NZQA registered unit standard
1863 version 7
Page 1 of 3
Title
Identify and compare short-term and long-term debt options offered
by the banking and finance industries
Level
4
Purpose
Credits
3
People credited with this unit standard are able to identify and
compare short-term debt options offered by the banking and
finance industries, and identify and compare long-term debt
options and compare them with equity options.
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
Legislation relevant to this unit standard includes –
 Companies Act 1993
 Commerce Act 1986
 Income Tax Act 2007
 Financial Reporting Act 2013
and may include but is not limited to –
 Credit Contracts and Consumer Finance Act 2003
 Financial Advisers Act 2008
 Financial Service Providers (Registration and Dispute Resolution) Act 2008.
2
The Code of Banking Practice, latest version, is relevant to this unit standard and is
available from the New Zealand Bankers’ Association, http://www.nzba.org.nz.
3
Definitions
A short-term debt option refers to a debt option with a timeframe of less than one
year.
A long-term debt option refers to a debt option with a timeframe of more than one
year.
Outcomes and evidence requirements
Outcome 1
Identify and compare short-term debt options offered by the banking and finance
industries.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
1863 version 7
Page 2 of 3
Evidence requirements
1.1
Short-term debt options and their sources are identified and compared to
identify key features.
Range
1.2
options – short-term loans, overdrafts, bridging finance,
arrangements based on trade credit, revolving term credit,
promissory notes, commercial bills, factoring, hire-purchase.
Legal factors associated with short-term debt options are included in
comparisons.
Range
legal factors – security, registration, default and enforcement,
legislative requirements, banking code requirements.
Outcome 2
Identify and compare long-term debt options and compare them with equity options.
Evidence requirements
2.1
Long-term debt options and their sources are identified and compared to
identify key features.
Range
options – term loans, operating and finance leasing, lease backs,
notes, bonds, debentures, mortgages.
2.2
Long-term debt options are compared with equity options including ordinary
shares, rights issues, options, and preference shares.
2.3
Legal factors associated with long-term debt options and equity options are
included in comparisons.
Range
Planned review date
legal factors – security, registration, default and enforcement,
legislative requirements, banking code requirements.
31 December 2020
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
1863 version 7
Page 3 of 3
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
28 September 1994
31 December 2016
Revision
2
7 September 1999
31 December 2016
Revision
3
16 December 2002
31 December 2016
Revision
4
12 January 2006
31 December 2016
Review
5
21 May 2010
31 December 2016
Rollover
6
18 April 2013
N/A
Rollover and
Revision
7
17 September 2015
N/A
Republished
7
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