Appendix 2: Technical competency areas and learning outcomes

Content Summary

TCA01: Accounting systems and processes

This area covers the form and function of financial statements and how financial transactions are recorded.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Explain the different business structures
LO2

Explain the following in relation to financial accounting:

  • the role and purpose of accounting, accounting processes and systems
  • the purpose of financial statements
  • the role and purpose of accounting standards
  • the regulatory environment for financial reporting
LO3 Record transactions to illustrate the activities of different types of businesses, including sole trader, partnerships and straightforward corporate/company accounts
LO4 Apply the accounting treatment to record basic business transactions and other events for different types of business using the principles of double entry accounting
LO5 Use accounting software to record business transactions
LO6 Explain the accounting principles and concepts underlying accounting and financial reporting including the principles of the Conceptual Framework of Accounting and generally accepted accounting principles

TCA02: Financial accounting and reporting

This area covers the theoretical principles underlying accounting practice and their application to the preparation and analysis of financial statements. It also covers current developments in financial reporting at a national and international level.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Apply International Financial Reporting Standards (IFRSs) or other relevant standards to transactions and other events – refer to TCA2 schedule 1 for guidance on suggested content
LO2 Evaluate the appropriateness of accounting policies used to prepare financial statements and understand that accounting involves the application of significant professional judgement – refer to TCA2 schedule 2 for guidance on suggested content
LO3 Prepare general purpose financial statements, including consolidated financial statements, in accordance with IFRSs or other relevant national standards – refer to TCA2 schedule 3 for guidance on suggested content
LO4 Prepare, analyse and interpret financial statements and related disclosures
LO5 Interpret reports including financial and non-financial data and information such as sustainability reports, integrated reports and extended external reporting
LO6 Discuss the theoretical principles underlying accounting practice (Accounting Theory).
LO7 Discuss current national and international developments in financial reporting and information

TCA03: Audit and assurance

This topic covers the nature and purpose of audit and assurance and the regulatory and professional environment in which it operates. The area includes an understanding of the role of auditing standards, and their application to the audit process.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1

In relation to auditing, explain the: 

  • nature and purpose of auditing
  • legal and regulatory requirements relating to auditors, including auditor’s liability
  • professional requirements relating to auditors, including ethics and independence
  • role of auditing standards
  • objectives and phases involved in performing an audit of general-purpose financial statements
LO2 LO2 Apply International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements – refer to TCA3 schedule 1 for guidance on suggested content
LO3 Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy
LO4 Apply quantitative methods that are used in audit engagements
LO5 Identify relevant audit evidence, including contradictory evidence, to inform judgments, make decisions and reach well-reasoned conclusions
LO6 Conclude whether sufficient and appropriate audit evidence has been obtained

TCA04: Business law

This area covers general legal knowledge relating to the business environment and an understanding of the responsibilities and risks in a business environment. It also covers data protection and privacy regulations that apply when collecting, generating, storing, accessing, using or sharing data and information.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Explain the national legal system and identify the sources of law
LO2 Explain the laws and regulations applicable to the environment in which professional accountants operate – refer to TCA4 schedule 1 for guidance on suggested content
LO3 Explain the laws and regulations that govern the different forms of legal entities, including the significance of the concept of separate legal entity – refer to TCA4 schedule 1 for guidance on suggested content
LO4 Explain the key features and purpose of contract law – refer to TCA4 schedule 1 for guidance on suggested content
LO5 Apply data protection and privacy regulations when collecting, generating, storing, accessing, using or sharing data and information

TCA05: Economics

This competency area covers the fundamental concepts of microeconomics and macroeconomics and covers the role of individuals and businesses in different types of market structures. It evaluates the response of business activity to changes in macroeconomic indicators as well as the impact of regulatory and political environments on business.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Explain economic systems and the concept of resource allocation
LO2 Describe the fundamental principles of microeconomics and macroeconomics – refer to TCA5 schedule 1 for guidance on suggested content
LO3 Explain the role of individuals and businesses in different types of market structures, including perfect competition, monopolistic competition, monopoly and oligopoly
LO4 Describe the effect of changes in macroeconomic indicators on business activity
LO5 Recognise regulatory and political environments and how they impact on business

