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COLLEGE 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 Accounting. Cost Accounting and Performance Management Semester Batch - Spring 2016-2017 IV Student name Assessor name Ms. Shobhna & Ms. Vruti Student No. Internal Verifier (IV) name Dr. Roslin Date issued Completion date Assignment title Understand The Nature Source And Purpose Of Management Information And Cost Accounting Concepts And Be Able To Compare Actual Costs With Standard Costs And Analyse Variances. Learning Outcome Learning outcome Assessm ent Criteria 1.1 LO- 1 Understand the Nature source and purpose of management information and cost accounting concepts 1.2 Compare and contrast various Cost classification methods 1.3 Estimate inventory values using different methods Differentiate between cost, profit, investment and revenue centres. Separate the fixed and variable elements of total costs using a suitable method in a given situation Explain and illustrate the difference between standard cost card under marginal and absorption costing Compute and interpret price and usage variances for material, labour, and overhead inputs Reconcile budgeted profit with actual profit under standard absorption costing. 1.5 3.1 LO - 3 In this assessment you will have the opportunity to present evidence that shows you are able to: of cost Explain the relationship accounting to financial and managerial accounting 1.4 Understand and be able to compare actual costs with standard costs and analyse variances Submitted on 3.2 3.3 Task Evidence no. (Page no) 1 2 3 4 5 6 7 8 I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: pg. 1- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Date: 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 To achieve M1, explore the relationship between Cost, Financial and Managerial Effective judgements have Accounting. (Task 1). To get M1 you should make the effective judgement between been made. M2 Select / design and apply appropriate methods / techniques A range of methods and techniques have been applied standard cost and standard costing. (Task 6) A range of sources of information has been used M3 Present and communicate appropriate findings The appropriate structure and approach has been used To get M2 you should be able to select suitable method to separate the fixed and variable elements of total costs and explain it. You should explain the concept of cost behaviour used in the identified method. (Task 5) To get M2 Use appropriate method to calculate sales variances accurately.(Task 7) To achieve M3 you will need to differentiate Inventory values and present the reasons of difference between the stock values. (Task -3). To get M3. You should be able to make judgement, of the responsibility centre and explain how managers of responsibility centres are responsible for the performance of their part of the organization and its activities and how the performance is measured.(Task 4).To get M3 Present and communicate appropriate findings to explain the concept of reconciliation statement using different methods.( Task 8) D1 Use critical reflection to evaluate own work and justify valid conclusions Realistic improvements have been proposed against defined characteristics for success To achieve D1 you should evaluate the process of inventory control system.(Task -3)To get D1 evaluate the reasons for the occurrence of adverse and favorable variances.( Task -7) D2 Take responsibility for managing and organising activities Autonomy/independence has been demonstrated To achieve D2- Recognize the interrelationship between variances.( Task 7) D3 Demonstrate convergent /lateral / creative thinking Innovation and creative thought have been applied A range of sources of information has been used pg. 2- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Assignment Brief Purpose of this Assignment: Involvement with costs is fundamental to the role of management accountants. Any Business, whether it manufactures goods or provides a service, needs to know how much its product or services cost and how these costs might change in response to decisions made. This assignment will help you understand the nature source and purpose of management information and cost accounting concepts and to compare actual costs with standard costs and analyse variances. It also helps to understand performance measurement models: Balanced scorecard, benchmarking, types of benchmarking. Task 1 (LO-1 AC -1.1) P,M1 1.1 Explain the relationship of cost accounting to financial and managerial accounting. Context- Relevant to L.O.1.1 (P, M1) Financial accounting system provides information about profits and so on to shareholders and to the other interested parties. Management Accounting system provide information specifically for the use of managers within an organization. Cost accounting is a part of management accounting and provides a data for the management accountants to use. Pass: To get the Pass Grade explain briefly Cost accounting, Management Accounting and Financial Accounting and explore the relationship between them. M1- To achieve M1, make an effective judgement by differentiating Cost, Financial and Managerial Accounting. Task 2. (LO-1 AC 1.2 ) Compare and contrast various Cost classification methods. Tested in semester – 3 Management Accounting Costing and Budgeting. (Learning Outcome 1.1) Classify different types of cost. Task 3 (LO -1 AC 1.3) P, M3, D1 1.3 Estimate inventory values using different methods. Scenario-1 Inventory can be defined as items of value held for use or sale by an enterprise and usually comprise of raw material supplied used for production work in progress and finished goods at the end of an accounting period. Different methods are used to value inventory. It is the means by which store ledger account of goods is debited with the value or amount of goods received and credited with the value of goods disposed of or sold during the accounting period. pg. 3- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Al Kans is a construction Company. The company discloses the following information about the stock for the month of January 2017: Date 1st January 4th January 7th January 10th January 11th January 15th January 20th January 25TH January 27th January 28th January Purchases/Sale Opening Stock Sale Purchase Sale Sale Purchase Purchase sale Purchase sale Kgs 1000 500 300 400 200 450 200 475 350 500 Cost per unit ($) 12.00 11.50 10.00 9.25 9.00 Pass - To achieve Pass grade you should be able to estimate inventory values of Al Kans Company on 31st January using FIFO and AVCO methods. M3 - To achieve M3 you need to present appropriate findings by differentiating Inventory values calculated above and present the reasons of difference between the stock values. D1- To achieve D1 you should evaluate the process of inventory control system and justify it. Task 4 (LO-1 AC- 1.4) P,M3 1.4 Differentiate between cost, profit, investment and revenue centres. Scenario: Seasons is a chain of hotels located in middle east region. Booking can be made directly with the hotel or via a call centre. Each hotel has a restaurant which is open to the public as well as the guests. The hotel manager has a capital expenditure budget although the head office makes all decision regarding the purchase of new hotels. Difference between cost, profit, revenue and Investment centres are important for allocating responsibilities. Suggest which of the following responsibility centres would be categorised as a cost centre, revenue centre, profit centre and investment centre. 1. 2. 3. 