Module Identifier RD15810  
Academic Year 2001/2002  
Co-ordinator Mr Penri James  
Semester Semester 2  
Assessment Course work   Budgeting   100%  


Outcome 1
Appreciate the requisites of an accounting environment
Performance criteria:
a. The need for an accounting system identified
b. Relevant information and sources identified
c. Relationship between profit, cash, capital identified
d. Trading periods identified and explained
Need : record, monitor, assess performance
Information : physical, financial, farm records, bank statements, management reports
Relationship : receipts, payments, finance, creditors, debtors, depreciation, cash flow
Periods : monthly, quarterly, annual

Outcome 2
Construct a set of accounts for a business
Performance criteria:
a. Profit and loss statement constructed
b. Balance sheet constructed
c. Financial statements reconciled
Profit and loss : Revenue, expenditure, valuations, depreciation
Balance sheet : Assets, liabilities, net worth
Reconciliation : Profit, net cash flow, net worths

Outcome 3
Collate information to measure the effect of known objectives on the financial status of a business.
Performance criteria:
a. Proposed system described
b. Relevant physical assumptions accurately stated
c. Relevant financial assumptions accurately stated
System : Physical location, area, land quality, stock, buildings, grant eligibility, financial status
Assumptions : Livestock, crops, market returns, business costs, personal

Outcome 4
Construct budgets to demonstrate the effect of future plans on the financial status of a business
Performance criteria:
a. Financial statements constructed
b. Financial end result of proposed plan established
c. Sensitivity of plan to change quantified
d. Financial statements reconciled
Statements : Gross margins, fixed costs, forage costs, TPLB, balance sheet, cashflow budget,
Plan : Gross margins, business profit, net worth, cash flow, financial analyis calculations
Sensitivity : Gross margin, profit, cash flow, market forces
Reconciliation : Net worths, profit and net cash flow

Module description

This module is designed to provide students with business management skills. It is essential that prospective managers of small businesses are able to construct a series of financial statements based on historical data that will give a measure of financial performance. These skills can be further developed using known physical and financial data to budget and develop future plans for the business. Budgeting integrates with course work from the animal husbandry and crop husbandry modules and is a grounding for the farm planning module. This module will also introduce the basic calculations required to analyse a business.