Unit 5: Accounting Principles
Authorised Assignment Brief 1
Student Name/ID Number
Unit Number and Title Unit 5: Accounting Principles
2025-2026
Academic Year
Usra Zahid
Unit Tutor
Assignment Title Explaining Accounting to Beginners
10th February 2025
Issue Date
12th May 2025
Submission Date
Submission Format
The assignment submission is in the form of:
● a five-minute presentation and accompanying one-page double-sided leaflet.
The presentation slides and leaflet should be submitted separately. You are
required to make effective use of headings and bullet points (as appropriate),
using your choice of presentation software. The recommended word limit for the
presentation and leaflet is 1,000-1,500 words, although you will not be penalised
for going under or exceeding the total word limit.
All work must be sourced using the Harvard referencing system (or preferred alternative). You
will also need to provide a bibliography using the Harvard referencing system (or an
alternative referencing system) for both the presentation and leaflet. Inaccurate use of
referencing may lead to issues of plagiarism if not applied correctly.
Unit Learning Outcomes
LO1 Examine the context and purpose of accounting
Transferable skills and competences developed
● Effective communication of relevant information across the organisation and to
appropriate stakeholders
● Written communication using a range of media
● Analytical skills
Vocational scenario
You have recently joined a local accounting firm* as a graduate accounts trainee, attached
to their SME (small and medium enterprises) unit, offering a variety of financial services.
Established in 1993, the firm is one of the most popular local accountants, with connections to
the small business owner community including crafts and tradespeople, specialists such as
estate agents and car repairers, and not-for-profit charities. The firm likes to go beyond
providing customers with personalised services and works closely with communities to keep
them informed on all things relevant to accounting.
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*You should select an appropriate accounting firm to meet local needs.
Assignment activity and guidance
As part of your ongoing training, you have been asked to attend a local small business
network event to give a short presentation titled ‘Beginner’s guide to accounting for small
business owners’. It is normal at these events to provide a supporting leaflet, relevant to the
presentation, for attendees to take away with them and use as a resource.
Presentation
The presentation should critically evaluate the importance of accounting in an organisation
and its role in decision-making, and be aimed at the local audience.
Your evaluation should refer to management accounting’s main purposes, requirements for
adhering to reporting standards and regulations, and how it meets the needs and
expectations of stakeholders. Benefits, risks and limitations of financial information should be
considered, including the outsourcing of services to others.
Finally, your presentation should critically evaluate how accounting supports decision-making
for owners, including the challenges of, and opportunities for, using accounting data
effectively.
Leaflet
The accompanying leaflet should critically assess the relevance of financial information as part
of an accounting function. It should focus on the roles, skills and competences required, and
highlight the broader societal impact of interrelationships between accounting and finance in
increasingly complex environments.
Recommended resources
Please note that the resources listed are examples for you to use as a starting point in your
research – the list is not definitive.
Websites
[Link] [Link]
“The importance of accounting for small
businesses”
(Article)
[Link] European Commission
[Link] “Accounting and SMEs”
(General reference)
[Link] Forbes
“Why should you have an accountant for
your small business?”
(Article)
Textbooks
Ionașcu, M. and Ionașcu, I. (2021) Introduction to Financial Accounting. Bucharest: Editura
Economică.
Mostyn, G. (2017) Basic Accounting Concepts, Principles and Procedures, Vol.1: Building the
Conceptual Foundation. 2nd Ed. California: Worthy and James Publishing.
Romney, M.B., Steinbart, P.J., Summers, S.L. and Wood, D.A. (2020) Accounting Information
Systems. 15th Ed. Harlow: Pearson Education.
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Thomas, A. and Ward, A.M. (2019) Introduction to Financial Accounting. 9th Ed. London:
McGraw Hill.
HN Global
Reading Lists. Available at: [Link]
Student Resource Library. Available at:
[Link]
Textbooks. Available at: [Link]
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Authorised Assignment Brief 2
Student Name/ID Number
Unit Number and Title Unit 5: Accounting Principles
2025-2026
Academic Year
Usra Zahid
Unit Tutor
Assignment Title Financial Reports for Different Types of Organisation (Sole
Trader, Partnership and Not-for-Profit)
10th February 2025
Issue Date
12th May 2025
Submission Date
Submission Format
The assignment submission is in the form of:
● a portfolio of evidence that includes financial statements (income statements,
balance sheets, forecasted budgets) with accompanying spreadsheets,
supplemental notes and a financial summary.
Your portfolio of evidence should be appropriately indexed, and your chosen format should
ensure it is presented in a practical and clear way.
Unit Learning Outcomes
LO2 Prepare basic financial statements for unincorporated and small business organisations
in accordance with accounting principles, conventions and standards
LO3 Interpret financial statements
LO4 Prepare budgets for planning, control and decision-making using spreadsheets
Transferable skills and competences developed
● Understand business finance: how to manage budgets and financial forecasting
● Able to monitor budgets, provide reports, consider financial implications of
decisions and adjust approach and recommendations accordingly
● Manipulation and interpretation of data using spreadsheets
● Creation and interpretation of information, showing how that information can be
used most effectively to add value to an organisation
Vocational scenario
Your line manager at the accounting firm* has received many enquiries since your
presentation at the last event from members of the local small business network who need
help preparing their organisation’s financial reports. You are to be made responsible for three
different types of organisation (sole trader, partnership and not-for-profit) that require
financial statements and their next financial year’s budget planning.
Sole trader
A local carpenter, Joseph, has been enjoying steady success with 5% year-on-year profit.
