Purpose of the report:

The main purpose of this report is to analyse the variances between the actual and the budget data and figures, implement the budgets. Further, this report talks about the various rules and regulations that each company has to follow and meet when it comes to conducting the business operations.

Task 1:

Financial probity:

The following are its requirements:

1. Accountability: it must be capable of being explaining the way the tasks are to be done and the reasons of the choices that have been made along with the money that has been spent on the same. This would include the proper documentation that would leave a trail of audit.

• Transparency: this would help in the minimisation of the opportunity of any sort of risk, fraud or corruption

1. Impartiality: the management of the individuals, recruitment and the other organisations should be frank, unbiased and fair

• Confidentiality: the privacy and confidentiality of any product or the matter should be maintained without fail (“Ethics and Probity in Procurement | Department of Finance”, 2019).

4 principles of accounting and financial systems:

The following are the accounting principles:

• Conservatism, in which when there are amounts available for one transaction, then the lower shall be recorded in the books. Plus, the profits would never be overestimated and there shall always be a provision for losses

• Materiality, in which the amounts that are material for the business operations or that are relevant to the business would be recorded in the books of accounts, thereby eliminating the insignificant information

• Full disclosure, in which all of the facts and figures would be reported in the books of accounts that are important for the business operations. There shall be a full disclosure of all of the transactions and events taken place during the year. There shall be a recording of all relevant facts in the books of accounts

• Consistency, the same accounting policies shall be followed for the purposes of preparing the books of accounts for each year, with an exception when the same is desired by law, it would help in better representation of the facts of the business operations (“Accounting Principles | Explanation | AccountingCoach”, 2019).

International and local legislation:

• The financial policy and the procedures manual of the company lays down the rues and the legislations that are to be followed by the staff of the company
• It is bound to follow the rules of AASB 107, statement of cash flows which lays down the recording and reporting of the cash inflows and the cash outflows of the company during the year
• AASB which is Australian Accounting Standards board, that lays down the accounting standards which are to be followed by each private or the public company
• The Income Tax Act, which contains the rules regarding the taxability of the income earned by the company etc

Describing following terms:

GST: this is the goods and services tax which is levied on the goods that have been produced and the services that have been rendered by the company. This tax is a form of the indirect taxes. The rate is currently 10%.

Company tax: this is the amount of the tax which are levied on the earnings that the company has earned during the normal course of the business transactions of the company. In the given case study, it is 30%.

PAYG: pay as you go are the taxes that are deducted from the incomes when they are paid to the employees of the company or to any other person. This is the amount which is deducted from the incomes and then deposited into the government account.

ABN: this is the Australian Business Number which is a unique number issued by Australian Business Register which is operated by the ATO. This is the requirement of each business which operates in the country of Australia.

Superannuation: these are the schemes of the government of Australia wherein the arrangements are made by the government so that the citizens of the country have enough money in the form of pension when they retire.

References:

Accounting Principles | Explanation | AccountingCoach. (2019). Retrieved 9 October 2019, from https://www.accountingcoach.com/accounting-principles/explanation

Activity statements. (2019). Retrieved 9 October 2019, from https://www.ato.gov.au/Business/Reports-and-returns/Due-dates-for-lodging-and-paying/Due-dates-by-topic/Activity-statements/

Ethics and Probity in Procurement | Department of Finance. (2019). Retrieved 9 October 2019, from https://www.finance.gov.au/procurement/procurement-policy-and-guidance/buying/accountability-and-transparency/ethics-and-probity/principles.html

Fringe benefits tax return. (2019). Retrieved 9 October 2019, from https://www.ato.gov.au/Business/Reports-and-returns/Fringe-benefits-tax-return/

Goods and services tax. (2019). Retrieved 9 October 2019, from https://www.ato.gov.au/Business/Reports-and-returns/Due-dates-for-lodging-and-paying/Due-dates-by-topic/Goods-and-services-tax/

Income tax. (2019). Retrieved 9 October 2019, from https://www.ato.gov.au/Business/Reports-and-returns/Due-dates-for-lodging-and-paying/Due-dates-by-topic/Income-tax/

Pay as you go (withholding and instalments). (2019). Retrieved 9 October 2019, from https://www.ato.gov.au/Business/Reports-and-returns/Due-dates-for-lodging-and-paying/Due-dates-by-topic/Pay-as-you-go-(withholding-and-instalments)/