4. Booking call centre The Hotel The restaurant. Housekeeping department Pass- To get the Pass grade explain responsibility accounting and differentiate between cost, profit, investment and revenue centres. M3- To get M3 grade present appropriate findings of the above scenario and link them with the appropriate responsibility centres and communicate how managers are responsible for their centre’s performance and how the performance is measured. Task 5 (LO-1 AC- 1.5) P,M2 pg. 4- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 1.5 - Separate the fixed and variable elements of total costs using a suitable method in a given situation. Scenario- 3 Albatross Plc. is a subsidiary of a British packaging Company, it is preparing its budget for the year to 30th June 2017. In respect of Fuel oil consumption. It is desired to estimate the fuel cost based on the data available to the year ending 30th June 2015: Months July August September October November Machine Hours (000) 34 30 34 39 42 Fuel Expenses ($) (000) 640 500 620 590 620 Variable cost per unit and total fixed cost is constant within this range of activity. Pass- To get the pass grade you should be able to separate the fixed and variable elements of total costs using a suitable method in a given scenario. M2 - To get M2 you should be able to select suitable method to separate the fixed and variable elements of total costs and explain it. You should explain the concept of cost behaviour used in the identified method. Task 6 (LO-3 AC- 3.1) P,M1 3.1 - Explain and illustrate the difference between standard cost card under marginal and absorption costing. Scenario Moosa Ltd. makes one product “Mash”. Standard cost details regarding the product is given below: Direct Materials Material X – 4Kg at $4 per Kg Material Y – 9 Litre at $2 per litre Direct Labour: Grade A – 6 Hours per unit at $1.50 per hour Grade B – 7 Hours per unit at $2.00 per hour Variable Overheads 13 hour at $0.50 per hour Budgeted production is 1,000 units and budgeted fixed overheads are $28,000, absorbed according to the Grade B labour hours per unit. Pass-To get pass grade use the above date to draw the standard cost card under marginal and absorption costing and explain the difference between them. M1-To get M1 you should make the effective judgement between standard cost and standard costing, pg. 5- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Task 7 (LO-3 AC- 3.2) P,M2,D1,D2 3.2 - Compute and interpret price and usage variances for material, labour, and overhead inputs Scenario- 5 Task 7 (LO-3 AC- 3.2) P,M2,D1,D2 Deadeye Company operated a standard costing system in which all inventories are valued at a standard cost. The company has obtained the following budgeted information regarding cost and revenue for its only product DYE for the year 2016: Direct material 2 Kg at $2.5per kg Direct labour, 2 Hours at $4.5 per hour Variable production Overhead, 2 Hours at $1.5 per hour Fixed production Overhead 2 hour at $2.5 per hour 5.00 9.00 3.00 5.00 The budgeted selling price per product is $30 and Deadeye budgeted to produce 12,000 units and sell 10,000 units a year During 2016, 11,000 units were actually produced and 9,750 units were sold, actual selling price was $33.50 per unit. Relevant actual details of production are as follows: Materials 22,500 Kgs costing Labour 21000 hours were worked and total wages were Variable production overhead was Fixed production overhead was $65,000 $100,000 $35,625 $59,375 Compute and Interpret price and usage variances for material, labour, overhead (fixed and variable) and sales. Pass- Compute and interpret price and usage variances for material, labour, overhead (fixed and variable). M2 - To get M2 Use appropriate method to calculate sales variances accurately. D1 - To get D1 evaluate the reasons for the occurrence of adverse and favourable variances. D2- Variances should not be looked at in isolation. One variance might be inter-related with another, take a responsibility for managing and organising your activity and recognize the interrelationship between variances calculated above. Task 8 (LO-3 AC- 3.3) P, M3 3.3- Reconcile budgeted profit with actual profit under standard absorption costing. Pass: To get the pass grade prepare the reconciliation statement (using task 7 above) and actual profit statement and match the profits under absorption costing using appropriate format. M3- To get M3 Present and communicate appropriate findings to explain the concept of reconciliation statement using different methods. pg. 6- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Evidence checklist Summary of evidence required by student Task 1 Essay identifying and explaining the relationship of cost accounting to financial and managerial accounting. Task 2 Tested before Task 3 Calculation showing stock valuation using different methods. Task 4 Based on the case evidence identify responsibility centres. Task 5 Calculation showing the segregation of fixed and variable part of the total cost. Task 6 Drafting standard cost card under marginal and absorption Costing. Task 7 Calculation and interpretation of Variances. Task 8 Drafting statement to reconcile actual and budgeted profits. Evidence presented Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. Resources: List of Websites 1. www.accagloabl.com 2. www.cimaglobal.org.uk 3. http://www.ICAEW.co.uk 4. http://www.aicpa.org List of Books: 1. FIA, FMA, Management Accounting, ACCA Paper F2 (2016), BPP Learning Media. 2. William Lanen, Shannon Anderson, Michael Maher: Fundamentals of Cost Accounting, McGrawHill/Irwin; 3 edition (January 7, 2010), ISBN-10: 0073527114, ISBN-13: 978-0073527116 | Edition: 3 1. James Jiambalvo: Managerial Accounting, 2nd Edition, Wiley, June 2012, ©2004, ISBN: 978-0-47013718-5. Word limit – 2500 words. pg. 7- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 Achievement Summary Pearson BTEC Level 5 HND Diploma in Accounting Qualification Unit Number and title Cost Accounting and Performance Management Student Number Criteria Reference Assessor name Ms. Shobhna IV name Dr. Roslin Student name To achieve the criteria the evidence must show that the student is able to: Achieved? (tick) LO1 1.1 Explain the relationship of cost accounting to financial and managerial accounting 1.2 Compare and contrast various Cost classification methods 1.3 Estimate inventory values using different methods 1.4 Differentiate between cost, profit, investment and revenue centres. 1.5 Separate the fixed and variable elements of total costs using a suitable method in a given situation LO-3 3.1 Explain and illustrate the difference between standard cost card under marginal and absorption costing 3.2 Compute and interpret price and usage variances for material, labour, and overhead inputs 3.3 Reconcile budgeted profit with actual profit under standard absorption costing. 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 pg. 8- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 responsibility for and organising Achieved? (tick) Assignment Feedback Summative Feedback: Assessor to Student Action Plan Formative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date pg. 9- HND- SEM-IV- ASSIGNMENT – CAPM – SPRING 2016-2017 COLLEGE 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 Student name Assessor name CA.Sujatha Bhat/Mr.Ali Al Asmi/Mr N Lakmal/ Student No. Internal Verifier (IV) name Mr. Gnanendran Date issued Completion date 27th March 2017 Assignment title Learning Outcome LO 1 LO 2 Learning Outcome 24 th Submitted on April 2017 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 To achieve M2 you will have to use range of sources information to explain A range of sources of information has been used the importance of consistency in accounting policy. (Task 4). M3 Present and communicate appropriate findings 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). The appropriate structure and approach has been used Coherent and logical approach has been used To achieve M3 you will have to use a coherent and logical approach 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) To achieve M3, you should use an appropriate structure specified by 2 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 conclusions have been fundamental and enhancing qualitative characteristics and link how arrived at through synthesis of ideas enhancing characteristics strengthen the fundamental characteristics.(Task and have 3) been justified 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 convergent and lateral thinking have been applied should illustrate conflicting interest of different user groups in using the financial statement for decision making. Also describe why businesses need to produce financial statements and why company has to follow accounting 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 investor's 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 Financial Accounting is always providing quality information for stakeholders to make their financial decisions, hence, the value of enterprise can be maximized within the regulations available for LLCs. But Most of the Financial Statements are general purpose reports, so that it is user’s duty to blend it as per their requirements. . 