This assessment is best undertaken utilising a real client, which may be a friend or colleague of the student who runs their own business. You will need to discuss your client choice with your assessor before commencing this assessment.
In the event that you do not have access to an appropriate contact, your assessor will role-play your client. You will need to arrange a time to interview your client to complete the task requirements as outlined below.
For this assessment, you are required to liaise with your client and undertake a business needs analysis. This can be undertaken in a business of the student's choice in consultation with their instructor, or alternatively can be done in a simulated working environment with the instructor role-playing the part of appropriate management of a simulated business model.
Part 1:
You are to consult with appropriate personnel in order to undertake an assessment of your client's financial needs. You must undertake an interview / consultation process to achieve the following:
- List all the financial objectives of the client, including but not limited to:
- Tax liability reduction goals
- Wealth accumulation
- Asset development
- Identify relevant legal and financial requirements that will need to be considered in order to achieve the client's specific objectives
- Detail other processes the client will need to undertake in order to achieve their financial goals, such as:
- Personal investment strategies
- Business registration
- Insurance needs
- Tax issues / requirements
- Detail strategies to put in place to ensure the above requirements are met
Once the consultation process is over, you are to develop a detailed written report of the above information. This report should be submitted before attempting part 2.
Part 2:
For part 2, instructors will review your report and plan covered in Part 1 and give feedback relating to the following:
- The time you took to complete part 1 (was it by deadline, was it early / late?)
- How specific was your questioning process? Did you ascertain all relevant financial requirements / goal of the client?
- How detailed was your report? Were the strategies set realistic and did they meet the client's requirements? If not, what did you neglect to report on?
- Your instructor will also detail any changes to the client's financial position / requirements that are relevant to the consultation process.
Once the feedback is received, you are to write a second report on how to ensure the client's needs are being met. You must cover the following in their report:
- Discuss the importance of constantly reviewing a client's financial position / goals
- Review the feedback given - discuss any areas that were not covered sufficiently - how can these be rectified? Is more information needed?
- Have there been changes in the client's financial requirements / position? If so how can strategies be adjusted to incorporate these changes.
Assessment Summary
You are to submit the following evidence / perform the following tasks
- Prepare for and conduct an interview with your client to determine their financial direction and requirements (refer to explanation outlined above)
- Develop and submit a report outlining your findings
- Discuss your findings with your assessor
- Develop and submit the completed Business Analysis Report (as outlined above)
Content
1. Background
Last paragraph for example.
In this study, I have researched the business need analysis of company ABC Company Ltd for reference. This report is based on the response provided by designated person of the business. Several questions were asked during the research. The following section is structured as below.
2. Objectives of Business
2.1. Profit maximization
2.2. Wealth maximization
2.3. Tax management
2.4. Assets development
2.5. Insurance
3. Business Need
3.1. Taxation need
3.2. Investment need
4. Business Strategies to meet objectives
4.1. Tax planning
4.2. Legislative requirement
- Work Health and Safety (WHS)
- Australian Securities Investment Commission
- Australian Taxation Office
5. Industry requirement
6. Role of Monitoring in financial performance and position
7. Summary
ASSESSMENT 2 -
For this assessment, you are required to analyse company financial data. You are to refer to the Fosters 2011 Annual Report (or any other Company's Annual Report supplied by your assessor). Your task is to complete the following (example is given for Fosters Group):
1. Detail what authorities / personnel / sources you would have to consult with to ensure the financial data provided is accurate and complete. Discuss how you would reconcile the financial data to confirm accuracy.
2. Undertake both a vertical and horizontal analysis of the Fosters consolidated income statements for the years ending 30 June 2010 and 30 June 2011
3. Complete a Profit and Loss report for year ending 30 June 2011 as well as a debt-to-equity ratio for the 2011 financial year.
4. Utilising appropriate models and financial and quantitative data from the Annual Report provide an environmental and further financial analysis of Fosters Group - any suspected problem areas should be highlighted.
