Subject description

Accounting is a 10-credit subject or a 20-credit subject at Stage 1.

Accounting is the language of business and is used to tell the financial story of an entity. Accounting helps business owners to understand their business so that they can make informed decisions. The practice of accounting is used to record, report, analyse, and communicate past events, current activities, and potential challenges and opportunities.

In Stage 1 Accounting, students develop their understanding of accounting, including selected concepts and conventions that underpin and inform the practice of accounting. They apply this understanding to create and interpret accounting information. Students explore and analyse the ways in which qualitative and quantitative information can be used in the decision-making process and they explore the different reporting needs of a range of stakeholders.

Students explore the changing forms of accounting information and examine the use of digital and emerging technologies. They develop critical thinking and problem-solving skills to devise accounting solutions in a range of familiar and unfamiliar contexts. Students apply communication skills to collect and analyse financial and non-financial information for a range of stakeholders.

Through the learning in the focus area of perspectives in accounting, students develop an understanding of how accounting applies to and impacts their personal circumstances. They explore the links between self and others in local and global accounting contexts, and compare approaches to accounting in different cultural contexts. Students explore the impact accounting has had on society and the opportunities that exist involving accounting in the future.

Capabilities

The capabilities connect student learning within and across subjects in a range of contexts.

The SACE identifies seven capabilities.

Literacy

In this subject students extend and apply their literacy capability by, for example:

• developing their understanding of and applying appropriate accounting terminology
• understanding and applying the terminology used to communicate accounting information
• communicating financial and non-financial information appropriately for specific purposes
• recognising the increasing requirement for the interpretation and analysis of accounting information. 

Numeracy

In this subject students extend and apply their numeracy capability by, for example:

• preparing financial reports using appropriate accounting concepts and conventions
• preparing classified reports, including income statements, statements of changes in equity, and balance sheets
• developing an understanding of accounting analysis tools (such as ratios) and using information from classified reports to calculate appropriate ratios
• exploring types and sources of finance
• applying their understanding of online savings accounts, credit cards, personal loans, mortgages, and superannuation to inform decision-making.

Information and communication technology (ICT) capability

In this subject students extend and apply their ICT capability by, for example:

• locating and accessing financial and non-financial information using digital technologies
• using digital technologies to work collaboratively
• developing an understanding of the changing forms of accounting such as computer-based records, cloud-based accounting systems, point-of-sale systems, and online banking and smartphone applications
• exploring contemporary methods of communicating accounting information to meet specific needs of stakeholders
• evaluating the real-time availability of financial information facilitated by cloud-based and web-based accounting systems. 

Critical and creative thinking

In this subject students extend and apply their critical and creative thinking capability by, for example:

• creating and communicating accounting information to a range of stakeholders
• applying their understanding of accounting concepts and conventions to create accounting information
• understanding that the role of accounting is to enable effective decision-making
• exploring the evolving role of accounting in society and the challenges and opportunities present in the practice of accounting
• exploring how accounting information has evolved to better meet stakeholder needs
• applying their understanding of stakeholder information needs to their personal situation, current and future, to inform potential decisions. 

Personal and social capability

In this subject students extend and apply their personal and social capability by, for example:

• collaborating with others to create authentic accounting information
• engaging with stakeholders to provide accounting information for decision-making
• developing an understanding of how accounting applies to their personal circumstances
• examining their present financial situation, as well as possible future scenarios, to inform decisions relating to purchases, savings, and borrowings
• exploring contemporary and emerging career pathways that rely on accounting understanding. 

Ethical understanding

In this subject students extend and apply their ethical understanding capability by, for example:

• considering the ethical implications of accounting activities on individuals, groups, and/or society now and in the future
• considering and applying ethical strategies for collaborating with others
• considering society’s changing perception of accounting and how this has been shaped
• understanding the appropriate and ethical application of financial and non-financial information.

Intercultural understanding

In this subject students extend and apply their intercultural understanding capability by, for example:

• developing an understanding of accounting in various cultural contexts, including Indigenous perspectives
• understanding that financial sustainability and the provision of accounting advice is influenced by local and global perspectives
• recognising that engaging with different cultural perspectives enhances one’s own knowledge and understanding
• exploring links between self and others in local and global accounting contexts
• exploring the impact of globalisation on their personal circumstances.

