Assignment XXXXXXXXXXwords each question) Total 1750 words
1. List three of the reports that could be established and used to report on the capacity of a financial system
1. Describe two different forecasting techniques which can be used to forecast financial data and business system requirements
1. What areas of business would require forecasting? What are four questions you might consider when analysing forecasted requirements?
1. Describe two of the statutory requirements that must be take into consideration when preparing and planning budget forecasts
1. What are the types of issues could you prepare and present recommendations for, relating to budget expenditure or modification?
1. What technique should be used to analyse the costs of, and returns from, assets and liabilities to identify the extent of debt and equity financing?
1. What types of management responsibilities should be established in relation to reporting and staff consultation?
1. What are the two key methods used for analysing financial reports and key information?
1. What information will you need to review when analysing and evaluating the effects of the financial decisions on the ability of the organisation to meet planned outcomes?
1. Identify the types of comparative and trend information which can be used to confirm needs for future budget and associated resources
1. Outline the stages which would be involved in a negotiation to secure resources in accordance with relevant short-term and long-term needs
1. What are the common types of categories of resources that a budget may allocate?
1. List three different types of resource allocation records you need to maintain and keep up to date
1. Management systems will need to be developed or reviewed to enable what?
1. What information do you need in order to monitor and report on budget expenditure?
1. Discuss the method which should be used to evaluate and improve budget audit mechanisms and compliance requirements
1. Describe the types of financial risks which will need to be analysed
1. What information should be documented in a financial risk management report?
1. What are the types of risk management procedures which should be implemented to regularly review financial risk management activities?
1. Explain the types of deviations from budgets that generate an adverse effect on budget objectives
1. How could you develop an action plan to address deviations from budget objectives and projections?
1. List and describe three different financial documents that are commonly used to monitor and review a financial management system
1. What types of budget priorities might need to be revised and renewed in order to meet operational contingencies and risk management?
1. What are the four main categories of costs which will need to be managed and recorded in a cash flow budget?
Task Guidance
https:
www.investopedia.com/terms/f/financial-statements.asp
1. List three of the reports that could be established and used to report on the capacity of a financial system
Answers will consider three of the following reports:
Budgets
Forecasts
Variations to budgets
Cash flow/profit
Expenditure and receipts,
Profit and loss statements
Market valuations
1. Describe two different forecasting techniques which can be used to forecast financial data and business system requirements
https:
www.investopedia.com/terms/f/forecasting.asp
Top-down forecasting - This involves forecasts are extrapolated from the general to the specific. It looks at the overall market and uses this information to identify the company’s target mark.
Bottom-up forecasting - This involves specific trends being generalized outwards. It includes development of detailed budget with spending plans by the departments. Hiring plans and revenue projections are based on actual sales forecast.
Projection - This involves analysing past data and how business has performed in the past and using these figures to estimate future performance. It is possible to project revenue, profit, sales, expenses and other variables using the projection technique.
Model building - This involves computer analysis which can demonstrate the impact on the market when certain variables and inputted and adjusted. It is a process involving mathematical reasoning and seeks to answer “what if” questions.
Survey of intentions - This involves surveying target market to identify future buying patterns. This could also include surveying sales force and distributors.
Delphi technique - This involves questioning experts and gradually revising their opinions in light of the opinions of the other experts until consensus is reached.
Scenario planning - This involves generating different outcomes by looking at past trends and their inte
elationship with other it is possible to play a “what if” game. Different scenarios are presented and the team
ain storm likely outcomes.
1. What areas of business would require forecasting? What are four questions you might consider when analysing forecasted requirements?
https:
courses.lumenlearning.com
oundless-finance/chapte
analyzing-forecasts
What do I need to know in order to prepare for the future?
What areas of the business require that I understand what the future holds?
How much time do I have available to me to undertake forecasting techniques?
Are there factors that I think are related that I would like to know more about?
What performance would I like to evaluate?
Are there historical patterns that I think might repeat or I would like to prevent repeating?
1. Describe two of the statutory requirements that must be take into consideration when preparing and planning budget forecasts
https:
www.infoentrepreneurs.org/en/guides
udgeting-and-business-planning
Internal control procedures – this is a process for assuring achievement of an organizations operational objective. It is concerned with the reliability of financial reporting and compliance with laws, regulations and policies
Limits on volumes and types of transactions – this can be related to government subsidy rules and consumer protection laws
Reporting of duty, excise and other overseas government charges – these are commonly taxation rules that apply to importing and exporting goods as well as transporting goods across jurisdictions
Reporting periods – such as Australian Taxation Office reporting requirements
Audit requirements – these can include requirements imposed on your organization by financial reporting obligations
International, national and local trade and trade agreements – such as those impacting on the way in which goods and services are transported
1. What are the types of issues could you prepare and present recommendations for, relating to budget expenditure or modification?
