College of Banking and Financial Studies Assignment Brief – BTEC Higher National Diploma in Business (Level 5) Student Name /ID Number Unit Number and Title 15/Financial Management Academic Year Fall 2018/2019 Unit Assessor Mr. Ali Al Asmi/ Ms. Mariam Hassen I. V. Name Mr. Kumutha Krishnan Assignment Title Role of management accountants and accounting control methods in making effective decisions for an organizations long term financial sustainability Issue Date 18/11/2018 Submission Date Formative Submission – 18th December 2018 Summative Submission – 25th of December 2018 Date 18/11/2018 Submission Format: ASSIGNMENT: 1. The submission is in the form of an individual numerical/written report. This should be written in a concise, formal business style using single spacing and font size 12. 2. You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Provide working notes wherever required. 3. The document must be submitted to turnitin in word document. 4. Please provide a bibliography using Harvard referencing system if you referred any sources for theoretical parts or questions. 5. The numbers/numerical statements and calculations must be neatly/clearly shown so that the assessor assess the work of the learner appropriately. 6. The file must be saved in the format: student ID-FM-Formative-A1, for formative submission and student ID-FM-Summative-A1, for summative assignment. 7. In case of extenuating situations, the relevant college policies apply 8. The recommended word limit (excluding bibliography) is 2,000–2,500 words, although you will not be penalised for exceeding the total word limit. Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 1 Unit Learning Outcomes: LO3: Evaluate the role of management accountants and accounting control systems LO4: Evaluate ways in which financial decision-making supports sustainable performance Assignment Brief and Guidance: Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 2 SCENARIO XYZ (PLC) based in Oman manufactures machine components. Mr Ahmed, the management accountant of the organization has presented his concerns to the management of the company with regards to the difficulties in analyzing the financial data and preparing budgets manually due to the large volume and complexity of data. He further stated that the manual computation of data has resulted in a lot of confusion between the departments as the accounts does not properly reconcile. Hence, the productivity of the department has drastically dropped as the staff in the department are wasting time in reconciling the accounts. Therefore, he has requested the management to consider introducing a financial management system developed on Oracle RDBMS as it would increase the transparency and timely recording the financial data that would be easier to reconcile. Hence, he requested the management that the introduction of a financial management system such as “ORACLE” would enhance the efficiency of the organization. Mr.Ahmed, has received the financial statements from the financial accountant of the organization and is requested to present a report analyzing the performance of the organization in the next Board meeting which is presented in Appendix 1. Further he has been presented a new project proposal for a long-term investment plan presented in Appendix 2 which will also be an agenda item in the Board meeting. Mr Ahmed is instructed by the Chief Financial Officer to prepare a formal report to the Board that makes justified recommendations (supported by numerical analysis and calculations where ever appropriate to support the recommendations) on how the role of management accountants and accounting control systems can be improved to support financial decision-making in order to achieve long term financial sustainability taking into consideration information presented in Appendix 1 and 2. The CFO has instructed that a single report is sufficient. Appendix 1 Below are the financial statements for XYZ (plc) for the years 2016 and 2017. Income Statement for the year ended 30th June Sales Revenue cost of sales Gross profit Operating expenses Depreciation Operating profit Interest Profit before taxation Taxation Profit for the year 2016 $'000 1180 -680 500 -200 -66 234 0 234 -80 154 2017 $'000 1200 -750 450 -208 -75 167 -8 159 -48 111 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 3 Statement of Financial position as at 30th June ASSETS Non - Current Assets Property, Plant and equipmnent Current Assets Inventories Trade Receivables Cash Total Assets EQUITY AND LIABILITIES Equity Ordinary Share Capitall ($1 shares ,fully paid) Retained earnings Non - Current Liabilities Borrowings - Bank Loan Current Liabilities Trade payables Other payables and accruals taxation Short - term borrowings ( bank overdraft) Total equity and liabilities 2016 $'000 2017 $'000 702 702 687 687 148 102 3 253 955 236 156 4 396 1083 500 256 756 500 295 795 0 0 50 50 60 18 40 81 199 955 76 16 24 122 238 1083 Dividend paid on ordinary shares of $70,000 and $ 72,000 for 2016 and 2017, respectively. Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 4 Appendix 2 XYZ (PLC) is considering a new project as long-term investment plan. The expected life of each project is 5 years. The projects are mutually exclusive, and the company can only invest in one project at a time due to the restriction in finance. The cost of the project X and Y are the same each costing $180,000. There is no residual value at the end of the economic life of the project. The operating cashflows are as follows; Years Operating profit before depreciation year 1 Operating profit before depreciation year 2 Operating profit before depreciation year 3 Operating profit before depreciation year 4 Operating profit before depreciation year 5 Project X RO 48,000 72,000 60,000 84,000 96,000 The Company’s standard payback period is 3 years. The company uses 10% discounting factor when evaluating the investment. Year 1 2 3 4 D.F 0.909 0.826 0.751 0.683 @10% Project Y RO 60,000 60,000 60,000 60,000 90,000 5 0.621 NOTE: Project X has a negative NPV of 17903 @30% and project Y has a negative NPV of 25,792 @ 30% discount Factor) Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 5 Learning Outcomes and Assessment Criteria Learning Outcome Pass P3 Evaluate the role of management accountants and their value as part of an LO3:. Evaluate the role integrated system. of management accountants and accounting control systems P4 Evaluate the use of accounting control systems and their value as part of an integrated business system. Merit M3 Critically evaluate the role of management accountants and accounting control systems to support a culture of ethical financial management. LO4: Evaluate ways in P5 Evaluate the ways in M4 Critically evaluate which financial decision-making supports sustainable performance which financial decisionmaking is important for supporting long term financial sustainability. Distinction D3 Make justified recommendations on how the role of management accountants and accounting control systems can be improved to support financial decisionmaking in order to achieve long term financial sustainability. how different ways of financial decisionmaking support long term financial sustainability. PLEASE READ THIS PAGE CAREFULLY TO ENSURE YOU COVER WHAT IS REQUIRED TO SATISFY THE GRADE Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 6 LEARNER ASSESSMENT SUBMISSION AND DECLARATION When submitting evidence for assessment, each learner must sign a declaration confirming that the work is their own. Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be found or describe the nature of the evidence (e.g. video, illustration). Task ref. Evidence submitted Page numbers or description LO3 LO4 Additional comments to the Assessor: Learner declaration I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Learner signature: Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A Date: 7 ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK Programme BTEC HND BUSINESS LEVEL 5 Learner name Assignment title Role of management accountants and accounting control methods in making effective decisions for an organizations long term financial sustainability Assessor name Mr. Ali Al Asmi/ Ms. Mariam Hassen Unit no. & title Financial Management / Unit 15 Targeted learning aims/assessment criteria LO3 & LO4 18th December 2018 Date submitted First Submission Deadline Targeted criteria Criteria achieved Assessment comments P3 P4 P5 M3 M4 D3 General comments Assessor declaration Assessor signature I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Date Date of feedback to learner Resubmission authorisation by Lead Internal Verifier* Date * All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing: ● The learner has met initial deadlines set in the assignment, or has met an agreed deadline extension. ● The tutor considers that the learner will be able to provide improved evidence without further guidance. ● Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner. **Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment. Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 8 ASSESSMENT RECORD SHEET - RESUBMISSION – SUMMATIVE FEEDBACK Deadline Date submitted 25th December 2018 Targeted criteria Criteria achieved Assessment comments P3 P4 P5 M3 M4 D3 General comments Learner Declaration Learner signature Assessor declaration Assessor signature I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Date I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Date Date of feedback to learner Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A 9 
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