Assessment Detail Updated essay

Accounting for Decision Making VIBE Assessment semester 1 2015 The Virtual Business Enterprise (VIBE) learning resource developed for CACTI 101 is a AD virtual world created around a small economy consisting of 20 student-run ‘businesses’ and supported by a central ‘bank’. Students in groups of 4 manage their business in the VIBE over several operating cycles while competing with other businesses in the virtual economy. There are 6 in-world sessions (instances), each of 50 minutes duration, scheduled for each student-run business, with the first session commencing Monday 30

March 2015. Your session times were announced at your week 4 VIBE induction and can be found on blackboard. Your business activity in the VIBE world will generate a range of financial data. After the trading session, the VIBE will translate this game play data into scaled, relevant financial statements for the virtual business you operate. You can access this information from the Enterprise App. And you should do so after each in- world session.

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These financial statements will form part of the financial plan section of your business plan so you should print them out and retain a copy. Please note that the financial statements for trading sessions 1-5 cannot be saved in the Enterprise App because the trading done in subsequent sessions overwrites the previous figures in the database. If you want to access those interim financial statements you must print them out when available (and before the next trading session) and ensure you retain a hard copy.

Assessment relating to the VIBE is on a group basis and will be as follows: 1 . Completion of key financial ratios and submission of a Business Activity Statement (BAS) in session 3 (week beginning 20 April) and session 6 (week ginning 11 May) and completion of an online individual reflective journal. (10%) 2. Submission of a business plan for the group’s VIBE business due noon Thursday May 28. (20%) 1. (a) Key financial ratios (3% total) Each student group should calculate and submit the following financial ratios at the end of their group’s trading session 3 and session 6.

This corresponds to the end of the first 6 months and 12 months of trading respectively (i. E. Each trading session represents 2 months). You will need to wait for the financial statements for your most recent trading session to become available about an hour after your session ends) on the Enterprise App so that you can obtain the necessary inputs for the calculation. The financial ratios are: Return on Equity Quick Ratio Current Ratio Profit Margin Gross Profit Percentage Formulae will be provided to guide students through each ratio.

Each ratio is input through the VIBE Dashboard, which is a web application available at (http://dashboard. Pier-enterprise. Com) . Note that this is a self-assessment that will not allow you to progress to the next question until you have the correct answer. You should save all your financial ratios for later use in your business plan. * I(b) Business Activity Statement (2%) The business activity statement (BAS) is a tax reporting requirement for businesses issued by the Australian Taxation Office (TAT) on either a monthly or quarterly basis.

It’s used for reporting and paying goods and services tax (SST), pay as you go (PAYS) installments, PAYS withholding tax and other tax obligations. Each student group should submit a ‘mock’ BAS at the end of their group’s trading session 3 and session 6. You will need to wait for the obtain the necessary inputs for the BAS. Guidance will be available to support students through the BAS calculation process. Each BAS is input through the VIBE Dashboard, which is a web application available at (http:// dashboard. Pier-enterprise. Com) .

Note that this is a self-assessment that will not allow you to complete until you have the correct answer. 1 (c) Online reflective journal (5%) To get the most out of the VIBE experiential learning resource, it is important for you to reflect on the process leading up to and outcomes of each trading session. To develop and improve your problem solving skills, you should consider what has happened in each session and evaluate your role and that of others in a constructive and critical way. You should also identify whatnot have learned from the VIBE exercise.

Each student should individually keep an online reflective journal about their VIBE trading sessions. After each trading session, each student should individually record an entry in their personal online reflective journal available through the Enterprise App. Entries for each session should be approximately 60-100 words. To guide student reflection, the following are points that students could address in their reflective journal: a) Did your group meet to plan goals and allocate tasks before the trading session? B) Who was responsible for what actions during the trading session? ) What goals were set for the trading session? D) Did the group achieve their goals during the trading session? Why or why not? E) What decisions needed to be made during the trading session? Were these successful decisions? F) What areas have you identified for improvement? Each individual reflective journal will be assessed after session 6 is complete. 2. Business Plan for your VIBE business (20%) The 6 VIBE trading sessions are intended as a pathway to the development of a business plan for your virtual business.

Your group’s performance in running your virtual business will be reflected in the financial statements generated at the end of each trading session. The final set of financial statements generated at the end of session 6 will form the basis for the financial plan section of your business plan. The purpose of the business plan s to support a loan application with a local financial institution. The amount of loan funds requested is up to you.

The business plan is a group assignment and should contain: Percentage of total assessment Component Word count Description of business 200 4 Marketing Plan 800 Operating plan Environmental management plan 5 Financial Plan 1 800 Financial Plan – statements and projections Executive summary There is flexibility around word limits for each section and in total. You will be provided with additional information about the virtual world and your equines to help with completion of the first four sections of the business plan.

The financial plan is the focus of the assignment and should contain at a minimum: Final financial statements for your business at the completion of the 6 trading sessions Financial ratios calculated after session 3 and session 6 A cash budget, projected income statement and projected balance sheet for the next financial year with supporting calculations and assumptions. Your budgets and projected financial statements should be consistent with the other parts of your business plan.

For example if you are planning a major marketing campaign in your marketing plan, this should be reflected in budgeted marketing expenses in your projected income statement. Projected financial ratios A request for a specific loan amount and a full explanation and justification of how the loan funds will be used. An explanation of how the business will generate sufficient cash to repay the loan and interest.