Levels 2 and 3 Accounting
Presenter: Sue McVeigh
Commerce facilitator Auckland/Northland
s.mcveigh@auckland.ac.nz
Phone 623 8899 x 46420
Learning intentions for session
• To ensure teachers have a clear understanding of the
“sources of authority” for the curriculum, such as the
Curriculum Guides.
• To create an opportunity for teachers to discuss
experiences of internal/external assessments at L2 and
L3
• To (re)consider the literacy demands of Accounting and
discuss strategies for raising student achievement
• To make links with others in the community of
Accounting teachers
Rationale
Accounting
• gives students the tools to make real life
financial decisions in a constantly changing and
uncertain world
• is the process of preparing and communicating
financial information to a wide range of users
• enhances financial literacy
• helps individuals and organisations to be
accountable to stakeholders for their actions
http://seniorsecondary.tki.org.nz/Social-sciences/Accounting
Key concepts
• Integrity: being honest, responsible, and accountable and
acting ethically with awareness of social and cultural
differences.
• Accountability: justifying and taking responsibility for
actions and decisions; adhering to the law and keeping
accurate records of property, documents, or funds.
• Confidentiality: being trustworthy and having the ability to
keep the financial affairs of others secure and not passing on
private information other than to those with a legal right.
• Reliability: being trusted and organised and having the
ability to deliver on time.
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Relevance: being able to connect current
information and keep up to date on any changes that
may affect financial decision-making.
Citizenship: understanding the importance of
contributing to the community and being able to be
fiscally responsible.
Sustainability: the need for an entity to operate
profitably taking into consideration ecological issues.
Learning Objectives
• LO.1 Manage the financial affairs of… while
acting with integrity (6.1/7.1) or to enable
internal and external users to make effective
and ethical decisions (8.1).
• LO.2 Make use of appropriate communication
tools and skills to process, report and interpret
information for entities …
Three main focuses for context
• Individual and family/whanau
• Community organisations
• Businesses
As they progress, students deepen their
understanding of Accounting. They move from a
focus in their local community that they can
identify with personally at level 6 (year 11), to a
broader based focus at level 7, and a global
focus at level 8.
No longer distinction between
types of entity
The Old
The New
L1
Individuals, households,
sole traders
L2
Sole traders
L3
Partnerships, companies
Small, medium, large, global
but all levels include
individuals, whanau, businesses
and community organisations
The documents/sources of
authority
• MOE ~ standard writing, Curriculum Guides
(formerly Teaching & Learning Guidelines),
TKI exemplars
• NZQA ~ quality assurance, focused solely on
interpretation of the standards
Unless TKI standards have been QUAMed, they
should not be seen as determining how
assessment should precisely look.
Existing exemplars on TKI say “NZQA Approved”
in the top right corner but … they do not
necessarily match the standard.
For L2 now you will see on the TKI site
All TKI exemplars are in the process of being
reviewed.
Level 1 has
been completed.
Note the difference:
Final published
assessment
resources
Engaging the learner
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Create a supportive learning environment
Encourage reflective thought and action
Enhance the relevance of new learning
Facilitate shared learning
Connections to prior learning and experience
Ensure sufficient opportunities to learn
Develop literacy skills in accounting
Develop numeracy skills in accounting
Enable e-learning
Source: Accounting Curriculum Guide
A student world view
When year 11 Accounting students come to us
Student
Businesses
• They need to be here …
Student
Businesses
Simple ways of making it real
• Use local business examples
• Bring in business people, or visit, or skype
• Use the students’ co-curricular interests and
their workplaces as contexts
• Use the student names as business owners
• Use group activities often
What about the language of
accounting?
“Learning about accounting for the first time can
be scary. Accounting people seem to speak a
completely different language. In order to talk to
them you have to learn that language too. But
where do you begin? Just like learning a foreign
language, you begin with vocabulary — the first
step of becoming fluent.”
Source: http://wanderatwill.com/portfolio/accounting-game/
A whole lot of language
And once students have navigated their way
through Accounting jargon, they then need to
deal with the nuances.
Even something as simple as wages has multiple
meanings:
• When is wages income?
• When is wages an expense?
• What is the difference between sales wages
and office wages?
Literacy/Numeracy Standards
And for UE literacy from 2014
3.1 Concepts ~ 4 cr external ~ will count
for reading
3.4 Annual Report ~ 5 cr internal ~ will
count for reading and writing
A new focus
Students need to use literacy skills to
interpret processed information and make
relevant links to the continuing
viability/operations of the entity being
studied
Report writing skills are now required
for most internal assessments at each
level.
Report writing will, for most
students, need scaffolding
You need to provide students with a clear
structure within which they can present their
findings.
NCEA internals require a significant degree of
competence in literacy.
• Identify the components of the
evidence/report the students need to include.
• Use writing frames and other literacy
techniques.
• Provide opportunities for feedback and feedforward.
• Drafts and signposting could avoid the need
for resubmissions.
In your packs
• Are some examples of literacy resources and
strategies than can be applied to all subjects.
