Assessment Tasks and Instructions

Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN005 Manage physical assets
Stream/Cluster
Trainer/Assessor

Assessment for this Unit of Competency/Cluster Details

Assessment 1 Short Answers
Assessment 2 Project

Assessment conducted in this instance: Assessment 1 2 3

Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required

Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:

Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date

2nd Assessor to complete

I agree the adjustments applied to this assessment are reasonable
 Name

Signature Date
Assessment Guidelines
What will be assessed
The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in the
elements and performance criteria for this unit of competency and relating to the following aspects:

 business objectives relevant to the management of physical assets:

o profitability
o growth
o providing quality products and services to customers
o adhering to:
 codes of conduct
 environmental sustainability philosophies and practices
o industry accreditation schemes
 types of physical assets required by tourism, hospitality and event organisations and the organisation in
particular:
o buildings
o computer systems
o equipment fixtures, fittings and furniture in one of the following:
 accommodation establishments
 commercial kitchens
 restaurants and bars
 storage areas
 tourism, hospitality and event offices
 transportation depots
o gardens
o pools
o rides and games
o vehicles
o vessels
 maintenance requirements for different types of physical assets
 considerations for long-term assessment of physical assets:
o ability to meet business objectives
o cost of maintenance over a period of time
 o customer and staff feedback
o input from specialists where required
o operational efficiency
o safety
 equipment specifications to guide acquisition process:
o budget parameters
o environmental sustainability policies for the business
o floor plans
o numbers and types of required equipment fixtures, fittings and furniture
o operational performance requirements:
 efficiency
 customer traffic
 staff usage
o types of products and services offered by the business
 formats for and inclusions of asset registers specified in performance evidence
 features and benefits of different financing options for asset acquisition:
o hire purchase
o lease
o purchase
o rent
 depreciation that can be applied to different types of physical assets
 data used in the estimation of asset acquisition:
o current maintenance contracts
o estimates and quotations from suppliers
o previous contracts and costs
o published or advertised prices
 practices to support environmental sustainability using different types of physical assets.
Place/Location where assessment will be conducted including timeframes
SSH to complete

Resource Requirements
Pen, Paper or computer, internet access
Calculator

Instructions for assessment including WHS requirements

You are required to address all questions to achieve competence. Your trainer will provide you with instructions
for time frames and dates to complete this assessment.
Once completed, carefully read the responses you have provided and check for completeness. Your trainer will
provide you with feedback and the result you have achieved.

Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201

This assessment: First Attempt 2nd Attempt Extension – Date:    /    /   

RESULT OF ASSESSMENT Satisfactory Not Yet Satisfactory

Feedback to Student:

Assessor(s) Signature(s): Date:    /    /     

Student Signature Date:    /    /     

Assessment 1

Your Task:

Answer the following questions below. All questions must be answered.

1. How can the following business objectives influence the methods used for managing physical assets in an
organisation? Provide 1 example for each:

 Profitability

When it comes to a company's equity or profitability, the difference between its assets and liabilities is the
determining factor. When it comes to asset-intensive businesses, the selection of assets has a direct
influence on the profitability of the company. In addition, it was managed and discarded.

 Growth

The company will only focus on acquiring and retaining the physical assets that can ensure growth of the
organization.

 Providing quality products and services to customers

Physical assets that help in providing quality products and services to customers are retained and acquired
by the company.

 Adhering to:
o codes of conduct
o environmental sustainability philosophies and practices

Managing physical assets by complying with organizational code of conduct and environmental
sustainability practices can ensure better compliance and reputation.

 Industry accreditation schemes

Industry accreditation schemes can influence organization’s decision of acquiring and disposing their
physical assets.
2. Provide 8 examples for different types of physical assets required by tourism, hospitality and event
organisations:

Responses
1. Buildings.

2. Vessels

3. Equipment

4. Vehicles

5. Machinery

6. Computer systems

7. Furniture

8. Pools and gardens

3. List 5 physical assets relevant to your workplace or training and provide the maintenance details typically
required for each:

Physical asset Maintenance requirements

1. Furniture It should be kept safely and cleaning and repairing
should be done periodically.

2. Equipment They are kept in the safe place, they are cleaned after
use and maintained properly.

3. Computer systems They are secured and maintained on periodic basis.

4. Buildings They are maintained and repaired regularly.

5. Machinery They are kept in organised and clean manner.

4. List 6 key aspects which must be considered for the long-term assessment of physical assets in terms of
nature of requirements and necessity of acquisition. Who could be typically involved in this in terms of
feedback and specialist advice?

