BSQA400 – Accounting Principles
Module code
BSQA400
Module title
Accounting Principles
Prescription
Students will understand financial statements and reports and be able to analyse and interpret business performance for sole traders and small companies.
Programmes
- BS8906
NZQA Level
Level 4
NZQA Credits
20
Delivery method
- Web-Supported
Learning hours
- Directed hours
- 64
- Self directed hours
- 136
- Total learning hours
- 200
Resources required
- Learning Outcomes
- 1) Students will understand the purpose of accounting and its relationship to the New Zealand business environment.
Key elements
a) The New Zealand Framework for the Preparation and Presentation of Financial
Statements:
- definitions
- qualitative characteristics.
b) The accounting cycle.
c) The impact of GST on business.
d) Function of internal controls.
e) The various forms of business ownership within an accounting context.
f) The New Zealand share market:
published statistics eg. daily newspaper.
2) Students will understand accounting policies and prepare financial statements using accrual based accounting for a sole trader and/or a company.
Key elements
a) Purpose, elements and preparation of (from a given list):
balance sheet
income statement
statement of changes in equity
cash flow statement.
b) Accounting policies:
receivables
inventory
non-current tangible assets
contingent liabilities.
c) Show how transactions affect the accounting equation.
3) Students will analyse and report on business performance for a sole trader or a company.
Key elements
a) Purpose and limitations of financial analysis.
b) Calculate ratios and percentages.
c) Profitability, financial stability and asset utilisation.
d) Recommendations.
4) Students will demonstrate an understanding of management accounting tools.
Key elements
a) The purpose of budgets.
b) Preparation of a simple trading budget.
c) Report on variances.
d) Apply simple break-even analysis.
