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Assessment Task 1: Assessment Task Policy and Standards Review Schedule TBA Outcomes Assessed Performance Criteria: 1.1 Addresses some elements of required skills and knowledge as shown in the...

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Assessment Task 1:
Assessment Task Policy and Standards Review
Schedule TBA
Outcomes Assessed

Performance Criteria:

1.1

Addresses some elements of required skills and knowledge
as shown in the Assessment Matrix
Description:

Note to the Trainers/Assessors: Ideally, different policies should be refe
ed to different learners to ensure
originality and variety of responses. Rio Tinto is given as an example in this task. Similar policy statements can
e found in the annual reports of public companies.

The Australian Accounting Standards Board (AASB) is the Australian Government agency responsible for
developing, issuing and maintaining accounting standards that apply under Australian company law. The
Board's functions and powers are set out in the Australian Securities and Investments Commission Act 2001
(AASB). The AASB makes Australian Accounting Standards, including Interpretations. Under the Australian
Corporations Act 2001, many entities are required to apply Australian Accounting Standards when preparing
their financial statements.

In this assessment task, you will be required to review a financial reporting policy of an ASX listed public
company. The example below is of one of the largest mining companies in Australia (and the world). The
following policy statement was published by Rio Tinto in its 2010 annual report;

http:
www.riotinto.com/annualreport2010/governance/financial_reporting.html

Review the policy and complete the following tasks;

1. Summarise the policy in your own words
2. List and
iefly describe all the legislative instruments mentioned in the policy
3. Research and locate AASB Framework: Framework for the Preparation and Presentation of Financial
Statements
4. Review and summarise reporting requirements and standards for preparing and publishing “General
Purpose Financial Statements”

Prepare your answer in a word-processed document, appropriately structured under headings and sub-
heading to organise the information. You may attach the relevant pages of standards and legislations as
annexures to your document.

FNSACC514 Prepare Financial Reports for Corporate Entities
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Assessment Criteria

The following assessment criteria will be used for marking this assessment task. Ensure that you have
addressed all of the criteria in your work.

 Used an appropriate policy document/statement of an ASX listed public company relevant to financial
eporting
 Summarised the policy and identified legislative and regulatory requirements for preparation of
general purpose financial statements
 Researched, collated and summarised information from a range of sources (citations and copies of
eference documents)
 Summarised the policy document in own words
 Downloaded and reviewed AASB Framework for the Preparation and Presentation of Financial
Statements
 Found relevant sections and standard for preparing and publishing general purpose financial
statements
 Summarised the relevant standards in own words
 Cited all external sources using an appropriate referencing system
Submission Guidelines

Submit:

 Copy of the policy document used
 Written summary of the policy and relevant AASB standards
 Copies of legislations, guidelines or other reference documents

Electronic versions of the assessment task and email/electronic submission a
angements are at further
discretion of the traine
assessor.

FNSACC514 Prepare Financial Reports for Corporate Entities
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Assessment Task 2:
Assessment Task
Group Project: Sonic Health Care’s proposed
Acquisition of Healthscope Limited
Schedule TBA
Outcomes Assessed

Performance Criteria:

1.1, 1.2, 1.3, 1.4, 1.5, 2.1, 2.2, 2.3

Addresses some elements of required skills and knowledge
as shown in the Assessment Matrix
Description:

Note to Trainers/Assessors: This project should be handed out at the begging of the term with a plan discussed
with the learners to complete it by end of the term with allocated in-class assessment time as well as in own
time. Group formation/selection should be supervised to ensure that each group has access to the required
skills to complete this project.

Also, with a focus on this major project at the end of the term, learning sessions should include aspects of this
project with an opportunity for the learners to practice within the class. Ideally, sometime should be allocated
in each learning session for the project, helping the learners to progress as the term progresses. Time should be
allocated for presentations at the end of the term.

This assessment task is given as a group project to be undertaken by a group of up to four learners. Ideally, the
groups should be formed at the begging of the term. The groups, in consultation with their traine
assessor
must understand the context and complexities of the task involved; and accordingly plan their project with
appropriate delegation of tasks and responsibilities to group members. This project can be completed as a
progressive task over the duration of the term.

Task:

In this assessment task, your group will be given financial statements of two major health care companies,
Sonic Health Care and Healthscope Ltd. Sonic Healthcare has recently proposed acquisition of Healthscope as
part of its strategic and growth plan to expand its operations and enhance its market share. Annual reports of
oth the companies will be provided to your group. Your group will be required to;

 Analyse each annual report and write
ief summaries
 Summarise all references to AASB standards in the notes
 Calculate Valuation Ratios
 Research and suggest two valuation methods that Sonic Health Care can use in valuing Healthscope
 For sample purpose (what the data might look like after the acquisition), merge 2011 financial
statements of both the companies and prepare consolidated statements: Balance sheet, Income
statement, and Cash Flow
 Prepare notes to the financial statement as per the AASB requirements and standards
 Research and identify possible taxation implications of acquisition for Sonic Health Care (based on the
consolidated statement)
 Create graphs to show Sonic Health Care’s key financial positions before and after consolidation

FNSACC514 Prepare Financial Reports for Corporate Entities
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You may obtain additional information from ASX and company’s respective websites.

Background:

Sonic Healthcare is one of the world's largest medical diagnostics companies, providing laboratory and
adiology services to medical practitioners, hospitals, community health services, and their collective patients.
Sonic Healthcare was listed on the Australian Securities Exchange (ASX) in 1987 and, following reconstitution of
the Board in 1992, has experienced exceptional growth. Since 1993, our annual revenues have risen from A$25
million to over A$3 billion. We have progressed to become one of the top 100 companies listed on the ASX.

