ACCOUNTING AND FINANCE

ACCOUNTING AND FINANCE

Accounting and Finance: Accredited April 2008 (updated June 2010)For teaching 2011, examined in 2011

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IMPORTANT INFORMATION

Syllabus review Once a course syllabus has been accredited by the Curriculum Council, the implementation of that syllabus will be monitored by the syllabus committee. This committee can advise council about any need for syllabus review. Syllabus change deemed to be minor requires schools to be notified of the change at least six months before implementation. Major syllabus change requires schools to be notified 18 months before implementation. Formal processes of syllabus review and requisite reaccreditation will apply.

Other sources of informationThe Western Australian Certificate of Education (WACE) Manual contains essential information on assessment, moderation and other procedures that need to be read in conjunction with this course.The Curriculum Council will support teachers in delivering the course by providing resources and professional development online.The council website www.curriculum.wa.edu.au provides support materials including sample programs, assessment outlines, assessment tasks, with marking keys, sample examinations with marking keys and grade descriptions with annotated student work samples.Training package support materials are developed by Registered Training Organisations (RTOs), government bodies and industry training advisory bodies to support the implementation of industry training packages. Approved support materials are listed at www.ntis.gov.au

WACE providersThroughout this course booklet the term ‘school’ is intended to include both schools and other WACE providers.

Currency statementThis document may be subject to minor updates. Users who download and print copies of this document are responsible for checking for updates. Advice about any changes made to the document is provided through the Curriculum Council communication processes.

Copyright© Curriculum Council, 2008.This document—apart from any third party copyright material contained in it—may be freely copied or communicated for non-commercial purposes by educational institutions, provided that it is not changed in any way and that the Curriculum Council is acknowledged as the copyright owner.Copying or communication for any other purpose can be done only within the terms of the Copyright Act or by permission of the Curriculum Council.Copying or communication of any third party copyright material contained in this document can be done only within the terms of the Copyright Act or by permission of the copyright owners.


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http://www.curriculum.wa.edu.au/

http://www.ntis.gov.au/

RationaleFinancial matters affect every member of our society. Interest rates, youth bankruptcy, easily available finance and high banking costs are daily issues. Everyone has to make numerous financial decisions on a personal or business level, many of them with far-reaching consequences. The course aims to make students financially literate by creating an understanding of the systems and processes through which financial practices and decision-making are carried out, as well as the ethical, social and environmental issues involved. It helps students to analyse and make informed decisions about their finances, both personal and business.

Financial literacy gives individuals the ability to make sound financial judgements, based on information analysis. In an age when many business practices and ethical standards are being questioned, awareness of the ways financial practices impact on their lives helps students take responsibility for their own financial commitments. It empowers them, giving them an understanding of the local, national and global influences on financial matters. It gives them the problem-solving skills to operate at many levels of financial decision-making, from banking transactions to the management of personal investments and the financial planning and control of businesses.

Through engagement with the course, students develop an understanding of the fundamentals on which accounting and financial management are based. In our current economic environment, where small businesses are the largest employers, many students will find themselves self-employed and there is a high probability that they will have to engage in some form of accounting practices. Having an understanding of these practices enables them to analyse their own financial data and make informed decisions based on that analysis.

In a rapidly changing world, the impact of technology on financial and accounting practices has been vast, as seen in the globalisation of markets. The use of computer systems for record keeping, monetary transfers, tax calculations and the communication of financial data is already vital, and will continue to shape future careers. Many of these careers have not yet evolved, but when they do, they will involve technology and financial practices at some level.

This course provides students with the opportunity to further their achievement of specific overarching learning outcomes from the Curriculum Framework together with the development of the core-shared values.

Course outcomesThe Accounting and Finance course is designed to facilitate the achievement of four outcomes. These outcomes are based on the Technology and Enterprise learning area outcomes in the Curriculum Framework. Outcomes are statements of what students should know, understand, value and be able to do as a result of the syllabus content taught.

Outcome 1: Financial conceptual understandingStudents understand the concepts, principles, systems and structures that are fundamental to accounting and other financial processes.In achieving this outcome, students: understand the concepts and principles of

financial decision-making; understand the elements of financial systems;

and understand the relationship between the

purpose and structure of financial information.

Outcome 2: Factors influencing financial decisionsStudents understand the interrelationship between financial decisions and the individual, society and the environment.In achieving this outcome, students: understand the influence of values and ethics

on financial decisions; understand that government policies, legal

requirements and other regulations influence financial decisions; and

understand the impact of societal and environmental factors on financial decisions.

Outcome 3: Financial systemsStudents explore and apply appropriate financial systems to meet personal and organisational needs.In achieving this outcome, students: explore and select an appropriate financial

system to meet user needs; use a financial system to record and present

information; and adapt and/or customise a financial system to

meet user needs.

Outcome 4: Analysis and interpretation of financial informationStudents select, use and interpret financial information.In achieving this outcome, students: select financial information for analysis and use

appropriate techniques; draw conclusions from financial information;

and recommend appropriate action based on

financial information analysis.


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Outcome progressionsEach of the outcomes is described as a learning progression across six broad levels (see Appendix 1). In teaching a particular course unit, teachers can use the outcome progressions along with the unit content to: plan appropriate lessons and activities for their

students, and develop specific assessment tasks and

marking keys.The outcome progressions are not used for assessment purposes.

Course contentThe course content needs to be the focus of the learning program. It enables students to maximise their achievement of both the overarching learning outcomes from the Curriculum Framework and the Accounting and Finance course outcomes.

The course content is divided into three areas: financial institutions and systems recording, using and evaluating

financial information government and the community.

The terminology used in this syllabus is current at the time of publishing. Terminology and processes used in the delivery of this course should be compliant with current Australian Accounting Standards Board requirements.

In implementing Stage 2 and Stage 3, teachers must refer to the current practices as prescribed by the Australian Accounting Standards Board and the Corporations Act.

The proportion of time recommended to be spent on content areas will vary between units and is specified within each unit.

Financial institutions and systems Financial institutionsAn understanding of interactions with financial institutions in a personal and business context is important for everyone in our society. This includes different types of bank accounts and the management of such accounts. The course looks at financial instruments including the use of Electronic Funds Transfer Point of Sale (EFTPOS), internet banking and debit and credit cards. The various forms of financial institutions and sources of borrowings are covered.

Financial systems and fundamental principlesKnowledge of the principles and conventions underlying finance and accounting and the terminology used in these fields are essential. The course covers conventions such as the accounting entity, characteristics of financial reports, such as relevance, reliability and comparability and the principles of double entry and the accounting equation. The essential elements of financial

reports, such as assets, liabilities, expenses, income and equity are defined. Concepts such as profitability, stability, risk and return and the financial reports and the systems which produce them are addressed.

