Self-Reflection

I believe the most important skill an individual should build upon is communication and
interpersonal skills. Whether studying at university or working at a professional firm, it is
utmost important that ideas and thoughts are conveyed in most effective and efficient manner.
Working in a group or team it is essential that everyone can understand and convey their
message in a manner that it leaves no or very little room for misunderstandings. In my opinion,
the more questions you ask, the more information and reasoning you seek and the more
doubts you raise would eventually allow you to communicate more with people. Thus, helps
in improving upon both communication and interpersonal skills1. Often, a person with
better communication abilities is deemed more confident and charismatic. Communication
also plays a significant role in building relationships with other members, colleagues and
people in general. This unit enabled us to discuss client issues and then come up with desired
solution, thereby encouraging members to discuss, ask questions, seek explanations etc. in
an effective and efficient manner. Both communication and interpersonal skills go hand in
hand.

Another important non-technical skill that is enhanced during this course of this unit is team-
work2. It is essential that people can work in groups and respect each other’s opinion. At
several occasions, we were faced with situation, where we had difference of opinion, however,
it is important that such differences should be dealt respectfully. Tricky situations and
difference in opinion can occur anywhere, be it at home with family members, or friends or
colleagues at work. I believe, the more we interact and present an honest opinion, other people
would acknowledge and try to accommodate. Therefore, one should not feel offended or
should not shy away from sharing his or her opinion. Often best results are obtained when
different minds are put together.

Thirdly, most important skill is to be able to respect culture diversity. As seen throughout the
semester, almost everyone in the group was from different culture and religious background.
It is essential that members of a group respect this difference and make everyone included.

1
Jackling, B., & De Lange, P. (2009). Do accounting graduates' skills meet the expectations of
employers? A matter of convergence or divergence. Accounting Education, 18(4-5), 369-385.
doi:10.1080/09639280902719341

2
Roepen, D. (2017). Australian business graduates' perceptions of non-technical skills within the
workplace. Education & Training, 59(5), 457.
This also helps in building relationships3 and thus creates an atmosphere of harmony,
inclusion and comfort and thereby allows everyone to freely express themselves. It is evident
that employers and companies encourage people to build relationship with peer and clients.
Thus, having people around who respect the diversity and enjoy working with people from
different ethnic groups creates a positive environment and allows greater room for growth and
development. I recognised, working in teams with culturally different people allowed me to
expand my horizon of knowledge and helped me understand how to work more efficiently.

Most critical of all, I believe is the skills of ethics4. Regardless of situation, it is important that
we as individuals possess strong ethics. Dealing with accounting and taxation aspects in this
unit, we encountered several times the issue of ethics. Even in the real world such
circumstances come up on daily basis and it is our ethics that will guide us through such
situations. Working in groups also, it is possible that other members do not have the same
ethics as yours but important thing is to stick what is right. I believe, one should never
compromise on integrity. It is important to think in terms of financial competence but that does
not mean that at any stage one should neglect objectivity, diligence or professionalism, as
these qualities will stay till the end in any career or in any circumstance.

Lastly, any individual in accounting or taxation field needs to be a problem solver5. Both
accounting and taxation are vast field and the rules change frequently as per the market
needs. Therefore, one should be up for the challenge to improve upon skills constantly and
participate actively in solving complications. I believe it is important to have a perspective to
look beyond one’s own responsibilities. This helps to avoid any work stress and helps to
effectively and efficiently schedule your time, meet deadline and manage projects.

3
Low, M., Botes, V., Rue, D. D., & Allen, J. (2016). Accounting employers' expectations - the ideal
accounting graduates. The E - Journal of Business Education & Scholarship of Teaching, 10(1), 36.

4
Evans, E., & Cable, D. (2011). Evidence of improvement in accounting students' communication
skills. International Journal of Educational Management, 25(4), 311-327.
doi:10.1108/09513541111136612

5
Wells, P., Gerbic, P., Kranenburg, I., & Bygrave, J. (2009). Professional skills and capabilities of
accounting graduates: The new zealand expectation gap? Accounting Education, 18(4-5), 403-420.
doi:10.1080/09639280902719390
 Visual Optics Pty Ltd.
Statement of Profit and Loss and Other Comprehensive Income
For the year ended 30/06/2016

