Hurtwood House School

It may surprise some to see Accounting offered as an A-Level subject. You can, of course, qualify as an Accountant without taking A-Level, but students who are not sure of their future careers, although they have an inkling that they want to do something in business or commerce, find that Accounting gives a practical perspective to their studies and enables them to get to taste the sharply realistic techniques of financial and management accounting which are the foundation upon which all businesses are run. Accounting is also a subject that helps students to organise their everyday life in a logical and precise manner. At Hurtwood House Accountancy is a popular and highly successful A-Level subject, one that is recognised as being truly ‘hands-on’ for the student because it deals with the practicalities of business analysis and decision-making that is essential to any company.

Students receive a good deal of individual attention, for here is a subject that often demands the one-to-one approach rather than a group effort. Teaching is highly structured, based around the introduction of a topic by a tutor, with students then working on assignments (usually past exam questions). Students have their own ledgers in which they put into practice what they have been taught when the topic was introduced. This practice is when a student’s ability is developed with the tutor explaining, either individually or to the group as a whole, the correct solution to the assignment. At the end of their course, students have an impressive record of work in their ledgers which will not only help them to revise for their A-Level examination, but will also be useful when studying for a degree.

AS Examinations
Unit 1 – ACCN1
Introduction to Financial Accounting
50% of AS, 25% of A-Level
1 hour 30 minutes written examination
80 raw marks (100 UMS)
Four compulsory questions – each carrying a variable number of marks, each with a variable number of sub-questions.
Available January and June

Unit 2 – ACCN2
Financial and Management Accounting
50% of AS, 25% of A Level
1 hour 30 minutes written examination
80 raw marks (100 UMS)
Four compulsory questions – each carrying a variable number of marks, each with a variable number of sub-questions.
Available January and June
AS Award 1121

A2 Examinations
Unit 3 – ACCN3
Further Aspects of Financial Accounting
25% of A Level
2 hours written examination
90 raw marks (100 UMS)
Four compulsory questions – each carrying a variable number of marks, each with a variable number of sub-questions. This unit is synoptic.
Available January and June

Unit 4 – ACCN4
Further Aspects of Management Accounting
25% of A Level
2 hours written examination
90 raw marks (100 UMS)
Four compulsory questions – each carrying a variable number of marks, each with a variable number of sub-questions. This unit is synoptic.
Available January and June
A-Level Award 2121
 
There are four equally-weighted units, each assessed externally by a written paper.
AS + A2 = A-Level
 
Students taking this specification should:

• develop knowledge and understanding of the purposes of accounting, its concepts, techniques and procedures
• apply this knowledge and understanding to a variety of accounting problems
• develop an appreciation of the role and limitations of accounting in decision-making
• analyse, interpret and evaluate accounting information, assess alternative courses of action and make reasoned judgments, taking into consideration economic, legal, technological and social factors.

The specification also encourages candidates to acquire a range of important and transferable skills:

• data skills: candidates will be expected to manipulate data in a variety of forms and to interpret their results
• presenting arguments and making judgments and justified recommendations on the basis of the available evidence
• recognising the nature of problems, solving problems and making decisions using appropriate accounting tools and methods
• planning work, taking into account the demands of the task and the time available to complete it.
   

AS Unit 1 ACCN1
Introduction to Financial Accounting
 
This unit is designed as a foundation for the course and covers double-entry procedures as applied to the accounting systems of sole traders.

Students will develop an understanding of how the double-entry system operates and develop skills in keeping accurate accounting records which will include transferring relevant accounts to the trading and profit and loss accounts, balancing accounts and preparing a balance sheet set out in good form. They will be able to record a variety of transactions, working from original documents and using the appropriate books of original entry.

They will also be able to verify the accuracy of accounting records, explain the purpose and limitations of verification techniques and be able to assess the consequences of errors on profit calculations and balance sheets.

Making straightforward adjustments to expenses in the final accounts, including the recording of depreciation based on the straight-line method will also be covered by the students.

They will also learn and understand the reasons for keeping accounting records and the benefits that arise for the owner of a business and other stakeholders.

AS Unit 2 ACCN2
Financial and Management Accounting
 
This unit provides students with the opportunity to develop their knowledge and understanding of financial accounting and introduces them to some of the ways in which financial accounting can provide valuable information for measuring and monitoring business performance and for planning future business operations.

They will develop their ability to produce final accounts and balance sheets for sole traders as well as limited companies and will be able to make more complex adjustments to final accounts, demonstrating an understanding of the concepts that underlie the preparation of financial statements and to explain how these are applied to a variety of situations.