Recording, using and evaluating financial informationRecording, processing and communicating financial information Financial recording involves various processes, such as source documents verifying financial transactions, ledger accounts or personal records. It is important to use ethical processes when recording financial information for an individual and for a variety of business entities. The course addresses the importance of technological change in shaping the way financial decision-making is carried out. A variety of electronic tools, including accounting packages and spreadsheet programs are used. The internet is used as a source of financial information and a means of communication with others. The course outlines the objectives of the various financial reports produced by business entities.

Evaluating financial information for planning, coordinating, controlling and investingThe most important aspect of business financial management is the analysis and interpretation of financial information. This can be presented as a formal financial statement, such as a company balance sheet, or an informal presentation such as a statistical abstract, graph, table, newspaper report or statement of account. The course introduces a variety of tools and processes to make sound financial decisions in a business context. A further aspect of financial management is the desire to improve the performance of a business. The course outlines management accounting practices and processes. Appropriate sources of finance are examined and these are evaluated against various goals. The concepts of risk, return and capital growth are compared and other long-term investments considered.

Government and the communityThe role and influence of governments and other bodies The taxation system impacts on individuals and organisations. The course looks at why taxation is necessary and the various systems of taxation in use in Australia. This includes legislation governing the collection, payment and reporting of tax. Government influences financial decision-making, through organisations such as the Australian Securities and Investment Commission and the operation of legislation, such as the Corporations and Partnership Acts. The role and services of professional associations and community bodies and the influences they have on financial processes and practices are addressed.


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The influence of social, environmental and ethical factors The influence that financial decisions have on social and environmental issues and the importance of maintaining ethical decision-making processes when considering these influences is an important aspect of accounting and financial management. A wide range of issues within communities can be considered from a decrease in services, such as the closure of a bank in a country town, to social and environmental reporting by corporations. Factors that may impact on financial decisions should be identified and considered.

Course unitsEach unit is defined with a particular focus. The cognitive difficulty of the content increases with each stage and is referenced to the broad learning described in the outcome progressions. The pitch of the content for each stage is notional and there will be overlap between stages.

Stage 1 units provide bridging support and a practical and applied focus to help students develop skills required to be successful for Stage 2 units.

Stage 2 units provide opportunities for applied learning but there is a focus more on academic learning.

Stage 3 units provide opportunities to extend knowledge and understandings in challenging academic learning contexts.

Unit 1AACF The focus for this unit is personal finance. Students are introduced to the concepts, principles and terminology used in financial decision-making and management on a personal basis. They learn about the main institutions that operate in financial markets and how governments and other community bodies can affect the way individuals and groups make financial decisions. Students learn about the main financial documents and reports used in personal financial transactions and decision-making and the systems that facilitate individuals to carry out their financial transactions.

On completion of this unit the student should be able to: explain and apply the knowledge and skills

necessary for personal financial decision-making

identify, record, report and explain the financial data and information related to personal finance

apply accounting skills to evaluate financial and non-financial information in order to make informed decisions about personal finance

identify the beliefs and values affecting personal financial decision-making.

Unit 1BACF The focus for this unit is accounting for small cash entities. Students extend their knowledge of the fundamental principles and conventions of accounting and finance to learn how these apply to the establishment and operations of small cash entities including small incorporated bodies. They learn about the main financial institutions that small cash entities deal with and understand how governments and other community bodies can influence their decision-making processes. Students learn about financial record-keeping on a cash basis for small entities, as well as the main financial documents and reports used in the financial transactions of small incorporated entities. They learn the main issues involved in business decision-making and carry out simple analyses of given information to determine the financial performance and position of a business.


necessary to set up a small cash entity identify, record, report and explain the financial

data and information for the owner of a small cash entity, using manual or computer-based methods

apply accounting skills to evaluate financial and non-financial information in order to make informed decisions for a small cash entity

identify government influences affecting the establishment of cash entities.

Unit 2AACFThe focus for this unit is double entry accounting for small businesses. Students apply their understanding of financial principles, systems and institutions to manage financial information and make decisions in a variety of small businesses. Students develop an understanding of the rationale for the use of particular conventions and principles and the consequences of disregarding them. Students record and process financial information using the double entry system and apply the principles of Goods and Services Tax (GST). Students learn about the various forms of business organisations adopted by small business.

On completion of this unit the student should be able to: record and report financial data and information

for small businesses using manual double-entry accounting

select and use financial and non-financial information to evaluate a small business and suggest strategies that will improve business performance

identify legislation pertinent to establishing a variety of small businesses and identify the financial costs associated with maintaining good business practice.


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Unit 2BACFThe focus for this unit is accrual accounting. Students apply financial systems and principles to the operations of businesses and distinguish between cash and accrual methods of accounting. Students prepare and analyse financial reports for a variety of types of business organisations and become familiar with the main aspects of electronic processing of financial data. Students learn of the role and functions of the professional accounting and financial associations.

On completion of this unit the student should be able to: record and report using balance day

adjustments, financial data and information for a sole trader using manual and computerised double-entry accounting

select and apply accounting concepts evaluate a business entity and formulate

strategies that will improve business performance

identify the professional accounting and financial associations and their role within business.

Unit 3AACFThe focus for this unit is internal management for business. Students prepare and interpret budgets and performance reports in relation to forecasting a business’s future. Students will be able to distinguish between internal and external reporting requirements. Decision-making processes using cost accounting techniques are a feature of the unit. Students critically analyse financial information and explore the importance of short- and long-term planning for business.

On completion of this unit the student should be able to: distinguish between management accounting

and financial accounting the role of management accounting for decision

making purposes identify the benefits and components of a

budget and prepare financial budgets and performance reports

identify and select the relevant information to make long-term investment decisions

evaluate a business’s performance and formulate strategies that will improve the performance and stability of the business

identify the ethical issues related to being an owner or manager of a business.

Unit 3BACFThe focus for this unit is Australian reporting entities and how they are regulated by the Corporations Act. Students use the Framework for the Preparation and Presentation of General Purpose Financial Reports (hereafter referred to as the Framework) and the accounting standards in their preparation of the financial statements for a reporting entity. The financing options of larger entities are identified and evaluated, particularly in relation to conformity with basic principles, such as profitability and stability. Students develop an awareness of corporate social disclosure issues and the ethical behaviour within corporations.

On completion of this unit the student should be able to: construct reports and related notes (using

double entry accrual accounting) for a reporting entity

use accounting conventions, standards and principles to prepare and analyse company reports

select, analyse and apply accounting concepts and principles

evaluate a reporting entities’ performance and formulate strategies that will maximise performance

examine the nature of corporate social disclosure in relation to the regulatory bodies in Australia and to Australian reporting entities.

Time and completion requirementsThe notional hours for each unit are 55 class contact hours. Units can be delivered typically in a semester or in a designated time period up to a year depending on the needs of the students. Pairs of units can also be delivered concurrently over a one year period. Schools are encouraged to be flexible in their timetabling in order to meet the needs of all of their students.

A unit is completed when all assessment requirements for that unit have been met. Only completed units will be recorded on a student's statement of results.

