NZQA registered unit standard
18956 version 5
Page 1 of 3
Title
Demonstrate knowledge of financial management for an entity
Level
3
Credits
Purpose
5
People credited with this unit standard are able to explain:
aspects of accounting; business records required to manage an
entity; and business plans, cash forecasts, and budgets.
This unit standard is for people who are not financial specialists
or experts but who need financial knowledge and skills in their
workplace.
Classification
Financial Management > Financial Skills
Available grade
Achieved
Explanatory notes
1
An entity may include but is not limited to – an entire organisation; a part of an
organisation such as a cost-centre, department, or branch; a small-to-medium
enterprise (SME); a community group such as a sports club.
Outcomes and evidence requirements
Outcome 1
Explain aspects of accounting.
Evidence requirements
1.1
The explanation describes concepts of accounting.
Range
1.2
accounting entity, historical cost, continuity, accounting period,
conservatism, realisation, disclosure, materialism, depreciation.
The explanation describes types of accounting transactions and includes taxes
payable.
Range
types of accounting transactions include but are not limited to –
assets, liabilities, equity, revenue, expenses, wages of staff and/or
owner, accounts receivable, accounts payable, debtors’ master
file, creditors’ master file, insurance;
taxes payable include – pay as you earn (PAYE), goods and
services (GST), fringe benefit (FBT), provisional, terminal.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
18956 version 5
Page 2 of 3
1.3
The explanation describes profit and loss account, turnover, and balance sheet.
1.4
The explanation describes the role of a company accountant for compliance
accounting and for business management.
Outcome 2
Explain business records required to manage an entity.
Evidence requirements
2.1
Business records are explained in terms of accounting purposes, and taxation
and other legal requirements.
Range
may include but is not limited to – bank statements, cheque books,
invoices, hire purchase agreements, legal statements, cash books
(computerised or manual), wages books, wage reconciliation, ACC
levy statements.
Outcome 3
Explain business plans, cash forecasts, and budgets.
Evidence requirements
3.1
The content of a business plan is identified, and explained in terms of its
purpose.
3.2
Cash forecasts are explained in terms of benefits and means of operation.
3.3
The content of a budget is identified, and explained in terms of its purpose.
3.4
The explanation includes the development of a budget from a business plan.
3.5
The explanation includes how income is forecast and discusses the relationship
between forecast income and the budget.
Planned review date
31 December 2020
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
18956 version 5
Page 3 of 3
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
23 January 2002
31 December 2016
Rollover and
Revision
2
22 August 2008
31 December 2016
Review
3
21 May 2010
31 December 2016
Rollover
4
18 April 2013
N/A
Rollover and
Revision
5
17 September 2015
N/A
Republished
5
11 March 2016
N/A
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 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.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016