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Seminar for Third Consultation on New Senior Secondary Curriculum and Assessment Framework

Business, Accounting and Financial Studies

Public Assessment

October 2006

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Learning Outcomes

• The public assessment of this subject is based on the NSS Curriculum and Assessment Guide (S4-6) Business, Accounting and Financial Studies (BAFS) jointly prepared by the CDC and HKEAA

• Candidates have to refer to the Guide for the knowledge, understanding and skills they are required to demonstrate in the assessment.

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Assessment Objectives

1. demonstrate knowledge and understanding of different areas of business;

2. apply such knowledge and understanding to familiar and novel situations;

3. analyse, synthesise and evaluate information in the context of business decisions, taking into account the integrated and dynamic nature of business problems; and

4. communicate facts, opinions, and suggestions in an effective manner

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Proposed Assessment Framework

Component Weighting Duration

Public Examination

Paper 1: Compulsory Part

32%(8040%)

1 hr 15 mins

Paper 2: Elective Part

48% (8060%)

2 hrs 30 mins

School-based Assessment 20% S5 and S6

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Public Examination

Paper 1Section A (60%) − multiple choice questionsSection B (40%) − short questions All questions are compulsory.

Paper 2

  Paper 2A(accounting module)

Paper 2B(business management module)

Remarks

Section A (25%) short questions short questionsAll questions are compulsory.

Section B (50%) application problems case studies

Section C (25%) case/theory questions essay questionsCandidates will be required to answer one out of two questions.

Candidates are expected to integrate their knowledge and skills learnt in the compulsory part to demonstrate in-depth knowledge of the module

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Question Types

Paper 1(Compulsory part)Multiple-choicequestions

2005 CE Commerce 2 Q9

Which of the following descriptions about the World Trade Organisation is INCORRECT?

A. It monitors national trade policies.

B. It acts as a channel for settling international trade disputes.

C. It provides technical assistance and support to the less developed member countries.

D. It provides export credit insurance to exporters from the member countries.

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Question Types

Paper 1(Compulsory part)Multiple-choicequestions

Web-based Teacher Development Course on Personal Finance for TE TeachersUnit 1 – Assessment

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Question Types

Paper 2A(Accounting module)Short questions

2006 HKCE Principles of Accounts Q2(B)

Valor Company acquired a machine on 1 January 2002. The machine has an estimated useful life of 5 years. The depreciation charge for the first three years was calculated for this machine using two different depreciation methods as follows:

YearStraight-line method Reducing-balance method

(5 years) (50% per annum)

2002 $12 400 $32 000

2003 12 400 16 000

2004 12 400 8 000

You are required to:

(a) State three causes of depreciation.

(b) Calculate the cost of the machine and its estimated residual value.

(c) Prepare journal entries to record the disposal of the machine based on the straight‑line method, assuming that the machine was sold on 30 September 2005 for $36 000 on credit. (Narrations are not required)

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Question Types

Paper 2A(Accounting module)application problems

2006 HKAL Principles of Accounts 2 Q5

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Question Types

Paper 2A(Accounting module)Case/theory questions

2006 HKAL Principles of Accounts 2 Q3

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Question Types

Paper 2A(Accounting module)Case/theory questions

Sample HKAL Principles of Accounts 2 Q4

(A) The director of a limited company read the following in the newspaper:

  “The Financial Secretary said in the 2001-02 Budget Speech that starting from the accounts for fiscal year 2002-03, two separate sets of Annual Accounts of the Government would be published, one under the existing cash accounting convention and the other prepared on an accrual basis.”

 Explain to the director how the two bases differ and whether the company could switch between them.  

 

(B) “Every balance sheet of a company shall give a true and fair view of the state of affairs of the company as at the end of its financial year, and every profit and loss account of a company shall give a true and fair view of the profit or loss of the company for the financial year.” (Source: S123(1), Hong Kong Companies Ordinance)

 How can a true and fair view be achieved in the context of the Hong Kong financial reporting environment?

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Question Types

Paper 2B(Business management module)Short questions

2005 HKAL Business Studies 1 Q4

試為一家現金短缺的公司，建議三個可改善短期現金狀況的方法。

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Question Types

Paper 2B(Business management module) Case studies

2005 HKAL Business Studies 1 Q7

NuWear is a casual wear retail chain in Hong Kong targeting children and young people. It entered the Mainland market several years ago. Over the last three years, NuWear has set up more than 30 stores in the major cities in the Mainland. Despite massive advertising and promotion efforts, sales were far from satisfactory. In fact, NuWear’s Mainland operation has been in the red in the past two years. To deal with this situation, Mary and John, directors of the company, held a meeting to sort out the future strategy for the Mainland market.

Mary suggested: ‘Sales in the Mainland remain very low. We’d better find some ways to stop bleeding. I suggest setting a standard for the net profit margin so that all shops failing to meet this standard would be closed down.’

John disagreed: ‘Relying on the net profit margin alone is too rigid and mechanical. Moreover, closing down branch shops would affect our image and arouse negative speculation. Our expansion in the last few years was just too fast and most salespersons did not receive enough training. Our customers are not happy with the services provided by them. Besides, the relationship between the management and the salespersons at the shops is not good. Most managers are from Hong Kong whereas the salespersons are recruited from the Mainland. The managers always complain about the difficulties in managing the Mainland salespersons whom they regard as typical Theory-X employees. However, I disagree with this. I believe there may be communication problems between them.’

Questions:

(a) Suggest two possible benefits to NuWear of entering the Mainland market.

(b) Besides being too rigid and mechanical, explain two limitations of using the net profit margin as the only criterion to decide on branch closures.