Refer to the WACE Manual for details about unit completion and course completion.


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Vocational Education Training informationVocational Education Training (VET) is nationally recognised training that provides practical work skills and credit towards, or attainment of, a vocational education and training qualification.

When considering VET delivery in courses it is necessary to: refer to the WACE Manual, Section 5: Vocational

Education Training, and contact education sector/systems representatives

for information on operational issues concerning VET delivery options in schools.

Australian Quality Training Framework (AQTF)AQTF is the quality system that underpins the national vocational education and training sector and outlines the regulatory arrangements in states and territories. It provides the basis for a nationally consistent, high-quality VET system.

The AQTF Standards for Registered Training Organisations outline a set of auditable standards that must be met and maintained for registration as a training provider in Australia.

VET deliveryVET can be delivered by schools providing they meet Australian Quality Training Framework (AQTF) requirements. Schools need to become a Registered Training Organisation (RTO) or work in partnership (auspicing arrangement) with an RTO to deliver training within the scope for which they are registered. If a school operates in partnership with an RTO, it will be the responsibility of the RTO to assure the quality of the training delivery and assessment. Qualifications identified in this course must be on the scope of registration of the RTO delivering or auspicing training.

Units of competency from related training package qualifications have been considered during the development of this course but no units of competency have been suggested for integration.

ResourcesA detailed list of textbooks, teacher references, teacher guides and manuals can be found at www.det.wa.edu.au/education/cmis/eval/curriculum/courses/


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http://www.det.wa.edu.au/education/cmis/eval/curriculum/courses/

http://www.det.wa.edu.au/education/cmis/eval/curriculum/courses/

AssessmentRefer to the WACE Manual for policy and principles for both school-based assessment and examinations.

School-based assessmentThe three types of assessment in the table below are consistent with the teaching and learning strategies considered to be the most supportive of student achievement of the outcomes in the Accounting and Finance course. The table provides details of the assessment types, including examples of different ways that they can be applied and the weighting range for each assessment type.

Teachers are to use the assessment table to develop their own assessment outlines.

An assessment outline needs to be developed for each class group enrolled in each unit of the course. This outline includes a range of assessment tasks that cover all assessment types and course outcomes with specific weightings. If units are delivered concurrently, assessment requirements must still be met for each unit.

In developing assessment outlines and teaching programs the following guidelines should be taken into account. All tasks should take into account teaching,

learning, and assessment principles from the Curriculum Framework.

There is flexibility within the assessment framework for teachers to design school-based assessment tasks to meet the learning needs of students.

Student responses may be communicated in any appropriate form e.g. written, oral, graphical, multimedia or various combinations of these.

Student work submitted to demonstrate achievement of outcomes should only be accepted if the teacher can attest that, to the best of her/his knowledge, all uncited work is the student’s own.

Evidence collected for each unit should include tasks conducted under test conditions.

To ensure school-based assessment tasks have a practical and theoretical component it is advisable to combine assessment types e.g. research/application and application/response.


Assessment tableWeightings for types

Type of assessmentStage 1 Stage 2 Stage 3

30–40% 10–20% 10–20%

Research

Research work in which students scrutinise accounting and finance issues, examine references and sources, make conclusions and present the results of their investigation.

Students collect and present evidence of their conceptual understanding through oral, graphic or written communication or a combination of these.

Investigations of open-ended or directed research tasks. Scenario/situation that requires students to research accounting and finance data, investigate products/services within the accounting and finance area, draw conclusions and make recommendations. This may involve problem-solving situations.

Types of evidence may include: written and oral reports, essays, digital presentations, needs analyses, feasibility studies teacher observations of students, interviews, debates, notes or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

30–40% 40–50% 40–50%

Application

Students carry out practical tasks using problem-solving techniques to produce financial reports and construct accounting information. They apply their understanding and skills to generate accounting reports and solve financial questions.

Practical tasks designed to develop and assess a range of skills and financial conceptual understanding. The creation of a simulated situation, an oral or written presentation or the design of a financial system suitable for a particular scenario given prescribed parameters. Students carry out the practical tasks using problem-solving techniques and demonstrate their ability to use the accounting and finance concepts learned in a practical application.

Types of evidence may include: preparation of financial statements, in-class validations, tests, exams, group presentations, recommendation reports, financial plans or any other form that results in financial products that demonstrate practical skills.

30–40% 30–40% 30–40%

Response

Students respond to stimuli such as case study situations, financial information and accounting scenarios. They apply analytical skills and understanding in critiquing, interpreting and responding. They transform information and generate solutions to accounting and finance questions. They identify issues, solve problems and provide recommendations.

Analysis and critical appraisal of given situations, showing the development application of accounting and financial processes, as well as evaluation of students’ own work. This may be through an oral, written or multimedia presentation, or a combination of these.

Types of evidence may include: written or oral response to scenarios, tests and examinations under supervised conditions, case studies or any other form that allows critical analysis of accounting and finance information.

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GradesSchools assign grades following the completion of the course unit. The following grades may be used:

Grade InterpretationA Excellent achievementB High achievementC Satisfactory achievementD Limited achievementE Inadequate achievement

Preliminary Stage units are not graded. Achievement in these units is reported as either Completed or Not Completed.

Each grade is based on the student’s overall performance for the course unit as judged by reference to a set of pre-determined standards. These standards are defined by grade descriptions.

Grade descriptions: describe the range of performances and

achievement characteristics of grades A, B, C, D and E in a given stage of a course

can be used at all stages of planning, assessment and implementation of courses, but are particularly important as a final point of reference in assigning grades

are subject to continuing review by the Council.

The grade descriptions for this course can be accessed on the course page athttp://www.curriculum.wa.edu.au/internet/Senior_Secondary/Courses/Accounting_Finance/

Examination detailsThere are separate examinations for Stage 2 pairs of units and Stage 3 pairs of units.

In their final year, students who are studying at least one Stage 2 pair of units (e.g. 2A/2B) or one Stage 3 pair of units (e.g. 3A/3B) will sit an examination in this course, unless they are exempt.

Each examination will assess the specific content, knowledge and skills described in the syllabus for the pair of units studied.

Details of the examinations in this course are prescribed in the examination design briefs (pages 25–27).


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UNIT 1AACF

Unit descriptionThe focus for this unit is personal finance. Students are introduced to the concepts, principles and terminology used in financial decision-making and management on a personal basis. They learn about the main institutions that operate in financial markets and how governments and other community bodies can affect the way individuals and groups make financial decisions. Students learn about the main financial documents and reports used in personal financial transactions and decision-making and the systems that facilitate individuals to carry out their financial transactions.


necessary for personal financial decision-making

identify, record, report and explain the financial data and information related to personal finance

apply accounting skills to evaluate financial and non-financial information in order to make informed decisions about personal finance

identify the beliefs and values affecting personal financial decision-making.

Unit contentThis unit includes knowledge, understanding and skills to the degree of complexity described below.

Recommended time to be spent on content areas is specified in brackets.