TCA06: Finance and financial management

This competence area covers fundamental concepts and application of business finance and treasury and should address the overarching questions of finance, namely how organisations are financed, how they make investment decisions and how they make distribution or dividend policies.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Apply the mathematics of finance
LO2

Describe the following in relation to finance:

  • the role of the finance and treasury function in an organisation
  • the financial environment in which an organisation operates
LO3 LO3 Discuss how organisations are financed, comparing the various sources of financing available to an organisation, including bank financing, financial instruments, and bonds, equity and treasury markets – refer to TCA6 schedule 1 for guidance on suggested content
LO4 Explain the theory of capital markets
LO5 Discuss how organisations make investment and distribution decisions – refer to TCA6 schedule 2 for guidance on suggested content
LO6 Explain basic financial risks and risk management concepts – refer to TCA6 schedule 2 for guidance on suggested content

TCA07: Management accounting

This competence area covers an understanding of budgeting, product and service costing, control and performance evaluation, and strategic management accounting.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1

Explain the following in relation to organisations and management accounting:

  • the role and purpose of management accounting
  • the role of strategy in business
  • ethical considerations in decision making
  • types of organisational structures including concepts for authority delegation and control
LO2 Prepare detailed budgets and forecasts for management purposes, demonstrating an understanding of the budgeting process and its role in the management of organisations
LO3 Applying appropriate quantitative techniques, use costing information for business planning and control – refer to TCA7 schedule 1 for guidance on suggested content
LO4 Apply the principles and procedures involved in analysing and managing an organisation’s cash flow and working capital requirements/td>
LO5 Evaluate the performance of an organisation, its products, people and business segments – refer to TCA7 schedule 2 for guidance on suggested content
LO6 Analyse data and information to prepare reports that support management decision making – refer to TCA7 schedule 3 for guidance on suggested content

TCA08: Quantitative methods

This competence area covers the basic collection, analysis and interpretation of business data.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Explain the role of statistical analysis for decision making
LO2 Apply commonly used quantitative methods and techniques to collect and analyse financial and non-financial data – refer to TCA8 schedule 1 for guidance on suggested content
LO3 Review statistical data including hypothesis testing
LO4 Interpret the results of data analysis

TCA09: Taxation (Australia or New Zealand)

This competence area covers the fundamentals of the taxation system and its administration.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Identify the sources of taxation law and the framework in which taxation is administered – refer to TCA9 schedule 1 for guidance on suggested content
LO2 Identify various types of taxation including income tax, consumption taxes, goods and services tax, taxes on capital and fringe benefit/benefits tax – refer to TCA9 schedule 2 for guidance on suggested content
LO3 Apply the fundamentals of calculating the taxable income and tax payable for individuals and business entities – refer to TCA9 schedule 2 for guidance on suggested content
LO4 Analyse the taxation issues associated with straight forward international transactions – refer to TCA9 schedule 3 for guidance on suggested content

TCA10: Information and communications technology (ICT)

This area covers the fundamentals of how ICT impacts on an organisation’s environment and business model, and how data and information can be analysed to enhance the efficiency and effectiveness of a business’ operating systems, processes and communication channels. ICT includes accounting information systems and their application to solve business problems. These are important elements in the initial development of accounting and business professionals.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1 Explain the impact of ICT on an organisation’s environment and business model, and how it supports data analysis and decision making – refer to TCA10 schedule 1 for guidance on suggested content
LO2 Explain how ICT supports the identification, reporting, and management of risk in an organisation and how it can enhance the efficiency and effectiveness of an organisation’s systems and processes – refer to TCA10 schedule 2 for guidance on suggested content
LO3 Explain how ICT is used to analyse data and information – refer to TCA10 schedule 3 for guidance on suggested content
LO4 Explain how ICT is used to enhance the efficiency and effectiveness of communication – refer to TCA10 schedule 4 for guidance on suggested content
LO5 Analyse the adequacy of ICT processes and controls and identify the improvements that could be made to them – refer to TCA10 schedule 5 for guidance on suggested content

TCA11: Business acumen

Business acumen covers the local and global organisational environment within which a business operates, and the features relating to business strategy and management. The basic principles of governance, risk management and internal controls adds a depth of understanding of business practices.