A2 Unit 3 ACCN3
Further Aspects of Financial Accounting
 
In this unit, students will have the opportunity to develop their understanding of financial accounting techniques which can be applied where a business does not maintain a complete accounting system.

They will have the opportunity to develop an understanding of the techniques and procedures which are relevant to partnerships, developing a greater understanding of financial accounting in relation to limited companies by developing their knowledge of the content of published accounts and their importance to various user groups. They will also extend their range of advanced techniques and knowledge of accounting by the study of cash flow statements and accounting standards.
 
Accounting standards students will be able to explain and comment on the purpose and importance of the following international accounting standards:
 
IAS 1 Presentation of financial statements
IAS 2 Inventories
IAS 7 Cash flow statements
IAS 8 Net profit or loss for the period – fundamental errors and changes in accounting procedures
IAS 10 Events after balance sheet date
IAS 16 Property, plant and equipment
IAS 18 Revenue
IAS 36 Impairment of assets
IAS 37 Provisions, contingent liabilities and contingent assets
IAS 38 Intangible assets. 
 
A2 Unit 4 ACCN4
Further Aspects of Management Accounting
 
This unit provides an opportunity for candidates to develop further the ways in which accounting techniques can be used to aid the management of a business and contribute to effective decision-making.

Students will develop an understanding of manufacturing accounts and certain cost concepts including contribution, overhead absorption, activity-based costing, standard costing and variance analysis.

This unit provides our students with the opportunity to develop two techniques for making capital investment decisions and further develop their understanding of sources of finance.

On top of this, they will develop their understanding of budgeting and budgetary control.

They will also have to consider social accounting factors when making decisions.

Students will be able to prepare and comment on the final accounts and balance sheet of manufacturing organisations, calculate prime costs, overhead cost, factory cost of finished goods, profit on manufacture, and make provisions for unrealised profit.
 
 
4 Scheme of Assessment

4.1 Aims
AS and A-Level courses based on this specification should encourage candidates to develop:

• an understanding of the importance of effective accounting information systems and an awareness of their limitations through a critical consideration of current financial issues and modern business practices
• an understanding of the purposes, principles, concepts and techniques of accounting
• the transferable skills of numeracy, communication, ICT, application, presentation, interpretation, analysis and evaluation in an accounting context
• an appreciation of the effects of economic, legal, ethical, social, environmental and technological influences on accounting decisions
• a capacity for methodical and critical thought which would serve as an end in itself, as well as a basis for further study of accounting and other subjects. 

4.2 Assessment Objectives (AOs)
The Assessment Objectives are common to AS and A-Level. The assessment units will assess the following:
AO1 Knowledge and Understanding
Demonstrate knowledge and understanding of accounting principles, concepts and techniques.
AO2 Application
Select and apply knowledge and understanding of accounting principles, concepts and techniques to familiar and unfamiliar situations
AO3 Analysis and Evaluation
Order, interpret and analyse accounting information in an appropriate format. Evaluate accounting information taking into consideration internal and external factors to make reasoned judgments, decisions and recommendations, and assess alternative courses of action using an appropriate form and style of writing.

Quality of Written Communication (QWC)
In GCSE specifications which require candidates to produce written material in English, candidates must:

• ensure that text is legible and that spelling, punctuation and grammar are accurate so that meaning is clear
• select and use a form and style of writing appropriate to purpose and to complex subject matter
• organise information clearly and coherently, using specialist vocabulary when appropriate.

In this specification, QWC will be assessed in all units.
On each paper, two of the marks for prose answers will be allocated to ‘quality of written communication’ and two of the marks for numerical answers will be allocated to ‘quality of presentation’. The sub-questions concerned will be identified on the question papers.

Weighting of Assessment Objectives for AS
The table below shows the approximate weighting of each of the Assessment Objectives in the AS units.
Assessment Objectives Unit Weightings (%) Overall weighting of AOs (%)

Unit 1 Unit 2
AO1 Knowledge and Understanding 20 10 30
AO2 Application 25 25 50
AO3 Analysis and Evaluation 5 15 20
Overall weighting of units (%) 50 50 100 15

4.3 Prior Learning
There are no prior learning requirements. It is not necessary for candidates to have studied GCSE Accounting before commencing work on this specification and no prior knowledge of accounting is necessary.

4.4 Synoptic Assessment and Stretch and Challenge
Synoptic assessment in Accounting is included in both A2 units.
Synoptic assessment encourages candidates to see the relationship between different aspects of the subject content. It relates to all the Assessment Objectives. Synoptic assessment will be conducted by using decision-making or problem-solving situations which require candidates to draw together knowledge and understanding of concepts, procedures and techniques learned in different parts of the A-Level course to tackle a decision, problem or issue that is new to them.

