7361 Prepare financial statements for a sole proprietor by tyndale

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Prepare financial statements for a sole proprietor

Level                              1

Credits                            3

Purpose       People credited with this unit standard are able to explain the underlying
              principles used in the preparation of financial statements for a sole proprietor,
              and prepare financial statements for a sole proprietor.


Subfield                           Accounting

Domain                             Accounting - Generic

Status                             Registered

Status date                        20 September 2002

Date version published             23 February 2007

Planned review date                31 December 2010

Entry information                  Recommended: Unit 7360, Process financial information
                                   to a trial balance using the double entry system; or
                                   demonstrate equivalent knowledge and skills.

Accreditation                      Evaluation of documentation by NZQA.

Standard setting body (SSB)        NZQA National Qualifications Services

Accreditation and Moderation Action Plan (AMAP) reference                    0226
This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.

Special notes

1   Learning Programme
    This unit standard identifies some of the learning outcomes of Accounting Curriculum
    for New Zealand Schools, New Zealand Commerce and Economics Teachers
    Association (NZCETA), 1998. This source can be used to develop teaching
    programmes needed to cover some of the outcomes described in this unit standard.

2   Assessment Note
    a   The Income Statement and the Balance Sheet are to be prepared on a GST
        exclusive basis with the GST payable/receivable shown in the Balance Sheet.
    b   The Cash Flow Statement is to be prepared on a GST inclusive basis.




                                                                 New Zealand Qualifications Authority 2010
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      c    The Income Statement is to include classification of expenses appropriate to the
           business activities.
      d    The Balance Sheet is to include classification of assets into current and non-
           current (investments, property, plant, and equipment, intangible), classification
           of liabilities into current and non-current, equity to show opening capital, profit or
           loss for the year, drawings, closing capital.
      e    The Cash Flow Statements to include cash movements to be shown as cash
           receipts and cash payments, the difference shown as net increase/decrease for
           the period which is added to the opening bank balance to give closing bank
           balance, the statement to be prepared from a summary list of transactions
           and/or source documents and/or bank statement entries.
      f    The context of this unit standard is limited to sole proprietors registered for GST
           on the payments basis.
      g    Balance sheet date adjustment items will be limited to depreciation and closing
           inventory.

3     This unit standard may lead on to Unit 7362, Analyse, interpret, and present the
      financial information of sole proprietors.

Elements and performance criteria
Element 1

Explain the underlying principles used in the preparation of financial statements for a sole
proprietor.

Performance criteria

1.1        The explanation describes the underlying principles used in the preparation of
           financial statements.

            Range        historical cost measurement base, reporting period, going
                         concern, accrual basis.

Element 2

Prepare financial statements for a sole proprietor.

Performance criteria

2.1        The preparation of classified financial statements is appropriate to the
           enterprise and the given data.

           Range         two financial statements from – Income Statement, Balance Sheet,
                         Cash Flow Statement.

Please note

Providers must be accredited by the Qualifications Authority, or an inter-institutional body
with delegated authority for quality assurance, before they can report credits from
assessment against unit standards or deliver courses of study leading to that assessment.



                                                                  New Zealand Qualifications Authority 2010
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Industry Training Organisations must be accredited by the Qualifications Authority before
they can register credits from assessment against unit standards.

Accredited providers and Industry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.

Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP 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 the NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish
to suggest changes to the content of this unit standard.




                                                               New Zealand Qualifications Authority 2010

								
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