Scottish Qualifications Authority
Ùghdarras Theisteanas Na H-Alba
Our ref: HNUpdate
October 2015
SQA Co-ordinatorSQA Co-ordinator
Contact: Sharon McDowall, Tony Hamilton, Linda MeikleSharon McDowall, Tony Hamilton,
Linda Meikle
Direct line: 0345 213 5465/5467/54660345 213 5465/5467/5466
sharon.mcdowall@sqa.org.uk
tony.hamilton@sqa.org.uk
linda.meikle@sqa.org.uk
Dear Colleague
This letter relates to a range of HN Units with Accounting content and should be passed to
the members of staff responsible for the delivery of:
HNC/D Accounting
HNC/D Administration and Information Technology
HNC/D Business HNC/D Accounting
HNC/D Administration and Information Technology
HNC/D Business
Update Regarding HN Accounting Units and Financial Reporting
Standard 102 (FRS 102)
HNC/D Accounting (G9M5 15/G9M6 16)
The SCQF level 7 Accounting Unit specifications and Assessment Support Packs (ASPs)
have been revised to comply with FRS 102 requirements. The revised Unit specifications
and associated ASPs can be downloaded from SQA’s website and secure site respectively.
The ASP for Using Financial Accounting Software (F7JP 34) has not been updated as,
currently, SAGE has not updated the software to comply with FRS 102.
Suggested layouts for financial statements, complying with FRS 102, along with ratios can
be downloaded from SQA’s HN Accounting web page – August 2014 Update letter
Appendices 2 and 3. In addition, the presentations that were given at this year’s HN
Accounting Network Event can be downloaded from the HN Accounting web page under
‘Events – February 2015’:
 FRS 102 Presentation
 FRS 102 – A Practitioner’s Perspective
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The HN Accounting Qualifications Review Team (QRT) is currently in the process of revising
the SCQF level 8 Accounting Units and ASPs (listed below) to comply with FRS 102:
Financial Reporting and Analysis (F7R4 35)
Accounting for Specialised Transactions (F7R5 35)
Business Taxation (F7R6 35)
Management Accounting for Planning and Control (F82H 35)
Management Accounting for Decision Making (F82J 35)
Auditing (FN11 35)
Preparing Financial Forecasts (F84R 35) – in HN Business frameworks
Accounting: Graded Unit 2 (F84K 35)
Accounting: Graded Unit 3 (F8KG 35)
The timeline for revision of this material is Easter 2016.
HNC/D ADMINISTRATION AND INFORMATION TECHNOLOGY (G9M7 15/G9M8
16)
As Recording Financial Transactions (F847 33) falls within the Accounting and Finance
Verification Group, the Unit specification and one ASP have been revised to comply with
FRS 102.
HNC/D BUSINESS (G9ML 15/G9MM 16)
As Business Accounting (F84M 34) falls within the Accounting and Finance Verification
Group, the Unit specification and one ASP have been revised to comply with FRS 102.
This Unit contributes to Business: Graded Unit 1 (F8LD 34) so the Unit specification and
associated ASPs for F8LD 34 have also been revised.
Unit specific information
Recording Financial Information (F7JV 34)
SQA is aware that Prompt Payment Discounts (PPD) VAT legislation has been amended
and that the changes came into effect from 1 April 2015. This change affects the
Assessment Support Packs (ASPs) for this Unit. Centres may use the Assessment Support
Packs (ASPs) as they stand or can amend to take account of the amended legislation.
Centres should record any amendments in their Internal Verification records. The External
Verification Team has been advised of this arrangement.
Recording Financial Transactions (F847 33)
Centres should note that only one ASP was revised to exemplify compliance with FRS 102.
Centres should update the second ASP to comply with FRS 102 – only minor revisions are
required.
Accounting: Graded Unit 1 (F8KE 34)
With the exception of Exemplar/ASP 2 all ASPs have been revised to comply with FRS 102.
Centres should update Exemplar/ASP 2 to comply with FRS 102.
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Business Accounting (F84M 34)
When this Unit was revised to comply with FRS 102 requirements additional guidance was
also given about the assessment of Outcomes 3, 4 and 5. The ASP – F84M 34/AEX001 exemplifies the combined assessment of these Outcomes. Supplementary assessment
material is now available on SQA’s secure website to support centres that opt to assess
these Outcomes separately.
Centres should note that only one ASP was revised to exemplify compliance with FRS 102.
Centres can update the second ASP to comply with FRS 102.
Business: Graded Unit 1 (F8LD 34)
Exemplars/ASPs 1, 2 and 3 have been revised to comply with FRS 102. The revisions
relate, in the main, to the terminology used. ASP 4, which was published in August 2015,
will be revised to comply with FRS 102. This work will be completed by the end of
November 2015.
Income Tax (F86X 35) and Payroll (H4J9 34)
We know that the Scottish Rate of Income Tax will be introduced for the tax year 2016/2017
and that this change may impact on the content of the Units Income Tax (F86X 35) and
Payroll (H4J9 34). The Scottish government is expected to announce the proposed Scottish
rate of Income Tax in its autumn 2015 draft budget.
Once we have more detail about the changes, the content of these Units will be reviewed.
IT in Business: Spreadsheets (F84V 34) – Exemplar/ASP 2
If centres deliver this Unit as part of HNC/D Accounting or HNC/D Business the accounting
terminology used in Task 1 may be changed to comply with FRS 102. Changes should be
recorded in internal verification records.
Further information regarding the revision of the SCQF level 8 Accounting Units will be
distributed in March/April 2016.
I trust you find this information helpful.
Yours faithfully
Sharon McDowall
Qualifications Manager
Humanities, Arts and Business
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