Instructions for Students:
Whilst researching and writing your project it is important to:
- Read the Assessment description carefully.
Assessment should be in a Word format.
- Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
Acknowledge clearly when and how you are drawing on the ideas or phrases of others;
- Consult your Assessors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
- Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
Student can seek clarification regarding the assessment required to be done.
- Students can ask for reasonable time from Assessor for preparation of project or Assessment. Students can seek information on additional reading material and reference for completion of the assessments.
Students with special needs can seek assistance from Assessors depending upon the nature of the need.
- Submit this document along with your Assessment work.
Assessment 1 - PROJECT
You are working for a local builder, who has just sold a new house which is to be constructed.
The home is a large 3 bedroom house that includes a large open plan living area, accessible from the rumpus, bedrooms and courtyard. This house is a quality home for an affordable price.
The home payment structure follows a standard HIA Victorian New Homes Contract, and is as follows:
|
Deposit
|
5%
|
$13,274
|
|
Base Stage
|
10%
|
$26,546
|
|
Frame Stage
|
15%
|
$39,819
|
|
Lock-up Stage
|
35%
|
$92,912
|
|
Fixing Stage
|
25%
|
$66,366
|
|
Completion
|
10%
|
$26,546
|
|
Total Contract Price (Excluding Variations)
|
$265,463
|
For this assessment, you are required to prepare an budget for the construction of this house. You are required to research appropriate costings to ensure the budget is relevant to current expected construction expenses. You will need to use your building and construction knowledge for this task to ensure all stages are covered, including:
Expected Site Costs
Security of premises (fencing)
- Surveying
- Plumbing / Electrical
- Base Stage - Foundation ("M" Class Slab)
- Framing
- Lock-up - External wall cladding. Roof coverings, Flooring, External Doors / windows
- Fixing - Internal cladding, architraves, skirting, doors, built in shelves, baths, basins, troughs, sinks, cabinets, cupboards
- Completion (Refer to provided fixture list)
Be sure to
- Undertake discussions with stakeholders (Your Assessor will role play these parts) to determine any specific budget objectives and set milestones and / or performance indicators
- Discuss and review assumptions and budget parameters-review these during the budget process as needed.
- Clearly details any Cash, expenditure and revenue items
- Ensure your budget objectives are clear & conform with the business' expectations
- Include milestones and performance indicators to monitor financial performance
- Include a detailed breakdown of your annual budget into stages as required by the business
- Identify any financial risks and incorporate protection strategies according to business
Details: Students should keep the following points in mind when creating the budget
- Identify the non-current asset requirements and consider alternative asset management
strategies
- Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
Select budget targets to enable ongoing monitoring of financial performance Relevant taxes such as GST and BAS should also be included.
Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your Assessor, who will role play the relevant parts.
ASSESSMENT 2 - STUDENT INFORMATION
Whilst researching and writing your assessment, it is important to:
- Read the Assessment description carefully.
- Assessment should be in a Word format.
- Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
- Acknowledge clearly when and how you are drawing on the ideas or phrases of others; Consult your Assessors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
- Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
- Student can seek clarification regarding the assessment required to be done.
- Students can ask for reasonable time from Assessor for preparation of project or Assessment.
- Students can seek information on additional reading material and reference for completion of the assessments.
- Students with special needs can seek assistance from Assessors depending upon the nature of the need.
Assessment 2
For this assessment, your assessor will provide you with costings relevant to your submission in Assessment 1. The costings will provide up to date figures showing a total of expenses relevant up to lock-upstage.
Part 1: Prepare an 800 word written report discussing the following:
- How has your budget matched up with actual figures?
- What figures have been overestimated / underestimated?
- What business milestones have been met or have fell short?
Part 2: You must now adapt your original budget to incorporate and respond to the information given to you by your builder. Undertake the following tasks:
- Give a detailed comparison of budgeted forecasts and actual figures for project commencement to lock-up stage period - include comparison trends and other graphs as required to demonstrate the information clearly and demonstrate validity of analysis.
- Prepare and analyse the budget variances
- Prepare a recommendation to your builder regarding his business' performances and
- Complete a reviewed budget taking into account the latest figures. Your builders goals are skill the same - is he on track? If not, what needs to be dome for your builders project to get back on track? Are his goals too unrealistic? Complete a feasibility report answering these questions.
- Prepare a report to give to your builder (Assessor) with your recommendations.
ASSESSMENT 3 - WRITTEN ASSESSMENT
Questions
1. Discuss measures a company may safeguard integrity in financial reporting
2. Discuss how companies can promote ethical and responsible decision making.
3. Define Accrual Accounting
4. List 2 advantages of double entry accounting over single entry
5. List the 5 types of accounts which underpin double entry bookkeeping
6. Which of the following examples would Total Assets remain unchanged?
7. Give 4 examples of benefits that would require Fringe Benefit Tax to be paid on them
8. What are the 4 types of taxable transactions?
9. How does a professional in the accounting profession ensure they maintain ethical practices? Discuss.
10. Give 3 examples of perceived disadvantages to budgeting
11. What is depreciation? How is it claimed? What information is required
12. List 2 advantages of double entry accounting over single entry
13. What is a sensitivity analysis? Discuss how this can impact the business budget
14. What is straight-line depreciation? Give an example.
15. Explain what is meant by the following financial information terms.
16. What do reporting entities need to report - Give 3 examples?
17. What is the FTR ACT?
18. What is the chart of Accounts?
19. List the 7 Basic Accounting Types in the Chart of Accounts in order.
20. Give an example of a budgetary deception technique.
21. Give an example of a situation that would result in an accrued expense. What happens if the expense isn't accrued?
22. What is cost underestimation? What does it result in? What usually causes this?
23. How long does a company need to keep its financial records
24. What records need to be kept for the ATO for a small business with an annual turnover of less than $2million (cash basis)
25. What information should be shown on sales and expense invoices / receipts?
26. What records relating to assets for capital gains tax purposes should be kept, and for how long?
27. What FBT records must you keep for tax purposes? How long must you keep these records?