Financial institutions and systems(10–15%)

Financial institutions the role of financial institutions that meet the

personal needs of individuals e.g. banks (include internet and phone banking), credit unions, retail stores and telecommunications companies.

Financial systems and fundamental principles nature and purpose of documents for recording

and communicating of personal financial information e.g. cheques, bank and credit card statements, Automatic Teller Machine (ATM), EFTPOS slips and internet receipts

systems and types of bank accounts and sources of borrowing for personal financial management e.g. types of credit cards

the concept of security on investment risk of return security on borrowings

explain the relationship between risk and rate of return e.g. interest rates

the importance of proper disclosure e.g. reading fine print on contracts, providing accurate financial information

role and benefits of insurance e.g. car, travel insurance

sources of youth debt: credit cards, mobile telephone contracts, rent and student fee loans

implications of personal credit ratings.

Recording, using and evaluating financial informationRecording, processing and communicating financial information (50–60%) preparation of documents associated with

personal financial information e.g. cheques, application for bank account or credit card, mobile phone

preparation of personal budgets preparation of personal bank reconciliation

statements maintenance of personal financial records for

personal income tax and calculation of tax payable including only: assessable income (limited to salaries and

wages and interest) allowable deductions (limited to union fees,

professional associations, donations and uniform and motor vehicle expenses)

tax offset (limited to health insurance).

Evaluating financial information for planning, coordinating, controlling and investing (10–20%) interpretation of information relevant to personal

financial management e.g. pay slips, bank statements, EFTPOS and other media

importance of personal financial planning, (including short- and long-term goal setting), and the financial factors affecting financial decision making e.g. the importance of compounding interest versus simple interest

investment options available to individuals e.g. superannuation, share market, property, cash deposits and long-term investments

sources of financial advice e.g. banks, media, and financial advisors.

Government and the community(10–15%)

The role and influence of governments and other bodies types of taxation affecting individuals e.g.

income tax, GST, capital gains and fringe benefits such as cars, mobile phones

identity and function of government agencies in relation to personal finance e.g. Department of Consumer and Employment Protection.


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The influence of social, environmental and ethical factors factors affecting personal financial decision

making e.g. influence of media, peer group pressure, beliefs and values.

AssessmentThe three types of assessment in the table below are consistent with the teaching and learning strategies considered to be the most supportive of student achievement of the outcomes in the Accounting and Finance course. The table provides details of the assessment type, examples of different ways that these assessment types can be applied and the weighting range for each assessment type.

WeightingStage 1

Type of assessment

30–40%

Research




Types of evidence may include: teacher observation of students, interviews, debates, notes, written and oral reports, digital presentations, or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

30–40%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, group presentations, financial plans or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, tests, case studies under supervised conditions or any other form that allows critical analysis of accounting and finance information.


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UNIT 1BACF

Unit descriptionThe focus for this unit is accounting for small cash entities. Students extend their knowledge of the fundamental principles and conventions of accounting and finance to learn how these apply to the establishment and operations of small cash entities including small incorporated bodies. They learn about the main financial institutions that small cash entities deal with and understand how governments and other community bodies can influence their decision-making processes. Students learn about financial record-keeping on a cash basis for small entities, as well as the main financial documents and reports used in the financial transactions of small incorporated entities. They learn the main issues involved in business decision-making and carry out simple analyses of given information to determine the financial performance and position of a business.


necessary to set up a small cash entity identify, record, report and explain the financial

data and information for the owner of a small cash entity, using manual or computer-based methods

apply accounting skills to evaluate financial and non-financial information in order to make informed decisions for a small cash entity

identify government influences affecting the establishment of small cash entities.




Financial institutions identify the functions of the various institutions

that service the financial needs of small entities e.g. banks, insurance companies and other finance sources.

Financial systems and fundamental principles nature of the systems that businesses use to

carry out banking, investment, purchases, borrowing and other financial transactions

nature and purpose of source documents in a cash accounting system tax invoices/receipts bank deposit slips

cheque butts EFTPOS receipts Business Activity Statement

principles of single-entry cash accounting practices and entries e.g. cash book, petty cash and bank reconciliation systems

methods of recording and maintaining single-entry accounting systems using manual or electronic tools

purpose and advantages of multi-columnar cash books/journals

definition of the accounting equation accepted accounting principles

accounting entity monetary accounting period going concern

simple definitions of assets, liabilities, expense, income and equity

characteristics, administration and types of records for incorporated not-for-profit organisations.

Recording, using and evaluating financial informationRecording, processing and communicating financial information (40–50%) preparation of documents manually or

electronically to record business financial information order forms tax invoices/receipts delivery notes cheques bank deposit slips

preparation of cash receipts and payment journals or cash book with separate columns for GST; cash sales/purchases; commonly recurring receipts/payments

preparation of petty cash book preparation of payroll records for a small cash

based business e.g. pay advice slip, wages book

preparation of simple cash budgets preparation of bank reconciliation statements presentation of financial information in the form

of simple unclassified reports applying the accounting equation for small cash based entities statement of receipts and payments income statement balance sheet.

Evaluating financial information for planning, coordinating, controlling and investing (20–30%) interpretation of information presented in simple

financial statements and the analysis of this information to assess profitability and liquidity

interpretation of simple cash budgets importance of liquidity to the entity principles of internal control over cash.


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http://www.nt.gov.au/ntt/treasdir/A6-1-Expenses-Overview.pdf

http://www.acs.edu.au/samples/book1.pdf

http://www.ato.gov.au/businesses/content.asp?doc=/content/35798.htm&page=6&H6

http://www.ato.gov.au/businesses/content.asp?doc=/content/35798.htm&page=4&H4

http://www.ato.gov.au/businesses/content.asp?doc=/content/66839.htm


The role and influence of governments and other bodies impact of governments (local, state and federal)

on the operations of small businesses e.g. taxation, financial assistance, regulations

impact on small business entities by other bodies e.g. consumer groups, trade unions, professional associations and industry groups, accountants.

The influence of social, environmental and ethical factors how social, environmental and ethical factors

influence the establishment and operations of small cash entities

impact of costs associated with setting up small cash entities.


WeightingStage 1

Type of assessment

30–40%

Research




Types of evidence may include: teacher observation of students, interviews, debates, notes, written and oral reports, digital presentations, or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

30–40%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, group presentations, recommendation reports or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, tests, case studies under supervised conditions or any other form that allows critical analysis of accounting and finance information.


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http://www.business.gov.au/Business+Entry+Point/Business+Topics/Taxation/

UNIT 2AACF

Unit descriptionThe focus for this unit is double entry accounting for small businesses. Students apply their understanding of financial principles, systems and institutions to manage financial information and make decisions in a variety of small businesses. Students develop an understanding of the rationale for the use of particular conventions and principles and the consequences of disregarding them. Students record and process financial information using the double entry system and apply the principles of Goods and Services Tax (GST). Students learn about the various forms of business organisations adopted by small business.