However, he is faced with a crucial financial decision. He is considering taking on a new
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apprentice to expand his business and meet the growing demand for his services. Hiring an
apprentice comes with immediate costs, such as wages and training expenses. This will put
pressure on his profit margins in the short term, but the long-term growth potential of having
an extra skilled worker could lead to increased financial returns. Joseph needs help to analyse
if his current profit, though modest, can support this expansion without causing financial
instability.
Partnership
Hussain & Sons, a partnership of estate agents, faces a pressing financial challenge. Its profit
margins have been dwindling over the last two years due to rising staff wage costs coupled
with a decrease in demand for buying/selling houses in the local community. The partnership
is determined to achieve financial stability over the next five years, and aware that it needs to
strike a delicate balance between reducing operational costs, adjusting staff structures and
devising innovative new marketing and sales strategies to stimulate demand in a challenging
local housing market.
Not-for-profit
Astrid, the dedicated leader of an established local not-for-profit animal charity, is
contemplating opening another shelter for animals in a nearby town. The charity, relying on
donations and meticulously managed financial accounts, is eager to expand its impact and
reach as part of its 20-year in-service celebrations. However, the financial impact of launching
a new shelter on existing operations poses a considerable dilemma. Astrid and her team are
grappling with upholding their mission to maintain high standards of care and support for
animals in the community without overstretching resources or risking closure.
*As selected for Authorised Assignment Brief 1 (AAB1) to meet local needs.
Assignment activity and guidance
Financial statements
Based on financial information provided by your tutor, you should prepare and produce an
income statement, balance sheet and forecasted budgets for all three organisations. It is
recommended you use digital software in preparing financial statements, such as Microsoft
Excel, Google Sheets or a similar alternative. These statements must include detailed
supplemental notes to identify which accounting standards were used, explanation of any
assumptions made to prepare the statements and policies adopted.
Financial summaries
A financial summary for each organisation should critically evaluate year-on-year comparisons
of their financial performance. You must show the use of calculated financial ratios, giving
reasons for your choices and highlighting any limitations, as a tool to evaluate performance.
Any analysis carried out must make use of a range of relevant measures and benchmarks to
inform your conclusions. Finally, you should discuss the use of budgets and budgetary
planning to reveal any corrective actions for effective decision-making relevant to each
organisation’s owner(s). Your critical evaluation should inform justification for suggested
budgetary control solutions to ensure the efficient and effective deployment of resources.
Recommended resources
Please note that the resources listed are examples for you to use as a starting point in your
research – the list is not definitive.
Websites
[Link] Accounting Today
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(General reference)
[Link] Financial Accounting Standards Board
(General reference)
[Link] Financial Reporting Council
(General reference)
Textbooks
Atrill, P. and McLaney, E. (2021) Management Accounting for Decision Makers. 10th Ed. Harlow:
Pearson.
Bhimani, A., Horngren, C.T., Datar , S.M. and Rajan, M.V. (2019) Management and Cost
Accounting. 8th Ed. Harlow: Pear son.
) Financial Statement Analysis Workbook: A Practitioner’s Guide.
Fridson, M. and Alvarez, F. (2022
5th Ed. Hoboken, NJ: Wiley Finan ce.
Ittelson, T.R. (2022) Financial Statements: A Step-by-Step Guide to Understanding and Creating
Financial Reports. 3rd Ed. Newb uryport, Mass: Career Press.
Harrison, W.T., Horngren, C.T., Th omas, C.W. and Tietz, W.M. (2019) Financial Accounting:
International Financial Report Stan dards. 12th Ed. Harlow: Pearson.
Marshall, D., McManus, W. and V iele, D. (2023) Accounting: What the Numbers Mean. 13th Ed.
London: McGraw Hill.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E. (2020) Financial Accounting. 11th Ed. Hoboken, NJ:
John Wiley & Sons.
Wild, J. (2021) Financial Accounting : Information for Decisions. 10th Ed. New York: McGraw Hill.
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Learning Outcomes and Assessment Criteria
Pass Merit Distinction
LO1 Examine the context and purpose of accounting
D1 Critically evaluate the role of
P1 Examine the purpose of M1 Evaluate the context accounting in informing
the accounting function in and purpose of the decision-making to meet
an organisation. accounting function in organisational, stakeholder and
P2 Assess the accounting meeting organisational, societal needs in complex
function in the stakeholder and societal operating environments.
organisation in the context needs and expectations.
of regulatory and ethical
constraints.
LO2 Prepare basic financial statements for
unincorporated and small business organisations in
accordance with accounting principles, conventions and
standards
LO2 and LO3
P3 Prepare financial M2 Produce financial
statements from a given statements from a given trial D2 Critically evaluate financial
trial balance for sole balance, making appropriate statements to assess
traders, partnerships adjustments. organisational performance
and not-for-profit using a range of measures and
organisations, to meet benchmarks to make justified
accounting principles, conclusions.
conventions and
standards.
LO3 Interpret financial statements
P4 Calculate and present M3 Evaluate the performance
financial ratios from a of an organisation over time,
set of final accounts. using financial ratios with
P5 Compare the reference to relevant
performance of an benchmarks.
organisation over time
using financial ratios.
LO4 Prepare budgets for planning, control and decision-
making using spreadsheets D3 Justify budgetary control
solutions and their impact on
P6 Prepare a cash M4 Identify corrective actions organisational decision-making
budget from given data to problems revealed by to ensure efficient and effective
budgetary planning and deployment of resources.
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for an organisation using control for effective
a spreadsheet. organisational decision-
P7 Discuss the benefits making.
and limitations of
budgets and budgetary
planning and control for
an organisation.
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