BBSD501 – Introduction to Accounting

Module code
Module title
Introduction to Accounting
To develop awareness of the role of accounting within an organisation and demonstrate basic skills and conceptual understanding in accounting
  • BM0701
  • BS0671
  • BS1054
  • BS1064
  • OS9602
  • SC0901
  • SP1006
NZQA Level
Level 5
NZQA Credits
Delivery method
  • Web-Enhanced
Learning hours
Directed hours
Self directed hours
Total learning hours
Resources required
Learning Outcomes
At the conclusion of this module, students will be able to:
1. Identify business decisions and relate those decisions to accounting information.

2. Undertake transaction analysis of the elements of accounting and from this prepare basic
financial statements for a sole trader and company.

3. Analyse and explain component parts of published financial statements and the underlying
accounting theory.

4. Identify and apply ethical and accounting principles in business scenarios.

5. Apply the principles of accrual accounting in the preparation of financial statements.

6. Calculate the value of property plant and equipment and demonstrate the nature and
application of depreciation using generally accepted accounting practice.

7. Apply cost volume profit analysis and budget preparation in developing business plans.

8. For a business, carry out analysis and interpretation of liquidity, financial structure,
profitability and return.
1. Accounting information systems
- Nature of the business value chain
- Transaction cycles in business
- Collection of data and business intelligence
- The need for accounting information for decisions

2. Accounting elements and financial statements
- Identify the elements of accounting in business transactions
- Relate business transactions to financial statements using both the periodic and
perpetual inventory systems
- Prepare classified financial statements and understand notes

3. Component Parts of Financial Statements
- Review financial statements of a public listed company
- Research and explain the underlying accounting principles used in the construction of
financial statements.

4. Accounting principles and ethics and standards
- The nature of ethics in accounting
- Qualitative characteristics in accounting
- An introduction to the New Zealand Framework
- Accounting principles: materiality, entity, period, going concern

5. Accrual accounting
- Period concept and the need for balance day adjustments in financial statements

6. Property plant and equipment
- Valuation principles of historical and modified historical cost accounting
- The nature and purpose of depreciation
- Depreciation calculation using straight line and diminishing value
- Application of depreciation in financial statements

7. Business Planning CVP and Budgeting
- Cost objects
- CVP calculations
- Applying CVP to business decisions
- The budgeting process

8. Analysis and Interpretation
- Analysis and interpretation of
-Profitability and return
-Financial structure
-Asset usage
-Limitations of analysis

Possible solutions for weak financial performance
Teaching and Learning Strategy
Teaching will involve blended delivery methods incorporating theoretical and practical classes, face to face, lectures, tutorials, workshops, group activities, guest lecturers, field trips, role-play, video conferencing, and on-line delivery, as appropriate.
Assessment Criteria
Assignment 1 Test - Supervised assessment 30 percentage
Assessment 2 Assignment 30 percentage
Assessment 3 Final Examination 40 percentage

Candidates must achieve a minimum result of 40 in the final examination or nominated assessment/s of each module. They must also achieve a minimum C grade pass overall from all assessments to receive a passing grade for the module.