On completion of this unit the student should be able to: record and report financial data and information

for small businesses using manual double-entry accounting

select and use financial and non-financial information to evaluate a small business and suggest strategies that will improve business performance

identify legislation pertinent to establishing a variety of small businesses and identify the financial costs associated with maintaining good business practice.





Financial institutions sources of finance, other than equity, available

to small businesses advantages and disadvantages of these

sources of finance identify the factors financial institutions consider

when approving finance risk (collateral, liquidity, history, guarantors)

and return (interest rate, future business).

Financial systems and fundamental principles characteristics of the main types of small

business ownership: sole trader, partnership and small proprietary company number of owners liability of owners ability to raise capital or borrow funds distribution of profits transfer of ownership separate accounting or legal entity continuity of existence

advantages and disadvantages of the main types of small business ownership

different types and characteristics of business undertakings manufacturing trading/retailing service providing

fundamental concepts and conventions of financial accounting the accounting equation double entry accounting the accounting cycle: documents, journals,

ledger, adjusting entries, closing entries and financial statements

principles of the perpetual inventory system definition of GST and the GST system principles and features of GST

taxable supplies, GST-free supplies and input taxed supplies

accounting and reporting for GST including the BAS

accounting assumptions as per the Framework for the Preparation and Presentation of General Purpose Financial Reports (hereafter referred to as the Framework): accrual basis and going concern

accepted accounting principles and conventions accounting entity monetary historical cost materiality accounting period

accounting for inventory perpetual versus periodic inventory methods

elements of financial statements as per the Framework assets, liabilities, equity, income and

expenses importance of financial statements to determine

performance financial position liquidity

considerations when supplying credit to customers credit history employment history security bad debts.


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http://www.acs.edu.au/samples/book1.pdf

Recording, using and evaluating financial informationRecording, processing and communicating financial information (50–60%) calculation of GST receivable or payable manual preparation of the general journal to

process financial transactions to the general ledger and trial balance including: errors disclosed/not disclosed by trial

balance GST closing entries perpetual inventory system given the cost of

sales (NOTE: No requirement to teach inventory costing systems such as Last-in First-out, First-in First-out and weighted average)

manual preparation of the general journal and general ledger to include: cash and credit transactions to include cash

receipts, cash payments, sales, purchases, sales returns, purchases returns, discount allowed, discount received

entries to commence business purchase of non-current assets write-off bad debts withdrawal of inventory or cash by the

proprietor correction of errors

manual preparation of simple classified financial statements for a sole trader excluding balance day adjustments income statements balance sheets for a trading/

merchandising/service business.

Evaluating financial information for planning, coordinating, controlling and investing (10–15%) nature and importance of internal control application of the principles of internal control

over cash, inventory, accounts receivable, accounts payable and non-current assets administrative controls accounting controls

limitations of internal control.


The role and influence of governments and other bodies the importance of legislation relating to the

formation of sole trader, partnership and small proprietary companies e.g. GST Act (1999) Businesses Name Act (2002), Partnership Act of WA (1895), Corporations Act (2001)

the impact of GST legal requirements on small businesses registering for GST Australian Business Number (ABN).

The influence of social, environmental and ethical factors

costs and benefits for small business of engaging in socially, environmentally and ethically responsible behaviour sponsorship resource conservation taxation responsibility.


15


WeightingStage 2

Type of assessment

10–20%

Research




Types of evidence may include: written and oral reports, essays, digital presentations, needs analyses, feasibility studies or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

40–50%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, exams and group presentations or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, tests and examinations, case studies under supervised conditions or any other form that allows critical analysis of accounting and finance information.


16

UNIT 2BACF

Unit descriptionThe focus for this unit is accrual accounting. Students apply financial systems and principles to the operations of businesses and distinguish between cash and accrual methods of accounting. Students prepare and analyse financial reports for a variety of types of business organisations and become familiar with the main aspects of electronic processing of financial data. Students learn of the role and functions of the professional accounting and financial associations.

On completion of this unit the student should be able to: record and report using balance day

adjustments, financial data and information for a sole trader using manual and computerised double-entry accounting

select and apply accounting concepts evaluate a business entity and formulate

strategies that will improve business performance

identify the professional accounting and financial associations and their role within business.





Financial institutions nature, benefits and risks to small business of

electronic processing EFTPOS bill payments—electronic payment system credit cards online banking direct debits.

Financial systems and fundamental principles accrual basis assumption as per the Framework

distinction between cash and accrual methods of accounting

recognition criteria of o assetso liabilities

o incomeso expenses

classification of incomes, expenses, assets and liabilities by nature and function

purpose and nature of balance day adjustments accrued expenses prepaid expenses/stock of supplies accrued income income in advance doubtful debts depreciation

nature of depreciable non-current assets nature of depreciation expense determining the cost of a depreciable non-

current asset identification of the more appropriate method of

depreciation to apply straight-line reducing/diminishing balance

identification of over- or under-depreciation on sale of non-current asset

concept of inventory costing methods weighted average First-in First-out.

Recording, using and evaluating financial informationRecording, processing and communicating financial information (50–60%) manual preparation of general journal and

ledger entries for balance day adjustments (asset and liability method only) to prepare financial reports

manual preparation of general journal and general ledger entries for recording of depreciation and disposal of a single depreciable asset (including cost of a depreciable non-current asset, depreciation expense, disposal of depreciable asset using the Sale of Asset Method)

manual preparation of closing general journal entries

manual preparation of trial balance manual preparation of classified financial

statements for a sole trader including balance day adjustments income statements balance sheets for a trading/

merchandising/service business using an established chart of accounts and the

perpetual inventory system, apply double entry principles using MYOB Mind Your Own Business or QuickBooks to electronically record financial data and produce financial reports after considering adjusting entries

preparation of the following ratios: profitability:

o profit o gross profito expenseo rate of return on assets


17

liquidity:

o working capitalo quick asset

leverage:o debt to equity.

Evaluating financial information for planning, coordinating, controlling and investing (10–15%) interpretation of the following ratios to evaluate

the profitability and stability of a business: profitability:

o profit o gross profito expenseo rate of return on assets

liquidity:o working capitalo quick asset

leverage:o debt to equity.


The role and influence of governments and other bodies role and function of the professional accounting

and financial associations e.g. Certified Practising Accountants of Australia, Institute of Chartered Accountants of Australia, National Institute of Accountants, Financial Planning Association of Australia Limited.

The influence of social, environmental and ethical factors the role and nature of the professional codes of

conduct for accounting practitioners and financial service providers.


WeightingStage 2

Type of assessment

10–20%

Research




Types of evidence may include: written and oral reports, essays, digital presentations, needs analyses, feasibility studies or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

40–50%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, exams and group presentations or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, tests and examinations, case studies under supervised conditions or any other form that allows critical analysis of accounting and finance information.