https:
www.csustan.edu/sites/default/files/groups/%20Grant%20Administration%20-%20Post%20Award/Documents
udget_modification.pdf
Costs identified in the budget are unrealistic
Expenditure timing may be too quick
Categories should be added or removed from the budget
Existing projections are unrealistic
Income is too low or higher than projected
1. What technique should be used to analyse the costs of, and returns from, assets and liabilities to identify the extent of debt and equity financing?
https:
www.investopedia.com/articles/04/031004.asp
An analysis of the assets, liabilities, and equity of a company can be conducted through a balance sheet analysis.
1. What types of management responsibilities should be established in relation to reporting and staff consultation?
https:
www.greatsampleresume.com/job-responsibilities/financial-reporting-manager-responsibilities
Establishing and implementing organisational policies
Following organisational procedures
Following the guidelines with regard to reporting
Ensuring that reporting is ethical
Ensuring that reporting meets professional standards
1. What are the two key methods used for analysing financial reports and key information?
https:
www.businessmanagementideas.com
usiness/financial-statements/analysis-of-financial-statements-4-methods-financial-management/16148
Horizontal and vertical analysis
Use of ratios
And may also consider:
Horizontal analysis is the comparison of financial information over a series of reporting periods, and vertical analysis is the proportional analysis of a financial statement where each line item is listed as a percentage of another item. Most commonly this is reported as every line item on an income statement is stated as a percentage of gross sales, while every litem item on a balance sheet is stated as a percentage of total assets.
Thus, horizontal analysis is the review of the results of multiple time periods, while vertical analysis is the review of the proportion of accounts to each other within a single period.
1. What information will you need to review when analysing and evaluating the effects of the financial decisions on the ability of the organisation to meet planned outcomes?
When analysing and evaluating the effects of the financial decisions, you will need to review the following information:
· The amount that the financial decision cost the organisation in terms of:
· Expenses such as time and effort of personnel
· Outlay of finances in terms of cash investment
· The financial benefits of the financial decision including revenue or capital growth.
1. Identify the types of comparative and trend information which can be used to confirm needs for future budget and associated resources
· https:
www.accountingtools.com/articles/trend-analysis-definition-and-usage.html
· Availability of external funding sources – this provides an indication of additional finance that is available if required for future budgeting.
· Benchmarks as agreed – the benchmarks provide a standard that have been set and whether these have been met.
· Business activity – a comparison of business activity can indicate the level of activity that may be included in the budget.
· Expenses – the comparison and trend of expenses provides information to forecast the expenses included in the budget.
· Liquidity – this provides a good indication of the organisations ability to turn assets into cash when required.
· Profitability – this provides an indication on how profitable individual products or services may be.
· Sales – comparison and trend of sales information provides an indication on whether sales and market share is increasing which can be incorporated in the budget.
1. Outline the stages which would be involved in a negotiation to secure resources in accordance with relevant short-term and long-term needs
https:
www.business.qld.gov.au
unning-business/marketing-sales/managing-relationships/negotiating/process
1. Preparation – this is where decisions are taken relating to when and where a meeting will take place to discuss the problem and who will be in attendance. It is important to set limited time-scales in this process
1. Discussion – each party puts forward their point of view and they seek areas of commonality and identify differences
1. Clarification of goals – this involves ensuring that the overall goals, interests and points of view of each party are clarified
1. Negotiating towards a win-win outcome – this is the stage when both sides seek to reach a point where their commonalities are addressed and the best alternative solutions are expressed
1. Agreement – once both parties understand each other views and interests agreements can be reached
1. Implementation of a course of action – the agreement entails a course of action that is now implemented
1. What are the common types of categories of resources that a budget may allocate?
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izfluent.com/info XXXXXXXXXXfour-categories-resources-economics.html
People (such as researchers, consultants, other partners’ staff-time)
Travel costs (such as bus tickets, meal allowance)
Vehicles (such as rental, petrol, driver’s time)
Equipment (such as machinery, measuring instruments and other tools)
Consumables and supplies (such as material, pumps,
icks or containers)
Subcontracts (services and construction work)
1. List three different types of resource allocation records you need to maintain and keep up to date
https:
www.saviom.com
log/5-best-methods-successful-resource-allocation-2
· Details of stock on hand - at the beginning and end of the financial yea
· A list of debtors and creditors - for the entire financial yea
· Capital gains details - records of asset purchase dates and agreements, records of sale, disposal and proceeds received, details of commissions paid or legal expenses, improvements made to an asset and