Learning outcomes

At a minimum, graduates are expected to be able to:

LO1

Explain the following in relation to the organisational environment in which a business operates:

  • the various ways in which organisations may be designed and structured
  • the purpose and importance of different types of functional and operational areas within organisations
  • the processes that may be used to develop and implement the strategy of an organisation
  • how theories of organisational behaviour may be used to enhance the performance of the individual, team and organisation
  • an organisation’s risks and opportunities using a risk management framework
LO2 Describe the environment in which an organisation operates, including the primary economic, legal, regulatory, political, technological, social and cultural aspects
LO3 Analyse aspects of the global environment that affect international trade and finance
LO4 Identify the features of globalisation, including the role of multinationals and emerging markets
LO5 Explain the principles of good governance, including the rights and responsibilities of owners, investors, and those charged with governance; and explain the role of stakeholders in governance, disclosure and transparency requirements
LO6

Analyse the following in relation to an organisation:

  • the components of an organisation’s governance framework
  • the components of internal control related to financial reporting
  • the external and internal factors that may influence the strategy of an organisation
  • the adequacy of systems, processes and controls for collecting, generating, storing, accessing, using, or sharing data and information

Appendix 2A: Technical competency areas (TCA) content guidance schedules

PLEASE NOTE: When designing a program seeking professional accreditation, please only refer to these schedules as a guide, rather than a checklist of all content requirements. They are provided to assist with course content design and to highlight the key technical concepts graduates are expected to have some exposure to upon entry to the workplace and further professional study.

TCA02 Financial accounting and reporting: Schedule 1

LO1: Apply International Financial Reporting Standards (IFRSs) or other relevant standards to transactions and other events

Reference to international, Australian and New Zealand financial reporting standards have been provided below.

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

A. Application of accounting standards involving measurement:

  1. IAS 16/AASB 116/NZ IAS 16 Property, plant and equipment
  2. IAS 2/AASB 102/NZ IAS 2 Inventories
  3. IAS 37/AASB 137/NZ IAS 37 Provisions, contingent liabilities and contingent assets
  4. IAS 21/AASB 121/NZ IAS 21 The effects of changes in if foreign exchange rates. The focus would be on the accounting for the translation of foreign currency purchases and sales into an entity's functional currency

B. Application of accounting standards involving professional judgement:

  1. IAS 12/AASB 112/NZ IAS 12 Income taxes
  2. IFRS 16/AASB 16/NZ IFRS 16 Leases, focussing on accounting for a basic lease by a lessee
  3. IAS 36/AASB 136/NZ IAS 36 Impairment of assets, focussing on the accounting for the impairment of individual assets
  4. IAS 38/AASB 138/NZ IAS 38 Intangible assets
  5. IAS 10/AASB 110/NZ IAS 10 Events after the reporting period

C. Accounting for complex practical issues in financial reporting:

  1. IFRS 15/AASB 15/NZ IFRS15 Revenue from contracts with customers, focusing on the five-step revenue recognition application to recognise common revenue transactions
  2. IFRS 3/AASB 3/NZ IFRS 3 Business combinations focussing on the preparation of an acquisition analysis for a wholly owned subsidiary.
  3. IFRS 9/AASB 9/NZ IFRS 9 Financial instruments and IFRS 7/AASB 7/NZ IFRS 7 Financial instruments: Disclosures and IAS 32/AASB 132/NZ IAS 32 Financial instruments: Presentation – As a guide, what is required is a basic introduction to this standard covering an understanding of the definition of a financial instrument, the ability to identify and be aware of the classification rules for common financial assets, common financial liabilities and common equity instruments and the ability to account for the issue of equity instruments and dividends thereon.

