The assignment is for Graduate Diploma.The assignment is of Finance but I am not sure of the sub category of the Finance.I don't have any page limit so please suggest me for the page limit or the words. i have randomly selected the pages or words
Manage Financial Resources assessment kit BSBFIM801 1 bsbFIM801 ASSESSMENT KIT 10 Assessment details Student Full Name Student Number Employer Name Assessment Location Assessor Name Date Result Candidate has been assessed and is not yet competent (NYC) Candidate has been assessed and is competent (C) candidate declaration I declare that the evidence I am submitting for this assessment is my own work. I have read the requirements of the unit of competency, and the assessment tasks and the evidence are a demonstration of my skills and knowledge of the unit requirements. Student Signature Employer/supervisor signature Assessor Signature unit of competency assessment requirements ELEMENT PERFORMANCE CRITERIA Elements describe the essential outcomes. Performance criteria describe the performance needed to demonstrate achievement of the element. 1 Forecast future financial resource needs 1.1 Establish and report on the capacity of existing financial systems 1.2 Forecast financial data and business system requirements 1.3 Analyse forecasted requirements 1.4 Prepare and plan budget forecasts according to organisational and statutory requirements 1.5 Prepare and present recommendations for budget expenditure or for modification of existing projections 2 Analyse current asset performance and capacity 2.1 Analyse the costs of, and returns from, assets and liabilities using standard accounting techniques to identify extent of debt and equity financing 2.2 Establish management responsibilities and legal requirements for reporting, in consultation with relevant organisational staff 2.3 Analyse and interpret financial reports and key information 2.4 Analyse and evaluate the effects of financial decisions on the ability of the organisation to meet planned outcomes 3 Set business targets and compliance mechanisms 3.1 Collect comparative and trend information and confirm needs for future budget and associated resources 3.2 Complete negotiations to secure resources in accordance with relevant short-term and long-term needs 3.3 Allocate resources against the budget to maximise organisation’s performance 3.4 Maintain accurate and up-to-date records of resource allocation and usage according to organisational and legislative requirements 3.5 Develop and review management systems which enable timely collection, management and processing of information 3.6 Complete and accurately report records of budget performance and expenditure according to organisational procedures and statutory requirements 3.7 Evaluate and improve budget audit mechanisms and compliance requirements as required 4 Manage financial risk 4.1 Identify and analyse financial risk factors 4.2 Document and manage financial risks according to organisational policies and procedures 4.3 Implement procedures to regularly review financial risk management activities 5 Monitor compliance with financial projections 5.1 Identify deviations from budgets that generate an adverse effect on budget objectives 5.2 Promptly develop action plans to remedy significant deviations from budget objectives and projections 5.3 Monitor and review financial documentation against organisational objectives 5.4 Revise and renew budget priorities to meet operational contingencies and risk management 5.5 Manage costs to targets set in the budget Performance evidence Evidence of the ability to: · prepare a comprehensive financial plan according to organisational and legislative requirements · monitor and manage financial resources over a full planning-cycle including setting targets, managing risks and improving compliance mechanisms · effectively communicate financial reports and operational execution · revise forecast according to changes in budget deviations. Knowledge evidence To complete the unit requirements safely and effectively, the individual must: · explain the principles of accounting, financial statements and cash flow · clarify best-practice communication processes and methods · summarise compliance requirements, including relevant legislative responsibilities · explain the cost of capital, capital structure and working capital · identify finance and investment decisions · describe the goal of financial resource management · describe the principles of finance relevant to the organisation’s operations · explain risk and return Assessment methods and tasks Assessment Task Assessment Method Due Date Task A Short answer questions Demonstrates your sound knowledge of the underpinning theory of the unit requirements in your answers. Task B Project Demonstrates your ability to conduct and implement financial planning Task C Role-play Demonstrates the application of your skills and knowledge by performing a demonstration of a simulated scenario. Task D Case Study Demonstrates your skills and knowledge in applying them to a relevant scenario. You are required to complete all assessment tasks to demonstrate competency in this unit. The purpose of this assessment is to assess your ability to manage financial resources in a complex environment for a substantial business unit or organisation. Resource requirements Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the management and leadership field of work and include access to: · legislation, regulations and codes of practice · workplace plans, mission statements, policies and procedures · case studies and, where possible, real situations · interaction with others. Flexibility in assessment tasks Trainers