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 LLC 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 will have to use the appropriate structure and approach in explaining the range of legal and regulatory influences 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. It is utmost important for Board of Directors comply with the Accounting Concepts, Assumptions and Qualitative Characteristics laid down by the Conceptual Framework which is the origination of Accounting Standards. An Annual Report will receive the due recognition from relevant parties, such as Government and Banks when they are adhere to the Conceptual Framework. 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 To achieve pass you must; 5 • 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 sources 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. 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 6 The Statement of Financial Position (SFP) of Al Mossi LLC . and Al Possi are as follows: Statement of Financial Position as on December 31, 2016 Non current Assets: Fixtures and fitting Premises Al Mussi OMR 35 000 Al Possi OMR 8 000 7 500 1 000 30 000 Investment (75 % shares in Al possi) Current assets: Inventory 45 000 20 000 Trade and other Receivables 25 000 12 000 Cash at Bank 10 000 10 000 152 500 51 000 Equity share capital of OMR 1 each 32 500 10 000 Share premium 17 500 5 000 Retained Earnings 35 000 12 500 Bank loans 22 500 10 000 Trade and other Payables 30 000 10 000 Accrual and other Liabilities 15 000 3 500 152 500 51 000 Total Assets Liabilities Current Liabilities: Total Equity and Liabilities The following additional information is provided: Al Mussi LLC acquired an 75 % holding in Al Possi LLC on January 1, 2016. On that day the balances of retained earnings of Al Possi LLC stood at OMR 6,000 . Al Mossi LLC’s accounts show OMR 2 500 owing to Al Possi LLC ; Al Possi LLC’s accounts show OMR 10,000 owed by Al Mossi LLC . No impairment of goodwill has occurred to date. You are required to prepare the consolidated Statement of Financial Position of Al Mossi LLC 7 as on 31st December 2016. (B) On 1 January 2016 Hussain LLC acquired 70% of the ordinary shares of Mohamed LLC At the time of acquisition the Retained earnings of Mohamed LLC stood at OMR 10,000. The following statement of Profit and Loss Account have been produced by Hussain LLC and Mohamed LLC for the year ended 31 December 2016. Hussain LLC Mohamed LLC OMR OMR Revenue 315,000 130,000 (105,000) (52,500) Gross Profit 210,000 77,500 Distribution Cost (45,000) (15,000) Administration expenses (30,000) (22,500) Profit from Operations 135,000 40,000 9,000 - Profit before taxation 144,000 40,000 Corporation Tax (32,500) (6,500) Profit after Taxation 111,500 33,500 Cost of Sales Dividend from Mohamed LLC During the year ended 31 December 2016 Hussain LLC had sold OMR 21,000 worth of goods to Mohamed LLC. These goods had cost Hussain LLC OMR 14,000. On 31 December 2016 Mohamed LLC still had One-fourth of these goods in Inventories. Goodwill impairment for the year is OMR 1,000. On 31 December 2016, both Hussain LLC and Mohamed LLC revalued their Premises , resulting in a revaluation surplus of OMR 4,000 and OMR 2,500 respectively. Calculate Group revenue, Cost of sales and prepare a Consolidated Income statement for the year ended 31 December 2016 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 Dal Mussi LLC as on 31 December 2016. • Calculate the group revenue, Cost of sales and prepare the consolidated 8 Comprehensive Income statement for the year ended 31 December 2016. 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 Arwa Natural Water Company LLC has produced the following Trial Balance as at 31st December 2016 DR (OMR) Sales revenue Advertising Cost Opening Inventory 10% Debentures Machinery at cost Accumulated depreciation for Machinery Salaries and wages Premises at cost Rents and rates Purchase Sales return Rent receivable Bad debts Provision for bad debts Bank overdraft (OD) Ordinary Share capital of OMR 1 each Insurance Ordinary Dividend paid Discounts General Reserve Accounts receivables Accounts Payable Retained profits last year Office expenses General Expenses CR (OMR) 334 000 18 000 37 000 35 000 160 000 27 000 36 150 12 122 11 000 000 000 000 000 6 000 9 000 1000 5 000 140 000 14 000 11 000 2 000 3 000 16 000 26 000 11 000 53 000 12 000 11 000 631 000 You are given the following information: 9 631 000 1. Inventory in trade as on 31 December 2016 amounted to OMR 18 000. 2. Additional Bad debts to be written off by OMR 1 000. The provision for bad debts is to be allowed at 10 % of Accounts Receivables. 3. Rent receivable due at 31 December, 2016 amounted to OMR 2 000. 4. Insurance paid in Arrears at 31 December 2016 amounted to OMR 4 000 5. Depreciation on Machinery is to be provided for at the rate of 25% p.a. reducing balance method. 7. The total outstanding Debenture interest is to be provided. 8. OMR 5,000 is to be transferred to General Reserve. 9. Provision is to made for dividend at OMR 0.600 per share. 10. Provide tax of OMR 11 000 11. The allocation of expenditure between distribution and administration expenses is as follows: Cost of sales Wages and Salaries General Expenses Office Expenses Bad Debts Insurance Depreciation – Plant and Machinery Advertising Rent and rates 10% Distribution Expense Administration Expense 90% 25% 75% 100% 100% 100% 70% 100% 30% 100% 10 You are required to prepare: a) A Income Statement for the year ended 31 December 2016 b) A statement of Financial Position (Balance Sheet) as at 31 December 2016 (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 the users of Task 4 financial statements Explanation on how different policies are dealt referring to IAS 16 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 N Lakmal 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 COLLEGE 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 Accounting Unit No : MLN 1,Fundamentals of Accounting Semester Batch III Spring 2016-2017 Student name Assessor name Dr. Roslin, Ms. Amitha Student No. Internal Verifier (IV) name Mr. Feroskhan Date issued Completion date Assignment title Application of accounting policies, principles & financial statements of a sole trader and partnership form of business organization. Learning Outcome LO 1 LO 3 Submitted on Ass In this assessment you will have the Learning Outcome ess opportunity to present evidence that shows me you are able to: nt Distinguish between accounting policies, Understand and apply Crit 1.1 accounting policies eria accounting estimates and measurement bases. and principles 1.2 Identify the documents and describe the procedure relating to credit transactions. 1.3 Explain nature and objectives of financial accounting. 1.4 Evaluate the qualitative characterestics of financial information. Be able to prepare 3.1 Compute the amount of depreciation using different methods and explain resulting charges to financial statements of the income statement. a sole trader and partnership form of 3.2 Differentiate between capital and revenue expenditure. business organization. 3.3 Prepare simple financial statements from the trial balance for a sole trader and partnership firm. Task Evidence no. (Page no) 1 2 3 4 5 6 7 Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: Page 1 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 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 To achieve M1, you will need to make effective judgements at distinguishing between accounting policies and estimates using relevant examples of accounting policies, accounting estimates and measurement bases (Task 1). 1. Effective judgements have To achieve M1, you will make effective judgements about the purpose of financial been made. accounting information for different user groups (external & internal) using 2. An effective approach to study relevant examples of the elements of financial statement (Task 3). and research has been applied. To achieve M1, you will need to apply effective approach & judgements to evaluate the qualitative characteristics of financial information using appropriate examples (Task 4). M2 Select / design and apply appropriate methods / techniques 1. Relevant theories and techniques have been applied. 