Level 8 accounting

Indicators

The purpose of indicators is to provide greater clarity in terms of expected depth and scope by providing examples of the kinds of behaviours and capabilities that a teacher might expect to observe in a student who is achieving at the appropriate level. Teachers can add further indicators if they wish.

Context elaborations

Context elaborations are possible contexts for learning, with a suggestion of how they might be used with the focus learning objective.

The listed context elaborations are examples only. Teachers can select and use entirely different contexts in response to local situation, community relevance, and students’ interests and needs.

Learning objective 8-1

Indicators

• Understands the appropriate sections of the New Zealand Framework.
• Applies the accounting concepts to reporting entities.
• Describes the statutory requirements of reporting entities.
• Demonstrates how management tools are used to evaluate and report financial and non-financial information.
• Describes circumstances of ethical and unethical behavior that a partnership or company may be exposed to.
• Explains the current and future implications of saving (including Kiwisaver) and borrowing and investments, including legal contractual obligations.

Possible context elaborations

Context elaborations are possible contexts for learning, with an indication of how they might be used in relation to the learning objectives concerned.

• The NZRFU wants to record the All Blacks captain as an asset in their statement of financial position. Explain why this is not possible.
• A company decides to shift their manufacturing to Fiji. Identify the advantages and disadvantages of this venture.
• You and two mates won enough money on Lotto to set up a business. Explore which ownership structure would be the best.
• How much will need to be invested today in order to generate a return of $1,000 every year, for the next 5 years, at an interest rate of 14%, compounded annually?
• If the new piece of equipment is required to generate a profit of $100,000 p.a. for the next five years at a return of 14% p.a., what is the maximum amount the engineering firm should pay for the machine?
• What is the annual amount that needs to be saved, in order to have $1,000,000 on which to retire? Assume that you are retiring in 40 years, and the average interest rate is 5% p.a.
• Discuss the implications of a company wanting to buy back some shares.
• The company you work for is required to comply with council requirements to be more sustainable. Explore some initiatives that the company could take to meet sustainability requirements.
• Explain how a manufacturing firm would pre-determine their factory overhead rate.
• Use CVP analysis to assess the viability of expanding a cosmetic surgery company.
• Use the movie Wall Street to explore the ethics of insider trading.
• The Companies Act 1993 requires companies to give a one line disclosure of total donations made. Discuss why ethically companies should supply an extensive list of donation recipients. Provide real life examples.

Assessment for qualifications

Consider how student learning could be assessed using the accounting achievement standards. Consider alternative linkages between the achievement objective and achievement standards.

• 91404 Accounting 3.1 Demonstrate understanding of accounting concepts for a New Zealand reporting entity; External, 4 credits.
• 91405 Accounting 3.2 Demonstrate understanding of accounting for partnerships; Internal, 4 credits.
• 91406 Accounting 3.3 Demonstrate understanding of company financial statement preparation; External, 5 credits.
• 91407 Accounting 3.4 Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity; Internal, 5 credits.
• 91408 Accounting 3.5 Demonstrate understanding of management accounting to inform decision-making; External, 4 credits.
• 91409 Accounting 3.6 Demonstrate understanding of a job cost subsystem for an entity; Internal, 4 credits.

At the time of publication, achievement standards were in development to align them with The New Zealand Curriculum. Please ensure that you are using the correct version of the standards by going to the NZQA website.

The NZQA subject-specific resources pages are very helpful. From there, you can find all the achievement standards and links to assessment resources, both internal and external.

Learn more:

• NZQA: Accounting subject resources

Aligned level 1 achievement standards were registered for use in 2011 and level 2 for use in 2012; level 3 will be registered for use in 2013.

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Learning objective 8-2

Indicators

• Demonstrates understanding of accounting entries and financial statement preparation for partnerships.
• Demonstrates understanding of financial statements, incorporating additional information with appropriate notes required for external reporting.
• Analyses a company’s annual report and communicates its meaning to an external user.
• Demonstrates understanding of accounting entries for a job costing system.
• Demonstrates understanding of financial and non-financial information for management decision-making purposes.

Context elaborations

• Jack and Jill are both doctors. They decide to form a partnership with Jack contributing cash and Jill her existing practice. Prepare the accounting entries for the set up of this partnership.
• Your grandma would like to invest in some shares and asks you for some advice about which one of two scuba-diving companies would provide her with the best return on her investment.
• Set up a system to help a manufacturer who produces skateboards to keep track of production costs.
• Jett and Scarlett (‘Scarred 4 Life Unlimited’) run a tattoo parlour. Taking into consideration their partnership agreement, prepare the necessary transactions to record profit distribution.
• You are employed as a company accountant and you have to prepare the annual financial statements for external reporting purposes.
• Thousands of tourists are flocking to New Zealand for a major sporting event, for example, the Rugby World Cup. 'Nothing is Wasted Ltd' wants to set up composting toilets at each of the playing venues. They are applying for a large bank loan and the bank requests a cash budget to be prepared in support of the application.
• Prepare a job cost card for a made-to-order ball gown.
• Bulging Biceps Builders Ltd needs to make provisional tax payments. Help them record this in their accounting records.

Assessment for qualifications

Consider how student learning could be assessed using the accounting achievement standards. Consider alternative linkages between the achievement objective and achievement standards.

• 91404 Accounting 3.1 Demonstrate understanding of accounting concepts for a New Zealand reporting entity; External, 4 credits.
• 91405 Accounting 3.2 Demonstrate understanding of accounting for partnerships; Internal, 4 credits.
• 91406 Accounting 3.3 Demonstrate understanding of company financial statement preparation; External, 5 credits.
• 91407 Accounting 3.4 Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity; Internal, 5 credits.
• 91408 Accounting 3.5 Demonstrate understanding of management accounting to inform decision-making; External, 4 credits.
• 91409 Accounting 3.6 Demonstrate understanding of a job cost subsystem for an entity; Internal, 4 credits.

At the time of publication, achievement standards were in development to align them with The New Zealand Curriculum. Please ensure that you are using the correct version of the standards by going to the NZQA website.

The NZQA subject-specific resources pages are very helpful. From there, you can find all the achievement standards and links to assessment resources, both internal and external.

Learn more:

• NZQA: Accounting subject resources

Aligned level 1 achievement standards were registered for use in 2011 and level 2 for use in 2012; level 3 will be registered for use in 2013.

Last updated September 7, 2021

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