must ensure that students understand the assessment instructions, tasks and the expectations of the assessment. Our assessments allow for flexibility in that trainers can assess students verbally or offer written assessment to demonstrate skills and knowledge in some cases to allow for reasonable adjustment. Assessment task A: Short answer questions Student Name: Completion Date: Student Instructions · There are 9 questions, and all must be answered correctly to achieve a satisfactory result for this assessment. · Read the questions carefully and provide short, written answers in the space provided. · You can use any of your learning resources provided to you to answer the questions. · If you are unsure, please ask your trainer for help. 1. What is the goal of financial resource management? (45 words) 2. Explain the purpose of the following financial reports: Financial Statement Information it provides a) Balance sheet (45 words) b) Income Statement (45 words) c) Cash flow statement (45 words) 3. Discuss the difference between investment and financing decisions within an organisation. (170 words) 4. Define the following terms: Term Definition a) Cost of capital (30 words) b) Capital structure (15 words) c) Working capital (30 words) 5. Explain the relationship between risk and return. (50 words) 6. Explain how communication changes when discussing the budget with investors as opposed with lower level management. (90 words) 7. a) List three companies that are required by legislation to submit their annual financial statements to the ATO for auditing? (10 words) b) Identify three financial documents all companies must record and store. (10 words) c) Which team members are responsible for financial reporting? (35 words) 8. Explain the importance of recording and monitoring cashflow within an organisation. (70 words) 9. Identify the appropriate team members or stakeholders you must communicate with to authorise the following financial instruments and give reasons for your answers. a) A new issue of common stocks. b) (30 words) c) Extend accounts payable. (20 words) d) Long-term bank loan. (30 words) Assessment task B: Project Student Name: Completion Date: Assessor Instructions · The purpose is to provide students with a documented project or assignment that requires them to undertake research or produce evidence of their knowledge and skills by preparing relevant reports and/or documentation. · There are two parts to this project. Students are required to answer both parts. · Students are required to use the templates provided to guide their answers. · Note that answers are subjective and rounding decisions may vary, and the solutions provided serve only as a suggested solution. Assessors are required to use their knowledge, discretion and expertise to assess the competency of the student in accordance with unit requirements. PART 1 For this project, assume you are in charge of the financial planning for Shoeperama, a shoe manufacturer in Melbourne. You are in charge of preparing, implementing, monitoring and reviewing the company’s budget and financial resource strategy over the next year. You have conducted some research and obtained information as shown below. Using the template provided, prepare a report of your recommendations for the budget for Shoeperama. In your report you need to: 1. Report on the existing capacity, performance and financial position of the company. In your report you must discuss: a) The current leverage strategy and your recommendations b) Analyse and discuss the financial performance of the company c) Calculate and analyse relevant return and key financial ratios using the template provided. d) Forecast and analyse financial projections for the upcoming year (income statement only). e) Discuss your projected income statement to budget for the upcoming year in line with standard accounting practices. Information to be reviewed: · Financial statements for the past 2 years are provided. · Market research suggest the sales will increase by 15 percent over the next financial period. · The cost of sales will remain constant per unit sold. · Operating expenses are forecasted to increase by 5% with the exception of: · Rent, utilities, repairs and maintenance are increasing by 3% · Increase in amortisation by 2% · Interest on long-term debt will remain constant · Wages, benefits and vehicles will increase by 10%. · The company plans to increase advertising by 15%. · Other expenses and income are estimated to be a loss of AU$1200 for the year. · Income is taxed at 15.5% Student Name: Completion Date: FINANCIAL PLAN AND REPORT INTRODUCTION 1. ANALYSIS OF PAST FINANCIAL POSITION AND PERFORMANCE Ratio 2018 2017 2. PROJECTED INCOME STATEMENT 2019 AU$ 2018 AU$ Revenue 1,104,786 Cost of sales (740,114) Gross Profit 364,672 Operating expenses (286,817) Income from operations 77,855 Other income and expenses 15,048 Net income before tax 92,903 Tax expense 14,387 Net income 78,516 Retained earnings/Deficit (Previous year) (61,350) Retained earnings 17,166 3. ANALYSIS OF FINANCIAL PROJECTIONS PART 2 Assuming your budget is approved, you must demonstrate that you can monitor and manage financial resources within an organisation. You are required to answer the following questions and prepare the following documents: 1. Briefly discuss your overall objectives and resource allocation. 2. Provide a summary of the software and management systems you will use to track financial data and ensure the reporting process is on track. 3. Develop an internal policy document for Internal Auditing and reporting. 4. Conduct a risk assessment and risk management plan for the following risks: a) Marketing strategy fails,