Core Strand Assignment One
Financial Accounting Assignments
1. Introduction to Financial Accounting
- Definition and Scope of Financial Accounting
- Importance in Business Decision-Making
- Objectives and Functions of Financial Accounting
2. Fundamental Accounting Concepts and Principles
- Accrual vs. Cash Accounting
- The Matching Principle
- Going Concern Concept
- Consistency and Prudence Principles
3. The Accounting Cycle
- Steps in the Accounting Cycle
- Identifying and Recording Transactions
- Posting to the Ledger and Trial Balance Preparation
- Adjusting Entries and Financial Statements
4. Financial Statements and Their Importance
- Income Statement – Revenue, Expenses, and Profit Calculation
- Balance Sheet – Assets, Liabilities, and Equity
- Cash Flow Statement – Operating, Investing, and Financing Activities
- Statement of Changes in Equity
5. Journal Entries and Ledgers
- Basics of Journalizing Transactions
- Posting to the General Ledger
- Preparing the Trial Balance
6. Adjustments and Closing Entries
- Prepaid Expenses and Accrued Revenues
- Depreciation and Amortization
- Closing Temporary Accounts
7. Accounting for Inventory
- FIFO, LIFO, and Weighted Average Methods
- Impact of Inventory Valuation on Financial Statements
- Perpetual vs. Periodic Inventory System
8. Accounting for Fixed Assets and Depreciation
- Classification of Fixed Assets
- Straight-Line vs. Declining Balance Method
- Disposal and Impairment of Assets
9. Liabilities and Equity Accounting
- Short-Term vs. Long-Term Liabilities
- Accounting for Loans and Bonds
- Shareholder’s Equity and Dividends
10. Bank Reconciliation and Error Rectification
- Purpose of Bank Reconciliation
- Identifying and Rectifying Accounting Errors
- Adjusting Entries for Bank Statement Differences
11. Managerial vs. Financial Accounting
- Key Differences Between the Two
- Role of Financial Accounting in Business Strategy
- Regulatory and Compliance Aspects
12. Accounting Standards and Regulatory Framework
- GAAP vs. IFRS – Key Differences
- Importance of Accounting Standards
- Role of Financial Reporting in Compliance
13. Ethics in Financial Accounting
- Ethical Challenges in Accounting
- Role of Accountants in Financial Transparency
- Fraud Prevention and Detection
14. Emerging Trends in Financial Accounting
- Digital Accounting and Automation
- Blockchain and AI in Accounting
- Sustainability and ESG Reporting
15. Conclusion and Summary
- Key Takeaways from Financial Accounting
- Importance of Accuracy and Compliance
- Future of Financial Accounting
| This assignment assesses your competency in terms of the following unit standards: | |
| 31855 v1
|
Demonstrate and apply knowledge of financial services legislation, good conduct, best practice, professionalism, and SixStep Process |
| By the end of this assignment, you will be able to: | |
| – (LO1) demonstrate knowledge of the background to the financial services regulatory environment and its framework;
– (LO2) demonstrate and apply knowledge of legislation and regulations and their impact in a general financial services context; – (LO3) apply good conduct and the principles of professionalism in a general financial services context; and – (LO4) demonstrate knowledge of the financial advice Six Step Process. |
|
Instructions:
- Answer all the questions in the space provided below.
- Where applicable, you will be instructed on how many answers are required, e.g., minimum of two (2).
- For many questions, an example has been provided for you. This is to indicate the type of answer and level of detail that is required.
- Instances of academic dishonesty (e.g. plagiarism) will not be tolerated and will be subject to disciplinary action.
- Submit your assignment in Word format via your assignment portal on Radar. You have already been emailed a user guide with step-by-step instructions on how to upload your assignments.
- Please contact support@strategi.ac.nz OR assessor@strategi.ac.nz should you require any assistance.
Assessment schedule:
Task 1(31855 1.1) (LO1)
New Zealand’s financial services regulatory environment today is quite different from that of twenty years ago. Our environment today was the response to a number of key events, both national and international.