Year ended
Notes
30/6/2016
$
Revenue 4 513,231
Cost of Goods Sold 153,517
Gross Profit 359,714
Administrative expenses 10,401
Bad debt Expense 672
Bank charges 2,348
Finance costs 18,665
FBT paid 138
Occupancy expense 51,101
Insurance expense 3440
Salary & wages – Directors & staff 142,800
Marketing and advertising expense 10,730
Other expenses 16,812
Depreciation expense 25,368
Superannuation 13,566
Sundry expense 425
Employee benefits 7,008
Provision for unrealised currency loss 180
Profit Before Tax 56,150
Income Tax Expense 10,774
Profit For The Year 45,376
Other Comprehensive Income
Loss on Revaluation of Shares in Listed Companies (1,500)
Drawings (105)
Total Comprehensive Income for the year 43,641
 Statement of Financial Position
As at 30/06/2016
Notes 2016
$
Current assets
Cash at bank 6 105,258
term deposit 50,000
trade debtors 7 21,259
Income tax receivable 2,750
Inventory 92,845
interest receivable 123
prepaid insurance 600
Total current assets 272,996

Non-current assets
Leasehold improvement 8 129,850
less: accumulated depreciation 8 -2,971
PPE 8 116,850
less: accumulated depreciation 8 -17,834
Lease Motor Vehicle 8 36,000
less: accumulated depreciation 8 -2,459
Computer software 8 11,490
less: accumulated depreciation 8 -2,103
Deferred tax asset 5 2,585
Shares in listed company 9 22,500
Total non-current assets 293,908

TOTAL ASSETS 566,874

Current liabilities
trade creditor 7,890
GST payable 10 4,768
Provision for annual leave 6,540
PAYG withholding 10,125
PAYG instalment 1,025
Loan- bank of Brisbane 11 35,858
Provision for currency exchange loss 180
MV lease liability 12 5,863
Total current liabilities 72,249

Non-current liabilities
Loan- bank of Brisbane 11 110,929
MV lease liability 12 26,695
Deferred tax liability 5 13,359
Total non-current liability 150,983
Total Liabilities 223,233

Net assets 343,641

Equity
Shareholder Capital 13 300,000
Revaluation Reserve 9 -1,500
Drawings -105
Retained Earnings 45,246
Total shareholder's Equity 343,641

Visual Optics Pty Ltd.

Statement of Changes in Equity
For the Year Ended 30/06/2016

Issued Revaluation Retained

Total
Capital Reserve Drawings Earning
$ $ $ $
Balance at 01/08/2015 300,000 300,000
Profit for The Year 45,246 45,246
Other Comprehensive Income (1,500) (105) (1,605)
Total Comprehensive Income 43,641
Balance at 30/06/2016 343,641

Notes to financial statements

1. Financial reporting framework

The Company is not a reporting entity because in the opinion of the directors there are
unlikely to exist users of the financial report who are unable to command the preparation of
reports tailored so as to satisfy specifically all of their information needs. Accordingly, these
special purpose financial statements have been prepared to satisfy the directors’ reporting
requirements under the Corporations Act 2001.

For the purposes of preparing the financial statements, the Company is a for-profit entity.
2. Statement of compliance

The financial statements have been prepared in accordance with the Corporations Act 2001,
the recognition and measurement requirements specified by all Australian Accounting
Standards and Interpretations, and the disclosure requirements of Accounting Standards
AASB 101 ‘Presentation of Financial Statements.

3. Basis of preparation

The financial statements have been prepared on the basis of historical cost, except for certain
properties and financial instruments that are measured at revalued amounts or fair values at
the end of each reporting period, as explained in the accounting policies below. Historical cost
is generally based on the fair values of the consideration given in exchange for goods and
services. All amounts are presented in Australian dollars, unless otherwise noted.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of
whether that price is directly observable or estimated using another valuation technique.

Fair value for measurement and/or disclosure purposes in these financial statements is
determined on such a basis, except for share-based payment transactions that are within the
scope of AASB 2, leasing transactions that are within the scope of AASB 117, and
measurements that have some similarities to fair value but are not fair value, such as net
realisable value in AASB 102 ‘Inventories

3.1 Significant accounting policies

Property, Plant and Equipment

Fixtures and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.

Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation
techniques are applied to determine the fair value for all unlisted securities, including
recent arm’s length transactions, reference to similar instruments and option pricing
models.

