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Unit 10 Financial Accounting and Reporting
Unit 10 Financial Accounting and Reporting
Unit 10 Financial Accounting and Reporting
Qualification
Student name
Assessor name
Sajid Saeed Khan
Date issued
Completion date
Submitted on
Validity
Assignment title
Assignment no
10- F/601/0864-13IND
Hand-in Policy
You must complete this assignment on time. If you experience difficulties, you must inform your tutor
accordingly.
Late Work Policy
Consideration will be given to students who have valid reasons for late submission (eg, illness).
Plagiarism
In cases of plagiarism, college regulations will be applied. You must declare that this assessment is your own
work by signing the following statement:
Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.
Student signature:
Date:
Assessment Criteria
Learning
Outcome
LO1
LO2
LO3
LO4
Learning
outcome
Understand the
regulatory
framework for
financial
reporting
Be able to
prepare
financial
statements
from complete
or incomplete
records
Be able to
present
financial
information in
accepted
formats for
publication
Be able to
interpret
financial
Statements
Assessme
nt Criteria
Task Evidence
no. (Page no)
1.1
1.2
1.3
1.4
2.1
2.2
2.3
3.1
3.2
4.1
4.2
2,4
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
has
been
has
been
Assignment brief
Unit Name number and
title
Qualification
Start date
Deadline/hand-in
Assessor
Assignment title
Task 1 (LO1, 1.1, 1.2, 1.3, 1.4 and M1, M3, D1 and D2)
You are working as a Senior Accounts Manager in a joint stock company, ABC Limited. Your company is
conducting a seminar on the topic of Understand the regulatory framework for financial reporting. You
have been asked to present the following on behalf of your company:
1. Prepare a presentation on the topic Users of financial statements and their needs''.
2. Prepare and present a detailed report on the following:
a) Explain the legal and regulatory influences on financial statements and assess its implications
for different users?
b) Explain in detail how different laws/regulations are dealt with by accounting and reporting
standards?
As at
'31August 2003
Stock in trade
8,600
16,800
3,900
4,300
7,400
8,900
Rent prepaid
300
420
Electricity accrued
210
160
2,300
1,650
360
330
Balance at bank
Cash in hand
Bank payments during the year ended 31 August 2003 have been summarized as follows:
Purchases
101,500
Rent
5,040
Electricity
1,390
3,000
Casual labour
6,620
Required:
(a) Calculate total purchases for the year ended 31 August 2003.
(b) Prepare a trading and profit and loss account for the year ended 31 August 2003 and a balance
sheet as at that date.
Task 3 (LO2: 2.3 and M1, M2, D2)
The following figures for the year to 30 September 1997 have been extracted from the books
and records of two companies, A-One Ltd and its subsidiary, B-One Ltd, which form a group:
Profit and Loss Accounts for the year to 30 September 1997
A-One Ltd
(In
B-One Ltd
(In Millions)
Turnover
Cost of sales
Gross profit
Administration expenses
Income from shares in group company
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
Profit on ordinary activities after taxation
Dividends: paid
proposed
Retained profit for the year
Retained profit brought forward
Retained profit carried forward
Millions)
1,700
( 920)
780
(300)
120
600
( 30)
570
( 90)
(270)
210
220
430
450
(75)
375
(175)
___
200
(20)
180
(50)
(100)
30
70
100
A-One Ltd
(In Millions)
1,280
400
B-One Ltd
(In Millions)
440
300
250
280
40
620
150
10
410
(
(
(
(
80)
160)
270)
510)
110
1,790
(160)
( 70)
(100)
(330)
80
520
( 460)
1,330
( 20)
500
900
430
1,330
400
100
500
Additional information:
(a) A-One Ltd acquired 80 per cent of the shares in B-One Ltd on 1 October 1994. B-One Ltds
Profit and loss account balance as at that date was 40,000.
(b) Goodwill arising on acquisition is to be written off against the groups retained profits.
(c) A-One Ltd takes credit within its own books of account for any dividends receivable from
B-One Ltd.
Required:
Prepare A-One Ltd & its subsidiary B-One Ltd consolidated profit and loss account for the year to 30
September 1997 and a consolidated balance sheet as at that date.
Task 4 (LO2 2.1 and LO3, 3.1, 3.2and M1, M2, D2)
A). Explain the importance of financial information of the company for different stakeholders.
B). You are to draw up a trading and profit and loss account for the year ending 31 March 2012, and a
balance sheet as at that date from the following trial balance and details of:
Description
Bank
Amount in (000)
8,100
Debtors
321,219
Creditors
237,516
290,114
Buildings at cost
800,000
Equipment at cost
320,000
136,204
General reserve
120,000
20,000
800,000
Purchases
810,613
1,606,086
Sales
Carriage inwards
Carriage outwards
Salaries
Business rates
2,390
13,410
384,500
14,800
Office expenses
9,100
Sundry expenses
2,360
80,000
Equipment
96,000
Directors remuneration
Notes at 31 March 2012:
1. Stock 317,426.
2.
3.
4.
5.
119,200
000
000
000
000
500
610
425
460
Cost of sales
(245)
(355)
(210)
(230)
Operating costs
(225)
(230)
(190)
(200)
(7)
(10)
(7)
(3)
Net profit
23
15
18
27
150
225
220
175
Stock
50
60
27
20
Debtors
20
30
Bank
10
(35)
13
57
(25)
(20)
(35)
(50)
205
260
225
202
Share capital
50
50
50
50
Retained profit
95
110
100
127
60
100
75
25
205
260
225
202
Sales
Creditors
Required
1. Use ratios to compare the managements performance from 2009 to 2010 for each company. (Use
year ended figures to calculate ratios)
2. Prepare a report incorporating and interpreting accounting ratios, suitable comparisons, weaknesses
and limitations of ratio analysis.
Evidence
checklist
Task 1
Task 2
Calculate total purchases and prepare a trading and profit and loss account
Task 3
Prepare A-One Ltd & its subsidiary B-One Ltd consolidated profit and loss
account
Task 4
Task 5
Evidence
presented
Submission guidelines
You must:
Complete all tasks
Present your work in one business report-style document which should include a table of contents,
references list, foot or end notes if any and appendices if any.
Complete, sign and submit the usual statement of authenticity.
Submit your work in a single word processed document of 4000-5000 approx .words. This word limit is
only for guidance and is not applied on grading.
Produce clear specific reasoning and arguments in support of your answers.
Make appropriate reference to the relevant concepts, techniques and theories.
Appropriately cite all information success (in the text and bibliography) as per references guidelines
given to you before.