2. A range of methods and techniques have been applied. 3. A range of sources of information has been used. To achieve M2, you will need to apply relevant accounting concepts and should use range of information’s to identify source documents for the financial information given in scenario (A).You need to apply the principles of double entry system to describe the procedure relating to credit transactions using information given in scenario (A). To achieve M2, you will need to apply relevant accounting policies, accounting estimates and measurement bases and a range of methods to compute the amount of depreciation using different methods and explaining resulting charges to the financial statements (Task 5). To achieve M2 you will need to apply relevant accounting policies, accounting estimates and rules of double entry to differentiate between capital and revenue expenditure using relevant examples from the elements financial statements. (Task 6). M3 Present and communicate appropriate findings 1. A range of methods of presentation have been used and technical language has been accurately used. 2. The appropriate structure and approach has been used To achieve M3, you will need to apply a range of methods of presentation, appropriate structure and approach for computation of depreciation and technical language should be accurately used. (Task 5). To achieve M3 you will need to prepare correctly the financial statements for a sole trader and partnership firm, using appropriate structure, approach and prescribed formats (Task 7). Page 2 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 D1 Use critical reflection to evaluate own work and justify valid conclusions To achieve D1, you should justify the conclusions drawn on the basis of relevant accounting policies, principles and concepts in critically evaluating the qualitative characteristics of financial information (Task 4). Conclusions have been arrived at through synthesis of ideas and To achieve D1, you should justify the conclusions drawn on the basis of relevant have been justified. accounting policies & rules at differentiating capital & revenue expenditure and in assessing its resulting charges to the financial statements using appropriate examples.(Task 6) To achieve D2, you should take an effective approach to independent research to study accounting policies and principles, methods of computing depreciation and in assessing its resulting charges to the financial statements .You will have met the deadline to submit the tasks and achieve the unit assessment criteria. (Task 5). D2 Take responsibility for managing and organising activities Autonomy/independence has been demonstrated. D3 Demonstrate convergent /lateral / creative thinking 1. Ideas have been generated and decisions taken 2. Convergent and lateral thinking have been applied .A range of sources of information has been used. To achieve D2 you should take an effective approach to independent research to prepare the financial statements for a sole trader and partnership firm. You will have met the deadline to submit the tasks and achieve the unit assessment criteria. (Task 7). To achieve D3 you should to apply lateral thinking to relevant accounting policies and principles of financial accounting in preparation of financial statements for a sole trader and partnership firm in the prescribed formats and in commenting on the significant features revealed by the financial statements. (Task 7). Page 3 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Assignment Brief Assignment title Application of accounting policies, principles & financial statements of a sole trader and partnership form of business organization. Purpose of this assignment Accounting is concerned with collecting, analysing and communicating financial information. This information is useful for a range of users to help them make better judgements and decisions concerning a business. Financial information and decisions exert an enormous influence over the way in which a business operates. This assignment will help you to understand and apply accounting policies, accounting estimates and measurement bases and to be able to prepare financial statements of a sole trader and partnership form of business organization. Scenario ‘A’ Scenario ‘A’ addresses LO 1.2. Given below are some business transactions of ABC Traders, a retail electronic goods dealer, for the month of December 2016: Dec 1 Purchased office equipment on credit from Star Electronics for OMR 75,000 Dec 2. Goods purchased on 2 months credit from XYZ Traders for OMR 80, 000. Dec 10. Sold goods for cash OMR 20,000 and on credit to Ahmed Traders for OMR 40,000 Dec 14. Goods purchased costing OMR 1,500 were not as per the order so were returned to ‘XYZ Traders’. Dec 16 Goods sold on credit costing OMR 1,000 were defective so were returned by customer ‘Ahmed Traders’. Dec 25. Office furniture purchased on credit OMR 35,000 from Greenwood Furniture Ltd. Dec 30. Bought a delivery van for OMR 40,000, cheque issued. Dec 31. Electricity bill received for the month of Nov and December OMR 100, not yet paid. Page 4 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Scenario ‘B’ Scenario ‘B’ addresses LO 1.1, 1.3, 1.4, 3.2 and LO 3.3 (A). The trial balance of Bader Traders( a retail Electronic goods dealer) for the year ended 31st December 2016 is given below: Office Building, at cost Office Equipment , at cost Accumulated depreciation on building (1st January 2016) Accumulated depreciation on equipment (1st January 2016) Purchases Sales Inventory (1st January 2016) Advertisement expense Interest on loan Salaries Rent Bad debts Utility bill expense Other administrative expenses Trade payables Trade Receivables Cash in hand Bank balance Drawings Capital 10% Long term loan Amt in OMR Dr 500,000 300,000 Amt in OMR Cr 50,000 45,000 600,000 800,000 35,000 14,000 15,000 87,700 36,000 1,000 8,500 20,400 30,000 50,000 20,200 32,600 10,000 1,730,400 655,400 150,000 1,730,400 The following additional information is available: i. Inventory at the end of the year has been valued at cost at OMR 90,000. ii. Salaries of OMR 13,300 were still outstanding at the year end. iii. Rent expense includes a prepayment of OMR 18,000. Rent paid in advance for the month of January, February 2017. iv. Depreciation for the year ended 31 December 2016 has still to be allowed for as follows: - Office Building : 5 % per annum using the straight line method; and - Office Equipment: 15% per annum using the reducing balance method Page 5 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Scenario ‘C’ Scenario ‘C’ addresses LO 3.3 (B) Hashim, Salman and Zayed are partners in the ABC partnership firm, sharing profits in the ratio of 2:2:1 respectively. Their capital and current account balances on 1st January 2016 were as follows. Capital Accounts Current Accounts OMR OMR Hashim 160,000 50,000 Salman 100,000 (8,000) Dr Zayed 80,000 25,000 The additional information is given below: i. Interest at 9% per annum is given on the fixed capital amounts. ii. Salaries of OMR 10,000 per annum are credited to partners Salman and Zayed‘s current account. iii. The partnership profit for the year ended 31st December 2016 was OMR 90,000 and the partners had made drawings of: Hashim OMR 30,000; Salman OMR 24,000; Zayed OMR 20,000 during the year. iv. Interest on drawings is charged at 5 % of the year –end balance. ASSIGNMENTS TASKS 1.1, 1.2, 1.3, 1.4, 3.1, 3.2, 3.3 Task 1 LO1- AC 1.1 -Distinguish between accounting policies, accounting estimates and measurement bases. ( P, M1) 1.1 The preparation of a company’s financial statements is of great importance in determining the firm’s financial stability and in understanding the firm’s ability to operate in the future without facing liquidity issues. The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity and therefore requires proper use of accounting theories and techniques. Accounting policies and accounting estimates serve this purpose by ensuring that the accounting data recorded in the company books are valid in terms of regulatory requirements and financial reporting accuracy. To achieve pass you must; Distinguish between accounting policies, accounting estimates and measurement bases. To achieve M1, you will need to make effective judgements at distinguishing between accounting policies and estimates using relevant examples of accounting