5. Assess the Statement of Cash Flows in the Annual report - explain why there was a significant decrease in cash at the end of the year ending 30 June 2011 compared with the previous financial year.
6. Based on the above analyses, comment on the financial performance of Fosters in the last financial year - specifically on the following aspects:
a. Profitability
b. Financial Stability
c. Efficiency
7. If the objective of Fosters management was to consolidate their earnings and post a moderate increase in the previous years profit, have they achieved this? Has the above analyses demonstrated this information - if not, undertake a further analysis of the statements to determine this.
8. Lastly, assess the financial potential of Fosters Group Ltd. Using the financial data provided in the 2011 financial report. Comment on what funding requirements would be required in the future to continue the same rate of growth over the last financial year. Also list the statutory obligations of the company.
Students must undertake the above analysis tasks in accordance with standard accounting techniques. Spreadsheet or appropriate accounting software must be used - hand written analyses will not be accepted.
ASSESSMENT 3
This assessment is to be undertaken after Assessment 2, and relates to the analysis completed for Fosters( or any other Company of choice).
You are to develop a detailed written advice to the Management of Fosters that covers each of the following:
- All the relevant analyses in Part 2 to compose a detailed written report on financial performance for the year ending 30 June 2011.
- Discuss company compliance protocols in place - are they sufficient to meet statutory requirements? Do they meet all the Corporate Governance principles?
- Outline reporting and lodgement timeframes for the 2009 business year
- Research and comment on the following
- What are the financial risks that should be considered - e.g. Debtor default, stability of global economy, operating costs etc
- For the above risks, outline options for contingencies - e.g. Insurance options, investment options etc.
- Give advice on how Fosters can ensure they do not have another similar loss of cash at the end of the next financial year
- Include a detailed section on the rights and obligations of the client - ensure you include:
- All relevant laws, i.e. corporation law, legislative protection, contract law, privacy law, taxation legislation etc.
- Conclude with a list of alternative sources of short and long term investment, giving a brief description of each.
ASSESSMENT 4
1. List and explain 6 different taxes that are payable by businesses. (30 words for each)
2. List 15 different allowable deductions a business may claim to reduce the amount of tax that is payable.
3. Describe the rules that must be followed before any expense can be used as a tax deduction within a company. (100 words)
4. Describe the regulations around claiming travel expenses. (100 words)
5. Answer the following questions in relation to the simplified depreciation rules that relate to small business entities. (40 words each)
What accessing this concession means
What not accessing this concession means
How do you access this concession?
6. Answer the following questions in relation to the immediate deduction for certain prepaid expenses rules that relate to small business entities. (30 words each)
What accessing this concession means
What not accessing this concession means
How do you access this concession?
7. What is the time limit for requesting an amendment to a tax assessment? (50 words)
8. Outline 4 scenarios where you may gain a Capital Gains Tax concession?
9. What would you do if the ATO PAYG instalment amount does not match the companies expected income tax liability? (50 words)
10. List 3 Goods and Services Tax (GST) concessions a business may be eligible for.
11. Describe 3 areas that may cause significant taxation issues to a company.(60 words)
12. Describe and compare 3 different financial forecasting techniques. (30 words each)
13. List 6 different financial risks and contingencies that relate to financial and business performance.
14. List 2 options that could be used to manage the risks listed in the previous question.
15. List 5 different legal rights a clients has.
16. Describe 4 different methods / formats you can use to present financial data to your clients.
17. Describe the following Acts / Regulations. (50 words each)
Australian Privacy Principles
Stamp Duties Act
Taxation Act
Trades Practice Act
18. Describe what is included in each of the following reports: (50 words each)
Profit and Loss
Balance Sheet
Statement of Changes in Equity
19. Describe the key principles of cash flow to a business. (100 words)
20. Describe the key principles of budgeting to a business. (100 words)
21. List 2 different sources of financial products and markets, including the type of information you may obtain from each one.
22. What is the purpose of the treasury? (50 words)