Samoa School Syllabus - Accounting

This course provides a comprehensive study of accounting principles and practices for students. It develops skills in preparing financial statements for various organizations and understanding how financial information can be used for decision-making. The curriculum is structured around key accounting strands and covers the following units:

Unit 1: Accounting for Decision Making

This unit introduces the nature, purpose, and functions of accounting. Students learn about different specialized areas within accounting, including management accounting, cost accounting, financial accounting, taxation accounting, auditing, and the role of accounting technicians. The unit also explores how individuals, households, organizations, businesses, investors, and the government utilize financial information for decision-making. Additionally, it covers various financial documents encountered in everyday life, such as invoices, credit notes, pay advice slips, and bank statements, including bank reconciliation procedures. The importance of non-financial information in decision-making is also emphasized.

Unit 2: Business Ownership Characteristics

This unit examines different business ownership structures, including sole proprietorships, partnerships, limited liability companies (both private and public), and incorporated societies. Students learn to compare and contrast these structures, focusing on their characteristics, advantages, and disadvantages. The unit also covers the preparation and interpretation of financial statements for each type of organization, highlighting the specific components of the owner's equity section. Key accounting concepts relevant to financial statement preparation, such as the accounting entity concept, going concern concept, accounting period concept, monetary measurement concept, and historical cost concept, are also discussed.

Unit 3: Profit and Financial Performance

This unit focuses on the preparation and interpretation of the Statement of Financial Performance (also known as the Income Statement or Profit and Loss Statement) and the Statement of Change in Cash Position (also known as the Statement of Cash Flows). Students learn about accrual and cash-based accounting methods and the necessary balance day adjustments, including accruals, prepayments, depreciation (straight-line and diminishing value methods), and inventory valuation. The unit emphasizes the matching concept and its importance in accurately calculating profit for a specific accounting period.

Unit 4: Analyzing the Financial Statements

This unit covers the analysis and interpretation of financial statements for sole proprietorships and other entities. Students learn to calculate and interpret key ratios and percentages, such as mark-up percentage, gross profit percentage, expense percentages, net profit percentage, return on owner's equity, owner's equity ratio, working capital ratio, current ratio, and liquid ratio. The unit emphasizes comparing figures and ratios across different accounting periods, against other businesses in the same industry, and against industry norms to assess a business's performance and financial stability.

Unit 5: Journals

This unit reviews the recording of cash and credit transactions in various journals, including the Cash Receipts Journal, Cash Payments Journal, Sales Journal, Sales Returns Journal, Purchases Journal, Purchases Returns Journal, and General Journal. The unit introduces the Value Added Goods and Services Tax (VAGST) and its calculation, focusing on recording VAGST in cash journals. Internal control procedures for cash receipts and cash payments are also discussed.

Unit 6: Posting to the Ledger

This unit covers posting journal entries to the General Ledger and Subsidiary Ledgers (Accounts Receivable and Accounts Payable). Students learn the function of subsidiary ledgers and how they contribute to a more detailed understanding of a business's financial position. The unit also compares manual and computerized processing methods for recording, processing, and reporting financial information.

Unit 7: Accounting for Community Organizations

This unit focuses on accounting for non-profit entities, such as clubs and societies. Students learn about the specific financial statements used by these organizations, including the Statement of Change in Cash Position (Receipts and Payments) and the Statement of Income and Expenditure. The unit covers recording transactions related to subscriptions, including subscriptions in advance and subscriptions in arrears, and the necessary balance day adjustments. The concept of the Accumulated Fund and its differences from the capital account in for-profit businesses is also explained.