Two sets of financial statements which accurately reflect the financial data supplied. One set of financial statements for either the sole trader or partnership once they have been adjusted based on the additional data supplied Part B:
FINANCE AND ACCOUNTING
Unit Reference Number
R/650/1147
Unit Title
Finance
and Accounting
Unit Level
4
Number of Credits
20
Total Qualification Time (TQT)
20 hours
Guided Learning Hours (GLH)
100
hours
Mandatory / Optional
Mandatory
Task Grading Type
Pass /
Refer
Unit Aims
Having and effective finance and accounting function will not only help secure the financial strength of a business but will also support managers to develop and implement a business strategy. The aim of this unit is, therefore, to develop, in learners, the theoretical and applied knowledge to prepare, interpret and adjust financial statements alongside the preparation of budgets.
Learning Outcomes and Assessment Criteria
Learning
Outcome – The learner will:
Assessment
Criterion – The learner can:
1. Know
about the context and purpose of finance and accounting.
1.1
Explain the purpose of finance and accounting.
1.2
Explain the regulatory and legal influences on a business’s finance and
accounting function.
1.3 Explain how the finance and accounting function supports a
business’s decision making.
2. Be
able to prepare financial statements for different types of businesses.
2.1 Differentiate between different financial statements.
2.2
Prepare financial statements for a sole trader.
2.3
Prepare financial statements for a partnership.
2.4 Apply techniques to make adjustments to financial statements.
3. Be
able to interpret financial statements.
3.1 Calculate financial ratios from a set of business accounts.
3.2 Compare organisational performance using historical financial
data.
4. Be able to prepare a budget.
4.1
Differentiate between different types of budgets.
4.2
Prepare different types of budgets.
OTHM LEVEL 4 DIPLOMA IN BUSINESS MANAGEMENT
Unit Title Finance and
Accounting
Task 1 of 3
Unit Learning Outcomes
Assessment Criteria
LO 1 Know about the context and purpose of finance and accounting
1.1, 1.2, 1.3
LO 2 Be able to prepare financial statements for different types of
businesses.
2.1
LO 4 Be able to prepare a budget.
4.1
Assignment Brief and Guidance
To
demonstrate you have a fundamental understanding of finance and accounting,
you have been tasked with writing an essay which considers the following:
•
the purpose of the finance and accounting
department.
•
the regulations in your country and
international regulations which influence how accounting departments operate.
•
the laws in your country and international
laws which influence how the accounting department operates.
•
how the finance and accounting activities of
the accounting department supports the business’s decision making.
•
the differences between types of financial
statements.
•
the differences between types of budgets.
Delivery and Submission
The submission is in the form of an essay written in Word format.
The recommended word limit is 1000 words excluding diagrams,
references, and appendices
Referencing
You are expected to use relevant academic and
reliable sources, and clearly reference these in your work.
References
should be added to the text and placed at the end in a references list, using
Harvard Referencing style.
Unit Title Finance and
Accounting
Task 2 of 3
Unit Learning Outcomes
Assessment Criteria
LO 2 Be able to prepare financial statements for different types of
businesses.
2.2, 2.3, 2.4
LO 3 Be able to interpret financial statements.
3.1, 3.2
Assignment Brief and Guidance
Learners will need to be supplied with a range
of financial statements / accounts. These can be downloaded by the tutor from
the Internet. This will allow the learner the opportunity to analyse and
evaluate the required formats, concepts and legal requirements.
The set
of financial statements / accounts supplied to the learners should be one for
a sole trader and one for a partnership.
Part A:
Using
the financial information your tutor has provided, you are required to:
•
prepare financial statements for a sole trader
•
prepare financial statements for a partnership
•
apply techniques to make adjustments to the
financial statements for either the sole trader or partnership accounts
Part B:
Using
the adjusted financial statements you chose from Part A; you are required to;
•
calculate a range of financial ratios which
will demonstrate the business’s current financial performance, and then
•
produce a summary of how the financial
performance of the business has changed over the previous three years.
Delivery and Submission
Part A:
Two sets of financial statements which accurately reflect the
financial data supplied.
One set of financial statements for either the sole trader or
partnership once they have been adjusted based on the additional data
supplied Part B:
The submission is in the form of a set of
financial ratios (equivalent to 400 words) and a summary statement in Word
format.
The recommended word limit for the summary statement is 250 words.
Referencing
Not applicable.
Unit Title Finance and
Accounting
Task 2 of 3
Unit Learning Outcomes
Assessment Criteria
LO 2 Be able to prepare financial statements for different types of
businesses.
2.2, 2.3, 2.4
LO 3 Be able to interpret financial statements.
3.1, 3.2
Assignment Brief and Guidance
Learners will need to be supplied with a range
of financial statements / accounts. These can be downloaded by the tutor from
the Internet. This will allow the learner the opportunity to analyse and
evaluate the required formats, concepts and legal requirements.
The set
of financial statements / accounts supplied to the learners should be one for
a sole trader and one for a partnership.
Part A:
Using
the financial information your tutor has provided, you are required to:
•
prepare financial statements for a sole trader
•
prepare financial statements for a partnership
•
apply techniques to make adjustments to the
financial statements for either the sole trader or partnership accounts
Part B:
Using
the adjusted financial statements you chose from Part A; you are required to;
•
calculate a range of financial ratios which
will demonstrate the business’s current financial performance, and then
•
produce a summary of how the financial
performance of the business has changed over the previous three years.
Delivery and Submission
Part A:
Two sets of financial statements which accurately reflect the
financial data supplied.
One set of financial statements for either the sole trader or
partnership once they have been adjusted based on the additional data
supplied Part B:
The submission is in the form of a set of
financial ratios (equivalent to 400 words) and a summary statement in Word
format.
The recommended word limit for the summary statement is 250 words.
Referencing
Not applicable.
24
Unit Title Finance and
Accounting
Task 3 of 3
Unit Learning Outcome
Assessment Criteria
LO 4 Be able to prepare a budget.
4.2
Assignment Brief and Guidance
Learners will need to be supplied with the range of company accounts
used in Task 2.
Now that you have completed the financial ratios and been able to
summarise the financial performance of the business Task 2, your final task
is to produce a set of budgets for the same company.
You will
need to:
•
produce a master budget for the business
•
produce a budget for two of the client’s
operational departments ie HR, IT, Operations, Marketing etc.
Delivery and Submission
The
submission is in the form a spreadsheet containing a master budget and two
operating budgets.
Referencing
Not applicable.
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