AccountingLevel3appendix-NCEAonTKI.docVIP

Accounting NCEA Level 3 Appendix – for use from 2013 This appendix is provided for teacher guidance in relation to the external Level 3 Achievement standards: Achievement Standard 91404 Accounting 3.1 Demonstrate understanding of accounting concepts for a New Zealand reporting entity Please note there are currently two frameworks which have relevance for reporting entities: 1. The NZ Framework (also known as the Conceptual framework for Financial Reporting 2010) It is expected that teachers and students will use the New Zealand Equivalent to the IASB Conceptual Framework for Financial Reporting 2010 (NZ Framework) as a reference. Definitions and explanations in the most recent version of NZ Framework will guide assessment of accounting concepts where relevant. 2. Approved Accounting Standards Framework Outlines the new Accounting Standards Framework established by the External Reporting Board (XRB) for the criteria and reporting requirements for the different reporting tiers. Note: Students at Level 3 are not expected to be familiar with the details of the tiers for reporting. Scholarship students may be expected to have knowledge of the tiers for reporting; see: t.nz/Site/Financial_Reporting_Strategy/Accounting_Standards_Framework.aspx New Zealand Equivalents to the International Financial Reporting Sandards(NZIFRs) can also be accessed from the XRB website. The most recent volume should be referred to, and will be updated on t.nz Note: Students at Level 3 are not expected to be familiar with the contents of NZIFRS but relevant parts of standards should be used by teachers as a reference. In particular New Zealand International Accounting Standard 1 (NZIAS 1) Presentation of Financial Statements and NZIAS 7 Statement of Cash Flows have informed the content of this Appendix. NZIAS 2 Inventories and NZIAS 16 Property, plant and equipment are useful teacher references. Accounting Concepts Features of reporting entities Accountability Contents of annual re