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ACG508 Accounting Standards, Application and Disclosure Assignment Sample

Length: Multiple Xero Reports and 800 words

Group Assessment: No

Submission method options: Alternative submission method

TASK

Assessment conditions: This is an individual assessment task (not a group assessment task).
This assignment requires you to use Xero accounting .

You must complete your assignment within this prescribed period. As Xero is a cloud-based accounting system, you will need an internet connection to use the system.

The assignment has been designed to enable you to complete the assessment within the 30 day period. You are urged to set up your date.

Part A: Xero

You are the accountant for HOSS, a company that commenced in 2020 to provide home office styling solutions for employees working from home. Clients include individuals and Corporates wishing to provide safe and secure home office solutions. While the initial demand for the services stemmed from the requirement to work from home during the pandemic demand for the service has not declined with many businesses offering flexible employment options post pandemic. Up to this time, the accounting work has been completed using a manual system based on spreadsheets. However, with the future looking bright and more clients enquiring about the service, in particular the systems security and occupational health and safety services provided as part of the service to clients you have investigated other options. Your recommendation is that HOSS transition from their existing manual accounting system to a cloud based computerised accounting system for the financial year ended 30 June 2022 to achieve
better management and growth of the business.

It is now June 2022 and you are transitioning HOSS’s existing accounting records from their manual accounting system to Xero and recording the June transactions so that the financials for the year ended 30 June 2022 can be prepared using the computerised system. Additional information required for the completion of your assessment task will be provided to you in yourInteract Site under Assessment Resources / Assessment Item 2. This includes details for each part of the assessment including; set up instructions; the opening trial balance at 31 May 2022; June transactions; and any year-end adjustments. You will be required to export the Balance Sheet, Profit and Loss and the General ledger accounts at 30 June 2022 which you have prepared in Xero and amalgamate into a single Excel file. Failure to download and submit material from Xero will be counted as a non-submission for that component of the task. It is your responsibility to ensure all required components have been extracted from the Xero cloud computing system and submitted as part of your assessment.

Part B:

Based on the reports you generated in Part A above, prepare a report (maximum of 800 words) to HOSS providing a high-level analysis of the financial position, financial performance, and overall financial health of the business. Your report should include justification for the accounting treatment you have chosen for the property, plant and equipment purchased in the current financial year and all calculations you have performed. You are encouraged to draw upon your knowledge from prior subjects regarding financial statement analysis and financial statement ratios.

RATIONALE

This assessment task will assess the following learning outcome/s:

• be able to apply professional judgement in the preparation of financial statements for reporting entities in accordance with relevant ethical, professional and statutory reporting requirements.

• be able to apply and analyse generally accepted accounting principles and specific financial reporting standards relating to concepts of recognition, measurement, disclosure, revaluation and impairment of key financial statement elements.

• be able to critically analyse and communicate clearly and concisely the relevant principles and accounting standards to a diverse audience. The report to your client needs to be professionally presented, at a level appropriate to send to a paying client. This includes:

• The reports generated from Xero need to be presented in a consistent manner and easy to read.

• Headings and subheadings must be used for your recommendations and each of the Xero reports you have generated.

• Use of a standard font, such as Times New Roman, Calibri or Arial font, with a font size 11 or more.

• Suitable margins for your recommendation, being a minimum of 2cm from all sides (left, right, top and bottom).

Requirements for Assignment Help

APA must be used to reference all the sources you have used for your assignment. The CSU Library site provides an online guide to APA (7th ed.) referencing. This is the referencing style adopted by the School of Accounting and Finance. The guide can be found at: http://student.csu.edu.au/study/referencing-at-csu.

Review the rules regarding plagiarism, and if you are not sure contact your lecturer or student learning skills advisor for advice. There is no excuse for presenting the work of others as your own; this includes cutting and pasting material from the web without properly referencing the source.

Solution

Introduction

The aim of this report is to evaluate the performance of 11712399-Jency rameshbhai patel, over the time frame 1st June 2022 to 30th June 2022. The analyst has considered financial statements such as balance sheet and income statement to evaluate their performance. Accounting ratio represents relations that exist between various items appearing in record books such as balance sheet and profit and loss account. Here, the analyst has used ratio analysis method to evaluate the performance of the company.

Part A: Analysis

Part B: Discussion

The gross profit margin on income of a company is represented by the gross profit ratio. A larger gross profit % indicates that the company's financial situation is steady, and they can easily cover their operating expenditures. The Gross Profit Ratio is computed by taking gross profit by operating sales and multiplying the quantity by 100. A proportion illustrates the connection between gross profit and net earnings from operations. This percentage indicates the enterprise's price strategy and effectiveness in direct trade operations. The gross profit is 94.625 percent, indicating that the company is doing well in terms of gross profit.

The net profit margin on sales is represented by the net profit ratio. It is a percentage that illustrates the ratio between net profit and net sales. A bigger profit margin shows that a company's operations are more profitable and efficient. We may deduce from this ratio how firms set their expenditures and pricing to maximise profit. The net profit is 41.39 percent in this case, indicating that the company is doing well.

The amount of an organization's yearly return or net income divided by the sum of the entire shareholders' equity stated in percentage is called return on equity (ROE). It is one of the most important factors that prospective investors consider when deciding whether or not to invest in a business. ROE may be used to determine if a company has the capacity to transform its shareholders' money into profit.

The operating return on capital (ORC) is a metric that quantifies how much money an organisation makes on its capital. To make money, one might look at how successfully the organisation generates cash flow. Divide the Net Operating Margin by the invested capital to get the Operational Return on Capital Employed (Zavadskas, et al., 2018). The return on capital employed (ROCE) of a corporation reveals if it is doing a good job of producing profits from its capital. The ideal ratio is ideally equal to or more than 2%. If the rate is less than 2%, investors will be discouraged.

Conclusion

It can be concluded from the income statement and balance sheet of 11713299- Jency rameshbhai patel that the firm performed well in June 2022. They have also provided proof of 100% accounts receivable for the prior month. The current ratio was also found to be 1.25, indicating that the company has enough liquid cash to cover its short-term commitments.

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