AS 91481 Accounting 2.5 (4 credits)

Demonstrate understanding of a topical accounting issue for decision making

Student loans example

Students could investigate the student loan scheme for tertiary students. They could gather information about who qualifies; how to apply; how much is available; what is it available for; how much should they borrow; how is the IRD involved; are there limits on amounts that can be borrowed; are there limits on the number of years they can accumulate student loan debt; what are the current terms and conditions; what are the policies of different political parties regarding these terms and conditions; what happens if they have a student loan and travel overseas; what happens if they move permanently abroad; what happens when they start earning income in New Zealand; are the student loan rules fair; for whom are they fair; for whom might they be unfair; how will their understandings about student loans impact on their own personal decision to undertake tertiary study and acquire a student loan to assist with the funding of that study and/or their living costs while studying.

Having investigated an issue such as the student loans example above, students are expected to:

Achievement / Merit / Excellence
Demonstrate understanding:
Describe the issue for decision-making
The following are suggested components of evidence for Achieved:
· Describe student loans eg who can get one, how long for, what for, how much etc within this evidence will be some financial $ amounts and some non-financial information – how long, who etc.
· Describe how it affects decision making – does the student loan let you decide to move out of home/study in a different city/study a particular course
· Draw a conclusion – In deciding whether or not to get a student loan I have considered….and this will allow me to make a good decision about my tertiary study in …(city away from home) in 20xx (two years time). / Demonstrate in-depth understanding:
Explain the issue for decision-making
The following are suggested components of evidence for Merit:
· Explain student loans – Achieved plus why do you need a student loan
· Explain how it affects decision-making – make links from why you need a student loan to how that will affect the decision you make regarding getting one/how much you are prepared to borrow/work while studying so you borrow less…
· Explain a conclusion – Get a student loan to cover course fees because…/ get a part-time job for most of (my) living costs because…/ live at home for (my) first year and study at <local tertiary institution> because (I) can’t afford to move away and minimise (my) loan at the same time / Demonstrate comprehensive understanding:
Justify the issue for decision-making with a future focus
The following are suggested components of evidence for Excellence:
Merit plus
· Some link to future eg what will happen if I travel overseas with my huge student loan/how will I pay it back
· Justify effect on decision making – make links to the future beyond just the loan – paying it back / effect of overseas travel / job prospects etc
· Justify a conclusion – I will get a student loan to study medicine at Otago because I love working with people and I believe I have the academic skills and caring etc etc…..and when I have finished I can go and work in rural NZ where the government will……which will mean it was a good decision to get a loan and it will be paid off more quickly by my choice of work place………