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Accounting

Jump to: Form 4 | NCEA Level 1 | Pre-Q | NCEA Level 2 | AS Level | NCEA Level 3 | A2 Level

Introduction

Accounting is the process of preparing and communicating financial information to a wide range of users. The course gives students the tools to make real life financial decisions in a constantly changing and uncertain world and helps individuals and organisations to be accountable to stakeholders for their actions. A basic understanding of Accounting and managing finances is essential, no matter what career pathway students pursue in the future.

Accounting at Auckland Grammar School is offered through the dual pathway of NCEA and CAIE. CAIE courses are typically more complex and require more depth of knowledge.

In Form 4, students have the option to choose an introduction to Business Studies, Economics and Accounting (4BEA) covering a variety of topics, enabling them to get a taste of each subject, in order to choose courses for the following year.

In Form 5, students can study Accounting at Pre-Q level, plus one class is offered at NZQA Level 1. There are no prerequisites to take this course.

in Form 6, students can take Level 2 Accounting (no prerequisites), or AS Accounting, which can only be taken if students have achieved 50% in Pre-Q Accounting.

In Form 7, students can choose to take either Level 3 Accounting (no prerequisites), or A2 Accounting, which can only be taken if students have achieved AS Accounting with a minimum of a D Grade.

Level 4 Scholarship is largely based on the Level 3 Achievement Standards and all content for Level 4 is covered by the A2 and Level 3 Accounting programme.

Form 4 (Business Studies / Economics / Accounting)

This course is an introduction to some of the basic concepts in Business, Economics and Accounting. It is not a prerequisite for study at Form 5, but will help students interested in Commerce make a more informed decision about subjects to study in Form 5.

Course description/aims: Topics covered in Economics include the basic economic problem, introductory micro-economic analysis including market theory (demand and supply), consumer economics including financial literacy topics such as insurance, budgeting and consumer rights and obligations in the market place. Students also complete a unit on Business Studies, covering some of the main issues such as marketing, business organisation, business success and failure.

There is also a unit on Business Accounting and a business management simulation.

Economics/Consumer Financial Literacy

  • Basic economic problem: scarcity and exercise of choice
  • What, how and for whom
  • Economic systems

Market Equilibrium: Demand, Supply, Equilibrium

Financial Literacy Part 1

  • Income
  • Credit
  • Saving
  • Personal budgeting
  • Financial Records and ID Theft

Business Studies

  • Why business activity is needed
  • How business activity is organised and financed
  • How to start a business
  • Business objectives

 Accounting for Sole Traders

  • Financial information
  • Accounting equation
  • Debits and Credits
  • Transactions and Trial Balance
  • Income Statement
  • Assets and Liabilities
  • Trading Statement
  • Statement of Financial Position
  • Accounting Cycle
  • Accounting Analysis

Financial Literacy Part 2: Consumer Laws and Insurance

Business Marketing

  • Market Segments
  • Market Research
  • Marketing Mix – the 4 P’s

Methods of Assessment:

  • 1 x 1 hour examination – end of Term 1
  • 1 x 2 hour examination – end of Term 2
  • 1 x 2 hour examination – end of Term 4

Continuation of course: This course will provide good background and preparation for Accounting, Business Studies and Economics at Pre-Q Level.

Commerce – Form 5 (NCEA Level 1)

Prerequisites: None. This course is provided for students in 4P and 4R who will study a full NCEA course at Form 5.

Course description/aims: This course is designed to introduce students to some of the concepts and theories covered in the Commerce subjects of Economics, Business Studies and Accounting.

Commerce is the use and exploration of accounting, economic, and business concepts and models to make sense of society and solve problems. In this subject, students will build the knowledge, skills, and values they need to navigate, and participate in, the economic world. They will learn how participants in the economic world make decisions, and they will analyse how these decisions impact on sustainability.

Students will learn that decision-making is necessitated by scarcity and that decisions are informed by a variety of cultural perspectives and lenses. Learning and assessment will examine Māori, Pacific, and different approaches to commerce, and business models from whānau and organisation contexts.

Successful completion of this course provides an appropriate base for study of Accounting, Business Studies or Economics at NCEA Level 2 in Form 6.

