AS 91407 annotated exemplars

This annotated exemplar is intended for teacher use only. Annotated exemplars are extracts of student evidence, with commentary, that explain key parts of a standard. These help teachers make assessment judgements at the grade boundaries.

Download all exemplars and commentary [PDF, 513 KB]

TKI Accounting assessment resources (external link)

For Excellence, the student needs to prepare a comprehensive report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity in relation to its wider economic activities
• drawing a conclusion covering the limitations of the report and justifying the recommendation to meet the needs of an external user

This student has prepared a report for Mereana, a potential shareholder. The context for interpretation is the 2013 annual report of Mighty River Power. Profitability, liquidity, cash management and an aspect of market analysis have been interpreted for Mereana, to an extent that is relevant to her needs.

Mereana’s wishes for investing in a company with ethical practices (1) and the prospect of a long-term return (2) have been identified in the introduction and addressed in the report. There is evidence of the student having used other media material to support their reporting of Mighty River Power (3).

The student’s recommendation that Mereana buy Mighty River Power shares has been justified using financial (4) and non-financial (5) reasons that relate back to her specific needs.

Limitations of the student’s report have been identified (5).

For a more secure Excellence, the student could strengthen their market analysis beyond dividends and state how the 12c per share dividend in 2013 compares to previous years. The ‘gross dividend yield’ could be explained for Mereana who is a layperson without a deep knowledge of accounting.

For Merit, the student needs to prepare an in-depth report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity linked to other financial and non-financial information contained in the annual report
• drawing a conclusion including reasons for the recommendation to meet the needs of an external user.

This student has prepared a report for Josh Potts, a potential employee who is seeking a software developer position that will offer him the prospect of wage growth. The context for interpretation is the 2012 annual report of Xero Ltd. Profitability, liquidity, cash management and employment issues have been interpreted to meet Josh’s specific needs.

In their interpretation the student has made links (1) between contents of the annual report and other financial (2) and non-financial (3) information. The student has also responded to Josh’s concern about the prospects for improving his income in the position (4). Reasons have been provided for the recommendation that Josh seek a position at Xero (5).

For a more secure Merit, the student could strengthen their interpretations of financial outcomes and analysis measures. This ‘unpacking’ would enable Josh, a layperson, to gain a better insight into Xero’s performance for the accounting period.

For Merit, the student needs to prepare an in-depth report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity linked to other financial and non-financial information contained in the annual report
• drawing a conclusion including reasons for the recommendation to meet the needs of an external user.

This student has prepared a report for Kenny, a potential employee at The Warehouse. Profitability, liquidity and cash management results for 2013 have been interpreted for Kenny, to an extent that is relevant to his needs.

Kenny has been informed of the significance of analysis results that are related to employment and the stability of the company. Links (1) have been made between contents of the annual report and other financial (2) and non-financial (3) information.

The student has also responded to Kenny’s desire to work for an ethical and environmentally-friendly business (4). Reasons have been provided for the recommendation that Kenny seek a position at The Warehouse (5).

For a more secure Merit, the student could go beyond information published by the company to seek other relevant data to support the recommendation that Kenny seek a position at The Warehouse. For example, other retailers may be equally ethical and environmentally sound, or The Warehouse’s stance on the use of plastic bags or its position on packaging could have been explored by researching other media sources.

For Achieved, the student needs to prepare a report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity
• drawing a conclusion that makes a recommendation to meet the needs of an external user.

This student has prepared a report for Mrs Dean, a potential investor in Pumpkin Patch (1).

Extensive generic descriptions of financial results have been provided in an attempt to unpack the profitability, liquidity, cash management and market analysis aspects of the company’s 2011 annual report. While these descriptions largely restate sections of the report, they are linked to Mrs Dean’s interest in Pumpkin Patch (2). The student had drawn a conclusion that makes a recommendation to Mrs Dean (3).

To reach Merit, the student could isolate a strong reason for the reccomendation that they make to Mrs Dean about investing in Pumpkin Patch, rather than restating interpretation sections in the conclusion.

The student’s interpretations could be more relevant and succinct to meet Mrs Dean’s needs as a layperson without a deep knowledge of accounting. For example, if reference is made to EBIT, interest cover and equity ratio, their purpose and significance should be explained.

For Achieved, the student needs to prepare a report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity
• drawing a conclusion that makes a recommendation to meet the needs of an external user.

This student has prepared a report for Mi-Cha, a potential investor in The Warehouse (1).

Explanations have been provided to help Mi-Cha understand profitability, liquidity, stability and market analysis aspects of the company’s 2013 annual report. These explanations unpack relevant areas of performance and are sufficiently straightforward for a layperson (2). A recommendation has been made for Mi-Cha (3).

For a more secure Achieved, the student could more accurately explain the significance of working capital ratio, and use accurate classifications of inflows and outflows in the Cash Flow Statement. Explanations could be more explicitly linked to Mi-Cha throughout the report to assure her that the report has been written to address her specific needs.

For Achieved, the student needs to prepare a report for an external user that interprets the annual report of a New Zealand reporting entity.

This involves:

• providing an interpretation for an external user of the annual report of a New Zealand reporting entity
• drawing a conclusion that makes a recommendation to meet the needs of an external user.

This student has prepared a report for the union representing workers at Pumpkin Patch to ascertain the likelihood of achieving a 4% pay increase (1).

Various profitability, liquidity and stability analysis measures have been explained using both financial and non-financial information. While these interpret aspects of the company’s performance, there is minimal material that is linked to the union’s decision (2).

To reach Achieved, the student could make a recommendation for the end user, the union, regarding the wisdom of seeking a 4% pay increase. The student could place a greater emphasis on employment-related issues, and ensure that all interpretations, such as the equity ratio result, are at curriculum level 8.