policies, accounting estimates and measurement bases. (You may use financial information given in the above scenario ‘B’ and from Task 7) Task 2 LO1- AC 1.2 - Identify the documents and describe the procedure relating to credit transactions. (P,M2 ) 1.2 Identify and explain the various source documents, books of prime entry for the transactions of ABC Traders for the month of December 2016 and describe the procedures relating to credit transactions, from the financial information given in scenario (A). Page 6 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 To achieve pass you must; Identify the various source documents, books of prime entry for the transactions of ABC Traders for the month of December 2016 and describe the procedures relating to credit transactions, from the financial information given in scenario (A) To achieve M2, you will need to apply relevant accounting concepts and should use range of information’s to identify source documents for the financial information given in scenario (A). You need to apply the principles of double entry system to describe the procedure relating to credit transactions using information given in scenario (A). Task 3 LO1- AC 1.3 - Explain nature and objectives of financial accounting. ( P, M1 ) 1.3 Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers (Elliot, Barry & Elliot, Jamie: Financial accounting and reporting). Explain nature and objectives of financial accounting .Explain for what purpose would the different user groups need accounting information? (You may use financial information given in scenario B , C and Task 7 ) To achieve pass you must; Explain nature and objectives of financial accounting and explain for what purpose would the different user groups need accounting information? To achieve M1, you will make effective judgements about the purpose of financial accounting information for different user groups (external & internal) using relevant examples of the elements of financial statements. Task 4 LO1- AC 1.4 - evaluate the qualitative characterestics of financial information .(P, M1,D1) 1.4 To meet these users’ needs, it can be argued that accounting information should possess certain key qualities. Critically evaluate the qualitative characteristics of financial information. (You may use financial information given in scenario B, C and Task 7 ) To achieve pass you must; Evaluate the qualitative characteristics of financial information. To achieve M1, you will need to apply effective approach & judgements to evaluate the qualitative characteristics of financial information using appropriate examples. To achieve D1, you should justify the conclusions drawn on the basis of relevant accounting policies, principles and concepts in critically evaluating the qualitative characteristics of financial information. Task 5 LO 3- AC 3.1 - compute the amount of depreciation using different methods and explain resulting charges to the income statement.(P, M2, M3 , D2) Tanner Ltd, Sport goods manufacturer and dealer, purchased machinery on 1 January 2014, at a cost of OMR 200,000. The machinery has an expected life of five years and a residual value of OMR 20,000. Page 7 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Required: i. What is the purpose of charging depreciation in the accounts? ii. Compute depreciation on machinery for Tanner Ltd for minimum 3 years using straight line method and reducing balance method( rate of depreciation in 15 % per annum) and assessing its resulting charges to the financial statements by preparing Income statement (extract) and Statement of financial position (extract) for Financial years 2014, 2015 & 2016). iii. You are also required to prepare non-current asset account, Accumulated depreciation account for the financial years ended 31st December 2014, 2015 and 2016. To achieve pass you must; Compute the amount of depreciation using different methods and explain resulting charges to the income statement. To achieve M2, you will need to apply relevant accounting policies, accounting estimates and measurement bases and a range of methods to compute the amount of depreciation correctly using different methods and explaining resulting charges to the financial statements. To achieve M3, you will need to apply a range of methods of presentation, appropriate structure and approach for computation of depreciation and technical language should be accurately used. To achieve D2, you should take an effective approach to independent research to study accounting policies and principles, methods of computing depreciation and in assessing its resulting charges to the financial statements .You will have met the deadline to submit the tasks and achieve the unit assessment criteria. Task 6 LO 3- AC 3.2 differentiate between capital and revenue expenditure. (P, M2,D1) 3.2 Compare and contrast between capital and revenue expenditure with examples. (You may use financial information given in scenario A & B). To achieve pass you must; Differentiate between capital and revenue expenditure. To achieve M2 you will need to apply relevant accounting policies, accounting estimates and rules of double entry to differentiate between capital and revenue expenditure using relevant examples from the elements financial statements. To achieve D1, you should justify the conclusions drawn on the basis of relevant accounting policies & rules at differentiating capital & revenue expenditure and in assessing its resulting charges to the financial statements using appropriate examples. Task 7 LO3 - AC 3.3- prepare simple financial statements from the trial balance for a sole trader and partnership firm. (P, M3, D2, D3) 3.3 (A) Prepare an Income Statement for the year ended 31st December 2015 and a Statement of Financial Position of Bader Traders as at 31 December 2015, (showing full workings) from the financial information given in scenario (B). 3.3 (B) Prepare appropriation account, the partners’ capital and current accounts in respect of the year ended 31st December 2015 of ABC partnership firm from the financial information given in scenario (C). Page 8 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 To achieve pass you must; Prepare financial statements from the trial balance for a sole trader and partnership firm using financial information given in scenario B & C . To achieve M3 you will need to prepare correctly the financial statements for a sole trader and partnership firm, using appropriate structure, approach and prescribed formats. To achieve D2 you should take an effective approach to independent research to prepare the financial statements for a sole trader and partnership firm. You will have met the deadline to submit the tasks and achieve the unit assessment criteria. To achieve D3 you should to apply lateral thinking to relevant accounting policies and principles of financial accounting in preparation of financial statements for a sole trader and partnership firm in the prescribed formats and in commenting on the significant features revealed by the financial statements. Evidence checklist Task 1 Task 3 Identifying and distinguishing between accounting policies, accounting estimates and measurement bases. Identifying and explaining the various source documents, books of prime entry, and the procedures relating to credit transactions. Assessing the nature and objectives of financial accounting. Task 4 Evaluating the qualitative characteristics of financial information. Task 5 Computing the amount of depreciation using different methods and explaining resulting charges to the income statement. Differentiating between capital and revenue expenditure. Task 2 Task 6 Evidence presented Summary of evidence required by student Task 7 Preparing simple financial statements from the trial balance for a sole trader and partnership firm. Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. 12. The word limits for assignment will be 2500 words. The tolerance rate is 5% of the word limits. Page 9 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Batch Turnitin Password Turnitin ID Achievement Summary Qualification Unit Number and title Pearson BTEC Level 5 HND Diploma in Accounting 1 (MLN) Fundamentals of accounting Student Number Criteria Reference Assessor name IV name Dr. Roslin, Ms. Amitha Mr. Mr. Feroskhan Student name To achieve the criteria the evidence must show that the student is able to: Achieved? (tick) LO1 1.1 Distinguish between accounting policies, accounting estimates and measurement bases. 