TCA02 Financial accounting and reporting: Schedule 2

LO2: Evaluate the appropriateness of accounting policies used to prepare financial statements and understand that accounting involves the application of significant professional judgement

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

IAS 8/AASB 108/NZ IAS 8 Accounting policies, changes in accounting estimates and errors

This standard requires compliance with any specific IFRS/IAS applying to a transaction, event or condition, and provides guidance on developing accounting policies for other items that result in the provision of relevant and reliable information.

TCA02 Financial Accounting and Reporting: Schedule 3

LO3: Prepare financial statements, including consolidated financial statements, in accordance with IFRSs or other relevant standards

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • Fundamentals of financial statement preparation including an understanding of the conceptual framework (2018), regulatory framework and a basic awareness of the Corporations Act, Australia or the Companies Act, New Zealand, in relation to financial reporting
  • Prepare the financial statements for a basic company (IAS 1/AASB101/NZ IAS 1 Presentation of financial statements and IAS 7/AASB107/NZ IAS 7 Statement of cash flows), including the notes that accompany the statements
  • Prepare consolidated financial statements for a parent with a wholly owned subsidiary (IFRS10/ AASB10/ NZ IFRS 10 Consolidated financial statements).

TCA03 Audit and Assurance: Schedule 1

LO2: Apply International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements

Reference to international, Australian and New Zealand auditing and assurance standards have been provided below.

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Topics and learning outcomes International Auditing Standards (ISAs)/ Australian Auditing Standards (ASAs)/New Zealand Auditing Standards (ISAs (NZ))

Pre-engagement activities:

  • Advise if an entity requires an audit
  • Describe the processes an auditor should undertakes prior to accepting an audit engagement
  • Describe the key components to be included in a client engagement letter
  • Establish whether an auditor meets independence requirements
  • ISA 200/ASA 200/ISA(NZ) 200 Overall objectives of the independent auditor and the conduct of an audit in accordance with international/Australian/ New Zealand auditing standards
  • ISA 210/ASA 210/ISA(NZ) 210 Agreeing the terms of audit engagements

Planning and risk assessment – Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy

  • Analyse an organisation and its environment to determine key business risks faced by the organisation
  • Describe an organisation’s key controls
  • Identify key audit risk areas
  • Describe how audit risks may impact an organisation’s financial statements
  • Describe key information systems used by an organisation
  • Outline an audit strategy for an organisation
  • Describe the basis on which an auditor determines materiality
  • ISA 300/ASA 300/ISA(NZ) 300 Planning an audit of financial statements
  • ISA 315/ASA 315/ISA(NZ) 315 Identifying and assessing the risks of material misstatement through understanding the entity and its environment
  • ISA 330/ASA 330/ISA(NZ) 330 The auditor’s responses to assessed risks
  • ISA 450/ASA 450/ISA(NZ) 450 Evaluation of misstatements identified during the audit
  • ISA 320/ASA 320/ISA(NZ) 320 Materiality in planning and performing an audit
  • ISA 520/ASA 520/ISA(NZ) 520 Analytical procedures
  • ISA 240/ASA 240/ISA(NZ) 240 The auditor’s responsibilities relating to fraud in an audit of a financial report

Response to assessed risk – Tests of controls, tests of details and the use of quantitative methods that are used in audit engagements

  • Describe tests of control that an auditor may use
  • Describe substantive tests of detail that an auditor may use
  • Describe substantive analytical procedures that an auditor may use
  • Explain why different types of evidence provide a higher level of quality
  • Determine when the auditor should obtain external confirmations
  • Describe when an auditor should obtain a written representation
  • ISA 530/ASA 530/ISA(NZ) 530 Audit sampling
  • ISA 520/ASA 520/ISA(NZ) 520 Analytical procedures
  • ISA 550/ASA 550/ISA(NZ) 550 Related parties
  • ISA 560/ASA 560/ISA(NZ) 560 Subsequent events
  • ISA 570/ASA 570/ISA(NZ) 570 Going concern
  • ISA 500/ASA 500/ISA(NZ) 500 Audit evidence
  • ISA 505/ASA 505/ISA(NZ) 505 External confirmations
  • ISA 580/ASA 580/ISA(NZ) 580 Written representations