In Unit 3, synoptic questions will be set on issues relating to Units 1–2.

In Unit 4, synoptic questions will be set on issues relating to Unit 2.
Even though the questions will have such a focus, candidates will be rewarded for employing in their answers relevant knowledge, understanding and skills learned in any part of the course.
The requirement that Stretch and Challenge is included at A2 is met by:

• questions which require candidates to evaluate accounting issues
• questions which require candidates to apply their knowledge, understanding and skills to complex situations.

Weighting of Assessment Objectives for A Level
The table below shows the approximate weighting of each of the Assessment Objectives in the AS and A2 units.
Assessment Objectives Unit Weightings (%) Overall weighting of AOs (%)

Unit 1 Unit 2 Unit 3 Unit 4
AO1 Knowledge and Understanding 10 5 5 5 25
AO2 Application 12½ 12½ 12½ 12½ 50
AO3 Analysis and Evaluation 2½ 7½ 7½ 7½ 25
Overall weighting of units (%) 25 25 25 25 100
 
5.7 Awarding Grades and Reporting Results
The AS qualification will be graded on a five-point scale: A, B, C, D and E. The full A-Level qualification will be graded on a six-point scale: A*, A, B, C, D and E. To be awarded an A* candidates will need to achieve a grade A on the full A-Level qualification and an A* on the aggregate of the A2 units.

For AS and A-Level, candidates who fail to reach the minimum standard for grade E will be recorded as U (unclassified) and will not receive a qualification certificate. Individual assessment unit results will be certificated.

Accounting is a subject that will appeal to students who delight in being given information on a business and from this preparing solutions - whether it be structured (as in the presentation of a balance sheet) or unstructured (as in giving a report on the performance of a business). It may involve the student having to decide which particular piece of machinery a company should buy, or indeed whether to purchase outright, lease or hire. From the information provided, the accounting student can answer questions such as ‘Should a product be discontinued?’ or ‘How much should be charged for a product?’ or ‘Which areas are causing a business to be unprofitable?’
 
Although it deals with numbers, Accounting is not a mathematical subject. The calculations involved are no more than the basics of arithmetic, such as adding and subtracting. For example, adding income and deducting costs to arrive at a profit figure. However, having arrived at a profit figure it must then be decided whether it is high enough. Questions such as ‘What do other businesses make?’ have to be answered and it may be queried as to whether it is better to have a higher profit on a low turnover, or vice versa. There is much more to the subject than just playing with numbers. There are quantitative techniques involved here that help to lead to decision-making. Accounting is also distinguished from Economics - which deals with concepts and covers the operation of the whole of the British Economy and Business Studies and which concentrates more on corporate structure and the sale and marketing of products.

‘Accounting is not about Mathematics but it is about business. It is very closely connected to the business world and the impact which finance has on various companies. If you are interested in pursuing a business-based course at university then here is a subject that you will find highly interesting and rewarding. I am leaving Hurtwood this year with a firm understanding of the structure of Accounting and a much deeper understanding of business in general. Our Head of Department, Graham Highfield, explained the subject in a clear and careful way which made it easy to follow topics and see the links between them.’
Luke Nolan – Second Year A-Level student

I studied at Hurtwood House from 2001 to 2003, having completed A-Levels in Law, Accounting and English.  I thoroughly enjoyed Hurtwood House and found that the small classes and personalised teaching resulted in a strong improvement in my grades from GCSE’s!

From Hurtwood, I went on to study Business Management at Surrey University.  Here the law and accounting I had studied strongly came in to play and I managed to leave University with a first class degree with distinction.  What I found from doing accounting at A-Level was that the basic accounting concepts were well ingrained and I had a much better understanding than other students at University, who had to learn some difficult fundamental concepts in lectures of 100s of people.  I feel that this also then stood me in good stead for my next career move.

After completing a placement with PricewaterhouseCoopers whilst at University, I landed myself a graduate job with the firm to study to become a Chartered Accountant.  PricewaterhouseCoopers is the largest professional services firm in the world, and I am really enjoying my time here.  I have since been rated well in the firm and received a prize from the Institute of Chartered Accountants for my exam results!  I feel I have a lot to thank my accounting teacher at Hurtwood House for!

Hurtwood House definitely aided me in my successes to date; it taught me life long lessons such as study skills and good exam technique.  It also taught me important social lessons, such as instilling confidence, the importance of being part of a team, living in a diverse culture and a sense of fun.  These are important factors, which I have found to be even more important that the exam results I’ve achieved!