NZQA Expiring unit standard
11622 version 8
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Title
Demonstrate knowledge of the nature of accounting and prepare
financial statements for an entity
Level
4
Credits
10
Purpose
People credited with this unit standard are able to: explain the
nature of accounting and accounting concepts; explain and
classify transactions according to their effect on the expanded
accounting equation; and prepare financial statements for an
entity.
Classification
Accounting > Accounting - Middle Level
Available grade
Achieved
Explanatory notes
1
People must be assessed against this unit standard in their workplace using naturally
occurring evidence, or in a realistic simulation of such a context. Competence must
be demonstrated within timeframes expected in a commercial environment.
2
The expanded accounting equation used for this unit standard must accord with
generally accepted accounting practice.
Outcomes and evidence requirements
Outcome 1
Explain the nature of accounting and accounting concepts.
Evidence requirements
1.1
The explanation describes the function and purpose of accounting.
1.2
The explanation identifies potential users of accounting information.
Range
one internal user, one external user.
1.3
The explanation identifies the types of decisions that users of accounting
information make and the effect this has on their information needs.
1.4
The explanation describes accounting concepts in terms of their effects on
financial statements.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
Range
11622 version 8
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concepts – entity, going concern, accounting period, accruals
basis, monetary, historical cost, quality characteristics;
quality characteristics must include one of – relevance, reliability,
comparability, understandability.
Outcome 2
Explain and classify transactions according to their effect on the expanded accounting
equation.
Evidence requirements
2.1
Transactions are analysed and classified in accordance with a chart of
accounts.
2.2
Analysis and classification are justified in terms of the expanded accounting
equation.
Outcome 3
Prepare financial statements for an entity.
Range
classified statements of – financial performance, financial position;
an entity may include but is not limited to – sole trader, not-for-profit
organisation, exempt company.
Evidence requirements
3.1
Adjustments to a trial balance necessary to prepare financial statements are
calculated and prepared in accordance with the relevant accounting concepts.
Range
adjustments – balance day adjustments, depreciation, bad and
doubtful debts, physical inventory;
concepts may include but are not limited to – entity, going
concern, accounting period, accruals basis, monetary, historical
cost, quality characteristics;
quality characteristics – relevance, reliability, comparability,
understandability.
3.2
The statements are prepared from an adjusted trial balance.
3.3
The statements are presented in accordance with generally accepted
accounting practices.
Replacement information
This unit standard and unit standard 25939 have been
replaced by unit standard 29014.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
11622 version 8
Page 3 of 3
This unit standard is expiring. Assessment against the standard must take place by
the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
24 October 1997
31 December 2018
Revision
2
30 September 1998
31 December 2018
Revision
3
16 January 2001
31 December 2018
Revision
4
13 November 2002
31 December 2018
Revision
5
12 January 2006
31 December 2018
Review
6
21 August 2009
31 December 2018
Rollover
7
24 October 2014
31 December 2018
Review
8
19 May 2016
31 December 2018
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016