18

UNIT 3AACF

Unit descriptionThe focus for this unit is internal management for business. Students prepare and interpret budgets and performance reports in relation to forecasting a business’s future. Students will be able to distinguish between internal and external reporting requirements. Decision-making processes using cost accounting techniques are a feature of the unit. Students critically analyse financial information and explore the importance of short- and long-term planning for business.

On completion of this unit the student should be able to: distinguish between management accounting

and financial accounting the role of management accounting for decision

making purposes identify the benefits and components of a

budget and prepare financial budgets and performance reports

identify and select the relevant information to make long-term investment decisions

evaluate a business’s performance and identify ways of improving the performance and stability of the business

identify the ethical issues related to being an owner or manager of a business.





Financial institutions role of financial institutions and the

management of business finance short-term: cash management trusts, money

market and term deposits long-term: shares, debentures, unsecured

notes, trusts and term deposits.

Financial systems and fundamental principles distinguish between management accounting

and financial accounting the nature of cost concepts

materials, labour and overheads

cost behaviours: fixed, variable and mixed costs

relationships to cost objects: direct and indirect costs

treatment of costs: product and period time orientation of costs: past and future

the concept of mark-up and the calculation of the unit price of a product

the nature and importance of the master budget operating capital expenditure financial

the important financial principles of asset management appropriate levels of investment in non-

current assets appropriate management of accounts

receivable, inventory and cash appropriate management of short- and long-

term debt appropriate level of equity capital

nature and importance of capital investment decisions concept of the time value of money

factors affecting capital investment decisions consumer preferences competition government regulation

explain the relationship between volume of activity, costs and profit.

Recording, using and evaluating financial informationRecording, processing and communicating financial information (20–35%) cost accounting limited to calculation of the unit

price of a product/service using only job order costing processes (GST NOT included) calculation of direct materials, direct labour

and overhead costs calculation and application of

predetermined overhead recovery rates only using normal capacity

calculation of unit cost and the setting of selling/quotation prices for a job costing product/service

use of standard costing and variance analysis for:o materials i.e. price and usageo labour i.e. rate and efficiency

Cost-Volume-Profit (CVP) processing for a single and multi-product (maximum 3 products) business calculation of contribution margin calculation of contribution margin per unit calculation of weighted average

contribution per unit calculation of margin of safety calculation of selling price, variable cost,

fixed cost, profit or sales volume calculation of break-even point calculation of the effect on profit/loss of

make or buy decisions


19

calculation of the effect on profit/loss of

closing a department/dropping a segment product decision

calculation of the gain or loss on special order decisions

preparation of cash budgets including debtors’ and creditors’ schedules (GST NOT included)

preparation of budgeted income statements (GST NOT included)

preparation of performance reports for cash budgets and budgeted income statement

capital investment/budgeting techniques for capital expenditure, limited to calculations for discounted cash flows (net present value

NPV ONLY: straight-line depreciation method ONLY and net of taxation)

payback period.Note: Application of GST is NOT required

Evaluating financial information for planning, coordinating, controlling and investing(30–40%) differences between internal and external

reporting internal and external users regulation—Accounting Standards types of financial statements types of reports

internal audit and control purpose of internal control review of procedures and policies detection and correction of errors and

deficiencies relationship to the external audit process

the role and function of the accountant in managing business operations

purpose and function of cash budgets importance of cash to business viability interpretation of cash budgets

purpose and function of budgeted income statement interpretation of budgeted income statement

difference between cash and accrual performance

purpose and function of performance reports interpretation of performance reports for

cash budgets and budgeted income statements

interpretation of capital investment/budgeting techniques to evaluate capital expenditure

importance of business planning including a consideration of goals, objectives and generic business

strategies: cost leadership versus differentiation, strategic initiatives and performance management

reduce costs and risks Cost-Volume-Profit (CVP) analysis for decision-

making purposes cost behaviour contribution margin break-even point margin of safety

interpretation of CVP results and testing of sensitivity to changing decisions about

volumes, product mixes, pricing and costs and the impact of capacity constraints

make or buy decisions close down product/business unit decisions accept or reject special orders decisions.


The role and influence of governments and other bodies the importance and impact of legislation relating

to the financial management of business the concept of insolvency as applied

according to the Bankruptcy Act and Corporations Act

order of repayment to creditors.

The influence of social, environmental and ethical factors identification of the costs and potential income

associated with engaging in socially and environmentally responsible practices

the ethical issues encountered in financial dealings between business owners/managers and their employees, clients and investors.


20


WeightingStage 3

Type of assessment

10–20%

Research




Types of evidence may include: formal reports, essays, digital presentations, oral reports, needs analyses, feasibility studies or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

40–50%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, exams, group presentations, recommendation reports or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, case studies, tests and examinations under supervised conditions or any other form that allows critical analysis of accounting and finance information.

UNIT 3BACF

Unit descriptionThe focus for this unit is Australian reporting entities and how they are regulated by the Corporations Act. Students use the Framework for the Preparation and Presentation of General Purpose Financial Reports (hereafter referred to as the Framework) and the accounting standards in their preparation of the financial statements for a reporting entity. The financing options of larger entities are identified and evaluated, particularly in relation to conformity with basic principles, such as profitability and stability. Students develop an awareness of corporate social disclosure issues and the ethical behaviour within corporations.

On completion of this unit the student should be able to: construct reports and related notes (using

double entry accrual accounting) for a reporting entity

use accounting conventions, standards and principles to prepare and analyse company reports

select, analyse and apply accounting concepts and principles

evaluate a reporting entity’s performance and formulate strategies that will maximise performance

examine the nature of corporate social disclosure in relation to the regulatory bodies in Australia and to Australian reporting entities.





Financial systems and fundamental principles characteristics of companies: public and large

proprietary companies liability of owners number of members and directors continuity of existence legal entity transferability of ownership separation of ownership and management


21

the purpose and importance of accounting

standards protection of external users assist directors in discharging their

obligations facilitate the Australian capital markets

the role of the conceptual framework in Australia the nature of the reporting entity evaluation and application of the qualitative

characteristics of financial information the objectives of general purpose financial

reports and their usefulness evaluation and application of asset, liability,

income and expense recognition and measurement criteria

the purpose of disclosure in financial reports changes in accounting policy comparability and understandability

purpose and nature of the cash flow statement concept of cash and cash equivalents classification of cash flow activities.

