Assessment Task 1 BSBFIM501 Manage budgets and financial plans

Assessment Task1: Plan financial management approaches

1. Read the scenario provided in Appendix 1 to this assessment task and tasks A
and B.
2. Prepare to meet with your manager (assessor) to clarify budget and negotiate changes:
a. identify areas of the budget that are not achievable, inaccurate or unclear
Answer: No area in this scenario is either unclear or inaccurate
b. prepare to negotiate necessary changes to the budget
Answer: One of the necessary changes that is to be made is wastage removal. Parts should be
recycled or re used from that wastage to decrease its cost.

3. Set up a time with your manager to meet. Meet with your manager (assessor) to clarify
bSudget and negotiate changes:
Assessment Task 1 BSBFIM501 Manage budgets and financial plans

a. identify at least two issues for clarification

Answer: The two main issues for clarification are:
I. Without being cleared everything any process cannot be preceded nor implemented.
II. If everything is not cleared with respect to budget will lead budget to wrong
implementation.
b. negotiate at least two changes
Answer: The changes that are necessary to be made are:
I. Accounting fees should be and commissions should be paid in two quarters rather than
four.
II. Sales should be performed as high as possible according to the demand and interests of
peoples.
c. include discussion of basic accounting principles
Answer: Basic accounting principles
Accounting standards are the policies and recommendations that corporations ought to follow
whilst reporting monetary data. The Financial Accounting Standards Board (FASB) troubles a
standardized set of accounting principles in the U.S. called Generally Accepted Accounting
Principles (GAAP). A number of the most essential accounting ideas include the following:
 Accrual principle: The accrual principle is the concept which
you should document accounting transactions in the period in which they without a
doubt occur, as opposed to the period wherein the cash flows related to them occur.
 Conservatism principle: The conservatism principle is the general idea of
recognizing fees and liabilities as soon as possible when there's uncertainty about the
outcome, however to simplest recognize revenues and property when they're assured 
of being received
 Consistency precept: The consistency principle states that, as soon
as you undertake accounting principle or method, maintain to follow it always in futur
e accounting periods. Only trade an accounting precept or approach if the new
version in some manner improves reported economic results
 Fee principle / Cost principle: The price precept is an
accounting precept that requires belongings, liabilities, and fairness investments to be
recorded on monetary facts at their original price. The price principle is also referred
to as the historical value principle and the historical cost idea
Assessment Task 1 BSBFIM501 Manage budgets and financial plans

 Monetary entity precept: The monetary unit principle states that

your simplest file commercial enterprise transactions that can be expressed
in phrases of a currency. Thus, an agency cannot document such non-
quantifiable gadgets as employee talent levels, the fine of client service, or the
ingenuity of the engineering staff.
 Complete disclosure principle: The full disclosure principle is
a concept that requires an enterprise to document all
necessary facts about their monetary statements and other relevant information to
any people who are accustomed to reading this information
 Going challenge principle: a challenge to a juror on a floor assigned that if
proved proper renders the juror incompetent to function such inside the case due
to his presumed malice or favor

d. refer to relevant legislation and ATO requirements

Answer: ATO requirements
The relevant ATO requirements are:
 Receipts and different evidence of all sales and purchases you made to your commercial
enterprise.
 Tax invoices, wage and profits facts.
 All documents about GST.
 Information of the purchase, sale and different charges of any commercial enterprise
belongings, together with land, homes or office system
e. refer to principles and techniques of managing budget items
Answer: Principles and techniques of managing budget items
Make sure that finances documents and information are open, transparent and accessible.
Offer for an inclusive, participative and sensible debate on budgetary picks. Gift a complete,
correct and reliable account of the public budget. Actively plan, control and reveal finances
execution.
4. Use the template provided in Appendix 3 to this assessment task to prepare a
contingency plan document for persistent risks after budget changes

Answer: Contingency plan template

Assessment Task 1 BSBFIM501 Manage budgets and financial plans

Contingency
Plan.docx

5. Submit all documents required in the specifications below to your assessor. Ensure you
keep a copy of all work submitted for your records.