Number
AS90501
Version
1
Page 1 of 3
Achievement Standard
Subject Reference
Accounting 3.2
Title
Process financial information for partnerships and/or
companies
Level
3
Subfield
Accounting
Domain
Accounting – Generic
Registration date
Credits
21 October 2003
3
Assessment
Date version published
External
21 October 2003
This achievement standard requires processing financial information for partnerships
and/or companies.
Achievement Criteria
Achievement
Achievement with Merit
Achievement with
Excellence
 Prepare and/or explain
accounting entries
correctly for the majority of
straightforward financial
information for
partnerships and/or
companies.
 Prepare and/or explain
accounting entries
correctly for the majority of
straightforward and
complex financial
information for
partnerships and/or
companies.
 Prepare and/or explain
accounting entries
correctly for all or nearly all
straightforward and
complex financial
information for
partnerships and/or
companies.
Explanatory Notes
1
This achievement standard is related to:

Accounting Curriculum for New Zealand Schools, Ceta Resources and
Curriculum Services, New Zealand Commerce and Economics Teachers’
Association (NZCETA), 1998 (revision #1, Dec 1999); Level 3 Conceptual Basis
of Accounting strand, pp. 22–24

relevant parts of New Zealand Accounting Standards, Institute of Chartered
Accountants of New Zealand, July 1999, and subsequent updates, and relevant
Acts of Parliament

Statement of Concepts for General Purpose Financial Reporting, ICANZ, 1993
(referred to as the Statement of Concepts), and subsequent updates.
Number
AS90501
Version
1
Page 2 of 3
2
Students will be required to recognise, identify and use information for the formation
of the entities.
3
GST will not be assessed.
4
Assessment will include the preparation of accounting entries, which may be general
journal entries and/or general ledger entries.
Note: While a three-column ledger format will be provided for general ledger
accounts when these are assessed, students will not be penalised if they use the T
form ledger format instead.
5
Assessment will be a selection from the following:

Prepare and/or explain accounting entries for the formation of a partnership
including:
 a partnership formed by the introduction of cash and/or other assets and/or
existing business
 goodwill limited to the difference between the agreed value of net assets
taken over and the agreed amount of the partner’s contribution/initial equity.
Note: Admission of a new partner to an existing partnership will not be
assessed.

Prepare and/or explain accounting entries for the distribution of partnership
profit/surplus and drawings by partners’ including current and capital accounts.
Note:
i Salaries to partners are to be treated as a distribution of profit/surplus.
ii The distribution of partnership profit/surplus will be based on profit-sharing
arrangements contained in a Partnership Agreement.

Prepare and/or explain accounting entries to record the issue of fully paid (on
application) ordinary shares of a company, limited to a selection from the issue
of shares:
 in exchange for cash and/or other assets
 in exchange for the purchase of a business as a going concern
 for repayment of debt
 as a means of distribution of retained earnings or asset revaluation reserve.

Prepare and/or explain accounting entries for the repurchase of shares.
Note:
i Accounting entries are limited to debiting paid-in capital and crediting bank,
and adjusting retained earnings where necessary.
ii Explain the repurchase of shares may include an explanation of the solvency
test.

Prepare and/or explain accounting entries for a company, limited to a selection
from:
 revaluation of non-current assets
 amortisation of goodwill
 company tax payments made and the company tax expense, including
closing entries.
Note:
i Applicable tax rates and/or the amount of tax paid and/or tax expense will
be provided.
ii Deferred tax will not be assessed.
Number
AS90501
Version
1
Page 3 of 3
 the payment of dividends
 closing entries involving equity accounts
Note:
i The entries to close revenue and expense accounts (other than taxation)
to the Financial Performance Summary account will not be assessed.
ii Explain the payment of dividends may include an explanation of the
solvency test.
6
Straightforward financial information is where the figures are given or a
straightforward calculation is required, eg issue 100,000 shares at a fair value of $2.
7
Complex financial information is where complex calculations are required to establish
the figures, eg calculation of a refund where there has been an over-subscription for
shares.
8
Students are expected to use correct debits and credits and appropriate accounting
terminology but minor arithmetical errors will not be penalised.
Quality Assurance
1
Providers and Industry Training Organisations must be accredited by the
Qualifications Authority before they can register credits from assessment against
achievement standards.
2
Accredited providers and Industry Training Organisations assessing against
achievement standards must engage with the moderation system that applies to
those achievement standards.
Accreditation and Moderation Action Plan (AMAP) reference
0226