Aboriginal and Torres Strait Islander knowledge, cultures, and perspectives

In partnership with Aboriginal and Torres Strait Islander communities, and schools and school sectors, the SACE Board of South Australia supports the development of high-quality learning and assessment design that respects the diverse knowledge, cultures, and perspectives of Indigenous Australians.

The SACE Board encourages teachers to include Aboriginal and Torres Strait Islander knowledge and perspectives in the design, delivery, and assessment of teaching and learning programs by:

• providing opportunities in SACE subjects for students to learn about Aboriginal and Torres Strait Islander histories, cultures, and contemporary experiences
• recognising and respecting the significant contribution of Aboriginal and Torres Strait Islander peoples to Australian society
• drawing students’ attention to the value of Aboriginal and Torres Strait Islander knowledge and perspectives from the past and the present
• promoting the use of culturally appropriate protocols when engaging with and learning from Aboriginal and Torres Strait Islander peoples and communities.  

Learning requirements

The learning requirements summarise the knowledge, skills, and understanding that students are expected to develop and demonstrate through their learning in Stage 1 Accounting.

In this subject, students are expected to:

1. understand the role of accounting in decision-making
2. understand and explore accounting concepts and conventions
3. apply accounting concepts and conventions to create accounting information
4. understand the accounting information needs of a range of stakeholders
5. explore the use of, apply, and analyse accounting information in business, personal, and/or cultural contexts
6. apply communication skills in an accounting context.

Content 

Stage 1 Accounting is a 10-credit subject or a 20-credit subject.

The subject is structured around three focus areas:

• understanding accounting
• understanding financial sustainability
• perspectives in accounting.

These focus areas are underpinned by the following learning strands:

• financial literacy
• stakeholder information and decision-making
• innovation.

These learning strands outline the knowledge, skills, understanding, and capabilities fundamental to the learning in the subject.

The learning strands are designed to be taught through the focus areas. The learning strands are not designed to be of equal length. Teachers can place emphasis on the elements of the learning strands that suit their student cohorts and schools. The strands of financial literacy, and stakeholder information and decision-making provide opportunities for students to understand and apply accounting concepts and conventions. The learning strand of innovation is focused on the use of new and emerging technologies to create, store, and communicate accounting information. Technology enables effective connections with business and opens up more opportunities to understand the accounting needs of stakeholders.

For a 10-credit subject, students must study two focus areas.

For a 20-credit subject, students must study all three focus areas.

In Stage 1 Accounting, teachers have the flexibility to design a program of study that best meets the needs of their student cohort.

Accounting practice and accounting activities

The practice of accounting is the process of identifying, measuring, and communicating economic information to facilitate informed decision-making for the stakeholders, as well as to enable control and discharge of accountability by management.

Accounting activities are the actions taken within this process.

Accounting concepts and conventions

The following selected concepts and conventions underpin the accounting focus areas and inform the practice of accounting studied at Stage 1:

• accounting entity
• accounting period
• consistency
• duality
• legal entity
• materiality
• relevance
• faithful representation.

These concepts and conventions are drawn from the Framework for the Preparation and Presentation of Financial Statements prepared by the Australian Accounting Standards Board. 

Understanding accounting

In the focus area of understanding accounting, students explore the role of accounting in business contexts. They develop the foundational understandings of accounting, including the underpinning concepts and conventions, and explore how these concepts and conventions impact accounting activities. Students develop an understanding of the existence and influence of regulatory frameworks on accounting practice. Students develop an awareness of how local and global perspectives influence accounting activities.

Financial literacy

Students develop an understanding of the difference in ownership structures for a range of entities. They distinguish between the accounting entity and the legal entity.

Students understand, apply, and explain the accounting process, the accounting equation, and the duality concept. They understand and explore the various elements of accounting reports. They understand and apply the faithful representation, relevance, consistency, and materiality of that information.

Students understand and apply the terminology and features of a range of reports used by different entities to communicate accounting information. They explore:

• the links between reports
• the impact of the accounting period on the preparation of final reports
• how financial transactions impact on the accounting information within reports
• the influence of regulatory frameworks on accounting practice.

