Reference no: EM132142982

Performance objective

You will demonstrate the ability to collect and code financial information in the organisational chart of accounts, make, record, and disclose asset and liability valuations and manage discrepancies.

Assessment description
Using the scenario supplied, you will collect asset information, code and correctly record asset valuations. You will also manage a discrepancy in accordance with organisational policy.

Procedure
1. Read through the scenario provided.
2. Read the Packett Packaging policies and procedures manual, provided with the assessment materials. Familiarise yourself with the organisation's chart of accounts, consolidation policy, authorisation policy and corrections policy.
3. Using the General Journal template provided with this assessment, make an appropriate entry to transfer the consolidated raw materials purchases amount to a new, appropriately coded, cost of goods sold (COGS) account.
4. Using the information provided, calculate the conversion cost per unit in accordance with policies and procedures.
5. Using the General Journal template provided, make an appropriate entry to record an asset acquisition transaction (including any GST liability).
a. Use a new asset account name and code compatible with the structure and coding of the organisation's chart of accounts.
6. Calculate depreciation of the asset for the financial year.
7. Using the General Journal template provided, make an appropriate entry to record depreciation of the asset for this financial year (including any GST liability).
a. Use a new depreciation account name and code compatible with the structure and coding of the organisation's chart of accounts.
8. Disclose the details of the asset on the asset register. Show depreciation for eight years. Correctly note credit and debit entries.
9. Using the account information provided, prepare draft financial statements for discussion with your CFOChief Financial Officer(your assessor can act as the CFO):
a. Statement of Financial Performance/Profit and Loss Statement
b. Statement of Financial Position/Balance Sheet.
10. Arrange a time to meet with your CFO (your assessor can act as a CFO).
11. Meet with your CFO to complete the following.
a. Discuss the work you have done to prepare accurate financial statements.
i. Discuss at least one legal or regulatory requirement that your work may be relevant to satisfying. You may use the Internet to research legal or regulatory requirements.
ii. Discuss at least one standard or accounting principle that your work helps satisfy.You may use the Internet to research legal or regulatory requirements.
iii. Direct the CFO's attention to key features of the financial statements you have produced: cost of goods, profit, assets, owner equity, and liabilities.
iv. Explain options for depreciation (Prime-cost method or diminishing method) and the method you have chosen to depreciate the asset.
v. Briefly explain the importance of accounting for depreciation, benefits, GST collectedand GST paid with respect to the interests and responsibilities of the organisation.
vi. Discuss a discrepancy you have uncovered and seek instructions on specific ways your CFO would like you to address the issue, and seek authorisation to correct error in the organisation's accounting system (MYOB).
Note:Use oral communication and interpersonal skills, including a businesslike tone and manner, body language and listening skills to interact with your CFO.
12. Correct the discrepancy, making an entry on the General Journal template provided in accordance with instructions given to you by your assessor.
13. Submit all documents to your assessor as per specifications. Ensure you keep a copy of all work submitted for your records.

Specifications

You must submit:
- General Journal entries:
 transfer to COGS entry
 asset acquisition entry
 depreciation entry
 correction entry
- a completed asset register
- financial statements:
 Statement of Financial Performance
 Statement of Financial Position.
Your assessor will be looking for demonstration of:
- interpersonal skills to professionally discuss account balances and financial performance
- numeracy and accounting skills to completefinancial reporting, General Journal entries and asset register, including accounting for GST.
 the asset register must demonstrate that you accurately calculated depreciation using the correct method of calculation as outlined in the policies and procedures manual
- awareness of and adherence to organisational policies and procedures in regard to authorisation
- awareness of and adherence to legal and ethical requirements for accounting and financial reporting
- (optional) MYOB file must demonstrate that you followed the organisation's policies and procedures.
 
Appendix 1: Scenario
Packett Packaging is a business that manufactures and sells cardboard boxes.

You are employed by Packett Packaging as an accountant. Your duties include creating and maintaining asset registers for each of the business's fixed assets, coding accounts as necessary and entering information to the organisation's accounting system, MYOB.It is now 30 June. In preparation for balance day, the Chief Financial Officer (CFO) requires you to do the following.
1. Use conversion and consolidation procedures.
a. Consolidate the paper supplies purchases and transfer the amount to a new cost of goods sold (COGS) account using a General Journal entry.
b. Calculate conversion costs per unit sold.
2. Perform asset valuation and depreciation.
a. Identify new asset and accumulated depreciation accounts specifically for the vehicle asset using the organisational chart of accountson page.14as a guide.
b. Calculate depreciation on the asset for the current year.
c. Complete the General Journal entries for the asset acquisition and depreciation.
d. Disclose the asset information on the asset register, showing depreciation over the course of the life of the asset.
3. Identify discrepancies and follow authorisation policy to address them.
4. Prepare financial statements.
a. Statement of Financial Performance
b. Statement of Financial Position.
1a.Use conversion and consolidation procedures
Early this financial year, a subsidiary of Packett Packaging purchased paper and cardboard supplies. The details are below.
Purchases Journal (PJ01)

1b.In order to help estimate the value of unsold stock at the subsidiary company, calculate conversion costs per unit sold:

2.Perform asset valuation and depreciation
This financial year, Packett Packaging purchased a motor vehicle for the purpose of sales. The details are below.

1. Identify new asset and accumulated depreciation accounts specifically for the vehicle asset using the chart of accounts provided as a guide.
2. Calculate depreciation on the asset for the current year.
3. Complete the General Journal entries for the asset acquisition and depreciation:

Disclose the asset information on the asset register, showing depreciation over the course of the life of the asset:

3.Identify and address a discrepancy
Finally, an employee has created the following unauthorised entry for the acquisition of the sales vehicle.

Follow procedures for addressing discrepancies and correct the unauthorised entry:

4.Prepare financial statements
Compile the account data below to prepare a Statement of Financial Performance and a Statement of Financial Position.

Attachment:- Assessment-Tasks.rar