Assessment 3
Case Study – Prepare Comprehensive Income Statement and Statement of Changes in Equity
Fergie Ltd incurs the following expenses and income for the year ended 30 June 2015.
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The income tax expense of $150 000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. Tax rate is 33 per cent.
During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2014 was $nil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2014 and 30 June 2015 was $510 000.
REQUIRED
Prepare an income statement (in a single statement with expenses shown by function) and a statement of changes in equity in conformity with AASB 101. Provide only those notes that can be reasonably determined from the above information
Assessment Mapping Checklist
Learner Name/ID: ___________________________________
Performance & Knowledge Evidence
C/NYC
Comments
Performance Evidence
· produce a detailed asset register and depreciation schedule
· accurately record entries for balance day adjustments
· prepare financial reports
· trace and reconcile errors systematically or seek expert advice if required
· apply double-entry principles
· complete all tasks according to organisational policies and industry standards
Knowledge Evidence
· explain doubleentry bookkeeping principles
· identify general journal and general ledger entries
· list the key provisions of relevant legislation, regulations, standards and codes of practice that may preparation of financial reports
· describe organisational accounting systems
· outline relevant organisational policies, procedures and accounting standards.
· outline typical errors that can be made in processing financial transactions
· describe forms of ‘proof of lodgement’
· describe types of ‘special transactions’
Identify and describe the key features of:
· industry codes of practice
· legislative and regulatory requirements relevant to the work
· organisational policy and procedures
· explain the security procedures for handling cheques, vouchers and cash
· describe the key features of a range of reports.
Comments:
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Date:
Signed by Assessor:
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