Stakeholder information and decision-making

Students develop an understanding of the different internal and external users of accounting information.

Students explore the reporting needs of a range of stakeholders. When preparing reports, students take into consideration the accounting information requirements and ethical implications for decision-making by stakeholders.

Students develop their understanding that the role of accounting is to enable accountability, control, and effective decision-making.

Innovation

Students develop an understanding of the changing forms of accounting information, such as, but not limited to:

• written records
• computer-based records
• cloud-based accounting systems
• point-of-sale systems
• online banking and smartphone applications.

Students explore contemporary methods of communicating accounting information to meet specific needs of stakeholders.

Perspectives in accounting

In the focus area of perspectives in accounting, students develop an understanding of how accounting applies to their personal circumstances. They consider the evolving role of accounting in society and the challenges and opportunities present in the practice of accounting. Students have the opportunity to work collaboratively as they explore the role of accounting in society. They explore links between self and others in local and global accounting contexts and may work collaboratively to investigate how local, global, and digital perspectives influence accounting activities. Students may work collaboratively with stakeholders to develop an understanding of how their accounting needs have changed over time.

Financial literacy

Students examine their present financial situation as well as possible future scenarios. They explore personal financial management tools such as, but not limited to, online banking tools, smartphone applications, and other digital and emerging technologies.

Students develop an understanding of accounting in various cultural contexts. They compare and contrast approaches to asset ownership, debt, and wealth creation in different cultures, including Indigenous perspectives.

Stakeholder information and decision-making

Students consider society’s changing perception of accounting and how this has been shaped. Students develop an understanding that stakeholders and their accounting information needs have changed over time. They explore how accounting information has evolved to better meet stakeholder needs. They examine the change in the role of accounting for:

• recording
• reporting
• accountability
• decision-making.

Students apply their understanding of stakeholder information needs to their personal situation, current and future, to inform potential decisions. These decisions may relate to purchases, savings, and borrowings, such as, but not limited to:

• online savings accounts
• credit cards
• personal loans
• mortgages
• superannuation.

Innovation

Students explore how local, global, and digital perspectives influence accounting activities. They consider the impact of globalisation on accounting with relevance to their personal circumstances. This may include, but is not limited to:

• online shopping
• foreign currency and exchange rates
• cryptocurrencies.

Students explore contemporary and emerging career pathways that rely on accounting understanding, such as, but not limited to:

• accounting software developer
• social accountant
• forensic accountant
• owner of a start-up business
• actuary
• chief executive officer. 

Evidence of learning

Assessment at Stage 1 is school based.

The following assessment types enable students to demonstrate their learning in Stage 1 Accounting:

• Assessment Type 1: Accounting Skills
• Assessment Type 2: Accounting Inquiry.

For a 10-credit subject, students should provide evidence of their learning through four assessments. Each assessment type should have a weighting of at least 20%. Students undertake:

• three accounting skills tasks
• one accounting inquiry.

For a 20-credit subject, students should provide evidence of their learning through eight assessments. Each assessment type should have a weighting of at least 20%. Students undertake:

• six accounting skills tasks
• two accounting inquiries. 

Assessment design criteria

The assessment design criteria are based on the learning requirements and are used by:

• teachers to clarify for the student what he or she needs to learn
• teachers and assessors to design opportunities for the student to provide evidence of his or her learning at the highest possible level of achievement.

The assessment design criteria consist of specific features that:

• students should demonstrate in their learning
• teachers and assessors look for as evidence that students have met the learning requirements.

For this subject the assessment design criteria are:

• understanding and exploration
• application.

The specific features of these criteria are described below.

The set of assessments, as a whole, must give students opportunities to demonstrate each of the specific features by the completion of study of the subject.

Understanding and Exploration   

The specific features are as follows:

Application

The specific features are as follows:

School assessment

The school assessment component for Stage 1 Accounting consists of two assessment types:

• Assessment Type 1: Accounting Skills
• Assessment Type 2: Accounting Inquiry.

Assessment Type 1: Accounting Skills

For a 10-credit subject, students undertake three accounting skills tasks. For a 20-credit subject, students undertake six accounting skills tasks.

The accounting skills tasks enable students to demonstrate their learning across the learning strands studied.

