1.The submission is in the form of an individual numerical/written report. This should be written in a concise, formal business style using single spacing and font size 12. 2.You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Provide working notes wherever required. 3.The document must be submitted to turnitin in word document. 4.Please provide a bibliography using Harvard referencing system if you referred any sources for theoretical parts or questions. 5.The numbers/numerical statements and calculations must be neatly/clearly shown so that the assessor assess the work of the learner appropriately.6.The file must be saved in the format: student ID-FM-Formative-A1, for formative submission and student ID-FM-Summative-A1, for summative assignment.7.In case of extenuating situations, the relevant college policies apply8.The recommended word limit (excluding bibliography) is 2,000–2,500 words, although you will not be penalised for exceeding the total word limit.THE QUESTION IN THE WORD FILE
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College of Banking and Financial Studies
Assignment Brief – BTEC
Higher National Diploma in Business (Level 5)
Student Name /ID Number
Unit Number and Title
15/Financial Management
Academic Year
Fall 2018/2019
Unit Assessor
Mr. Ali Al Asmi/ Ms. Mariam Hassen
I. V. Name
Mr. Kumutha Krishnan
Assignment Title
Role of management accountants and accounting control methods in
making effective decisions for an organizations long term financial
sustainability
Issue Date
18/11/2018
Submission Date
Formative Submission – 18th December 2018
Summative Submission – 25th of December 2018
Date
18/11/2018
Submission Format:
ASSIGNMENT:
1. The submission is in the form of an individual numerical/written report. This should be written in a
concise, formal business style using single spacing and font size 12.
2. You are required to make use of headings, paragraphs and subsections as appropriate, and all work
must be supported with research and referenced using the Harvard referencing system. Provide
working notes wherever required.
3. The document must be submitted to turnitin in word document.
4. Please provide a bibliography using Harvard referencing system if you referred any sources for
theoretical parts or questions.
5. The numbers/numerical statements and calculations must be neatly/clearly shown so that the assessor
assess the work of the learner appropriately.
6. The file must be saved in the format: student ID-FM-Formative-A1, for formative submission and
student ID-FM-Summative-A1, for summative assignment.
7. In case of extenuating situations, the relevant college policies apply
8. The recommended word limit (excluding bibliography) is 2,000–2,500 words, although you will
not be penalised for exceeding the total word limit.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
1
Unit Learning Outcomes:
LO3: Evaluate the role of management accountants and accounting control systems
LO4: Evaluate ways in which financial decision-making supports sustainable performance
Assignment Brief and Guidance:
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
2
SCENARIO
XYZ (PLC) based in Oman manufactures machine components. Mr Ahmed, the management accountant
of the organization has presented his concerns to the management of the company with regards to the
difficulties in analyzing the financial data and preparing budgets manually due to the large volume and
complexity of data. He further stated that the manual computation of data has resulted in a lot of
confusion between the departments as the accounts does not properly reconcile. Hence, the productivity
of the department has drastically dropped as the staff in the department are wasting time in reconciling
the accounts. Therefore, he has requested the management to consider introducing a financial
management system developed on Oracle RDBMS as it would increase the transparency and timely
recording the financial data that would be easier to reconcile. Hence, he requested the management that
the introduction of a financial management system such as “ORACLE” would enhance the efficiency of
the organization.
Mr.Ahmed, has received the financial statements from the financial accountant of the organization and
is requested to present a report analyzing the performance of the organization in the next Board meeting
which is presented in Appendix 1. Further he has been presented a new project proposal for a long-term
investment plan presented in Appendix 2 which will also be an agenda item in the Board meeting.
Mr Ahmed is instructed by the Chief Financial Officer to prepare a formal report to the Board that makes
justified recommendations (supported by numerical analysis and calculations where ever
appropriate to support the recommendations) on how the role of management accountants and
accounting control systems can be improved to support financial decision-making in order to
achieve long term financial sustainability taking into consideration information presented in Appendix
1 and 2. The CFO has instructed that a single report is sufficient.
Appendix 1
Below are the financial statements for XYZ (plc) for the years 2016 and 2017.
Income Statement for the year ended 30th June
Sales Revenue
cost of sales
Gross profit
Operating expenses
Depreciation
Operating profit
Interest
Profit before taxation
Taxation
Profit for the year
2016
$’000
1180
-680
500
-200
-66
234
0
234
-80
154
2017
$’000
1200
-750
450
-208
-75
167
-8
159
-48
111
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
3
Statement of Financial position as at 30th June
ASSETS
Non – Current Assets
Property, Plant and equipmnent
Current Assets