Since its inception in 1985 Healthscope has grown to become Australia's largest provider of integrated
healthcare. Healthscope provides private hospital, medical centre and pathology services in every state and
te
itory of Australia. Healthscope also operates an expanding network of pathology services in New Zealand,
Malaysia, Singapore and Vietnam.

The consolidated statements must conform to AASB standards and prepared using MS Excel. You will need to
submit a copy of the Excel file for assessment along with your written analysis.

As part of assessment criteria for this task, equal and active participation from all groups will be required. Each
group will need to submit a group statement, signed by all group members, outlining their respective role and
contribution in the project. Any problems or non-contribution from ant group members should be reported to
the traine
assessor at the earliest.

Assessment Criteria

The following assessment criteria will be used for marking this assessment task. Ensure that you have
addressed all of the criteria in your work.


 Successfully formed the group
 Assessed available skills and knowledge of each group
 Defined roles and responsibilities of each group member
 Identified and itemised project tasks
 Delegated tasks to group members based on their skill and knowledge sets
 Obtained and used appropriate company annual reports and financial statements for the task
 Summarised each of the reports in own words and understanding
 Report summary highlights key performance and growth areas of respective companies
 References to AASB standards are identified, reviewed and summarised
 Relevant legislative references are noted and summarised
 Valuation ratios are calculated to determine true value of the companies in relation to its share prices
 Obtained and used cu
ent share prices from ASX
 Used historical data where appropriate in calculations
 Calculated Price to earnings ratio (PE)
 Calculated Price/earnings to growth ratio (PEG)
 Calculated dividend yield
 Researched and suggested two commonly used company valuation methods (e.g. Asset Valuation
Method, Market Valuation Method, Price Earnings Multiple Valuation)
 Suggested valuation methods are appropriate for the proposed merger
 Appropriate references are provided to support the suggested valuation methods
 Prepared a consolidated XXXXXXXXXXbalance sheet
 Prepared a consolidated XXXXXXXXXXincome statement

FNSACC514 Prepare Financial Reports for Corporate Entities
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 Prepared a consolidated XXXXXXXXXXcash flow statement
 Financial data is accurate and represents accurate consolidated value
 Financial statements are appropriate structured and presented as formal documents
 Financial statement formats conform to the common Accounting Standards (AASB) for reporting
entities
 Financial statements are supported by explanatory notes in compliance with AASB standards
 Illustrated company’s financial positions using graphs and/or charts
 Graphs draw data from within the worksheets
 Graphs are appropriately titled and labelled
 Taxation implications are researched and summarised for reference purpose
 Maintained a group portfolio and kept records of group meetings and communications
Submission Guidelines

Submit:

 A copy of the Excel file containing all the consolidated statements
 Written summaries and analyses: Word processed
 Signed group statement
 Group portfolio containing meet records, communication and draft work
eferences

Financial statements must be prepared using MS Excel. Email/electronic submission a
angements are at
further discretion of the traine
assessor.
Answered Same DayDec 15, 2021FNSACC514Training.Gov.Au

Solution

Khushboo answered on Dec 25 2021
52 Votes
Company Selected: Transu
an Holdings Limited (THL)
Company Overview: THL is the entity which is formed in Australia and it is a company limited by shares which are traded in public in the ASX. The final statements of the entity are prepared by combining all the financial reports of Transu
an Holdings Limited and all its entities which is controlled by it. Thus the subsidiary entities of THL includes various another members of the group entities being the TIL and its controlled organizations i.e. TIL and Transu
an Infrastructure Management Limited i.e. TIML as the main organization of the Transu
an Holding Trust and all other controlling organization. The entities in the group are established in Australia, USA and Canada. The equity shares of the entities in the group are combined and cannot be traded separately.
Reporting requirement and standards for preparation of financial statements:
The Australian Accounting Standard Board (ASAB) has issued various standards and guidelines for preparation of general- purpose financial statements. There are various authorities or laws under which a listed Australian entity is required to form the final statements such as Australian Securities and Investment Commission, Australian Tax Office, Australian Stock Exchange, Corporation Act etc. The entities which are listed on Australian Stock Exchange (ASX) are required to prepare the financial statements along with detailed notes, director’s report, audited annual financial reports, preparation of half yearly and yearly results along with comparatives, preparation and publishing of remuneration report of key managerial personnel, committees and meetings of various committees such as Audit committee, shareholder grievance committee, board etc. The listed entities are required to make all these disclosures in its annual report.
Apart from above requirements, the framework defines various accounting standards which the entity needs to follow and prepare the financial reports in accordance with these requirements. The entityhas to show detailed accounting policies and estimates followed for each item of final statements in notes according to the Australian Accounting Standards such as accounting policy for revenue recognition, PPE, valuation of financial instruments and derivatives, provisions and claims accounting etc. Some of the examples of accounting standards which need to be followed are such as AASB 101: Presentation of financial statements, AASB 107: Statement of cash flows, AASB 112: Income taxes, AASB 116: Plant, Property and Equipment, AASB 139: Financial Instruments: Recognition and measurement etc.
Further there are two tiers for general- purpose of final statements I.e. Tier 1: AAS- Incorporating IFRS and Tier 2: AAS- Reduced disclosure requirements. The entities need to prepare the financial statements according to its tier category.
Further as per...
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