Depreciation
The depreciable amount of all fixed assets including capitalised leased assets is
depreciated on a straight-line basis over their useful lives to the Company commencing
from the time the asset is held ready for use. Leased assets and leasehold improvements
are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful lives of the assets.
The useful life of each class of depreciable assets are:
 Depreciable Asset Useful life (years)
Leasehold improvement
 Fit out 40

Property, Plant and Equipment

 Cash register 10
 Desktop computer 4
 Multi-function machine 5
 Examination chair 10
 Lens tinting machine 8
 Automated lens meter 5
 Reception furniture 10
 Glaucoma diagnostic machine 5

Computer software
 MYOB and Optimate POS retail software 5

Leased Motor Vehicle

 Leased MV 8

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at
each reporting period date. An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount.

Leases
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other leases are
classified as operating leases.

Lease payments are apportioned between finance expenses and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance expenses are recognised immediately in profit or loss, unless they are
directly attributable to qualifying assets.

Income tax
The income tax expense (revenue) for the year comprises current income tax expense
(income) and deferred tax liability (asset). Current and deferred income tax liability (asset)
is charged or credited directly to other comprehensive income instead of the profit or loss
when the tax relates to items that are credited or charged directly to other comprehensive
income.

Current tax
Current income tax expense charged to the profit or loss is the tax payable on taxable
income calculated using applicable income tax rates enacted, or substantially enacted, as
at reporting date. Current tax liabilities/ (assets) are therefore measured at the amounts
expected to be paid to/ (recovered from) the relevant taxation authority.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences.

Deferred tax assets are generally recognised for all deductible temporary differences to
the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised.

Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where
the Company is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are not offset.

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories
are determined on a first-in-first-out basis. Net realisable value represents the estimated
selling price for inventories less all estimated costs of completion and costs necessary to
make the sale.

Impairment of assets
At each reporting date, the Company reviews the carrying values of its tangible and
intangible assets to determine whether there is any indication that those assets have been
impaired. If such an indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s
carrying value. Impairment testing has been conducted at 30 June 2016 in respect of all
assets. There is no impairment at this date for any of the assets.

Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

Employee Benefits
A liability is recognised for benefits accruing to employees in respect of wages and
salaries, annual leave and sick leave in the period the related service is rendered. Liabilities
recognised in respect of short-term employee benefits, are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long term employee benefits are measured as the
present value of the estimated future cash outflows to be made by the Company in
respect of services provided by employees up to reporting date.

Provisions
Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Company will be required
to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (where the effect
of the time value of money is material). When some or all of the economic benefits
required to settle a provision are expected to be recovered from a third party, a receivable
is recognised as an asset if it is virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

Loans and Receivables

Trade receivables, loans, and other receivables that have fixed or determinable payments
that are not quoted in an active market are classified as ‘loans and receivables’. Loans and
receivables are measured at amortised cost using the effective interest method, less any
impairment. Interest income is recognised by applying the effective interest rate, except
for short-term receivables when the effect of discounting is immaterial.

Revenue
Revenue is measured at the fair value of the consideration received or receivable.
Revenue is reduced for estimated customer returns, rebates and other similar allowances.

All revenue is stated net of the amount of Goods and Services Tax (GST).

(1) Sale of goods

Revenue from the sale of goods is recognised when the goods are delivered and titles
have passed, at which time all the following conditions are satisfied:
• the Company has transferred to the buyer the significant risks and rewards of
ownership of the goods;
• the Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the
Company; and
 • the costs incurred or to be incurred in respect of the transaction can be measured
reliably.

(2) Dividend and interest income

Dividend income from investments is recognised when the shareholder’s right to receive
payment has been established (provided that it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably).

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services
tax (GST), except:
 where the amount of GST incurred is not recoverable from the taxation authority, it
is recognised as part of the cost of acquisition of an asset or as part of an item of
expense; or
 for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included
as part of receivables or payables.

Foreign currencies
The financial statements of the Company are presented in the currency of the primary
economic environment in which the entity operates (its functional currency). For the
purpose of the financial statements, the results and financial position of the Company are
expressed in Australian dollars (‘$’), which is the functional currency of the Company and
the presentation currency for the financial statements.

In preparing the financial statements, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recognised at the rates of exchange prevailing
at the dates of the transactions.

Exchange differences on monetary items are recognised in profit or loss in the period in
which they arise.

Rounding of amounts
The Company has applied the relief available to it under ASIC Class Order 98/100 and
accordingly, amounts in the financial statements and Directors’ Report have been
rounded off to the nearest dollar.

