Read and understand this document in its entirety. There are 3 areas for assessors’ instructions: (i) prior to conducting assessments, (ii) conducting the assessment, and (iii) after the assessment.

Important note: Failure to comply with these instructions can result in disciplinary actions. Refer to Trainer and Assessor discipline policy and procedure.

Prior to conducting the assessment

that they are valid, reliable, sufficient, flexible, and fair to learners.

Below are examples of how assessments can be adjusted to meet with learners’ needs.

Learner workbook written answers

Skills activity

Knowledge activity

Performance activity

(i.e., not satisfactory or not competent outcomes), assessors are required to provide feedback/comments of why learners’ assessments fail to meet the unit requirements.

Making the decision on competency

learners answers for assessment questions and/or perform assessments for students, as such behaviour will render the assessment invalid.

Conducting the assessment

After the assessment

Credit transfer and recognition of prior learning

The demonstration of learners’ competency can be done through different study approaches (i.e., credit transfer and/or recognition of prior learning (RPL)). As a result, learners must notify assessors the change of study approaches and provide required supporting evidence.

The required supporting evidence may include, but is not limited to:

Credit transfer	RPL
Previously achieved qualifications and transcripts
Note: Assessors must refer to Credit Transfer policy and procedure	Note: Assessors must refer to Staff RPL kit for further information such as RPL process, acceptable supporting evidence, suggested competency questions, etc.

Learner Workbook Activity answers

Activity 1A

Case Study A – Preparing a register

Carol is a financial manager working for a car sales company name M&C LTD, and she is responsible for creating the financial reports.

She has been advised to prepare a register of property, plant and equipment from fixed asset transactions, in accordance with legislative and organisational policy and procedures.

To prepare the register, Carol must make a list of all the important fixed assets in the organisation and include other important details, and then present it in a spreadsheet so it can be updated every time an asset is bought or sold by the company.

M&C purchased office furniture from Fins Industries Furniture $280,000 and depreciated the asset at 20% per annum using the straight-line method. The payment was made by cash.[EN1]

Objective	Identify how to prepare a register of property, plant and equipment from fixed asset transactions in accordance with legislative and organisational policy and procedures
	Refer to Case Study A

Activity 1B

Objective	Identify how to determine method of calculating depreciation in accordance with organisational requirements
	Refer to Case Study A .

Activity 1C

Objective	Identify how to maintain asset register and associated depreciation schedule in accordance with organisational policy, procedures and accounting requirements
	Refer to Case Study A [EN2] how Carol would maintain an asset register and depreciation schedule.You may use the template below to maintain the asset register. Asset name: Date of purchase Depreciation method Date Explanation Depreciation amount Balance

Activity 1A-1C checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Checklist
1A-1	Did the learner explain what is a register of property, plant and equipment and how is one prepared?			Yes No (Please circle)
1A-2	Did the learner discuss what information should Carol include in the fixed asset register?			Yes No (Please circle)
1A-3	Did the learner explain the legislative requirements for preparing a register of property, plant and equipment?			Yes No (Please circle)
1A-4	Did the learner list six examples of property, plant and equipment?			Yes No (Please circle)
1B-1	Did the learner define what depreciation is?			Yes No (Please circle)
1B-2	Did the learner explain what Carol could use depreciation adjustments for?			Yes No (Please circle)
1B-3	Did the learner explain what methods Carol can use to calculate depreciation?			Yes No (Please circle)
1B-4	Did the learner explain the reason for calculating depreciation?			Yes No (Please circle)
1C-1	Did the learner discuss what the purpose of an asset register is?			Yes No (Please circle)
1C-2	Did the learner explain how Carol would maintain an asset register and depreciation schedule?			Yes No (Please circle)
1C-3	Did the learner identify what circumstances should asset registers be updated?			Yes No (Please circle)
Comments
Provide your comments here:
The learner’s performance was:		Not yet satisfactory	Satisfactory

Activity 2A

Objective	Record depreciation of non-current assets and disposal of fixed assets in accordance with organisational policy, procedures and accounting requirements
	[EN3]

Activity 2B [EN4]

Case Study B – Adjusting expense accounts

Susan is self-employed and owns her own hairdressing business. She is currently doing the accounting for her business to check its financial performance, and she needs to adjust the income and expense accounts using journal entries.

This requires recording revenues when they are earned instead of when they are received in cash and recording expenses when they are incurred instead of when they are paid. Applying this accrual concept results in the accurate reporting of net income, assets, liabilities and retained earnings. It will also help improve analyses of the company’s financial performance over different periods.