Recording, using and evaluating financial informationRecording, processing and communicating financial information (30–40%) preparation of the general journal and general

ledger for issue of ordinary shares payable in full on

application bonus share issues interim and final dividends (recommended,

declared or paid) share issue costs

preparation of the retained earnings ledger account profit dividends transfers to and from reserve accounts debit or credit opening balances

preparation of financial statements in accordance with the Framework and in accordance with the standards income statement/statement of

comprehensive income (one statement version ONLY: notes NOT required)

balance sheet/statement of financial position and the following notes:o share capitalo other reserveso property, plant and equipmento final dividends recommended by

directors statement of changes in equity (notes NOT

required)o retained earningso equity o share capitalo reserves

cash flow statement from comparative balance sheets and income statements using the direct

method only (notes NOT required and GST NOT included)

preparation of the above financial statements is restricted to the following issues: revaluation of property, plant and

equipment cash dividends bonus share issues transfers to or from general reserve preliminary expenses issue of ordinary shares including share

issue costs balance day adjustments as per those in

Unit 2B for the purpose of calculating income tax

expense, profit before tax will be deemed to equal taxable income

preparation of the following ratios: liquidity:

o working capital/currento quick asset

efficiency:o debtor’s collectiono inventory/stock turnover

profitability:o profit o rate of return on assetso times interest earned

leverage:o debt to equity

market:o earnings per share o price/earningso dividend yield.

Note: Application of GST is NOT required

Evaluating financial information for planning, coordinating, controlling and investing (20–35%) examination and interpretation of annual

reports, financial statements and stock exchange data to assess the position and performance of a public company

purpose of annual reporting and the use of key performance indicators by directors for accountability and decision-making purposes

interpretation of the following ratios: liquidity:

o working capital/currento quick asset

efficiency:o debtor’s collectiono inventory/stock turnover

profitability:o profit o rate of return on assetso times interest earned

leverage:o debt to equity

market:o earnings per share o price/earningso dividend yield


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http://www.business.vic.gov.au/BUSVIC/STANDARD/1001/PC_50275.html

http://www.business.vic.gov.au/BUSVIC/STANDARD/1001/PC_50275.html

interpretation of the movements in cash flow items

limitations in assessing performance from financial statement analysis and from traditional financial accounting historical cost accounting lack of comparability between entities lack of disclosure.


The role and influence of governments and other bodies the purpose and nature of the Corporations Act,

and its impact on company formation and operations powers and duties of directors a written constitution replaceable rules prospectus rights of shareholders

the nature and importance of the Financial Reporting Council (FRC), Australian Securities and Investments Commission (ASIC), International Accounting Standards Board (IASB), Australian Accounting Standards Board (AASB), Australian Securities Exchange (ASX) and lobby groups which regulate and influence the accounting and finance of companies in Australia

the role and function of external auditors protection of external users to perform an independent audit of the

financial statements appointed by the shareholders and

reappointed at the Annual General Meeting (AGM).

The influence of social, environmental and ethical factors the extent, nature and usefulness of corporate

social disclosure the difficulties faced by accountants in

producing social and environmental information the use made of corporate social disclosure by

the company and other users critical evaluation of corporate social disclosure

as made by Australian companies.


WeightingStage 3

Type of assessment

10–20%

Research




Types of evidence may include: formal reports, essays, digital presentations, oral reports, needs analyses, feasibility studies or any other form that allows for the reporting of the research conducted, analysis of sources and evidence and conclusions reached.

40–50%

Application



Types of evidence may include: preparation of financial statements, in-class validations, tests, exams, group presentations, recommendation reports or any other form that results in financial products that demonstrate practical skills.

30–40%

Response



Types of evidence may include: written or oral response to scenarios, case studies, tests and examinations under supervised conditions or any other form that allows critical analysis of accounting and finance information.


23

Examination detailsStage 2 and Stage 3


24

Accounting and FinanceExamination design brief

Stage 2

Time allowedReading time before commencing work: ten minutesWorking time for paper: three hours

Permissible itemsStandard items: pens, pencils, eraser, correction fluid, ruler, highlightersSpecial items: non-programmable calculators satisfying the conditions set by the Curriculum

Council for this course

Additional information The balance of response/application in the examination is comprised of response 30–35% and application 65–70%.

A specifications booklet identical to that on the Curriculum Council website is provided.

Section Supporting information

Section OneMultiple-choice20% of the total examination

20 questions

Suggested working time: 30 minutes

Questions could include simple calculations and/or interpretations of stimulus material. Stimulus material could include short excerpts from newspaper/journal articles, scenarios, financial extracts and tables.

Section TwoShort response30% of the total examination

4–6 questions


Questions could be in parts.

Questions could include simple calculations and/or interpretation of stimulus material. Stimulus material could include short excerpts from newspaper/journal articles, scenarios, financial extracts and tables.

Section ThreeExtended response50% of the total examination

3–4 questions


Questions are in parts.

Questions include calculations and/or interpretation of stimulus material. Stimulus material could include short excerpts from newspaper/journal articles, scenarios, financial extracts and tables.

The candidate is required to demonstrate their understanding of accounting and finance practices and principles by applying these to the preparation, analysis, interpretation and/or evaluation of financial information.


25

Accounting and FinanceExamination design brief

Stage 3

Time allowedReading time before commencing work: ten minutesWorking time for paper: three hours

Permissible itemsStandard items: pens, pencils, eraser, correction fluid, ruler, highlightersSpecial items: non-programmable calculators satisfying the conditions set by the Curriculum

Council for this course

Additional InformationThe balance of response/application in the examination is comprised of response 35–40% and application 60–65%.

A specifications booklet identical to that on the Curriculum Council website will be provided.

Section Supporting information

Section OneMultiple-choice15% of the total examination

15 questions


Questions could include simple calculations and/or interpretations of stimulus material. Stimulus material could include short excerpts from newspaper/journal articles, scenarios, financial extracts and tables.

Section TwoExtended response70% of the total examination

4–6 questions


Questions could include parts, and require calculations and/or interpretation of stimulus material. Stimulus material could include extracts from newspaper/journal articles, financial statements, tables, case studies and other articles relating to accounting and finance.

The candidate is required to demonstrate an in-depth understanding of accounting and finance practices and principles by applying these to the preparation, analysis, interpretation and/or evaluation of financial information.

Section ThreeEssay15% of the total examination

One question from a choice of two


The candidate is required to write an extended response in a structured essay format.

The questions require the candidate to apply their knowledge and understanding of accounting and finance practices and principles to given situations.

The questions could be scaffolded.


26


27

Appendix 1: Outcome progressions


28

Outcome progressions

Outcome 1: Financial conceptual understandingStudents understand the concepts, principles, systems and structures that are fundamental to accounting and other financial processes.

Level 3 Level 4 Level 5 Level 6 Level 7 Level 8

Students understand that financial terms are used in financial management for a particular purpose.

Students understand there are different principles, structures and systems used in financial management in a given situation.

Students understand there are concepts, principles, structures and systems in financial management in a variety of situations.

Students understand the rationale for the use of concepts, principles, structures and systems in financial management, considering user needs.

Students understand the interrelationship between concepts, principles, structures and systems in financial management; how they conform to recognised practices and meet user needs.

Students understand the various influences in the development of concepts, principles, structures and systems in financial management on a local, national and global scale; and future trends.