Note 4. REVENUE

Revenue $
Sale of frames and accessories 445,584
Interest received 123
Patient fee received 67,523
Total 513,231
Note 5. Income tax

Deferred tax asset 2,585.38

Deferred tax liability 13,359.45

Note 6. Cash and cash equivalent

Cash at bank 105,058

petty cash 200
term deposit 50,000

Note 7. Trade Receivables

Year ended 30/6/2016

Trade Debtors $
Trade Debtors 22,191
Provision For
Doubtful Debts (672)
Bad Debts Write-
off (260)
Total 21,259

Note 8. Depreciation

Depreciable Asset Cost Useful Dep for the Total

life year
Fit-out $129,850 40 $3,246 $126,604
Cash register $5,030 10 $503 $4,527
Desktop computer $7,170 4 $1,793 $5,378
Multi function $4,590 5 $918 $3,672
machine
Examination chair $8,300 10 $830 $7,470
Lens tinting $22,630 8 $2,829 $19,801
machine
Automated lens $40,200 5 $8,040 $32,160
meter
Reception furniture $12,140 10 $1,214 $10,926
Glaucoma $16,790 5 $3,358 $13,432
diagnostic machine
MYOB $11,490 5 $2,298 $9,192
Motor Vehicle $36,000 8 $4,500 $31,500
Note 9. Shares in listed company

No of Share
Total
Date share Price
15/05/2016 1000 $24.00 $24,000.00
30/06/2016 1000 $22.50 $22,500.00
Loss on Revaluation $1,500.00

Note 10. GST

Year ended 30/6/2016

GST $
GST Payable 17,835
GST Receivable 13,067
GST Payable 4,768

Note 11 Loan

Loan $
BANK OF
BRISBANE
Balance at
1/08/2015 200,000
Loan Repayment (53,213)
Balance at
30/06/2016 146,787

Current Liability 35,858

Non-Current
Liability 110,929

Note 12 Lease

Lease $
Motor Vehicle
Balance at
14/12/2015 36,000
Loan Repayment (3,442)
Balance at
30/06/2016 32,558
 Current Liability 5,863
Non-Current
Liability 26,695

Note 13 Issued Capital

Issued Capital $
300,000 fully paid ordinary
share 300,000
Total 300,000

Note 14 Company Information

Business Address:
23 Crosby Road
Toowong, QLD 4066
Phone: (07) 3870 5128
 Directors’ Declaration

The Directors have determined that the Company is not a reporting entity and that this special purpose
financial report should be prepared in accordance with the accounting policies described in Note 1 to
the financial statements.

The Directors of the Company declare that:

1. The financial statements and notes, are in accordance with the

Corporations Act 2001:
a) Comply with Accounting Standards as described in Note 1 to the
financial statements, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
b) Give a true and fair view of the financial position as at 30 June 2016
and of the performance for the year ended on that date of the
Company in accordance with the accounting policies described in
Note 1 to the financial statements; and

2. There are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Directors

Joe and Maryanne Robinson

24th August,2016
 Accountant’s Compilation Report

To the Board of Directors

Visual Optics Pty Ltd.

We have compiled the accompanying balance sheet of Visual Optics Pty Ltd as of June 30, 2016, and
the related statements of income and retained earnings and Balance sheet for the year then ended.
We have not audited or reviewed the accompanying financial statements and, accordingly, do not
express an opinion or provide any assurance about whether the financial statements are in accordance
with accounting principles generally accepted in the Australia.

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the Australia and for designing,
implementing, and maintaining internal control relevant to the preparation and fair presentation of
the financial statements. Our responsibility is to conduct the compilation in accordance with
Statements on Standards for Accounting and Review Services issued by the Australian Institute of
Certified Public Accountants (APES 315 Compilation of Financial Information)

The objective of a compilation is to assist management in presenting financial information in the form
of financial statements without undertaking to obtain or provide any assurance that there are no
material modifications that should be made to the financial statements.

Ashima
24th August,2016
 Visual Optics Pty Ltd
Tax Reconciliation Report
For the Year Ended 30/06/2016

Net profit before tax 56,019.83

Add:
Opening party 2500.00
Christmas party 240.00
stock for personal use 285.00
unrealised loss on currency exchange 179.93
closing stock 27940.00
provision for doubtful debt 671.61
provision for annual leave 6540.00
unrealised loss on shares 1500.00
sundry expenses 425.00

Deduct:
Depreciation -44812.31
layby sale -1940.00
prepaid insurance -600.00
interest income -122.95

Taxable Income 48,826.11