BSQA500 – Accounting Principles
Module code
BSQA500
Module title
Accounting Principles
Prescription
Programmes
- BS0864
NZQA Level
Level 5
NZQA Credits
20
Delivery method
- Web-Supported
Learning hours
- Directed hours
- 64
- Self directed hours
- 136
- Total learning hours
- 200
Resources required
- Content
- Students will understand financial statements and reports and be able to analyse and interpret financial performance for sole traders and small companies.
- Learning Outcomes
- Learning outcome one
Students will discuss the purpose of accounting and its relationship to the New Zealand business environment.
Key elements:
a) Roles of accountants.
b) Users of financial information.
c) Purpose of financial statements.
d) The accounting cycle.
e) The impact of GST on business.
f) The function of internal controls.
g) The various forms of business ownership.
h) The New Zealand share market.
Learning outcome two
Students will examine and apply accounting concepts and policies to prepare financial statements for a sole trader and/or a small company.
Key elements:
a) The New Zealand Framework for the Preparation and Presentation of Financial
Statements:
- definitions of accounting elements
- qualitative characteristics
- going concern assumption.
b) Accounting policies:
- receivables
- inventory
- prroperty, plant and equipment.
c) The effect of transactions on the expanded accounting equation.
d) Balance day adjustments:
- accruals
- prepayments
- depreciation.
e) Financial statements:
- balance sheet
- income statement
- statement of changes in equity
- statement of cash flows.
Learning outcome three
Students will analyse and report on financial performance for a sole trader or a small company.
Key elements:
a) Purpose and limitations of financial analysis.
b) Calculation of ratios and percentages.
c) Profitability, financial stability and asset utilisation.
d) Recommendations.
Learning outcome four
Students will analyse and apply management accounting tools.
Key elements:
a) Purpose and limitation of budgets.
b) Preparation of a budgeted income statement.
c) Variance report:
- calculation
- evaluation.
d) Simple break-even analysis.