The trial balance of Susan Services as at 31 August 2021 and the data needed for the month-end adjustments are as follows:

	Debit ($)	Credit ($)
Cash at bank	7,100
Accounts receivable	19,780
Prepaid rent	2,420
Supplies inventory	1,180
Furniture	19,740
Accumulated depreciation -Furniture		3,630
Accounts payable		3,310
Unearned service revenue		2,790
Capital, Susan		35,510
Drawings, Susan	5,350
Service revenue		15,700
Salary expense	3,800
Depreciation expense
Advertising expense	1,570
TOTAL	60,940	60,940

Additional information for adjustment:

Unearned service revenue still unearned at 31 August 2015, $1,670.
Prepaid rent still in force at 31 August 2015, $620.
Supplies used during the month, $700.
Depreciation for the month, $400.
Accrued advertising expense at 31 August 2013, $610. (Credit Accounts Payable)
Accrued salary expense at 31 August 2015, $550.
[EN5]

Objective	Identify how to adjust expense accounts and revenue accounts for prepayments and accruals
	Refer to Case Study B [EN6]

Activity 2C

Objective	Identify how to record bad and doubtful debts in accordance with organisational policy, procedures and accounting requirements

Activity 2D

Objective	Identify how to adjust ledger accounts for inventories, if required, and transfer to final accounts

Activity 2A-2D checklist – for assessor

Checklist
2A-1	Learner has preparde the journal entries to record the asset acquisition and the required depreciation adjustments at the end of eadh period?			Yes No (Please circle)
2A-2	Did the learner explain how he/she would record the disposal of fixed assets and it’s importance?			Yes No (Please circle)
2A-3	Did the learner explain the financial reporting legislation in Australia?			Yes No (Please circle)
2B-1	Did the learner explain how Susan would adjust expense accounts and revenue accounts?			Yes No (Please circle)
2B-2	Did the learner discuss what the different types of adjusting entries are?			Yes No (Please circle)
2C-1	Did the learner explain what bad debts are?			Yes No (Please circle)
2C-2	Did the learner discuss what are the two methods of recording and accounting for bad debts?			Yes No (Please circle)
2D-1	Did the learner explain how he/she would adjust ledger accounts for inventories and transfer to final accounts?			Yes No (Please circle)
2D-2	Did the learner explain how he/she would close beginning and ending inventory?			Yes No (Please circle)
Comments
Provide your comments here:
The learner’s performance was:		Not yet satisfactory	Satisfactory

Activity 3A

Objective	Identify how to make general journal entries for balance day adjustments in general ledger system in accordance with organisational policy, procedures and accounting requirements, and post revenue and expense account balances to final general ledger accounts system
	Refer to Case Study B [EN7] 2. Ledger account need to be cretaed for revenue and expense

Activity 3B [EN8]

Objective	Identify how to prepare final general ledger accounts to reflect gross and net profits for reporting period

Activity 3A-3B checklist – for assessor

Checklist
3A-1	Did the learner make general journal entries for balance day adjustments in general ledger system in accordance with organisational policy, procedures and accounting requirements?			Yes No (Please circle)
3A-2	Did the learner post revenue and expense account balances to final general ledger accounts system			Yes No (Please circle)
3A-3	Did learner prepare final general ledger accounts to reflect gross and net profits for reporting period			Yes No (Please circle)
3B-1	Did the learner identify what a general ledger is and what does it consist of?			Yes No (Please circle)
3B-2 [EN9]	Did the learner explain what the sub-accounts of a general ledger are and it’s use?			Yes No (Please circle)
3B-3 [EN10]	Did the learner explain how he/she would prepare final general ledger accounts to reflect gross and net profits for the reporting period?			Yes No (Please circle)
Comments
Provide your comments here:
The learner’s performance was:		Not yet satisfactory	Satisfactory

Activity 4A

Objective	To provide you with an opportunity to identify how to prepare revenue statement in accordance with organisational requirements to reflect operating profit for reporting period
	Refer to Case Study B [EN11]

BSBFIA401 Prepare Financial Reports

Activity 4B

Objective	To provide you with an opportunity to identify how to prepare balance sheet to reflect financial position of business at end of reporting period
	[EN12]

Activity 4C

Objective

To provide you with an opportunity to identify and correct, or refer errors for resolution in accordance with organisational policy and procedures

