1.1Explain what are the legislative requirements that a public authority must comply with to maintain financial probity? (Guide: Long)

1.2Explain the following principles of accounting and financial systems, (Guide: Long):

a)Accrual principle

b)Cost principle.

c)Going concern principle.

d)Revenue recognition principle.

1.3Explain how is an organisation's financial performance measured and managed? (Guide: Short)

1.4Answer the following:

a.Explain the significance and objective of "Accounting standard AASB 101".

b.Where is the standard Aus 1.1 applicable?

(Guide: Medium)

1.5Answer the following:

a.Explain "IPSAS 1 - Presentation of Financial Statements ".

b.What are the key differences between IPSAS 1 and AASB 101?

(Guide: Medium)

1.6Explainthe "Financial Management and Accountability Act 1997(FMA Act)". (Guide: Medium)

1.7Research and explain the following Australian, international and local legislations and conventions that are relevant to financial management in the organisation and how it is relevant. Record your answers in the table below. (Long)

Relevant legislation or convention

Explanation

Australian Securities and Investments Commission Act 2001 (Cth)

Corporations Act 2001 (Cth)

Competition and Consumer Act 2010 (Cth)

1.8An understanding of financial management requires knowledge of the relationship between financial management and accounting, accounting principles, and accounting standards. Explain the following accounting principles (Guide: Long)

Accounting Principle

Explanation of the concept

Business entity

Monetary unit

Materiality Principle

1.9What obligations does a business have with regards to taxation in Australia? (Guide: Long)

1.10 What are requirement of the Australian Tax Office when establishing a new business? (Guide: Short)

1.11Assume that you are working as an Accountant for an organisation. The organisation wants to conduct financial statement audit as part of closing the financial books and before filing income statement during closing. Explain in 350-400 words, the four (4) steps that you will take to conduct the audit. (Guide: Long)

1.12Explain the following methods of analysing a financial statement:

a.Vertical analysis

b.Horizontal Analysis

c.Ratio Analysis

d.Trend Analysis

(Guide: Medium)

1.13How is the following calculated in a Profit and Loss Statement?

a.Gross profit

b.Gross profit margin

c.Operating profit

d.Net profit

Write your answer in 100-150 words.

1.14How would you use the following ratios to analyse the organisation's cash flow? Explain in 30-50 words each:

a.Cashflow solvency

b.Cashflow margin

c.Cashflow return on assets