Evidence gathering and documentation – Identify and document relevant audit evidence, including contradictory evidence, to inform judgments, make decisions, and reach well-reasoned conclusions

  • Describe why an auditor needs to ensure that appropriate documentation of the audit is required
  • Describe the different types of evidence required to obtained by the auditor
  • Discuss the importance of audit quality
  • ISA 230/ASA 230/ISA(NZ) 230 Audit documentation
  • ISA 500/ASA 500/ISA(NZ) 500 Audit evidence
  • ISA 520/ASA 520/ISA(NZ) 520 Analytical procedures
  • ISA220/ASA 220 Quality control for an audit of a financial report and other historical financial information
  • ISA(NZ) 220 Quality control for an audit of a financial statements
  • ISQC1/ASQC1/PES 3(amended) Quality controls for firms that perform audits and reviews of financial statements etc.

Completion and communication – Conclude whether sufficient and appropriate audit evidence has been obtained and communicate the same

  • Identify potential misstatements in financial statements based on work undertaken
  • Outline when an auditor should request a client to amend their financial statements
  • Describe the sections of an audit report
  • Discuss the types of audit opinion an auditor can issue and when each is appropriate
  • Outline when and with whom an auditor is required to communicate
  • ISA 450/ASA 450/ISA(NZ) 450 Evaluation of misstatements identified during the audit
  • ISA 700/ASA 700/ISA(NZ) 700 Forming an opinion and reporting on financial statements
  • ISA 705/ASA 705/ISA(NZ) 705 Modifications to the opinion in the independent auditor’s report
  • ISA 706/ASA 706/ISA(NZ) 706 Emphasis of matter paragraphs and other matter paragraphs in the independent auditor’s report
  • ISA 260/ASA 260/ISA(NZ) 260 Communication with those charged with governance
  • ISA 265/ASA 265/ISA(NZ) 265 Communicating deficiencies in internal control to those charged with governance and management

TCA04 Business law: Schedule 1

LO2: Explain the laws and regulations applicable to the environment in which professional accountants operate

LO3: Explain the laws and regulations that govern the different forms of legal entities, including the significance of the concept of separate legal entity

LO4: Explain the key features and purpose of contract law

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Law of agency

Law of negligence

Contract law

  • Introduction to contracts
  • Agreement between parties
  • Intention to create legal relations consideration
  • Capacity of the parties
  • Genuine consent
  • Rights of parties and discharge
  • Remedies for breach of contract
  • Contract law compared to tort

Corporations law

  • Incorporation of companies and its consequences
  • Concept of separate legal entity
  • Duties of directors
  • Governance
  • Share transfers
  • Role of company secretary/directors
  • Membership, meetings and dividends
  • Corporate insolvency

Statutory and administrative requirements relating to record keeping, auditing, reporting and disclosure

TCA05 Economics: Schedule 1

LO2: Describe the fundamental principles of microeconomics and macroeconomics

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Microeconomics

  • Markets, demand, supply and price including elasticity
  • Comparative advantage
  • Market structures, including perfect competition, monopolistic competition, oligopoly and monopoly
  • Market failure and government intervention

Macroeconomics

  • Macroeconomic measures including GDP, inflation and employment
  • Fiscal and monetary policy
  • International trade and globalization
  • Balance of payments and exchange rates
  • Financial markets

TCA06 Finance and financial management : Schedule 1

LO3: Discuss how organisations are financed, comparing the various sources of financing available to an organisation, including bank financing, financial instruments, and bonds, equity and treasury markets

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Assessing financing options

Funding options

  • The characteristics of various sources of debt and equity finance alternatives

Capital structure

  • Structure, advantages and disadvantages of capital and debt markets
  • The factors influencing the cost of capital
  • The ability to calculate and discuss the advantages and disadvantages of CAPM and WACC

TCA06 Finance and financial management: Schedule 2

LO5: Discuss how organisations make investment and distribution decisions

LO6: Identify and explain basic financial risks and risk management concepts

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Insights for decision making:

