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Elements and Performance Criteria

1. Maintain asset register
   • A register of property, plant and equipment is prepared from fixed asset transactions in accordance with organisational policy and procedures
   • Method of calculating depreciation is determined in accordance with organisational requirements
   • Asset register and associated depreciation schedule are maintained in accordance with organisational policy and procedures and accounting requirements
2. Record general journal entries for balance day adjustments
   • Depreciation of non-current assets and disposal of fixed assets are recorded in accordance with organisational policy and procedures
   • Expense and revenue accounts are adjusted for prepayments and accruals in accordance organisational policy and procedures and accounting requirements
   • Bad and doubtful debts are recorded in accordance with organisational policy and procedures and accounting requirements
   • Ledger accounts are adjusted for inventories, if required, and transferred to final accounts in accordance with organisational policy and procedures and accounting requirements
3. Prepare final general ledger accounts
   • General journal entries for balance day adjustments are entered in general ledger system in accordance with organisational policy and procedures and accounting requirements
   • Revenue and expense account balances are posted to final general ledger accounts system in accordance with organisational policy and procedures and accounting requirements
   • Final general ledger accounts are prepared to reflect gross and net profits for reporting period in accordance with organisational policy and procedures and accounting requirements
4. Prepare end-of-period financial reports
   • Revenue statement is prepared in accordance with organisational requirements to reflect operating profit for reporting period
   • Balance sheet is prepared in accordance with organisational requirements to reflect financial position of business at end of reporting period
   • Errors are identified and corrected, or referred for resolution in accordance with organisational policy and procedures

Required Skills

Not applicable

Evidence Required

The Evidence Guide identifies the critical aspects underpinning knowledge and skills to be demonstrated to confirm competence for this unit This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement

Critical Aspects of Evidence

Integrated demonstration of all elements of competency and their performance criteria

Adherence to Australian Accounting and Auditing Standards

Adherence to doubleentry principles

Systematic tracing of errors

Underpinning Knowledge

At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts

Relevant legislation from all levels of government that affects business operation especially in regard to Occupational Health and Safety and environmental issues equal opportunity industrial relations and antidiscrimination

Knowledge of organisations policies procedures and accounting requirements

Knowledge of organisations accounting systems

Doubleentry bookkeeping principles

General journal and general ledger entries

Underpinning Skills

Literacy skills to identify financial information to follow Australian Accounting and Auditing Standards and the organisations accounting procedures

Communication skills including questioning clarifying reporting

Numeracy skills in relation to calculation of percentages simple addition and subtraction

Ability to relate to people from a range of social cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace which may include

Australian Accounting and Auditing Standards

Organisational accounting procedures

Consistency of Performance

In order to achieve consistency of performance evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Contexts of Assessment

Competency is demonstrated by performance of all stated criteria including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting analysing and organising information Level to prepare an asset register

Communicating ideas and information Level through revenue statements and balance sheets

Planning and organising activities Level to prepare endofperiod financial reports

Working with teams and others Level to correct or refer errors for resolution

Using mathematical ideas and techniques Level to calculate depreciation

Solving problems Level to ensure accounts balance

Using technology Level to prepare or generate financial reports as required

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies

The Evidence Guide identifies the critical aspects underpinning knowledge and skills to be demonstrated to confirm competence for this unit This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement

Critical Aspects of Evidence

Integrated demonstration of all elements of competency and their performance criteria

Adherence to Australian Accounting and Auditing Standards

Adherence to doubleentry principles

Systematic tracing of errors

Underpinning Knowledge

At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts

Relevant legislation from all levels of government that affects business operation especially in regard to Occupational Health and Safety and environmental issues equal opportunity industrial relations and antidiscrimination

Knowledge of organisations policies procedures and accounting requirements

Knowledge of organisations accounting systems

Doubleentry bookkeeping principles

General journal and general ledger entries

Underpinning Skills

Literacy skills to identify financial information to follow Australian Accounting and Auditing Standards and the organisations accounting procedures

Communication skills including questioning clarifying reporting

Numeracy skills in relation to calculation of percentages simple addition and subtraction

Ability to relate to people from a range of social cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace which may include

Australian Accounting and Auditing Standards

Organisational accounting procedures

Consistency of Performance

In order to achieve consistency of performance evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Contexts of Assessment

Competency is demonstrated by performance of all stated criteria including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide and within the scope as defined by the Range Statement

Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package

Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment

Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level Refer to the Key Competency Levels at the end of this unit

Key Competency Levels

Collecting analysing and organising information Level to prepare an asset register

Communicating ideas and information Level through revenue statements and balance sheets

Planning and organising activities Level to prepare endofperiod financial reports

Working with teams and others Level to correct or refer errors for resolution

Using mathematical ideas and techniques Level to calculate depreciation

Solving problems Level to ensure accounts balance

Using technology Level to prepare or generate financial reports as required

Please refer to the Assessment Guidelines for advice on how to use the Key Competencies

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Range Statement

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Calculation of depreciation may include:

straight-line method

reducing balance method

Expense accounts may include:

rent paid

insurance

rates

wages and salaries

freight inward/outward

interest paid

distribution expenses

electricity

telephone/fax

Revenue accounts may include:

interest received

commission received

rent received

Prepayments and accruals may include:

prepaid expenses

prepaid revenue

accrued expenses

accrued revenue

Bad and doubtful debts may include:

writing off bad debts against provision for doubtful debts

calculation of provision for doubtful debts

Inventories may include:

goods for resale

stationery/office supplies

Final accounts may include:

Trading

profit and loss

Revenue statement comprises:

cost of goods sold if applicable

unclassified adjusted expenses and revenue

gross profit

operating net profit

Reporting period may include:

financial year

as determined in organisational procedures

Balance sheet comprises:

narrative or T format

unclassified assets and liabilities

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Calculation of depreciation may include:

straight-line method

reducing balance method

Expense accounts may include:

rent paid

insurance

rates

wages and salaries

freight inward/outward

interest paid

distribution expenses

electricity

telephone/fax

Revenue accounts may include:

interest received

commission received

rent received

Prepayments and accruals may include:

prepaid expenses

prepaid revenue

accrued expenses

accrued revenue

Bad and doubtful debts may include:

writing off bad debts against provision for doubtful debts

calculation of provision for doubtful debts

Inventories may include:

goods for resale

stationery/office supplies

Final accounts may include:

Trading

profit and loss

Revenue statement comprises:

cost of goods sold if applicable

unclassified adjusted expenses and revenue

gross profit

operating net profit

Reporting period may include:

financial year

as determined in organisational procedures

Balance sheet comprises:

narrative or T format

unclassified assets and liabilities

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