HN Accounting ReviewHN Accounting Review

BackgroundBackground

Review team set up April 2008, comprising representatives from 6 colleges

‘Limited’ review– structure of HNC and HND awards

unchanged– content of mandatory Units remains

broadly similar

Scope of changeScope of change

Overall requirements– Reduce volume of assessment– Remove/reduce prescriptive assessment

conditions– Improve statement of standards – 70% cut off

considered inappropriate for competence based qualification

– Improve Core Skills signposting and guidance

Scope of change (cont.)Scope of change (cont.)

Also consider– Retain existing links with professional body

qualifications and exemptions (ACCA, CIMA)– Ensure in line current disability/discrimination

legislation– Map to National Occupational Standards

Current statusCurrent status

All individual Unit Specifications re-written, vetted and mostly validated

Graded Unit Specifications re-written and vetted Credit transfer possible for all existing Units to

revised Units – same Unit Titles and Credit Values in all cases

Bulk credit transfer arrangements being finalised

Current status (cont.) Current status (cont.)

Core Skills audits completed for all revised Unit Specifications – core skill elements embedded and/or signposted

Current disability/discrimination legislation complied with

Units mapped to current National Occupational Standards (NOS)

Assessment conditions and markingAssessment conditions and marking

70% cut off considered inappropriate for competence based qualification and has been removed

‘Error tolerance’ has been allowed for most Outcomes, as appropriate

Specified maximum numbers of ‘errors of principle’ and/or ‘arithmetic/computational errors’

Assessment conditions and markingAssessment conditions and marking

For some Outcomes, assessment conditions changed from closed book to open book or open book with access to a layout/formulae only

Mostly remain under supervised conditions Recommended assessment time remains as a

guideline only

Main changes to unit content - HNCMain changes to unit content - HNC

Recording Financial Information– Now 4 Outcomes (but can still be assessed together,

if required)– Removal of journal from books of original entry– Removal of control accounts

Cost Accounting– Now 5 Outcomes– Removal of coding (as a separate Outcome) and

process costing– Job costing added

Main changes to unit content - HNDMain changes to unit content - HND

Management Accounting for Planning and Control– Removal of flexed budget– (Allow use of formulae for variances)

Financial Reporting and Analysis– Removal of accounting models and word

processing of report on ratios– Main differences in presentation between UK

GAAP and IAS1 added

Optional unitsOptional units

Payroll and Income Tax – revised Unit Specifications being written

Auditing – lower demand and existing Unit Specification remains valid; plan to revise in session 2010/2011

Other Units – may be revised as part of HN Business and AIT Reviews

International Accounting StandardsInternational Accounting Standards

FR&A– Unit Specification allows the continued use of

UK GAAP or IAS– EV advice concurs and Centres must ensure

that assessment materials clearly identify which standards have been adopted

Other units – guidance on delivery suggests that candidates are made aware of the main differences in presentation of financial statements

Next stepsNext steps

HNC and HND Accounting Validation –

January 2010 Assessment Exemplars

– One new exemplar for each Unit including Payroll and Income Tax

– Two new exemplars for each of Graded Units 1, 2 and 3

Confirm exemptions from professional bodies (ACCA and CIMA)

Next steps (cont.) Next steps (cont.)

Investigating e-assessment opportunities Arrangements documents Launch April 2010 Revised awards can be delivered from Session

2010/2011