Course outline: The proposed course outline is designed to cover some of the new NCEA Level 1 Achievement Standards. Standards offered will assess some/all of the following:

  • What is Accounting?
  • The process of Accounting
  • Understanding of an organisation’s financial decision making
  • Introduction to Economics
  • Supply and demand
  • Introduction to Business Studies
  • Marketing and the marketing mix
  • Product life cycle
  • Māori culture and values in business
  • Understanding of price determination for an organisation

Methods of Assessment: Students will complete a mix of NCEA Level 1 Achievement Standards, which are yet to be confirmed. Students will also be assessed by in-class tests and the School examinations which take place in Terms 1, 2 and 4.

Continuation of subject: Successful completion of this course provides an appropriate base for study of Accounting, Business Studies, or Economics at NCEA Level 2 in Form 6.

Accounting – Form 5 (Pre-Q)

Prerequisites: None. However, it is possible that classes may be oversubscribed. In this case, priority will be given to those students who have performed creditably in 4BEA.

Course description/aims: The aim of the course is to:

  • Develop an understanding of the principles and purposes of accounting in providing information systems for monitoring and decision-making appropriate to the needs of business
  • Develop an understanding of accounting concepts, conventions, procedures, and terminology
  • Develop knowledge and understanding of the aims and activities of business, their accounting implications and accounting techniques, and procedures appropriate to them
  • Develop skills of numeracy, literacy, communication, enquiry, presentation, and interpretation
  • Encourage attitudes of accuracy, orderliness, and logical thought

Methods of Assessment: School examination:

  • 1 x 1 hour examination – end of Term 1
  • 1 x 2 hour examination – end of Term 2
  • 1 x 3 hour examination – end of Term 4 (Pre-Q, which is worth 100% of the overall mark)

Special equipment/costs: A calculator and workbook for $25.

Continuation of subject: At the end of the Pre-Q course, students can pursue the following pathway or combination of pathways:

  • The Cambridge pathway: Form 6 Cambridge AS Level Accounting, Form 7 Cambridge, A2 Level Accounting
  • The NCEA Pathway: NCEA Level 2 Accounting, NCEA Level 3 Accounting

Accounting – Form 6 (NCEA Level 2)

Prerequisites: None. It is an advantage to have studied BEA in Form 4 and/or Pre-Q Accounting in Form 6, but it is not essential. Although the course starts from first principles, new students to Accounting must be prepared to work very hard on basic concepts and terminology, as content is recovered from Pre-Q Accounting relatively quickly.

Course description/aims: The aim of this course is to:

  • Provide students with an understanding of the role of the accountant in society
  • Improve students’ understanding of business organisations
  • Provide students with increased awareness of, and access to, career opportunities in accounting
  • Give accounting students hands-on computer experience

Course outline: Form 6 Accounting is assessed through a combination of internally-assessed and externally-examined NCEA Level 2 Achievement Standards as shown below. A total of 19 credits is offered in this course, and it is a University-approved course.

  • 2.2 – Demonstrate understanding of Accounting processes using accounting software [4 Credits, Internal]
  • 2.3 – Prepare financial information for an entity that operates accounting subsystems [5 Credits, External]
  • 2.4 – Interpret Accounting information for entities that operate Accounting subsystems [4 Credits, External]
  • 2.6 – Demonstrate understanding of accounts receivable subsystems for an entity [3 Credits, Internal]
  • 2.7 – Demonstrate understanding of an inventory subsystem for an entity [3 Credits, Internal]

Note: Students will be required to process accounting information manually, as well as on a computerised system.

Methods of Assessment:

NZQA Examination – Students sit a three-hour external examination assessing two Achievement Standards worth 9 credits.

School examinations:

  • 1 x 1-hour examination – end of Term 1
  • 1 x 2-hour examination – end of Term 2
  • 1 x 3-hour examination – end of Term 3

Special equipment/costs: A calculator and workbook for $30.

Continuation of subject: NCEA Level 3.

Accounting – Form 6 (AS)

Prerequisites: Form 5 Pre-Q Accounting.

Recommended Achievement Levels: Over 50% in Form 5 Pre-Q Accounting. Students who have not studied Form 5 Pre-Q Accounting will only be admitted onto the course at the discretion of the Head of Department, and only on completion of Pre-Q Accounting material over the end-of-year school holidays, prior to the start of AS Accounting.

