MAA261 Study Guide - Final Guide: Tax Evasion, Payroll Tax, Income Splitting
Document Summary
Identify financial goals: preparation of financial statements, understand risks, arrange financial means to satisfy objectives. It is a fra(cid:373)e(cid:449)ork (cid:271)ased arou(cid:374)d (cid:272)o(cid:374)su(cid:373)ptio(cid:374) a(cid:374)d i(cid:374)(cid:272)o(cid:373)e o(cid:448)er a perso(cid:374)(cid:859)s life ti(cid:373)e, used to build short, medium and long term objectives. Main disclosures are: financial services guide = describes the range of services, fees, dispute resolution. Financial ratios etc: statement of advice, product disclosure statement. Fp(cid:859)s ha(cid:448)e a professio(cid:374)al fidu(cid:272)iar(cid:455) dut(cid:455) to look after the i(cid:374)terests of the (cid:272)lie(cid:374)t (cid:449)ithout (cid:271)ias and conflict and in a matter that establishes a relationship of confidence, trust and discretion. Income: personal cash flow statements, personal balance sheet, expenditure. Debt service ratio (annual debt commitments/annual net income) Both factors influence rate of return and thus need to be communicated to clients. Rate of return = nominal rate of return. Real rate of return = reduced by taxation and inflation. After tax return = 4. 5 - (0. 19x4. 5) = 3. 64.
