Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to record general journal adjustment entries and to prepare end of period financial reports. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
This unit applies to individuals employed in a range of work environments who are responsible for preparing financial reports. They may work as individuals providing administrative support within an enterprise, or they might have responsibility for these tasks in relation to their own workgroup or role. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Maintain asset register |
1.1. Prepare a register of property, plant and equipment from fixed asset transactions in accordance with organisational policy and procedures 1.2. Determine method of calculating depreciation in accordance with organisational requirements 1.3. Maintain asset register and associated depreciation schedule in accordance with organisational policy, procedures and accounting requirements |
2. Record general journal entries for balance day adjustments |
2.1. Record depreciation of non-current assets and disposal of fixed assets in accordance with organisational policy, procedures and accounting requirements 2.2. Adjust expense accounts and revenue accounts for prepayments and accruals 2.3. Record bad and doubtful debts in accordance with organisational policy, procedures and accounting requirements 2.4. Adjust ledger accounts for inventories , if required, and transfer to final accounts |
3. Prepare final general ledger accounts |
3.1. Enter general journal entries for balance day adjustments in general ledger system in accordance with organisational policy, procedures and accounting requirements 3.2. Post revenue and expense account balances to final general ledger accounts system 3.3. Prepare final general ledger accounts to reflect gross and net profits for reporting period |
4. Prepare end of period financial reports |
4.1. Prepare revenue statement in accordance with organisational requirements to reflect operating profit for reporting period 4.2. Prepare balance sheet to reflect financial position of business at end of reporting period 4.3. Identify and correct, or refer errors for resolution in accordance with organisational policy and procedures |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
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Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Calculating depreciation may include: |
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Expense accounts may include: |
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Revenue accounts may include: |
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Prepayments and accruals may include: |
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Bad and doubtful debts may include: |
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Inventories may include: |
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Final accounts may include: |
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Revenue statement comprises: |
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Reporting period may include: |
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Balance sheet comprises: |
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Unit Sector(s)
Unit sector |
Competency field
Competency field |
Finance - Financial Administration |
Co-requisite units
Co-requisite units |
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