Financial reporting

BSBFIA402 Report on financial activity

This unit is about reporting financial activity for a small business, both in response to owners or boards requests, and to meet statutory requirements for financial reports. Financial officers need a broad knowledge of financial activities and may be responsible to give guidance or to delegate aspects of these tasks to others.

 

How you will be assessed

You will be assessed through:

• Assessor observation on the job
• Supervisor reference (if the assessor is not the supervisor)
• Review of your workplace documents (e.g. procedures)
• Interview/assignment based on the requirements below.

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Practical

You will be assessed in a safe environment and must consistently perform typical activities of a financial administrator. You will need access to:

• office equipment and resources
• computer with relevant software
• examples of financial data, reports and documents
• workplace financial policies and procedures
• case studies and, where possible, real situations.

You need to show that you can:

1. Organize and present financial data to highlight relevant features and meet workplace requirements. Submit at least one of each of the following:
1. budgets and forecasts,
2. budget variances,
3. cash flow reports,
4. balance sheets,
5. financial year reports,
6. operating statements,
7. profit and loss statements
2. Select and apply business ratios to indicate financial health
3. Use conversion and consolidation procedures such as:
1. moving averages,
2. standardized variables,
3. trend analysis and
4. unit costs
4. Identify, resolve or refer discrepancies such as absence of auditable trail, expenditure report mismatches, incorrect payments and unreconciled cash flows
5. Record income and expenditure to meet statutory requirements
6. Calculate liabilities for tax, including completing Business Activity Statements
7. Give financial business recommendations
8. Apply knowledge of relevant legislation and regulations
9. Perform double entry bookkeeping and accrual accounting.

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Interview/assignment questions

1. What are the key provisions of legislation, regulation and codes of practice relevant to financial operations
2. Describe the techniques used for forecasting and analysis
3. Business ratios:
1. What are business ratios?
2. How can you select business ratios to diagnose the financial health of an organization?
3. How can you use business ratios to give business advice?
4. Identify the options, methods and practices for deductions.
5. Identify the options, methods and practices for benefits.
6. Identify the options, methods and practices for depreciation.

Note: Your assessor may also ask you a variety of what if questions.

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Detailed requirements

1. Compile financial information and data

1. Collect, evaluate and code current financial data to ensure consistency, quality and accuracy in accordance with organizational requirements
2. Use conversion and consolidation procedures to compile analysis in accordance with organizational requirements
3. Make, record and disclose asset and liability valuations in accordance with organizational requirements
4. Ensure that discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority

 

2. Prepare statutory requirement reports

1. Correctly record income and expenditure to ensure compliance with statutory requirements
2. Calculate liabilities for tax in accordance with current legislation and revenue gathering practices
3. Correctly identify relevant receipts, revenue documentation and payments
4. Check that that statements and claims take full advantage of available benefits and allowances according to statutory requirements
5. Submit statutory requirement reports to appropriate authorities within stated deadlines

 

3. Give financial business recommendations

1. Ensure that recommendations are logically derived and supported by evidence in report
2. Give recommendations to propose constructive actions to improve functions and services
3. Check that recommendations are concise and facilitate direction and control of organization’s operations
4. Identify and prioritize significant issues in statements including comparative financial performances for review and decision making
5. Check that the structure and format of reports are clear and conform to organizational and statutory requirements.

 

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