Individual tasks within accounting skills may relate to one focus area or a combination of focus areas. The accounting skills tasks should cover the focus areas studied.

In the set of accounting skills tasks, students demonstrate and apply understanding of accounting concepts and conventions to create accounting information. They develop an understanding of the accounting information needs of stakeholders and the role of accounting in decision-making. Students explore, apply, and analyse accounting information to meet the needs of stakeholders. Using appropriate terminology, students communicate accounting information.

Scenarios for an accounting skills task may include, for example:

• preparing a balance sheet and/or income statement based on provided data. Students calculate appropriate ratios to assist a relevant stakeholder review the performance of the business.
• researching the set-up costs of a new business, such as an online graphic design business. Students also examine possible sources of finance for the start-up business. They synthesise their findings and present these as an infographic.
• developing different budget options as part of a proposal for a school event, such as the school formal. Students research different venue, catering, and entertainment options, as well as funding alternatives. They present their findings to the student council.

The accounting skills tasks may be presented in multimodal, oral, or written form.

• For a 10-credit subject, the tasks as a set comprise a maximum of 2400 words if written, or the equivalent in oral or multimodal form, where 6 minutes is equivalent to 1000 words. This is inclusive of all financial statements.
• For a 20-credit subject, the tasks as a set comprise a maximum of 4800 words if written, or the equivalent in oral or multimodal form, where 6 minutes is equivalent to 1000 words. This is inclusive of all financial statements.

For this assessment type, students provide evidence of their learning primarily in relation to the following assessment design criteria:

• understanding and exploration
• application.

Assessment Type 2: Accounting Inquiry

For a 10-credit subject, students undertake one accounting inquiry. For a 20-credit subject, students undertake two accounting inquiries.

In an accounting inquiry, students research an aspect of accounting with relevance to local or global communities, or their personal circumstances. Students have the option to work collaboratively with a range of stakeholders in the accounting inquiry.

Students develop their accounting inquiry within at least one focus area.

In an accounting inquiry, students identify (or are provided with) an accounting-related opportunity or issue in which to inquire and demonstrate their learning by:

• providing evidence of their research
• interpreting their findings
• preparing a conclusion and/or recommendations which communicates their findings effectively.

Scenarios for an accounting inquiry may include, for example:

• interviewing the school’s business manager to find how the financial information of the school is recorded, managed, and reported. Students inquire into the stakeholders of this information and research how the information is presented to stakeholders in order to meet their needs. Students present their findings as an article for an accounting software magazine.
• researching a contemporary accounting-related issue, such as cryptocurrencies. As part of their research, they undertake a survey to gauge community perception of the issue. Students present their findings as a podcast for young investors.
• contacting school graduates who have undertaken accounting-related studies. Students inquire into the different career paths the graduates have followed or created for themselves. Students synthesise their findings and present these as a career advice session for people considering accounting as a career path.
• researching how accounting practices have developed over time and consider possible future developments. As part of their research, they interview someone who prepares accounting information, such as the school’s accounts payable/receivable officer, a business manager, an accountant, or a business owner. Students prepare a poster to communicate their findings.

The accounting inquiry may be presented in multimodal, oral, or written form to the equivalent of 6 minutes or 1000 words. This is inclusive of all financial statements.

For this assessment type, students provide evidence of their learning primarily in relation to the following assessment design criteria:

• understanding and exploration
• application.

Performance standards

The performance standards describe five levels of achievement, A to E.

Each level of achievement describes the knowledge, skills, and understanding that teachers refer to in deciding how well students have demonstrated their learning on the basis of the evidence provided.

During the teaching and learning program the teacher gives students feedback on their learning, with reference to the performance standards.

At the student’s completion of study of a subject, the teacher makes a decision about the quality of the student’s learning by:

• referring to the performance standards
• taking into account the weighting of each assessment type
• assigning a subject grade between A and E.

Performance standards

Stage 1 performance standards for Accounting can be viewed below. You can also download in Word format [DOC 255KB].

To learn more about what performance standards are, how they are used, and other general information, see performance standards and grades. 

Subject changes 2024

Assessment Type 3: Examination

Remove the words 'approximately 50%' from Section 1: Application of accounting skills, and from Section 2: Accounting for decision-making.