1.2 Identify the documents and describe the procedure relating to credit transactions. 1.3 Explain nature and objectives of financial accounting. 1.4 Evaluate the qualitative characteristics of financial information. LO3 3.1 3.2 3.3 Compute the amount of depreciation using different methods and explain resulting charges to the income statement. Differentiate between capital and revenue expenditure. Prepare simple financial statements from the trial balance for a sole trader and partnership firm. Higher Grade achievements (where applicable) Grade descriptor M1: Identify and apply strategies to find appropriate solutions Achieved? (tick) Grade descriptor Achieved? (tick) 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 responsibility for and organising Page 10 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Assignment Feedback Formative Feedback: Assessor to Student Action Plan Page 11 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 Summative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date Page 12 of 12 Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 6 COLLEGE 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 HND-A&F2: Management information System Semester Batch III Spring 2016-17 Student name Assessor name Ms. Priya Gopal Student No. Internal Verifier (IV) name Dr Omer Ali Ibrahim Date issued Completion date Assignment title Identifying information needs within different functional areas and using Accounting Information System Learning Outcome LO1 Learning outcome Analyse information needs within different functional areas Using LO3 Accounting information systems to produce management Information Assessment Criteria Submitted on In this assessment you will have the opportunity to present evidence that shows you are able to: Task Evidence no. (Page no) 1.1 Identify input output and processing requirement of functional areas. 1 1.2 Ascertain the relationship between different functional areas of an organisation. 2 3.1 3.2 3.3 Understand Installation process of Accounting Information system available in the market. Use an Accounting Information System to generate valid, accurate and useful information for a given problem Evaluate alternative methods of solving the problem 3 4 5 Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: 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 M1 Identify and apply strategies to find appropriate solutions M2 Select / design and apply appropriate methods / techniques Indicative characteristic/s Contextualisation To achieve M1, you will make effective judgements in identifying the type of Effective judgements have been leger accounts based on the transaction details given in (Task 4). You need to record all transactions correctly and show in detail how each transaction can made. be stored by using Tally.ERP 9. You will have to use appropriate methods to record the business transactions using Tally.ERP 9 (Task 3) A range of methods and To achieve M2, you will have used a range of methods and techniques to techniques have been applied explore the functional areas and needs to discuss the information flow Appropriate learning methods/techniques have been applied between the functional areas specific to the organisation selected. Use a range of sources to present the information. (Task 2). The appropriate structure and approach has been used To achieve M3, you will have used appropriate structure and approach in presenting the core four functional areas specific to the organisation selected. You need to present the information in logical sequence (Task 1). To achieve M3, you need to demonstrate the use of advanced financial features in Ms Excel (task 5) 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 To achieve D1, you will have to write conclusions based on the reports generated from Tally.ERP 9(Task 4) D2 Take responsibility for managing and organising activities Activities have been managed To achieve D2, you will have to manage all the activities effectively in Tally.ERP 9(Task 4) Effective thinking has taken place in unfamiliar contexts. To achieve D3, you have to demonstrate effective /convergent thinking by identifying the advanced features of Ms Excel and evaluating them (Task 5) M3 Present and communicate appropriate findings D3 Demonstrate convergent /lateral / creative thinking Assignment Brief Purpose of this assignment Learner will gain an understanding of the information requirements with data processing needs in an organization. Learner will get an opportunity to get hands-on-training of Accounting Information and general purpose software to resolve real world reporting issues. Case Study InterContinental Muscat(ICM) Located on beach front and with a view of the Hajjar Mountains, this five-star resort is located in the heart of the city's residential, government and diplomatic quarter. The hotel's Palm Beach Club offers two floodlit tennis courts, a 25-metre olympic size pool, a leisure pool, a fully equipped fitness center, sauna,jacuzzi and easy access to the beach. Local sites of interest include the Grand Mosque and Amouage Perfume Factory. www.intercontinental.com/Muscat Task 1 – LO1 - Assessment Criteria 1.1 (M3): Identify functional areas in the selected organisation (ICM) and analyse inputs, process, and output requirements for minimum four functional areas’ processes. To achieve pass you must; • • • Provide a brief introduction to the organisation and its functional areas Identify the core functional areas specific to the organisation. Identify the input, process and output requirements for the functional areas selected. To achieve M3, Choose core processes of four functional areas, arrange all tasks related to the chosen processes in logical sequence use technical language accurately to describe the tasks. Use structured methods of information presentation. Task 2 – LO1 - Assessment Criteria 1.2 (M2, D3): Ascertain the relationship between different functional areas of the selected organisation. To achieve pass you must; • Ascertain the relationships between the functional areas of the selected organisation(ICM) in task 1 by using flow diagram To achieve M2, Select at least 2 tasks related to each functional area (Total 8 tasks) and discuss flow of information among the functional areas to conduct those tasks. Use a range of sources of information. To achieve D3, Select complex tasks, show comprehensive understanding in information flow, and make appropriate diagrams to present the flow of information, provide references. Effective thinking has shown in flow of information. Task 3 – LO3 - Assessment Criteria 3.1 (M1) Understand Installation process of Accounting Information system available in the market. Assume you have started your own shop at Ruwi, Muscat in the month of March to sell the computers’ components. To keep track of the inventory and the financial transactions of your business, you have decided to use Tally.ERP 9. For this purpose you need to perform the following tasks: To achieve pass you must; a) Write hardware and software requirements for Tally ERP 9 b) Prepare document which contains screen shots of installation process reflecting your understanding of all necessary steps involved in the installation of Tally. c) Setup a company under your name to record the business transactions. Make sure your company complies with Oman statutory regulations To achieve M1, make effective judgement on the use of appropriate hardware/software to show all necessary steps involved in the above mentioned tasks and provide appropriate description of each step Task 4 – LO3 - Assessment Criteria 3.2 (M1,D1,D2): Use an Accounting Information System to generate valid, accurate and useful information for a given problem. To achieve pass you must; a. Create the necessary Ledger accounts by using Tally ERP 9 and record the following transactions in Tally.ERP9. While recording the transaction take screen print of each transaction and paste them in MSWord document for evidence. Note: In the following transactions I. S1, S2, S3 and S4 represent the sundry creditors of your company, in place of them write names of the computer suppliers/dealers exist in the market near your residence and while creating the ledger account for them, provide full