Course description/aims: The syllabus is intended to encourage courses that will enable students to:

  • Develop an ability to apply accounting concepts, principles and practice
  • Understand the role of accounting as an information system for monitoring, problem-solving and decision-making and the place of accounting in changing economic, social and technological environments
  • Develop a critical and analytical approach to examining and evaluating accounting policies and practice
  • Develop skills to communicate, analysis, interpretation and presentation of both qualitative and quantitative accounting information

Course outline: The topics covered during the year include:

  • Types of business entity
  • The Accounting system
  • Accounting for non-current assets
  • Reconciliation and Verification
  • Preparation of financial statements
  • Analysis and communication of accounting information
  • Costs and costs behaviour
  • Traditional Costing methods

Methods of Assessment: Candidates must sit two external examination papers:

  • Paper 1: Multiple Choice paper – 30 questions with a maximum mark of 30 [1 hour]
  • Paper 2: Structured Questions paper – a maximum mark of 90 [1 hour, 45 mins]

Special equipment/costs: A calculator and workbook for $20.

Continuation of subject: At the end of the AS course, students can pursue one of the following pathways – Form 7 Cambridge A2 Level Accounting or Form 7 NCEA Level 3 Accounting.

Accounting – Form 7 (NCEA Level 3)

Prerequisites: None. It is an advantage to have studied Accounting in Form 5 and/or Form 6, but it is not essential. Although the course starts from first principles, new students to Accounting must be prepared to work very hard on basic concepts and terminology, as content is recovered from Level 1 and 2 relatively quickly.

Course description/aims: The course aims to:

  • Give students an appreciation of how basic Accounting concepts, processes and systems are applied to different organisations and groups of users
  • Provide students with an understanding of the analysis of Accounting systems and the methods of processing Accounting data

Course outline: Form 7 Accounting is assessed through a combination of internally-assessed and externally-examined NCEA Level 3 Achievement Standards as shown below. A total of 22 credits is offered in this course, and it is a University-approved course.

  • 3.2 – Demonstrate understanding of accounting for partnerships [4 Credits, Internal]
  • 3.3 – Demonstrate understanding of company financial statements preparation [5 Credits, External]
  • 3.4 – Prepare a report for an external user that interprets the annual report of a NZ reporting entity [5 Credits, Internal]
  • 3.5 – Demonstrate understanding of management accounting to inform decision making [4 Credits, External]
  • 3.6 – Demonstrate understanding of a job costing subsystem for an entity [4 Credits, Internal]

Methods of assessment: 

NZQA Examination – Students sit a three-hour external examination assessing two Achievement Standards worth 9 credits.

School examinations:

  • 1 x 1 hour examination – end of Term 1
  • 1 x 2 hour examination – end of Term 2
  • 1 x 3 hour examination – end of Term 3

Special equipment/costs: A calculator and workbook for $30.

Continuation of subject: It is useful for any commerce-related degree. It also provides fundamental background knowledge which is clearly advantageous, and students who wish to make a career in commerce are strongly recommended to take it.

Accounting – Form 7 (A2)

Prerequisites: Students with a D pass in AS Accounting will be allowed automatic entry to Form 7 A2 Accounting. Students with an E grade will not be accepted into this course.

Course description and outline: The A2 syllabus is an extension of the topics taught at AS level, as well as the following additional topics:

  • Preparation of Financial Statements for Partnerships and Companies
  • Regulatory and ethical considerations for Businesses
  • Business acquisitions and mergers
  • Computerised accounting systems
  • Analysis and communication of accounting information
  • Company Finances (including capital gearing, capital structures and loan capital)
  • The preparation of a cash budget and master budget
  • Standard Costing and Activity-Based Costing
  • Investment Appraisal Accounting (including discounted cash flow methods)

Methods of Assessment:

External examination – Cambridge International Examination Assessment is in two papers:

  • Paper 3 [1 hour, 30 mins] – three structured questions based on Financial Accounting worth 75 marks
  • Paper 4 [1 hour] – two structured questions based on Cost and Management Accounting worth 50 marks

School examinations:

  • 1 x 1 hour examination – end of Term 1
  • 1 x 2 hour examination – end of Term 2
  • 1 x 3 hour examination – end of Term 3

Class assessment – Common tests are held throughout each term.

Special equipment/costs: A calculator and workbook for $25.

NZQA Level 4 Scholarship: Successful completion of the A2 course is excellent preparation for this optional three-hour examination, held late in Term 4. Online support is provided for any interested students.  Level 4 scholarship is based on the Level 3 programme Achievement Standards, but has similar content to A Levels. 

Continuation of subject: Students studying A2 Level Accounting will be familiar with many topics covered in the first two years of a university Accounting course.  It is also useful for any commerce-related degree and advantageous for all university graduates. Students will have the opportunity to complete the NZQA Accounting Scholarship Examination.

If you have any questions, please feel free to contact our staff today.