• I am in the process of contextualising some of
these strategies for Accounting. This is a
December/January task.
• Please think of sharing successful literacyraising resources and strategies you use.
Level 2 standards
INTERNALS
2.6/2.7 ~ subsystems
See document in your folders
•Strongly consider using an authentic context …
•… and the same context for both standards
•Students gain no credits for data-dumping
textbook theory
2.5 ~ new from 2013 ~ contemporary
accounting issue
• This provides students with an opportunity to
use a social enquiry approach to their
learning.
• Teaching and Learning in this unit is likely to
be student centred with the teacher facilitating
the exploration of the issue or issues students
choose to study.
The whole class could focus on one issue or each
student could be given the freedom to select
their own issue. There is no requirement to write
a report ~ digital options can be used.
Who is offering 2.5 next year?
Level 3 standards
Minimal topic change, just a reshuffle.
The current 3.2 and 3.4 have been split into
separate partnership and company standards ~
a positive move.
Standard
Mode
Credits
Topic
3.1
External
4
Concepts
3.2
Internal
4
Partnerships
3.3
External
5
Company statements
3.4
Internal
5
Annual Report
3.5
External
4
Decision-making
3.6
Internal
4
Job-costing
EXTERNALS
3.1 ~ concepts
The focus is on a reporting entity. This means
within the context of that entity. Make sure you
check the specifications next year as there is a
chance the entity for 3.1 will be named.
3.3 ~ company financial statements
Supported by Accounting appendix for layout
and clarification of statements.
For Merit students need to explain entries in
statements; for Excellence they need to justify
entries.
This means “integrating knowledge of financial
elements and/or cash flows which may include
justifying and/or preparing supporting
accounting entries for the financial statements
and notes in the general journal and/or general
ledger”.
Appendix 1 has some examples of what is meant
by this.
The two questions in the TKI sample exam are
similar in nature to the short theory type
questions students currently get in 3.2.
3.5 ~ decision-making
•Shame this didn’t become an internal.
•This could be a good ~ different and
engaging! ~ standard to start the course with.
INTERNALS
3.2 ~ partnerships
The future focus aspect is new ~ explanation of
elements of partnership accounting and why
they ensure that the partnership is able to
continue operations.
What approaches will be used ~ teacher/cluster
written case study? Or based on an authentic
business?
3.4 ~ interpret annual report
Maybe optional for Scholarship students only??
•Could teach the A and I then give students the
choice.
•Can identify any end user ~ does not have to
be a shareholder therefore does not have to
include market analysis. For example, end user
could be a potential employee or a concerned
environmental group. One of the TKI tasks is for
a union trying to negotiate wage increases.
• Note ~ while TKI activities for 3.4 suggest
students need to include an executive
summary, this is not required by the standard
for any grade, including Excellence. [In your
teaching and learning you might want to
encourage an executive summary as good
practice.]
3.6 ~ job costing
• A change is the inclusion of the future-focus
– Implications of over/under applying overhead for
profitability/viability of the firm
– Understanding the importance of accurately costing
and pricing jobs to ensure the continuing operation
and viability of the business
This seems to be the standard causing most
anxiety among even very experienced teachers
of Level 3.
There is a need for a bank of case study
resources. Information could be gathered by:
• The teacher visiting the business and
conducting a conversation/interview which is
recorded (on phone*) and typed up
afterwards, or videoed
• Business owner/manager or cost accountant
visiting the classroom
• Conducting an interview via skype
* A free recording app can be downloaded: Easyvoice Recorder
Structuring your course
• How many credits? Is there a school limit? 26 credits
are available in L3 Accounting.
• University entrance requirements ~ 14 for most
universities; higher entry for University of Auckland.
• Will you have Scholarship students?
• Combined course of Accounting/Economics or
Accounting/Business Studies?
• Will the programme meet Subject Endorsement
requirement?
• Workload for students and teachers?
UE requirements
Status quo exists for L3 students in 2013 (for university entry in 2014)
L3 students in 2014 will need to meet the following for entry to
university in 2015
• Achieve 14 (minimum) credits in L3 in each of three
subjects from the list of approved subjects
• Achieve UE numeracy ~ 10 credits in Mathematics at L1 or
higher from specific achievement standards
• Achieve UE literacy ~ 10 credits (five in reading; five in
writing) at L2 or above from specific achievement standards
Look for this in your school
Taking Part in Economic Communities
This is a new financial literacy
resource, part of the Building
Conceptual Understandings
in the Social Sciences (BCUSS)
series.
It may have been sent to
the HOD Social Sciences.
Making links
If you haven’t already done so, join the online
Accounting teachers’ forum:
https://groups.google.com/forum/?fromgr
oups=#!forum/nzaccteach
Cluster groups
Two that I know of:
• North Shore Commerce Cluster, co-ordinated
by Jessica Shackleton of Orewa College
• Central, co-ordinated by Mei Ng of Diocesan
I am happy to facilitate the
establishment of other
clusters.