accounting standards pertaining to depreciation and inventory
Explain the importance of the concept of consistency in valuation of inventory and
methods of depreciation though accounting standards.
To achieve M2 you will have to use range of information to explain the importance of
consistency in accounting policy.
To achieve D1 your answer should reflect a critical evaluation on when a firm can change its
accounting policy and validate your conclusion.
6
Task 5 – LO2 – Assessment Criteria 2.3 (M1,M3):
Prepare a consolidated balance sheet and profit and loss account for a simple group of companies
The Statement of Financial Position (SFP) of D Ltd. and Z Ltd. are as under:
Statement of Financial Position as on December 31, 2015
Non current Assets:
D Ltd
$
70000
Z Ltd
$
16000
Land and Buildings
15000
2000
Investment (80\% shares in Z Ltd)
60000
Plant and Equipment
Current assets:
Inventory
90000
40000
Trade and other Receivables
50000
24000
Cash at Bank
20000
20000
305000
102000
Equity share capital of R.O.1 each
65000
20000
Share premium
35000
10000
Retained Earnings
70000
25000
Secured loans
45000
20000
Trade and other Payables
60000
20000
Accrual and other Liabilities
30000
7000
305000
102000
Total Assets
Liabilities
Current Liabilities:
Total Equity and Liabilities
The following additional information is provided:
D Ltd acquired an 80\% holding in Z Ltd on January 1, 2015. On that day the balances of
retained earnings of Z Ltd stood at $12,500. D Ltd‘s accounts show $5,000 owing to Z Ltd; Z
Ltd’s accounts show $5,000 owed by D Ltd. No impairment of goodwill has occurred to date.
7
You are required to prepare the consolidated Statement of Financial Position of D Ltd as on
31st December 2015.
(B) On 1 January 2015 P acquired 60\% of the ordinary shares of S. At the time of acquisition
the Retained earnings of S stood at $20,000.
The following statement of Profit and Loss Account have been produced by P and S for the
year ended 31 December 2015.
P
S
$
$
Sales
630,000
Cost of Sales
(210,000)
Gross Profit
420,000
260,000
(105,000)
155,000
Distribution Cost
(90,000)
(30,000)
Administration expenses
(60,000)
(45,000)
Profit from Operations
270,000
Investment income from S
Profit before taxation
18,000
288,000
Tax
Profit after Taxation
(65,000)
223000
80,000
80,000
(13,000)
67,000
During the year ended 31 December 2015 P had sold $42,000 worth of goods to S. These
goods had cost P $28,000. On 31 December 2015 S still had half of these goods in
Inventories. Goodwill impairment for the year is $2,000.
On 31 December 2015, both P and S revalued their Freehold land, resulting in a revaluation
surplus of $8,000 and $5,000 respectively.
Calculate Group revenue, Cost of sales and prepare a Consolidated Income
statement for the year ended 31 December 2015
Explain why consolidated financial statements are useful to the users of financial
statements (as opposed to just the parent company’s separate (entity) financial
statements. (Provide Reference to IAS and IFRS wherever applicable)
To achieve pass you must
Show the Group structure, calculation of Goodwill, NCI, and Group reserve and prepare
the consolidated balance sheet of D Ltd as on 31 December 2015.
Calculate the group revenue, Cost of sales and prepare the consolidated
8
Comprehensive Income statement for the year ended 31 December 2015.
To achieve M1 you have to make an effective judgment on application of relevant IAS and
IFRS.
To achieve M3, you should use an appropriate structure as specified by IAS/IFRS in preparing
the consolidated balance sheet. You should demonstrate the interdependence on NonControlling Interest, Goodwill and retained earning calculation. You have to solve the problem
accurately and balance the consolidated SOFP.
Task 6 – LO3 – Assessment Criteria 3.2 (M1,M3):
Prepare financial statements in a form suitable for publication by a sole trader,
partnership and limited company
The following trial balance was extracted from the books of B Ltd at 31 December 2015.
Dr
Cr
$
$
Share Capital:
60,000 shares of $ 1 each
Inventory in trade (Opening)
60,000
23,428
8\% Loan Notes
20,000
General Reserve
Land (at Cost)
Plant and Machinery(at Cost)
Bad Debts
Wages and Salaries
Purchases
10,000
59,600
13,000
601
29,820
90,620
Sales
196,748
Allowance for Bad Debts
850
Accumulated Depreciation:
Plant & Machinery
Insurance
Office Expenses
Balance at Bank
Rates
750
693
4,142
29,544
2,010
Profit and Loss Account ( Opening)
Trade Receivables
3,900
16,923
Trade Payables
12,989
Rent Received
Directors Remuneration
2,390
26,000
9
General Expenses
11,246
307,627
307,627
You are given the following information:
1. Inventory in trade as on 31 December 2015 amounted to $6,426.
2. Bad debts to be written off are $2,700.
The provision for bad debts is to be allowed at 5\% of Trade
Receivables.
