This unit applies to individuals employed in a range of work environments who are responsible for preparing financial reports. They may work as individuals providing administrative support within an enterprise, or they might have responsibility for these tasks in relation to their own workgroup or role.

ELEMENT

PERFORMANCE CRITERIA

1. Maintain asset register

1.1. Prepare a register of property, plant and equipment from fixed asset transactions in accordance with organisational policy and procedures

1.2. Determine method of calculating depreciation in accordance with organisational requirements

1.3. Maintain asset register and associated depreciation schedule in accordance with organisational policy, procedures and accounting requirements

2. Record general journal entries for balance day adjustments

2.1. Record depreciation of non-current assets and disposal of fixed assets in accordance with organisational policy, procedures and accounting requirements

2.2. Adjust expense accounts and revenue accounts for prepayments and accruals

2.3. Record bad and doubtful debts in accordance with organisational policy, procedures and accounting requirements

2.4. Adjust ledger accounts for inventories, if required, and transfer to final accounts

3. Prepare final general ledger accounts

3.1. Enter general journal entries for balance day adjustments in general ledger system in accordance with organisational policy, procedures and accounting requirements

3.2. Post revenue and expense account balances to final general ledger accounts system

3.3. Prepare final general ledger accounts to reflect gross and net profits for reporting period

4. Prepare end of period financial reports

4.1. Prepare revenue statement in accordance with organisational requirements to reflect operating profit for reporting period

4.2. Prepare balance sheet to reflect financial position of business at end of reporting period

4.3. Identify and correct, or refer errors for resolution in accordance with organisational policy and procedures

Required skills

communication skills to clarify reporting requirements and obtain required data

literacy skills to:

identify financial information

follow the Australian Accounting and Auditing Standards

follow the organisation's accounting procedures

numeracy skills to calculate percentages, addition and subtraction.

Required knowledge

double-entry bookkeeping principles

general journal and general ledger entries

key provisions of relevant legislation and regulations from all forms of government, standards and codes that may affect aspects of business operations, such as:

Australian Taxation Office regulations

accounting and auditing standards

Goods and Services Tax (GST) regulations

anti-discrimination legislation

ethical principles

codes of practice

finance legislation

privacy laws

occupational health and safety

organisational accounting systems

organisational policies, procedures and accounting requirements.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

preparing financial reports

applying the Australian Accounting and Auditing Standards

applying double-entry principles.

Context of and specific resources for assessment

Assessment must ensure:

access to office equipment and resources, such as:

calculator

computer equipment and relevant software

Australian Accounting and Auditing Standards

access to samples of financial data

access to workplace reference materials such procedural manuals and company policy.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

demonstration of techniques

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of authenticated documents from the workplace or training environment

oral or written questioning to assess knowledge ofaccounting procedures and techniques.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other financial administration units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Calculating depreciation may include:

reducing balance method

straight-line method

Expense accounts may include:

distribution expenses

electricity

freight inward and outward

insurance

interest paid

rates

rent paid

telephone and fax

wages and salaries

Revenue accounts may include:

commission received

interest received

rent received

Prepayments and accruals may include:

accrued expenses

accrued revenue

prepaid expenses

prepaid revenue

Bad and doubtful debts may include:

calculating provision for doubtful debts

writing off bad debts against provision for doubtful debts

Inventories may include:

goods for resale

stationery and other office supplies

Final accounts may include:

profit and loss

trading

Revenue statement comprises:

cost of goods sold if applicable

gross profit

operating net profit

unclassified adjusted expenses and revenue

Reporting period may include:

as determined in organisational procedures

financial year

Balance sheet comprises:

narrative or T format

unclassified assets and liabilities

Unit sector

Finance - Financial Administration

This unit contains employability skills.