Assessment Report NZQA. Standards Part A: Commentary. Part B: Report on standards. Level 3 Accounting 2

Transcription

1 NZQA New Zealand Qualifications Authority Mana Tohu Matauranga O Aotearoa Home > NCEA > Subjects > Assessment Reports > Accounting - L3 Assessment Report Level 3 Accounting 2 Standards Part A: Commentary Candidates are encouraged to familiarise themselves with the context avoid producing rote-learned responses. This particularly relates to bo candidates must answer in context to gain Achievement. Candidates to check that the question has actually been answered and that their In the company processing and reporting standard of 91406, candid provided for them, particularly those in a trial balance or trial balance Part B: Report on standards 1

2 91404: Demonstrate understanding of ac New Zealand reporting entity Candidates who were awarded Achievement commonly: answered in context provided clear responses using appropriate accounting terminolo demonstrated a familiarity with definitions, concepts and langua identified the difference between the characteristics and recogn applied the resource material appropriately by quoting key word identified that users needed to know the policies or assumptions of The Warehouse Group Limited sannual financial statemen purposes gave a valid reason for how suppliers would use the information in of Cash Flows. answered in context provided clear responses using appropriate accounting terminolo demonstrated a familiarity with definitions, concepts and langua identified the difference between the characteristics and recogn applied the resource material appropriately by quoting key word identified that users needed to know the policies or assumptions of The Warehouse Group Limited sannual financial statemen purposes gave a valid reason for how suppliers would use the information in of Cash Flows. gave a valid reason how the CEO s statement satisfies the inform Warehouse Group Limited described that an auditor s report states that The Warehouse show a true and fair view stated the income recognition criteria of probable future economic measured described a component of faithful representation described historical costs as the computer software being record described capital expenditure as a one-off payment which bene than one year 2

3 described revenue expenditure as regular payments which ben current year only described that only The Warehouse Group Limitedcan use the co described how The Warehouse Group Limited will benefit in the installed to earn income for the company described an expense in context that will decrease assets, de shareholders. Candidates who were assessed as Not Achieved commonly: did not answer in context or misread the question did not use appropriate accounting terminology suitable for Le use of Level 1 language could not recall basic accounting concepts using appropriate acc stated definitions of accounting terms / financial elements rathe restated the source material without an explanation or link to an described the purpose of a Statement of Cash Flows with no refer the year described why the tenancy rents received satisfies the characteri the income recognition criteria of probable economics benefit or did not know the definition of a current liability which was ofte period rather than the next period defined historical cost with no reference to The Warehouse Grou were unable to distinguish between which components of the c revenue expenditure if an attempt was made to answer the paragraph question, characteristics of an asset with no reference to The Warehouse G Candidates who were awarded Achievement with Merit commonly: applied their knowledge of accounting concepts to the context o could identify the difference between the characteristics and re apply these to the context of the question explained that users needed to know the policies or assumptions of The Warehouse Group Limited s annual financial stateme purposes and linked this explanation to the accompanying notes for users to make sound decisions based on The Warehouse Gro 3

4 gave a valid reason how the CEO s statement satisfied the inform to The Warehouse Group Limited s profitability explained the probable economic benefit of the tenancy rents r Limited was the money being received from the tenants explained that the amount of the tenancy rents received could b gave a valid reason why taxation payable results in a present ob described the Inland Revenue Department as an independent org of faithful representation linked the concepts of an asset to capital expenditure and the con described The Warehouse Group Limited s resource control ch exclusion of others from benefitting from the land and buildings explained that The Warehouse Group Limited will benefit in th software is used to earn income for the company, which ultimat Limited explained the decrease in economic benefit (cash) to an ex Limitedfrom the installation of the computer software. Candidates who were awarded Achievement with Excellence comm had some familiarity with the look, feel and content of a public provided clear and in-depth written responses using appropriat context comprehensively answered all questions, applying their knowledg explained the purpose of the Statement of Cash Flows by linkin in The Warehouse Group Limited s Statement of Cash Flows explained how the information needs of a potential inves Limited s profitability and its ability to pay future dividends whic shares inthe Warehouse Group Limited explained a valid reason why an auditor s report is a statutory r that an auditor s report was an independent opinion explained the probable economic benefit of the tenancy rents r Limited was the money being received from the tenants that als explained the amount of the tenancy rents received could be relia was from an independent third party explained why taxation payable is a current liability by linking the benefits as the cash given up by The Warehouse Group Limited 4