2 On December 31, 2020, Speedy Company prepared an income statement and balance sheet and failed to take into account three adjusting entries. The incorrect income statement showed net income of $40,000. The balance sheet showed total assets, $120,000; total liabilities, $45,000; and owner’s equity, $75,000. The data for the three adjusting entries were: (1) Depreciation of $9,000 was not recorded on equipment. (2) Wages amounting to $8,000 for the last two days in December were not paid and not recorded. The next payroll will be in January. (3) Rent of $14,000 was paid for two months in advance on December 1. The entire amount was debited to Rent Expense when paid.
Instructions Complete the following tabulation to correct the financial statement amounts shown (indicate deductions with parentheses): Item Net Income Total Assets Total Liabilities Owner’s Equity Incorrect balances $ 40,000 $120,000 $ 45,000 $ 75,000 Effects of: Depreciation Wages Rent Correct Balances 2b. Refer to the scenario above, preapare and perform a presentation to your supervisor(Your assessor can play the role of a supervisor) where you must explain the reason for the errors and how you can rectify the situation. [EN13]

BSBFIA401 Prepare Financial Reports

Activity 4A-4C checklist – for assessor

Checklist
4A-1	Did the learner prepare revenue statement in accordance with organisational requirements to reflect operating profit for reporting period			Yes No (Please circle)
4A-2	Did the learner explain how Susan would prepare a revenue statement?			Yes No (Please circle)
4A-3	Did the learner discuss how Susan would calculate profits for the reporting period?			Yes No (Please circle)
4B-1	Did the learner define what a balance sheet is?			Yes No (Please circle)
4B-2	Did the learner identify what are the two formats of a balance sheet?			Yes No (Please circle)
4B-3	Did the learner list what information a balance sheet should contain?			Yes No (Please circle)
4C-1	Did the learner explain the importance of identifying and correcting errors in financial reports, and what type of errors could be identified?			Yes No (Please circle)
4C-2	Did the learner identify what John should consider when correcting errors?			Yes No (Please circle)
4C-5	Did the learner identify the circumstances John should refer errors for resolution and how would he do this?			Yes No (Please circle)
Comments
Provide your comments here:
The learner’s performance was:		Not yet satisfactory	Satisfactory

BSBFIA401 Prepare Financial Reports

Knowledge Activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

To complete the unit requirements safely and effectively, the individual must:

Explain double entry bookkeeping principles
Identify general journal and general ledger entries
List the key provisions of relevant legislation, regulations, standards and codes of practice that may affect the preparation of financial reports
Describe organisational accounting systems
Outline relevant organisational policies, procedures and accounting standards.

All answers will vary depending on the learner, but the learner should be able to demonstrate their competency in the unit requirements.

What is double entry bookkeeping and why is it used?

Explain what general journal and general ledger entries are.

What is the relevant legislation, regulations, standards and codes of practices that may affect the preparation of financial reports?

Describe your organisation’s accounting systems? (If you are currently working for an organisation). If you are not working in an organisation, research and summarise organisation’s accounting system in general.

Explain your organisation’s policies, procedures and accounting standards (if you are currently working for an organisation). If you are not working in an organisation, research and summarise policies, procedures and accounting standards in general.

Knowledge activity checklist

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the summative assessment. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Checklist
B-1	Did the learner explain what is double entry bookkeeping and it’s use?			Yes No (Please circle)
B-2	Did the learner explain what general journal and general ledger entries are?			Yes No (Please circle)
B-3	Did the learner discuss what is the relevant legislation, regulations, standards and codes of practices that may affect the preparation of financial reports?			Yes No (Please circle)
B-4	Did the learner describe his/her organisation’s accounting systems?			Yes No (Please circle)
B-5	Did the learner explain his/her organisation’s policies, procedures and accounting standards?			Yes No (Please circle)
Comments
Provide your comments here:
The learner’s performance was:		Not yet satisfactory	Satisfactory

BSBFIA401 Prepare Financial Reports

Competency record to be completed by assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and performance as relevant to the overall unit. Indicate in the table below if the learner is deemed competent or not yet competent for the unit or if reassessment is required.

Checklist
Has the learner completed all required assessments in this workbook to a satisfactory standard?			Yes No (Please circle)
Comments from trainer/assessor:
Learner is deemed	Not competent	Competent
Assessor’s signature

BSBFIA401 Prepare Financial Reports

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BSBFIA401 Prepare Financial Reports

Activity 1A

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