  • Financial aspects of decision making – Apply capital budgeting techniques in the evaluation of capital investment decisions; calculate and explain results of project evaluation decisions using IRR, NPV, payback (standard and discounted) and the accounting rate of return (ARR)
  • Dealing with uncertainty in decision-making – Assessing investment decisions using sensitivity analysis and applying professional judgement
  • Dividend policy – Dividend relevance theory, dividend irrelevance theory and the optimal dividend theory
  • Business valuation – Describe different equity valuation methods
  • Explain income, asset-based and market valuation approaches used for investment decisions, business planning and long-term financial management

TCA07 Management accounting: Schedule 1

LO4: Applying appropriate quantitative techniques, to use costing information for business planning and control

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • Analysis of cost behaviour and the drivers of costs
  • Determine and calculate appropriate financial analysis (including discounted cashflows) to support decisions that plan to improve business performance including product and job costing, cost management, cost-volume-profit analysis, outsourcing and pricing
  • Distinguish and calculate different types of organisational costs and use established methods to cost specific operating decisions. Includes job costing, process costing, standard costing and variance analysis, product costing, full absorption costing versus marginal costing, inventory management and cost-volume profit analysis
  • Explain and calculate price using various pricing methods

TCA07 Management accounting: Schedule 2

LO5: Evaluate the performance of an organisation and of its products and business segments

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • Outline environment and organisational tools used to evaluate organisational performance (e.g. PESTEL, SWOT, Porter's five forces, Value chain analysis and Porter's generic strategies)
  • Identify financial and non-financial KPIs to measure business performance
  • Discuss the scorecard performance management model
  • Discuss the application of benchmarking to assess business performance

TCA07 Management accounting: Schedule 3

LO6: Analyse data and information to prepare reports that support management decision making

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • Prepare reports to support management decision making using a simple decision-making model including relevant costs and revenues
  • Prepare reports to support management decision making on quality control, performance measurement and comparative analysis
  • Report writing to communicate (i) business insights and recommendations, and (ii) business decisions and their rationale

TCA08 Quantitative methods: Schedule 1

LO2: Identify and apply commonly used quantitative methods and techniques to collect and analyse financial and non-financial data

LO3: Review statistical data including hypothesis testing

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • Presenting and describing information, including data collection, presentation in tables and chart format and numerical descriptive measures
  • Measuring uncertainty, including probability and discrete probability distributions, normal and other continuous distributions and sampling distributions
  • Drawing conclusions about populations, including confidence interval estimations, hypothesis testing and analysis of variance
  • Determining cause and making forecasts, including regression analysis, and time series forecasting
  • Hypothesis testing including chi square and non-parametric tests, model building and decision making
  • Introduction to basic Excel and how it can be used in statistics

TCA09 Taxation: Schedule 1 (Australia only)

LO1: Identify the sources of taxation law and the framework in which taxation is administered

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • The types of tax returns and assessments, including ATO rulings and the tax appeal process
  • The ability to distinguish the difference between tax planning, tax avoidance and tax evasion
  • The ability to discuss the sources of Australian income tax law including legislation, case law, and the ATO

TCA09 Taxation: Schedule 1 (New Zealand only)

LO1: Identify the sources of taxation law and the framework in which taxation is administered

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • The types of tax returns and assessments including Inland Revenue rulings and the disputes resolution process
  • The ability to distinguish between the difference in tax planning, tax avoidance and tax evasion
  • The ability to discuss the sources of New Zealand income tax law including legislation, case law, and Inland Revenue

TCA09 Taxation: Schedule 2 (Australia only)

LO2: Identify various types of taxation including income tax, consumption taxes, taxes on capital, goods and services tax and fringe benefits taxLO3: Identify and apply the fundamentals of calculating the taxable income and tax payable for individuals and business entities

