ACCOUNTING

 

Unit 1: Semester 1

Role of accounting in business

This unit explores the establishment of a business and the role of accounting in the determination of business success or failure. In this, it considers the importance of accounting information to stakeholders. Students analyse, interpret and evaluate the performance of the business using financial and non-financial information. They use these evaluations to make recommendations regarding the suitability of a business as an investment.
Students record financial data and prepare reports for service businesses owned by sole proprietors.
Where appropriate, the accounting procedures developed in each area of study should incorporate the application of the Conceptual Framework and financial indicators to measure business performance and take into account the range of ethical considerations faced by business owners when making decisions, including financial, social and environmental.

There are two areas of study:
    1. On completion of this unit the student should be able to describe the resources required to establish and operate a business and select and use accounting reports and other     information to discuss the success or otherwise of the business.
    2. On completion of this unit the student should be able to identify and record financial data, report and explain accounting information for a service business, and suggest and apply     appropriate financial and non-financial indicators to measure business performance.

ASSESSMENT
1. Coursework (50%)
2. Examination (50%)

Unit 2: Semester 2

Accounting and decision-making for a trading business

In this unit students develop their knowledge of the accounting process for sole proprietors operating a trading business, with a focus on inventory, accounts receivable, accounts payable and non-current assets. Students use manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports.
Students analyse and evaluate the performance of the business relating to inventory, accounts receivable, accounts payable and non-current assets. They use relevant financial and other information to predict, budget and compare the potential effects of alternative strategies on the performance of the business. Using these evaluations, students develop and suggest to the owner strategies to improve business performance.
Where appropriate, the accounting procedures developed in each area of study should incorporate application of the Conceptual Framework, financial indicators and ethical considerations for business owners when making business decisions, including financial, social and environmental.

There are three Areas of Study:

    1. On completion of this unit the student should be able to record and report for inventory and discuss the effect of relevant financial and non-financial factors, and ethical     considerations, on the outcome of business decisions.
    2. On completion of this unit the student should be able to record and report for accounts receivable and accounts payable and analyse and discuss the effect of relevant decisions on     the performance of the business including the influence of ethical considerations.
    3. On completion of this unit the student should be able to record and report for non-current assets and depreciation.

ASSESSMENT
1. Coursework (50%)
2. Examination (50%)

Unit 3: Semester 1

Financial accounting for a trading business

This unit focuses on financial accounting for a trading business owned by a sole proprietor and highlights the role of accounting as an information system. Students use the double entry system of recording financial data and prepare reports using the accrual basis of accounting and the perpetual method of inventory recording.
Students develop their understanding of the accounting processes for recording and reporting and consider the effect of decisions made on the performance of the business. They interpret reports and information presented in a variety of formats and suggest strategies to the owner to improve the performance of the business.

There are two Areas of Study:
    1. On completion of this unit the student should be able to record financial data using a double entry system; explain the role of the General Journal, General Ledger and inventory     cards in the recording process.
    2. On completion of this unit the student should be able to record transactions and prepare, interpret and analyse accounting reports for a trading business.

 

Unit 4: Semester 2

Recording, reporting, budgeting and decision-making

In this unit students further develop their understanding of accounting for a trading business owned by a sole proprietor and the role of accounting as an information system. Students use the double entry system of recording financial data, and prepare reports using the accrual basis of accounting and the perpetual method of inventory recording. Both manual methods and ICT are used to record and report.
Students extend their understanding of the recording and reporting process with the inclusion of balance day adjustments and alternative depreciation methods. They investigate both the role and importance of budgeting in decision-making for a business. They analyse and interpret accounting reports and graphical representations to evaluate the performance of a business. From this evaluation, students suggest strategies to business owners to improve business performance.

There are two Areas of Study:
    1. On completion of this unit the student should be able to record financial data and balance day adjustments using a double entry system, report accounting information using an     accrual-based system and evaluate the effect of balance day adjustments and alternative methods of depreciation on accounting reports.
    2. On completion of this unit the student should be able to prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant     information, and model, analyse and discuss the effect of alternative strategies on the performance of a business.

 

ASSESSMENT
1. Coursework – Unit 3 (25%)
2. Coursework – Unit 4 (25%)
3. Examination (50%)