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Elements and Performance Criteria

1. Prepare and maintain asset register
   • Prepare a register of property, plant and equipment from fixed asset transactions according to legislative and organisational policies and procedures
   • Determine method of calculating depreciation according to organisational requirements
   • Establish process for maintaining asset register and associated depreciation schedule according to accounting requirements and organisational policies and procedures
2. Record general journal entries for balance day adjustments
   • Record depreciation of non-current assets and disposal of fixed assets according to accounting requirements and organisational policies and procedures
   • Adjust expense accounts and revenue accounts for prepayments and accruals
   • Record bad and doubtful debts according to accounting requirements and organisational policy and procedures
   • Adjust ledger accounts for inventories and transfer to final accounts, if required
3. Update and prepare final general ledger accounts
   • Make general journal entries for balance day adjustments in general ledger system according to accounting requirements and organisational policies and procedures
   • Post revenue and expense account balances to final general ledger accounts system
   • Prepare final general ledger accounts that reflect gross and net profits for reporting period
4. Prepare end of period financial reports
   • Prepare revenue statement that reflects operating profit for reporting period according to organisational requirements
   • Prepare balance sheet and reflect financial position of business at end of reporting period
   • Identify and correct errors or refer for resolution according to organisational policy and procedures

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

produce at least one complete asset register and depreciation schedule.

In the course of the above, the candidate must:

record entries for balance day adjustments

trace and reconcile errors systematically

apply double-entry bookkeeping principles to prepare and maintain financial reports and ledgers

complete all tasks according to organisational policies and industry standards.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

double-entry bookkeeping principles

processes for making general journal and general ledger entries

key provisions of legislation, regulations, standards and codes of practice relevant to the preparation of financial reports

key features of organisational accounting systems used for preparing financial reports

organisational policies, procedures and accounting standards relevant to own role.

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