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Income tax

  • Income tax framework: The ability to explain the residency of taxpayers and source of income; discuss the tax rates for individual residents and non-residents; explain the different tax rates for other tax entities; explain the concept of tax offsets and provide simple examples including PAYG; and calculate the taxable income/(loss) and tax payable/(refundable) using simple scenarios
  • Income fundamentals: The ability to explain and calculate assessable income for an entity, explain ordinary income, statutory income, exempt income and non-assessable non-exempt income; understand the difference between income from personal exertion, income from property and income from a business; understand cash versus earnings/accruals for tax purposes; and determine the difference between revenue and capital transactions using simple scenarios
  • Deductions fundamentals: Explain and calculate common general and specific deductions, explain simple deductions that are denied, and advise on the substantiation rules for work-related, car and travel expenses using simple scenarios

Property and capital transactions

  • Depreciating assets: The ability to explain and calculate the decline in value for depreciating assets using the prime cost method and diminishing value method; explain and calculate balancing adjustments; explain blackhole expenditure; explain and calculate the deduction available for capital works; explain the interaction between expenditure for capital allowances, capital works CGT and trading stock using simple scenarios
  • Trading stock: The ability to explain and apply the trading stock definition; the consequences of purchasing and selling trading stock; the application of the valuation methods for trading stock; and calculating the effect of trading stock on taxable income for simple scenarios
  • Capital Gains Tax (GGT) regime: Covers the common CGT exemptions and concessions; the application of gains and losses and the calculation of the discount; calculating a taxpayer's capital gain or loss using simple scenarios and advising the taxpayer accordingly; and applying the CGT exemptions and concessions for simple scenarios

Income tax: Tax structures and transactions

  • Taxation of an individual: The ability to explain the general tax principles that apply to individuals
  • Taxation of a partnership: The ability to explain what a partnership is, discuss the general tax principles for partnerships and calculate the net income of a partnership including the partner's share of net income
  • Taxation of companies: The ability to discuss the taxation principles that apply to companies; calculate the taxable income and tax payable of a company, including the applicable tax rates; and identify tax losses that may be carried forward
  • Dividends: The ability to explain the imputation system and franking account provisions using simple scenarios
  • Trusts: The ability to explain the common types of trusts, calculate the net income or loss of a trust, and explain how the net income of a trust is taxed
  • Small business entity (SBE): The ability to identify an SBE and discuss the SBE concessions
  • Superannuation: The ability to discuss the taxation of superannuation funds and explain the different types of superannuation funds and contributions

Goods and services tax (GST)

  • The ability to describe the administration and compliance of GST, and its interaction with income tax
  • The ability to explain the GST framework and calculate net GST payable/refundable using simple scenarios

Employment remuneration and fringe benefits tax (FBT)

  • The ability to explain the pay as you go (PAYG)/pay as you earn (PAYE) system of taxation collection and the treatment of allowances to individual taxpayers; and discuss the tax treatment of salary sacrifice into superannuation
  • The ability to explain the FBT framework and calculate FBT payable using simple scenarios

TCA09 Taxation: Schedule 2 (New Zealand only)

LO2: Identify various types of taxation including income tax, consumption taxes, taxation impacts on capital assets, goods and services tax and fringe benefit tax

LO3: Identify and apply the fundamentals of calculating the taxable income and tax payable for individuals and business entities

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Income tax

  • Income tax framework: The ability to explain the residency of taxpayers and source of income; discuss the tax rates for individual residents and non-residents; explain the different tax rates for other tax entities; explain the concept of tax offsets and provide simple examples including PAYG; and calculate the taxable income/(loss) and tax payable/(refundable) using simple scenarios
  • Income fundamentals: The ability to explain and calculate assessable income for an entity; explain ordinary income, statutory income, exempt income and non-residents’ foreign-sourced income; understand the difference between income from personal services, income from property and income from a business; understand cash versus earnings/accruals for tax purposes; and determine the difference between revenue and capital transactions using simple scenarios
  • Deductions fundamentals: Explain and calculate common general and specific deductions, explain simple deductions that are denied, and advise on the substantiation rules for work-related, car and travel expenses using simple scenarios.