address and other details required to store in Tally.ERP 9. II. C1,C2, and C3 represent the sundry debtors of your company, in place of them write names of your three friends who are not studying in your class and while creating the ledger accounts for them provide the full detail required to store in Tally.ERP 9. S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. Transaction On March 1,2017: You have invested R.O 85000 capital in the business On March 3,2017: Bought furniture for cash R.O 6500 On March 4,2017: Purchased 450 CPUs from S1 at R.O 120 per unit on credit On March 5,2017: Purchased 260 Monitors from S2 at R.O 50 each on credit On March 6,2017: Purchased 180 Keyboards from S3 at R.O 7.500 each on credit On March 7,2017: Purchased 200 mouse from S4 at R.O 1.5 each on credit On March 8,2017: Sold 65 CPUs to C1 at R.O 350 each On March 9,2017: Sold 20 CPUs to C2 @ 340 each On March 10,2017: 18 CPUs returned to S1 On March 11,2017: R.O 5200 Cash Received from C1 On March 12,2017: R.O 5600 Cash Received from C2 On March 13,2017: Sold 6 CPUs to C3 @ 390 each On March 14,2017: Sold 14 CPUs to C1 at R.O 355 each On March 15,2017: Sold 6 CPUs to C2 @ 362 each On March 16,2017: R.O 600 Cash Received from C1 On March 17,2017: 4 Monitors returned to S2 On March 18,2017: Sold 2 CPUs to C3 @ 270 each On March 18,2017: R.O 355 Cash Received from C1 On March 18,2017: R.O 190 Cash Received from C2 On March 19,2016: R.O 550 Cash Paid to S1 On March 19,2017: R.O 700 Cash Paid to S2 On March 19,2017: 3 CPUs returned by C2 On March 25,2017: R.O 600 Cash Received from C3 On March 27,2017: R.O 190 Electricity bill paid After recording all the transactions take print of the Day Book, Balance Sheet, Profit and Loss and the Trial Balance and analyze the information shown in the reports (Suggested 600-900 Words) To achieve M1, record all transactions correctly in appropriate sequence and shown each step in your assignment. D1: Write conclusions to prove the accuracy of Day book, Balance sheet, Profit and Loss and Trial Balance reports. D2: Demonstrate all activities have been managed well . Task 5 – LO3 - Assessment Criteria 3.3 (M3, D3): Evaluate alternative methods of solving the problem To achieve pass ; MS Excel is being used commonly in managing account, inventory, payroll etc. Evaluate at least three features of MS Excel as an alternative method which can help in managing financial matters. To achieve M3, describe three advanced features of MS Excel, demonstrate the use of those features effectively to deal with financial matters, provide diagrams with appropriate details. To achieve D3, provide suitable examples with valid comments. Effective thinking has demonstrated in evaluating the features. Evidence checklist Summary of evidence required by student Task 1 Identify input, process and output requirements for different functional areas for the selected the organisation. Task 2 Determine the relationship between different functional areas with specific to the organisation. Task 3 Understand Installation process of Accounting Information system Tally ERP 9 Task 4 Use Tally ERP 9 to record the transactions and generate reports. Task 5 Evaluate the use of advanced financial features of Ms Excel. Evidence presented Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. 12. Assignment length should not exceed 2500 words. Class ID: Pass word: Achievement Summary Qualification Unit Number and title Pearson BTEC Level 5 HND Diploma in Business Assessor name Ms. Priya Gopal HND-A&F2: Management information System IV name Dr Omer Ali Ibrahim Student Number Criteria Reference Student name To achieve the criteria the evidence must show that the student is able to: Achieved? (tick) LO1 1.1 Identify input output and processing requirement of functional areas. 1.2 Ascertain the relationship between different functional areas of an organisation. LO3 3.1 3.2 Understand Installation process of Accounting Information system available in the market. Use an Accounting Information System to generate valid, accurate and useful information for a given problem 3.3 Evaluate alternative methods of solving the problem Higher Grade achievements (where applicable) Grade descriptor M1: Identify and apply strategies to find appropriate solutions Achieved? (tick) 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 responsibility for and organising Achieved? (tick) Assignment Feedback Formative Feedback: Assessor to Student Action Plan Summative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date COLLEGE 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 Business Unit 12: Taxation Semester Batch IV(Four) Spring 2016-17 Student name Assessor name Ms. Sujata Suresh Student No. Internal Verifier (IV) name Ms. Sujatha Bhat Date issued Completion date March 2017 16th April 2017 Assignment title UK Tax System – Tax practitioner, Corporation Tax for UK Companies Learning Outcome Learning outcome LO1 Understand the duties and responsibilities of the tax practitioner in the UK tax environment LO3 Be able to calculate corporation tax liabilities for companies Assessment Criteria Submitted on In this assessment you will have the opportunity to present evidence that shows you are able to: Task Evidence no. (Page no) 1.1 Describe the UK tax environment 1 1.2 Analyse the role and responsibilities of the tax practitioner 2 1.3 explain the tax obligation of tax payers or their agents and the implications of noncompliance 3 3.1 calculate chargeable profits 4 3.2 3.3 Calculate the tax liabilities and due payment date Explain how income tax deductions are dealt with. 5 6 Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Page 1 of 10 Date: Tax/Assignment /Spring 2016/17/CBFS 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 To achieve M1, you will have to have an effective judgement in giving your made. answer.(Task3.1) M2 Select / design and apply appropriate methods / techniques A range of sources of information has been used M3 Present and communicate appropriate findings D1 Use critical reflection to evaluate own work and justify valid conclusions D2 Take responsibility for managing and organising activities Page 2 of 10 To achieve M2 , you should have used different sources to collect data and a range of source of information should have been used for information relating to the (Task1.3),(Task3.3) 1. the appropriate structure and approach has been used coherent, logical development of principles/ concepts for the intended audience 2. a range of methods of presentation have been used and technical language has been accurately used 1. Conclusions have been arrived at through synthesis of ideas and have been justified Autonomy/independence has been demonstrated To achieve M3, you should have used an appropriate structure and approach in presenting the types of taxation in UK, and put your findings in a tabular form or in a flow chart with proper explanation(Task1.1) ,( Task 1.2),(Task3.2) a range of methods of presentation should have been used with technical tax language (Task1.1) ,( Task 1.2),(Task3.2). To achieve D1, you should justify the conclusions drawn on the basis of relevant rules and formulas and its application. (Task3.1) To achieve D2, you should have demonstrated autonomy and independence by bringing details in answering (Task1.1) ,(Task3.3) Tax/Assignment /Spring 2016/17/CBFS Assignment Brief Purpose of this assignment Understand the UK Tax environment and the duties and responsibilities of the tax practitioner. Students should also know about corporation tax liability of relevant entities. The knowledge gained should help the student in Self-Assessment and also help in filing returns for their company. LO -1- Understand the duties and responsibilities of the tax practitioner in UK tax environment “Scenario ‘A’ Covers LO 1.1, L O 1.2 and LO 1.3 The budgetary impact of the low oil prices has resulted in tax reforms. Both Corporates and individuals focus on understanding the Tax environment and tax planning at various stages. 