3. Rent receivable due at 31 December, 2015 amounted to $ 130.
4. Insurance paid in advance at 31 December 2015 amounted to $ 86.
5. Depreciation on Plant and Machinery is to be provided for at the rate of 20\% p.a.
reducing balance method.
7. The outstanding Loan Notes interest is to be provided.
8. $ 7,000 is to be transferred to General Reserve.
9. Provision is to made for dividend at 20\% on the issued capital.
10. Provide tax @ 20\%.
11. The allocation of expenditure between distribution and administration expenses
is as follows:
Cost of sales
Wages and Salaries
Rates
General Expenses
Directors Remuneration
Office Expenses
Bad Debts
Insurance
Depreciation – Plant and Machinery
Distribution
Expense
Administration
Expense
100\%
100\%
100\%
100\%
100\%
100\%
100\%
100\%
10
You are required to prepare:
a) A Income Statement for the year ended 31 December 2015
b) A statement of Financial Position (Balance Sheet) as at 31 December 2015 (in
compliance with IAS1)
To achieve pass you must
•
Show the steps in calculating depreciation, provision for doubtful debts.
•
Prepare the income statement and the statement of financial position.
To achieve M1, you should use an effective judgment while making adjustments in the
financial statements.
To achieve M3, you should use an appropriate structure specified by IAS/IFRS in preparing
the SOFP and the income statement. You should validate the result by balancing the SOFP.
You will have to solve the problem accurately and balance the SOFP by applying creative
thinking
11
Evidence
checklist
Evidence
presented
Summary of evidence required by student
Recognize different financial statements and Understanding on
Task 1
different uses of accounting information and why they use those
information.
Task 2
Able to explain legal and regulatory influences
Assess
the
implication
of
Accounting
Task 3
concepts/assumptions/qualitative characteristic on
Task 4
financial statements
Explanation on how different policies are dealt referring to IAS 16
the users of
and 2
Task 5
Prepare consolidated Income statement and SOFP
Task 6
Prepare financial statement for publication.
Guidance notes:
Use standard document formats and structures.
Word process the documents.
Use 12 point Arial or Times New Roman script.
Provide a list of references and use the Harvard referencing system.
Complete the title page and sign the statement of authenticity.
Upload the entire assignment in MS word format only on Turnitin.
Staple only once to keep the pages of your work together.
Late submission, late work will only be marked on the next occasion the unit is taught.
Submit the work along with the Turnitin report to the respective assessors in their
offices.
Collect the assignment submission form duly signed by the assessor and the learner.
Grades are subject to External Verification.
Word count: 2500 words
12
Achievement Summary
Pearson BTEC Level 5 HND
Diploma in Business
Qualification
Unit Number and
title
Unit 10: Financial Accounting
and Reporting
Student Number
Criteria
Reference
Assessor name
CA.Sujatha Bhat
Mr.Ali Al Asmi
IV name
Mr. Gnanedran
Student name
To achieve the criteria the evidence must show that the
student is able to:
Achieved?
(tick)
LO1
1.1
Describe the different users of financial statements and their
needs
1.2
Explain the legal and regulatory influences on financial
statements
1.3
Assess the implications for users
1.4
Explain how different policies are dealt with by accounting and
reporting standards
LO2
2.3
Prepare a consolidated balance sheet and profit and loss
account for a simple group of companies
LO3
3.1
Explain how the information needs of different user groups vary
3.2
Prepare financial statements in a form suitable for publication
by a sole trader, partnership and limited company
Higher Grade achievements (where applicable)
Grade descriptor
Achieved?
(tick)
M1: Identify and apply strategies to
find appropriate solutions
Grade descriptor
D1: Use critical reflection to
evaluate own work and justify
valid conclusions
M2:
Select/design
and
apply
appropriate methods/techniques
D2:
Take
managing
activities
M3:
Present
and
appropriate findings
D3:
Demonstrate
convergent/lateral
/creative
thinking
communicate
13
responsibility
for
and
organising
Achieved?
(tick)
Assignment Feedback
Formative Feedback: Assessor to Student
Action Plan
Summative feedback
14
Feedback: Student to Assessor
Assessor Signature
Date
IV Signature
Date
Student Signature
Date
15
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