The table below lists some of the events that resulted in today’s legislation, regulation and codes. For each event, describe the impact it had on New Zealand’s financial services regulatory environment, i.e., what changes/legislation were introduced.
Please use your own words when providing your answers.
The first event has been completed for you as an example.
| Description of event | Impact/influence on New Zealand’s regulatory environment |
| Finance company collapses between 2006 and 2012 | Resulted in the introduction of legislation/regulation within the financial services industry e.g., FAA/FSPR/Code of Professional Conduct for AFAs and growth of compliance requirements for advisers |
| a. Low levels of long-term savings by NZers | |
| b. Global Financial Crisis | |
| c. 9/11 Twin Towers attack | |
| d. Formation of FMAthrough the Financial Markets Authority Act 2011 | |
| e. New Zealand becoming member of the Financial Action Task Force | |
| f. Basel Committee on Banking Supervision | |
| g. The Financial Services Legislation Amendment Act 2019 amends the Financial Markets Conduct Act 2013 |
Task 2(31855 1.2) (LO1)
New Zealand’s financial services regulatory framework is made up of a hierarchy of legislation, regulations, codes (principles of professionalism), and good conduct expectations.
Describe each element of this hierarchy listed below and how the different elements relate.
Please use your own words when providing your answers.
Task 3.1 (31855 2.1, 2.3, 2.4) (LO2)
In your everyday work as a financial services provider, you are required to understand andcomply with industry legislation. For the Acts listed below:
- Explain at least two (2)key requirements of each Act,that financial service providers need to follow.
- Describe at least two (2) compliance requirements-what you need to do to comply.
- Describe what systems and processes you have or will have in place (minimum of 3), to make sure you are complying with legislation and regulations.
- Discuss at least two consequences of non-compliance – one formal (what the law states) and one informal.
An example has been completed for you.Task 3.2(31855 2.2) (LO2)
The legislative and regulatory requirements listed below need to be followed in a financial services providers’ daily operations:
The Fair Trading Act 1986
- Misleading and deceptive conduct
- False or misleading representations
Consumer Guarantees Act 1993
- Reasonable care and skill in providing a service
- Nature and quality of a service or product
- Provision of service or product ‘reasonably fit for purpose’
Privacy Act2020
- Information privacy principles
AML/CFT Act 2013
- Client ID and customer due diligence
- Reporting of suspicious activities
Read carefully through the scenario below and complete the table at the end.
Describe how each of the requirements listed below apply to the given scenario.
An example has been completed for you.
| Legislation | Explanation |
| Fair Trading Act 1986 | a) Misleading and deceptive conduct
Advertising the ‘best rate of return’ is misleading
b) False or misleading representations Steve states he will find a way for Rui to access his KiwiSaver scheme to purchase his future home. Benedict indicates Rui will have no problem getting a loan for $650,000 |
| a. Consumer Guarantees Act 1993 | a) Reasonable care and skill in providing a service
b) Nature and quality of a service or product c) Provision of service or product ‘reasonably fit for purpose’ |
| b. Privacy Act2020 | a) Information privacy principles |
| c. AML/CFT Act 2013 | a) Client ID and Due Diligence
b) Reporting of suspicious activities |
| d. Complaints and DRS processes | a) Complaints and DRS processes |
Task 4 (31855 3.1, 3.2) (LO3)
Read carefully through the scenario and complete the table below.
4.1 Using the table below, describe or explain how you would apply the good conduct elements and principles of professionalism listed, when providing financial advice services to Jian. A minimum of two (2) ways to apply each element to the given scenario is required.
Please use your own words when providing your answers.
4.2 Describe in approximately 150-200 words how you would present your advice to Jian,considering:
- His cultural background
- His level of financial understanding
- The nature and scope of advice to be provided.
Task 5(31855 4.1, 4.2) (LO4)
This task requires you to demonstrate your knowledge of the six step advice process.
For each of the steps listed below:
- Describe the activities that take place in the step, and
- Explain why these activities are important and how they contribute to providing ‘fit-for-purpose’ client solutions?