1.1 Task 1 (LO1- AC 1.1 ) Describe the UK tax environment P, M3,D2 Required:As a tax practicing expert licensed by HMRC in UK, you are required to describe in detail the UK tax environment to your clients. Your explanation must include all relevant information about the UK Tax Environment. To achieve P, you are required to explain the meaning of taxation, types of taxation, methods of tax collection and tax legislation of UK. To achieve M3, you should have used an appropriate structure and approach in presenting the types of taxation in UK, and put your findings in a tabular form or in a flow chart with proper explanation. To achieve D2, you should have demonstrated autonomy and independence in describing the overall taxation system in your own way of presentation by doing an independent search. You should have met the deadline to submit the tasks to achieve the unit assessment criteria by taking responsibility in managing and organising activities. 1.2 Task 2 (LO1- AC 1.2 ) Analyse the role and responsibilities of the tax practitioner P,M3 Required:As a taxation manager in the audit firm, brief your clients the role and responsibilities of the tax practitioner. To achieve P, you are required to explain how the tax payer deals with HMRC explaining his role and responsibilities as a tax practitioner. To achieve M3, you should have used a range of methods of presentation to show the duties and responsibilities of tax practitioner. Page 3 of 10 Tax/Assignment /Spring 2016/17/CBFS 1.3 Task 3 (LO1- AC 1.3 ) Explain the tax obligation of tax payers or their agents and the implications of non-compliance P,M2 Required:To bring to the knowledge of your clients, the tax obligation of tax payers or their agents and the implications of non-compliance. To achieve P, you are required to advice the clients on tax planning by explaining the tax obligations of tax payers and the implications of non- compliance. To achieve M2, a range of sources of information should have been used to explain clearly the obligations .In addition to the above , as a practitioner brief on the Self -assessment procedure, maintaining of records and penalty if not complied by the tax payer. LO -3- Be able to calculate corporation tax liabilities for companies. “Scenario ‘B’ Covers LO 3.1, L O 3.2 and LO 3.3 Jip Co Ltd, a UK registered company has completed its finalization of accounts and is waiting for the auditors’ advice for filing the tax returns. Jip co’s accountant has worked out the tax calculation and submitted to the audit office. You are one of the senior tax manager in the audit office. As a senior in the team, you work on the tax calculation and advice Jip Co Ltd on filing of returns, maintenance of books of records and also advice Jip Co Ltd on adherence of tax payment rules and regulation for the year 2016-17. Page 4 of 10 Tax/Assignment /Spring 2016/17/CBFS You are given the accounts of JipCo Ltd for the year ended 31 March 2017. £ £ Sales 3800,000 Less: Cost of Sales 280,000 Gross Profit 3520000 Add: Other income: Rental Income 1,500 Dividend received 2,100 Profit on disposal 3,000 Commission received 3,500 3530100 Less: expenses: Wages 58,000 Maintenance 2,000 Telex bill 1,500 Telephone Expenses 2,520 Van Expenses 6,600 Lighting 4000 Depreciation 8,000 Advertisement 2,000 Subscription 6,000 Entertainment expenses 8,700 Donation 960 Legal and professional charges 500 General Expenses 7,200 Directors’ fees 6,000 Audit fees NET PROFIT Page 5 of 10 1000 114980 3415120 Tax/Assignment /Spring 2016/17/CBFS Notes: a) There is an amount of £ 1,010 for installation of machine included in maintenance. b) Entertainment expenses includes :Gift to customers (watch costing £73 each for 5 customers) £ 365 Customers’ entertainment c) d) £140 Donation is done to a political party for getting trade contracts. Legal and Professional Fees includes:Accountancy fees Special Audit fees £150 £100 e) f) General Expenses includes an over speeding fine of £150 paid for Manging Director’s car. Plant and Machinery: On 1 April 2016 the opening balance of plant and machinery in the pool was £2,200 The following transactions took place during the year ended 31 March 2017: August 2016 Purchased Machinery £950,000 July 2016 Purchased Car (CO2 emmission is 130 g/ km) £ 125,000 January 2017 Sold machinery £3,800 g) The details of some trading loss to be adjusted is as follows:Loss for the year ended 31st March 2014 Loss for the year ended 31st March 2015 Loss for the year ended 31st March 2016 h) Chargeable gains for the year 31st March 2017 Page 6 of 10 £13800 £2800 £3000 £1000 Tax/Assignment /Spring 2016/17/CBFS 3.1 Task 4 (LO3- AC 3.1 ) Calculate Chargeable profits (TTP) P, M1, D1 Required:To determine the taxable total profits of Jip Co Ltd for the year ended 31 March 2017after necessary adjustments. To achieve P, you are required to calculate the Taxable total profits of Jip Co Ltd (Your answer should include the calculation of Capital Allowance, trading loss adjustment and the computation of TTP). To achieve M1, you will have to make effective judgements while including each item of expense and income which are allowed and disallowed in calculation of chargeable profits. To achieve D1, you should justify the conclusions drawn on the basis of relevant rules and formulas and its application giving neat explanation wherever necessary. 3.2 Task 5 (LO3- AC 3.2 ) Calculate the tax liabilities and due payment date P, M3 Required:- Calculate the tax liabilities of Jip Co Ltd for the year ended 31 March 2017 and specify due date for filing the return and payment of tax. What are the consequences of late filing after the due date? To achieve P, you in the capacity of an advisor is required to assist Jip Co Ltd in calculation of tax liability for the company. To achieve M3, you should have used appropriate structure and approach with clean workings and notes to justify the difference in tax rates between the periods (if applicable) and how it has an impact on the final tax payable by the company. 3.3 Task 6 (LO3- AC 3.3) Explain how income tax deductions are dealt with. P, M2, D2 Required:- As a tax adviser, you are required to show the various tax deductions to be made by Jip Co Ltd and how to deal with it. To achieve P, you are required to explain the various tax deductions for Jip Co Ltd during the year 2016/17. To achieve M2, you should have used different sources to collect data on tax deductions relevant for companies like Jip Co Ltd. To achieve D2, you should have demonstrated autonomy or independence in research and study and should have met the deadline to submit the tasks and achieve the unit assessment criteria. Page 7 of 10 Tax/Assignment /Spring 2016/17/CBFS Evidence checklist Summary of evidence required by student Task 1 Describe the UK Tax Environment Task 2 Analyse the role and responsibilities of the Tax Practitioner Task 3 Explain the tax obligation of tax payers or their agents and the implications of non-compliance. Task 4 Evidence presented Calculate chargeable profits Task 5 Calculate the tax liabilities and due payment date. Task 6 Explain how income tax deductions are to be dealt with. Resources: List of Websites www.uk budget .com Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. Word Count for Assignment as prescribed -2500 words with 5% Tolerance rate Page 8 of 10 Tax/Assignment /Spring 2016/17/CBFS Achievement Summary Qualification Unit Number and title Criteria Reference 1.1 1.2 Ms. Sujata Suresh QCF Level: 5 Assessor name Unit -12 Taxation Student name To achieve the criteria the evidence must show that the student is able to: Describe the UK Tax Environment Analyse the role and responsibilities of the Tax Practitioner 3.1 Explain the tax obligation of tax payers or their agents and the implications of non-compliance Calculate chargeable profits 3.2 Calculate the tax liabilities and due payment date. 3.3 Explain how income tax deductions are to be dealt with. 1.3 Achieved? (tick) Higher Grade achievements (where applicable) Grade descriptor Achieved? (tick) Grade descriptor M1: Identify and apply strategies to find appropriate solutions D1: Use critical reflection to evaluate own work and justify valid conclusions M2: Select / design and apply appropriate methods / techniques D2: Take responsibility for managing and organising activities M3: Present and communicate appropriate findings D3: Demonstrate convergent/lateral/creative thinking Page 9 of 10 Achieved? (tick) Tax/Assignment /Spring 2016/17/CBFS Assignment Feedback Formative Feedback: Assessor to Student Action Plan Summative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date Page 10 of 10 Tax/Assignment /Spring 2016/17/CBFS
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