Students:

understand the concepts and principles of financial decision-making.

understand that terms are used in financial recording and reporting.

understand that fundamental principles are used to make financial decisions.

understand how relevant concepts and principles influence financial decision-making.

understand the rationale for the use of concepts and principles of financial decision-making.

understand the relationship between concepts and principles of financial decision-making.

understand how concepts, principles and standards for financial decision-making are developed and adapted to meet future trends.

understand the elements of financial systems.

understand that financial systems can be organised systematically.

understand that the elements in financial systems interact in a sequence.

understand the relationship between the individual and elements in a variety of situations.

understand how elements in financial systems influence the way users interact.

understand how elements in financial systems impact on communities.

understand how the elements in financial systems influence their development and how they impact on financial environments.

understand the relationship between the purpose and structure of financial information.

understand that financial information has a purpose and structure.

understand that the purpose and structure of financial information meet a specific need.

understand how the purpose and structure of financial information meet a variety of needs.

understand how the purpose, structure and presentations of financial information differ according to user needs.

understand how the purpose, structures and presentation of financial information are influenced by regulations, statutory control and users.

understand how structures of financial information, regulations, users and statutory controls influence, and are influenced by, local, national and global developments.

Accounting and Finance: Accredited April 2008—Appendix 1 (updated June 2010)For teaching 2011, examined in 2011

Outcome progressionsOutcome 2: Factors influencing financial decisionsStudents understand the interrelationship between financial decisions and the individual, society and the environment.


Students understand that financial decisions are made for a particular purpose.

Students understand that financial decisions are based on the requirements of individuals.

Students understand how financial decisions are influenced by local communities.

Students understand how the interaction between society and financial decisions influences the way society operates.

Students understand the relationship between society and financial decisions and how decisions are made to maximise the short- and long-term benefits for stakeholders.

Students understand how financial decisions are affected by and reflect the changing needs of stakeholders; have environmental and social implications; and how to make predictions about future impacts on stakeholders.

Students:

understand the influence of values and ethics on financial decisions.

understand that values and ethics affect financial decisions.

understand that values and ethics shape the financial decisions of individuals.

understand how values and ethics influence local community financial decisions.

understand how societal values and ethics impact on society’s financial decisions.

understand the relationship between differing values and ethical positions of stakeholders, and their impact on financial decisions.

understand the values and ethics of stakeholders and how to predict their impact on individuals, societies and environments when making complex financial decisions.

understand that government policies, legal requirements and other regulations influence financial decisions.

understand that laws and other regulations affect financial decisions.

understand that legal requirements and other regulations affect the financial decisions of individuals.

understand how legal requirements and other regulations affect local community financial decisions.

understand how government policies, legal requirements and other regulations affect societal financial decisions.

understand the interrelationship between government policies, legal requirements, other regulations and stakeholders and their impact on financial decisions.

understand how government policy, relevant legislation and other regulatory bodies impact on making complex financial decisions when predicting future trends.

understand the impact of societal and environmental factors on financial decisions.

understand that societal and environmental factors impact on financial decisions.

understand that societal and environmental factors impact on an individual’s financial decisions.

understand how conflicting societal and environmental factors impact on local community financial decisions.

understand how societal and environmental factors impact on the balance between financial decisions and benefits and costs.

understand how societal and environmental factors and the needs of stakeholders are interrelated and impact on complex financial decisions.

understand how the analysis of societal and environmental factors impact on complex financial decisions that meet the needs of current and future generations.



Outcome 3: Financial systemsStudents explore and apply appropriate financial systems to meet personal and organisational needs.


Students use simple, given financial systems for a particular purpose.

Students use financial systems to record information in a given situation.

Students select and use financial systems to record information.

Students select and use financial systems and processes to meet operational needs.

Students apply a range of financial processes to adapt financial/accounting systems and subsystems within an organisation.

Students analyse and evaluate complex financial systems and subsystems, recommending changes to systems, based on the organisation’s and stakeholders’ needs.

Students:

explore and select an appropriate financial system to meet user needs.

explore a given financial system.

consider options and select a financial system.

consider and select a variety of systems to meet user needs.

considering alternatives, select financial systems that facilitate effective decision-making in business.

select and evaluate a variety of complex financial systems and subsystems, considering the impact of industry standard practices and strategies.

justify the selection of complex financial systems and subsystems by critically evaluating a range of options, considering various user needs.

use a financial system to record and present information.

record simple accounting/financial information in a given system.

record simple accounting/financial information using a system.

record and present accounting/financial information using an appropriate system.

record and present accounting/financial information using complex financial systems.

record and present accounting/financial information using complex financial systems and subsystems.

record and present complex accounting/financial information using complex financial systems and subsystems.

adapt and/or customise a financial system to meet user needs.

suggest an alternative to the financial system used.

customise a given financial system to meet user needs.

customise financial systems for a variety of users.

adapt financial systems to facilitate and improve business operations.

adapt complex financial systems and subsystems to optimise outputs while minimising undesirable impacts within the organisation.

manipulate complex financial systems and subsystems, considering short- and long-term consequences for the organisation and stakeholders’ needs.



Outcome 4: Analysis and interpretation of financial informationStudents select, use and interpret financial information.


Students use given techniques when analysing financial information for a particular purpose.

Students use a defined range of techniques when analysing financial information for specified purposes.

Students select and use a range of financial processes, conventions and language to analyse and process financial information.

Students process, analyse, transform and prepare financial information, using recognised procedures, conventions and accounting and finance language to achieve particular effects and meanings.

Students process, interpret, and prepare financial information, using complex procedures, conventions and accounting and finance language to suit stakeholder needs.

Students process, interpret, and prepare financial information to meet detailed specifications for intended users, using accepted financial techniques and observing statutory standards and controls.

Students:

select financial information for analysis and use appropriate techniques.

use given techniques to sort financial information.

use a defined range of techniques to use financial information.

select and use a range of techniques to analyse and organise financial information.

select and use relevant financial information and recognised organisational methods to support analysis to meet user needs.

select, justify and use financial information and complex organisational methods to suit stakeholder needs.

select and use financial information and organisational methods for stakeholders, considering limitations, conflicting and inconsistent information, methods of data collection and/or design.

draw conclusions from financial information.

recognise key ideas in financial information.

select financial information from sources, connecting similar ideas and making generalisations.

select financial information from a variety of sources to draw appropriate conclusions.

draw conclusions from a variety of sources, based on financial information analysis, considering accuracy, bias and omission.

draw conclusions consistent with the financial information/evidence gathered, questioning validity and appropriateness of data for stakeholders.

draw conclusions, based on presented financial information, acknowledging the influences of limitations, stakeholders, statutory standards and controls.

recommend appropriate action based on financial information analysis.

communicate financial decisions from a personal perspective.

communicate an informed opinion and a particular course of action.

communicate findings and viewpoints, showing consideration of facts.

communicate findings and justify a position, by logically discussing the analysed financial evidence.

communicate recommendations to stakeholders, using appropriate language and procedures, based on the interpretation of financial information gathered.

communicate complex recommendations to stakeholders, considering the potential uncertainty of data, interpreting conflicts of interest and meeting detailed specifications.


ACCOUNTING AND FINANCE

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