Manage Budget and Financial Plans †Free Samples to Students

Question: Discuss about the Manage Budget and Financial Plans. Answer: Introduction: There are the few basic accounting principles that need to be followed by an organisation, which are business entity concept, the cost principle, and the going concern concept. The business entity concept many states that businesses are a separate entity altogether, where it cannot be compared by the owner as it is different from each other. This mainly states that all the relevant personal transaction of the owner and assets should not be included in the business (Zeff 2016). The cost principle directly states that all the assets needs to be recorded at their actual cost in the books of the organization. Lastly, the consistency principle Indicates that your organisation should apply the same Accounting Principles from one period to another. this mainly helps in reducing the manipulation and allow the organisation to compare the relevant progress over the previous fiscal years (Singleton-Green 2016). Depicting features of internal control structures: The internal control structure mainly includes the relevant features such as control environment, risk assessment process, information system, control activities, and monitoring control. The identified internal control features mainly help in Financial Management process that involves acquisition, flow, and processing of information. This mainly helps in improving the efficiency and financial performance for the organisation. Moreover, it provides robust risk management process that could help in developing relevant contingency plans, which could reduce the negative impact of external and internal environment. The use of adequate financial Record Keeping procedures and process mainly allows the organisation to reduce any kind of manipulation and error, which could be developed in the preparation of financial report. Furthermore, the Record Keeping system allows the organisation to identify all the relevant transaction conducted within the fiscal year and determine its current financial condition. The procedures and process of the Record Keeping lays out a relevant plan, which could directly be used by the accountants in preparing the financial report (Asic.gov.au 2017). Depicting the financial management process and mentioning how it supports and monitor employees: There is relevant Financial Management processes are mainly depicted as follows. Forming and communicating all the relevant objectives and goals Preparing an adequate financial and operational plan Providing relevant information to the manager regarding variances from target, this could help in improving target performance. Providing relevant information to the stakeholders in form of financial report Taking relative steps to correct the undesirable practices of the organisation Adequately maintaining relevant business records with an effective internal control system Reducing the relevant chances of unexpected events by declining the exposure of risk taken by the organisation The identified Financial Management process mainly allows the organisation to adequately achieve sustainable growth by complying with all the relevant regulations. In addition, the process also helps in improving the financial condition of the organisation by taking relevant steps in the improvement process. The Financial Management process also helps in reducing the exposure of risk and developing relevant contingency plan, which could help in reducing the impact of unexpected events (Asic.gov.au 2017). Under Corporation Act the companies mainly need to prepare corporate report, directors report, and financial report. This report mainly comprise of different types of features as the corporate report Cup States the Record Keeping process, the directors report provide the declaration given by the director of the company and the financial report comprises of Comprehensive income statement, balance sheet, and cash flow statement (Asic.gov.au 2017). The financial report of large proprietary company is mainly prepared in accordance with the chapter 2M the Corporation Act. In addition, the financial reports me to be audited unless conditions under ASIC Corporations are not met. In addition, the financial report needs to be blocked with ASIC within 4 months. Moreover, the financial report also needs to be sent to the members with any four months of declaration of the annual report (Austrade.gov.au 2017). Depicting the timing when are small proprietary companies required to be audited: Small proprietary company could only be audited if required by the director / ASIC direction s301(2). In addition, under s293 it is mentioned that small proprietary companies are required to prepare financial report, when 5% of the members vote for it. The overall audit of the small proprietary companies also conducted if the member needs to evaluate the financial performance (Asic.gov.au 2017). Financial report under section S295, mainly states that the overall transactional condition of the organisation for the current fiscal year. Financial reporting mainly allows the organisation to state its current financial condition to the Stakeholders. The financial reporting system allows the investors to evaluate the trend in companys financial performance, which could help in detecting its current return generation capacity. In addition, the financial report mainly consists of comprehensive income statement, cash flow statement, and financial position statement. The identified financial statements would eventually help in depicting the current profit level, cash level, and asset level of the organisation (Austrade.gov.au 2017). Mentioning requirements of the above depicted statements: The financial report requirements are mainly identified as the financial service regulator which needs to be complied by the organisation.Companies operating in Australia needs to lodge financial reports with ASIC at the end of each financial year. Furthermore, these annual financial reports need to be audited for evaluating the actual financial performance of the organisation. Moreover the financial statement needs to be prepared according to the section 292 of the Corporation Act, where all disclosing entities need to be provided in the annual report. In addition, Corporation Act 2001 mainly states that all the companies is to comply with the accounting standard met by the requirements of international financial reporting standards, which was adopted by Australia in 2005 (Asic.gov.au 2017). Reference: Asic.gov.au. (2017).Lodgement of financial reports | ASIC - Australian Securities and Investments Commission. [online] Available at: https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/preparers-of-financial-reports/lodgement-of-financial-reports/ [Accessed 31 Aug. 2017]. Austrade.gov.au. (2017).Financial reporting in Australia - Austrade. [online] Available at: https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Financial-reporting-in-Australia [Accessed 31 Aug. 2017]. Singleton-Green, B., 2016. Discussion of articulating accounting principles: Classical accounting theory as the pursuit of explanation by embodiment.Journal of Applied Accounting Research,17(2), pp.136-138. Zeff, S.A., 2016.Forging accounting principles in five countries: A history and an analysis of trends. Routledge.