Property and capital transactions

  • Depreciable property: The ability to explain and calculate the decline in value for depreciable property using the straight-line method and the diminishing value method; explain tax consequences on disposal; and explain and calculate the deduction available for capital contributions using simple scenarios
  • Trading stock: The ability to explain and apply the trading stock definition; explain the consequences of purchasing and selling trading stock; the application of the valuation methods for trading stock; and calculating the effect of trading stock on taxable income using simple scenarios
  • Taxation of property: The ability to explain taxation consequences of disposal of personal property and interests in land

Income tax: Tax structures and transactions

  • Taxation of an individual: The ability to explain the general tax principles that apply to individuals
  • Taxation of a partnership: The ability to explain what a partnership is, discuss the general tax principles for partnerships, and calculate the net income of a partnership including the partner's share of net income
  • Taxation of companies: The ability to discuss the taxation principles that apply to companies; calculate the taxable income and tax payable of a company, including the applicable tax rates; and identify tax losses that may be carried forward
  • Dividends: The ability to explain the imputation system and imputation credit account provisions using simple scenarios
  • Trusts: The ability to explain the common types of trusts, calculate the net income or loss of a trust, and explain how the net income of a trust and distributions to beneficiaries are taxed
  • Superannuation: The ability to discuss the taxation of superannuation funds and explain the different types of superannuation funds and contributions

Goods and services tax (GST)

  • The ability to describe the administration and compliance of GST, and its interaction with income tax
  • The ability to explain the GST framework and calculate net GST payable/refundable using simple scenarios

Employment remuneration and fringe benefit tax (FBT)

  • The ability to explain the pay as you go (PAYG) system of taxation collection and the treatment of allowances to individual taxpayers; and discuss the tax treatment of salary sacrifice into superannuation
  • The ability to explain the FBT framework and calculate FBT payable using simple scenarios

TCA09 Taxation: Schedule 3 (Australia and New Zealand)

LO4: Analyse the taxation issues associated with non-complex international transactions

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

  • The calculation of the tax payable by taxpayers in receipt of foreign income, using simple straightforward scenarios
  • The determination of the taxpayer's liability to interest, dividend and royalty withholding tax

TCA10 Information and communications technology (ICT): Schedule 1

LO1: Explain the impact of ICT on an organisation’s environment and business model, and how it supports data analysis and decision making

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Explain the impact of ICT on current and emerging accounting practices dealing with different types of organisations, including the impact of databases, data storage, networks, internet, blockchain and transaction processing, XBRL, robotics process automation, the use of artificial intelligence (AI) in accounting, business intelligence and the use of big data in organisations and in auditing etc.

TCA10 Information and communications technology (ICT): Schedule 2

LO2: Explain how ICT supports the identification, reporting and management of risk in an organisation and how it can enhance the efficiency and effectiveness of an organisation’s systems and processes

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

An ICT system should be able to visualise, confirm and maintain the relevance and integrity of information systems and would include explaining an understanding of systems documentation techniques, business processes and systems documentation, systems development life cycle, information systems’ controls for system development, enterprise resource planning (ERP) systems, auditing computer-based systems and the use of auditing support systems, computer fraud and cyber security etc.

TCA10 Information and communications technology (ICT): Schedule 3

LO3: Explain how ICT is used to analyse data and information

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

An ICT system that is able to analyse data and produce useful information would include the use of database management systems, database design, relational databases, data analytics, the use of big data in organisations and in auditing, and the usefulness of programs such as Tableau, PowerBi, Pivot tables etc.

TCA10 Information and communications technology (ICT): Schedule 4

LO4: Explain how ICT is used to enhance the efficiency and effectiveness of communication

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

Enhancing the efficiency and effectiveness of communicating useful information would include an understanding of graphs and dashboards, entity relationship diagrams and inhouse versus cloud etc.

TCA 10 Information and communications technology (ICT): Schedule 5

LO5: Identify the adequacy of ICT processes and controls, and the improvements that could be made

As a guide, the Professional Bodies suggest coverage of the following key content areas related to this learning outcome:

This learning outcome would include an awareness of the role of a responsible custodian of data and producer of useful information, including an understanding of ICT processes and controls, system flowcharts and data flow diagrams, accessibility to data including its security, data integrity or its accuracy and reliability, etc.