Inventories
Trade Receivables
Cash
Total Assets
EQUITY AND LIABILITIES
Equity
Ordinary Share Capitall ($1 shares ,fully paid)
Retained earnings
Non – Current Liabilities
Borrowings – Bank Loan
Current Liabilities
Trade payables
Other payables and accruals
taxation
Short – term borrowings ( bank overdraft)
Total equity and liabilities
2016
$’000
2017
$’000
702
702
687
687
148
102
3
253
955
236
156
4
396
1083
500
256
756
500
295
795
0
0
50
50
60
18
40
81
199
955
76
16
24
122
238
1083
Dividend paid on ordinary shares of $70,000 and $ 72,000 for 2016 and 2017, respectively.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
4
Appendix 2
XYZ (PLC) is considering a new project as long-term investment plan. The expected life of each project
is 5 years. The projects are mutually exclusive, and the company can only invest in one project at a time
due to the restriction in finance. The cost of the project X and Y are the same each costing $180,000.
There is no residual value at the end of the economic life of the project. The operating cashflows are as
follows;
Years
Operating profit before depreciation year 1
Operating profit before depreciation year 2
Operating profit before depreciation year 3
Operating profit before depreciation year 4
Operating profit before depreciation year 5
Project X
RO
48,000
72,000
60,000
84,000
96,000
The Company’s standard payback period is 3 years.
The company uses 10% discounting factor when evaluating the investment.
Year
1
2
3
4
D.F
0.909
0.826
0.751
0.683
@10%
Project Y
RO
60,000
60,000
60,000
60,000
90,000
5
0.621
NOTE: Project X has a negative NPV of 17903 @30% and project Y has a negative NPV of 25,792 @
30% discount Factor)
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
5
Learning Outcomes and Assessment Criteria
Learning Outcome
Pass
P3 Evaluate the role of
management
accountants and their
value as part of an
LO3:. Evaluate the role integrated system.
of management
accountants and
accounting control
systems
P4 Evaluate the use of
accounting control
systems and their value
as part of an integrated
business system.
Merit
M3 Critically evaluate
the role of management
accountants and
accounting control
systems to support a
culture of ethical
financial management.
LO4: Evaluate ways in P5 Evaluate the ways in M4 Critically evaluate
which financial
decision-making
supports sustainable
performance
which financial decisionmaking is important for
supporting long term
financial sustainability.
Distinction
D3 Make justified
recommendations on
how the role of
management
accountants and
accounting control
systems can be
improved to support
financial decisionmaking in order to
achieve long term
financial sustainability.
how different ways of
financial decisionmaking support long
term financial
sustainability.
PLEASE READ THIS PAGE CAREFULLY TO ENSURE
YOU COVER WHAT IS REQUIRED TO SATISFY THE
GRADE
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
6
LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that the
work is their own.
Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be
found or describe the nature of the evidence (e.g. video, illustration).
Task ref.
Evidence submitted
Page numbers or
description
LO3
LO4
Additional comments to the Assessor:
Learner declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any sources
used in the work. I understand that false declaration is a form of malpractice.
Learner signature:
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
Date:
7
ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK
Programme
BTEC HND BUSINESS LEVEL 5
Learner name
Assignment title
Role of management accountants
and accounting control methods
in making effective decisions for
an organizations long term
financial sustainability
Assessor name
Mr. Ali Al Asmi/
Ms. Mariam
Hassen
Unit no. & title
Financial Management / Unit 15
Targeted learning
aims/assessment criteria
LO3 & LO4
18th December 2018
Date submitted
First Submission
Deadline
Targeted criteria
Criteria
achieved
Assessment comments
P3
P4
P5
M3
M4
D3
General comments
Assessor declaration
Assessor signature
I certify that the evidence submitted for this assignment is the learner’s own.
The learner has clearly referenced any sources used in the work. I understand
that false declaration is a form of malpractice.
Date
Date of feedback to
learner
Resubmission authorisation
by Lead Internal Verifier*
Date
* All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing:

The learner has met initial deadlines set in the assignment, or has met an agreed deadline extension.

The tutor considers that the learner will be able to provide improved evidence without further guidance.
● Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner.
**Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment.
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
8
ASSESSMENT RECORD SHEET – RESUBMISSION – SUMMATIVE FEEDBACK
Deadline
Date submitted
25th December 2018
Targeted criteria
Criteria
achieved
Assessment comments
P3
P4
P5
M3
M4
D3
General comments
Learner Declaration
Learner signature
Assessor declaration
Assessor signature
I certify that the evidence submitted for this assignment is my own. I have clearly
referenced any sources used in the work. I understand that false declaration is a
form of malpractice.
Date
I certify that the evidence submitted for this assignment is the learner’s own. The
learner has clearly referenced any sources used in the work. I understand that
false declaration is a form of malpractice.
Date
Date of feedback to
learner
Source: Customised by CBFS@PSD@HND based on Pearson BTEC format: Annexure 5A
9

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