5 explained how faithful representation is satisfied by the Inlan organisation calculating the $2.1 million of taxation payable ow paid by The Warehouse Group Limited during the year being offse net profit has been calculated fully explained the difference between capital and revenue ex Group Limited s computer software included the costs of getting the computer software into location historical cost, an asset s past event and the concept of capital e Standard specific comments The Warehouse Group Limited is a familiar New Zealand reporting ent of accounting concepts. Despite this, there was an increase in the nu answer this standard. Candidates need to be confident in attempting all questions in the asse of gaining an Achievement in this standard. Candidates areencouraged to answer each bullet point in the paragra the requirements of the question are included in their explanation : Demonstrate understanding of co statement preparation Candidates who were awarded Achievement commonly: attempted to complete the majority of the three questions in the were able to complete partial general journal entries and gene financial asset revaluation and dividends were able to partially complete a Contributed equity note understood the Statement of Cash Flow format using correct title 5

6 were able to identify and transfer figures from the trial balance i were able to calculate straight forward balance day adjustments had a partial understanding of the written questions. Candidates who were assessed as Not Achieved commonly: were unable to complete general journal entries or general le stems / figures did not attempt to answer the written questions did not understand the requirements of how to answer the writte in their answers were unable to correctly identify figures required for the Contribu of adding and subtracting used incorrect formatting or lack of titles in the Statement of Ca could not distinguish cash and non-cash items in the Statement could not complete balance day adjustments included foreign items in the financial statements. Candidates who were awarded Achievement with Merit commonly completed general journal entries and general ledger account e revaluation and dividends showed clear understanding of Contributed equity note including calculated the majority of the cash flow figures correctly in the Sta working understood layout and what items belonged in what financial sta calculated the majority of the balance day adjustments and repor and Statement of Financial Position extract understood correct accounting treatment in financial statemen written questions. Candidates who were awarded Achievement with Excellence comm completed the Contributed note using correct stems, treatment read the questions carefully and answered the written questions question was asking had a comprehensive understanding of how provisional tax work had a comprehensive understanding of how a building revaluatio 6

7 comprehensively completed the Statement of Cash Flows with with correct stems and layout calculated balance day adjustments and used correct stems and including process of profit before and after tax understood how to calculate the cash paid to suppliers figure a statement explained both the calculation and why the interest on loan fig Income Statement clearly showed how to complete a Contributed equity note with had no foreign items in any of the financial statements. Standard specific comments Candidates need to have an understanding about WHY transactions reported in the financial statements. This would then enable candida level required. Use of "because" as a connector and figures are vita understanding. Many candidates did not seem to have a good understanding of how 91408: Demonstrate understanding of m to inform decision-making Candidates who were awarded Achievement commonly: were able to write reasonable definitions and used the context that was appropriate to the question could calculate two of contribution margin, break even dollars an could complete the Cash Budget with fair accuracy and were ab able to describe a recommendation in context, identify a range o them in their answer showing a knowledge of financial and non- 7

8 Candidates who were assessed as Not Achieved commonly: did not attempt to answer all questions experienced difficulty with calculating contribution margin, brea experienced difficulty with the definitions of a variable cost, con calculated data for a Cash Budget with some calculation errors confused a budgeted income statement with a cash budget wrote unstructured ideas with some awareness of financial and/o restated data from the case study information with little awaren Candidates who were awarded Achievement with Merit commonly: calculated contribution margin, breakeven in dollars of sales (a asked), margin of safety (although sometimes as a percentage w explained variable cost and routine decision in context explained the link between changing a routine matter and impac accurately calculated data for a Cash Budget made a limited connection between the data in the Cash Budget showed understanding of why estimates in a Cash Budget, whil when later compared to what actually happened showed understanding that a variance may require a change in recognised financial and non-financial information wrote a report that incorporated some data from the case study a booklet effectively applied generic knowledge of cost terminology/concep activity showed some understanding of literacy skills such as paragraphin development of a logical argument using a report style. Candidates who were awarded Achievement with Excellence comm explained variable cost and routine decisions in context calculated contribution margin, breakeven in dollars of sales, an understood the links between a routine decision and an impac margin of safety accurately calculated data for a Cash Budget applied the data from the Cash Budget to an applied context for th 8

9 showed understanding of why estimates in a Cash Budget, whil when later compared to what actually happened incorporated examples of realistic events, relevant to this case s estimated and actual data recognised financial and non-financial information wrote a report that incorporated material from the case study, their own calculations, particularly with reference to the impact o linked this data to their own thinking to show a sophisticated le making structured their report in a manner that would assist th ideas/suggestions/observations, using topic headings, paragra development of argument throughout the report showed perception of business ideas relevant to the owners, th study data. Standard specific comments The Achievement Standard requires candidates to describe manageme making. Candidates who only calculate management accounting elem to meet the standard. Candidates need to understand that for Level Three Accounting a defin learning of definitions and then adding in the name of the business is no candidates to be able to cope with the diverse range of business contex Legibility of writing is now starting to become more of a problem when a The use of specific examples from the resource material is absolutely Accounting subject page Previous years' reports 9

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