Responses
1. Business objectives could be fulfilled or not through the acquisition
2. Cost of acquisition and maintenance
3. Response from the customers and staffs
4. Efficiency of the assets.
5. Safety concerns associated.
6. Special requirements.

Involvement
The top level management is generally involved in long-term assessment of physical assets in terms of
nature of requirements and necessity of acquisition.
5. The following are parameters which are used to guide the acquisition of physical assets. Provide examples
and details for what should be considered, for each aspect.

Budget parameters: is there is availability of budget to acquire the asset or not.

Environmental sustainability policies for the business: do the physical asset support the environmental
sustainability requirements?

Site plans: whether the asset can be kept at the current site or require a new site.

Auxiliary items: what other items are required with this asset?

Performance requirements: how much ROI is expected from this asset?

Suitability to products and services offered: is products made or service provided using this asset
qualitative?

6. Which details need to be recorded in an asset register for each physical asset?
 Responses
The make, model, and serial number of each item. The physical location within the premises. A description
of its physical attributes and condition. The asset class or category.

7. Provide an overview of the features, advantages and disadvantages of each of the following financing
options when acquiring assets:
1. Hire purchase
The seller keeps ownership of the goods until all payments have been received, and the buyer gains instant
possession of the things while the seller retains ownership of the products until all payments have been
paid. Increased working cash, enhanced investor impressions of the company's financial health, and the
chance for additional payment flexibility are all advantages of using a hire-purchase arrangement.
Because hire buy agreements are typically set in stone, it is possible to lose the item and have your
credit report harmed. In the long run, hire buy financing may end up costing you more money.

2. Lease

The lessor and the lessee are the two major stakeholders in a lease financing transaction. The assets and
property that will be leased are listed in the lease financing contract. The lease agreement covers
maintenance and repair, taxes, insurance, and other costs related with the leased asset. Throughout the
lease period, the lessor maintains ownership of the assets, but the lessee is entitled to utilize them. By
leasing the asset, the Lessor may be able to generate more money. Because the Lessor owns the asset,
he or she is entitled to depreciation and other tax benefits. Leasing the asset may provide better returns
than investing in other long-term efforts. Leasing is a kind of finance that covers the whole cost of a
company's equipment. The lessee is not obligated to produce or pay any margin money since there is no
down payment. This method of conserving cash or financial resources allows for the purchasing of
merchandise, for example. As a consequence, leasing is considered a more costly mode of financing
since it includes a margin for the lessor as well as the risk of obsolescence. This indicates that the Lessee
bears the risk of obsolescence as a result of rapid technical improvements.

3. Purchase
 Purchasing is acquiring the ownership of the asset. It can be beneficial as company can use its asset as it
likes. It provides greater control and flexibility for the company. Depreciation and mortgage interest
deduction can help in reducing the tax payment of the company if a company purchase asset in
financing. The disadvantage of purchasing include, huge fund is required, large cash will outflow form
the company, acquisition cost might be high.

4. Rent
Renting can help company to enjoy more liquidity, it can be convincing for the company, it can save time
required for acquisition of asset, cost could be saved and flexibility could be achieved. The disadvantage
of renting an asset is that advance payment is required, it could be expensive and contract could be
difficult to terminate in future.
8. Explain the methods for calculating the depreciation of assets using each of the following methods:

Prime cost method

This method believes that the value of an asset decline on constant basis during its effective life.

Diminishing Value Method

This method assumes that the value of any asset tend to decrease more in its early effective life than in the
later part of its effective life.

9. Go to the ATO website link provided below and source the information for the current simplified
depreciation rules which apply:

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Depreciating-assets/Simpler-
depreciation-for-small-business/

Responses

If you run a small firm with an annual turnover of less than $2 million, you may employ the simplified
depreciation standards. Assets costing more than $20,000 but not eligible for an instant asset write-off may
be assigned to a general small company pool and depreciated at a rate of 15% the year they are assigned
and 30% in following income years based on a falling value basis, regardless of their useful life.
10. Provide 4 examples of sources for data to enable you to estimate reliable acquisition costs. What does this
need to consider in terms of contractual obligations and ongoing maintenance?

Responses
1. Estimates
2. Prevailing market rate
3. Depreciation
4. Financial data.

Aspects to consider
Before acquiring assets, it is necessary to analyse the contractual obligations and the required maintenance
for the asset.

11. List 3 examples for environmental sustainability that applies to physical assets and outline the
environmental and financial benefits as applicable:

Example Environmental and financial benefits

Recycling of asset It can help protect environment at the same time

provide attractive return.

Using renewable energy for the operation of asset. It can help protect environment at the same time
provide attractive return.

Sourcing assets from sustainable vendors and It can help protect environment at the same time
suppliers. provide attractive return.