(c) With reference to the characteristics of service, give two reasons to explain why training of salespersons is an important factor affecting sales.

(d) (i) List three of the major characteristics of Theory X employees.

(ii) Explain three ways to effectively manage Theory X salespersons.

(e) Describe two possible communication barriers that may exist between Hong Kong managers and Mainland staff.

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Question Types

Paper 2B(Business management module) Essay questions

2006 HKAL Business Studies 2 Q7

假設你是某大型貿易公司的人力資源經理，正為銷售人員與會計文員設計報酬制度。

(a) 比較這兩個報酬制度不同之處。

(b)解釋為什麼這兩個報酬制度會有所不同。

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School-based Assessment (SBA)

• Assessments administered in schools and marked by the students’ own teachers

• Enhance validity

• More reliable assessment

• Promote a positive washback effect

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SBA Design

1. focus on skills that cannot be readily assessed through the public examination

2. focus on achievement or performance rather than on attitude or effort

3. as an integral part of ongoing classroom learning and teaching

4. practicable and can be implemented readily within schools and classrooms without undue cost to the school or to students

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5. caters for the diversity of students

6. comprehensive set of guidelines and scoring rubrics to ensure that student performance is assessed consistently

7. final product or performance can readily be authenticated by the teacher as the work of the student concerned

SBA Design

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8. in-class and out-of-school time commitment reasonable and consistent with the expected time commitment for the weighting given to SBA

9. consider the state of planning for SBA and the readiness of schools to implement SBA in this subject

SBA Design

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School-based Assessment

Tests and examinations

Business exposure

Enterprise experience

Presentations on business cases/issues

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Uniqueness of SBA in BAFS

KnowledgeSkills

Values & Attitudes

Integrated business

knowledge and skills

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S5• a written artifact of not more than 3 word-processed

A4 pages

S6• written presentation and• oral presentation of not more than 10 mins, followe

d by a Q&A session of about 10 mins

Assessment Task

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SBA ActivitiesSBA activities may be carried out on a group or individual basis, but assessment task must be done as individual work

Accounting Elective Business Management Elective

• Evaluating the finance of a club/activity/business venture

• Analysing the annual report / financial statement of an organisation

• Reporting on a visit to a manufacturing firm• Evaluating a personal budget for 6 or 12 months• Writing a commentary on news related to

accounting / accounting work / the accounting profession

• Reflecting on an actual work experience / the work of a treasurer / meeting with accounting professional

• Conducting financial budgeting for an SME• Preparing a business plan for a specified

business venture

• Analysing the management issues of a club/activity/business venture

• Analysing the annual report / financial statement of an organisation

• Reporting on a company visit • Evaluating a personal budget for 6 or 12

months• Writing a commentary on news related to

business management • Reflecting on an actual work experience / a job

shadowing program / meeting with entrepreneurs

• Conducting a SWOT analysis for an SME• Preparing a business plan for a specified

business venture

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Assessment Criteria (Annex 2)

1. Business knowledge and understanding display of subject knowledge application of knowledge integration of knowledge

2. Analysis skills for business decision-making prioritisation of issues information collection information evaluation

3. Business presentation skills organisation use of presentation aids time management speaking non-verbal communication engaging the audience responding to questions

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Mark Allocation

Task 1 Task 2

Worksheet on research process (Annex 1) 15 15

Business knowledge and understanding 25  25

Analysis skills for business decision-making 25 25

Business presentation skills

Organisation 10 10

Oral presentation ─ 50

75 125

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Annex 1

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Annex 3

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SBA Marks

• reflect the rank order of its students as well as the relative differences between students’ achievements

• will be moderated to provide comparability across schools

• students are required to keep good custody of their work for inspection and authentication purposes until the release of exam results

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Estimated Time Commitment

Per student

• in-class: ~6 hours (60 mins x 3 worksheets x 2 tasks)

• oral presentation: 10+10 mins

• outside-class: 12-25 hours

Per class• worksheets: ~6 hours• presentation: ~15 hours [(10+10) mins x 40 students]

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Implementation schedule

• SBA new to business subject(s)• variations in school readiness• ‘new’ curriculum: require more time for the

better planning of suitable SBA activities

•2nd consultation Strongly Agree / Agree

Strongly Disagree / Disagree

No Opinion / No Response

Proposed modes of SBA 50.3% 36.0% 13.7%

Introduction of SBA in 2012 HKDSE examination 51.4% 26.4% 22.3%

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Phased ImplementationYear of

ExaminationImplementation of SBA

2012 Schools are not required to submit SBA marks. Public examination result contributes 100% of the final subject result.

2013 Each school must select one of the following options:• Submit SBA marks for feedback from HKEAA on the outcomes of

moderation.• Do not submit SBA marks.In both options, public examination result contributes 100% of the final

subject result.

2014 Each school must select one of the following options:• Submit SBA marks to contribute 20%SBA marks to contribute 20% of the final subject result.• Submit SBA marks for feedback from HKEAA on the outcomes of

moderation. Public examination result to contribute 100% of the final subject result.

Starting from 2015, all schools have to submit SBA marks to contribute 20%SBA marks to contribute 20% of the final subject result.

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Development Work Ahead

• Developing sample papers

• Conducting pilot tests

• Trying out SBA criteria

• Standard-setting and drafting level descriptors

• Compiling annotated exemplars

• Assessment training

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School Survey15 questions on 3 areas① Alignment between assessment objectives and curriculum

aims and objectives

② Public examination– Paper structure– Weighting– Duration

③ School-based assessment– Weighting– Design– Required teacher efforts– Required student efforts– Authentication– Implementation schedule

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Comments and suggestions welcome

Thank You!