FA1

A Types of business transactions and documentation

Types of business transaction

Describe a range of business transactions including:[K]
1. Sales
2. Purchases
3. Receipts
4. Payments
5. Petty cash
6. Payroll
Define types of discounts including, where applicable, the effect that trade discounts have on sales tax.[K]
Describe the processing and security procedures relating to the use of:[K]
1. Cash
2. Cheques
3. Credit and debit cards
4. Digital payment methods

Types of business documentation

Summaries the purpose and content of a range of business documents; including but not limited to:[K]
1. Customer (sales) invoice
2. Supplier (purchase) invoice
3. Credit note
4. Debit note
5. Delivery note
6. Remittance advice
Prepare the financial documents to be sent to credit customers including:[S]
1. Customer (sales) invoice
2. Credit note
3. Statements of account
Prepare remittance advice to accompany payments to suppliers.[S]
Prepare a petty cash voucher including the sales tax element of an expense when presented with an inclusive amount.[S]
Process of recording business transactions within the accounting system
1. Identify the characteristics of accounting data and the sources of accounting records, showing an understanding of how the accounting data and records meet the business’ requirements.[K]
2. Describe the key features of a computerised accounting system, including the use of external servers to store data (the cloud).[K]
3. Summarise how users locate, display and check accounting data to meet user requirements and understand how data entry errors are dealt with.[K]
4. Summarise the tools and techniques used to process accounting transactions and period-end routines and consider how errors are identified and dealt with.[K]
5. Identify risks to data security, data protection procedures and the storage of data.[K]
6. Explain the principles of coding in entering accounting transactions including:[K]
  1. Describing the need for a coding system for financial transactions within double-entry bookkeeping
  2. Describing the use of a coding system within an accounting system
7. Code sales invoices, supplier invoices and credit notes ready for entry into the accounting system.[S]
8. Describe the accounting documents and management reports produced by computerised accounting systems and understand the link between the accounting system and other systems in the business.[K]

B Duality of transactions and double-entry bookkeeping

Double-entry bookkeeping

Define the accounting equation.[K]
Demonstrate the use of the accounting equation.[K]
Describe how the accounting equation relates to double-entry bookkeeping.[K]
Explain how transactions are entered into the accounting system.[K]

Journal entries

Explain the use of journal entries, including the reasons for and format of journal entries.[K]
Prepare journal entries for various transactions.[S]

Elements of the financial statements

Define and distinguish between the elements of the financial statements.[K]
Identify the content of a statement of financial position and a statement of profit or loss and other comprehensive income.[K]

C Banking system and transactions

The banking process

Explain the differences between the services offered by banks and other financial services businesses.[K]
Describe how the bank clearing system works.[K]
Identify and compare different forms of payment.[K]
Summarise the processing and security procedures relating to the use of cash, cheques, credit cards, debit cards and digital payment methods.[K]

Documentation

Explain why it is important for an organization to have a formal document retention policy.[K]
Identify the different categories of documents that may be stored as part of a document retention policy.[K]

D Payroll

Process payroll transactions within the accounting system

Calculate and prepare entries in the accounting system to process payroll transactions including:[S]
1. Calculation of gross wages for employees paid by the hour, paid by output and salaried workers
2. Accounting for payroll costs and deductions
3. The employers’ responsibilities for taxes, state benefit contributions and other deductions
Identify the different payment methods in a payroll system; for example, cash, cheques and automated payments.[K]
Explain why authorization of payroll transactions and security of payroll information is important in an organization. [K]

E General ledger accounts

Prepare general ledger accounts

Prepare general ledger accounts, clearly showing the balances brought forward and carried forward as appropriate.[S]

F Cash and bank

Maintaining cash records

Record cash transactions within the accounting system, including any sales tax effect where applicable.[S]

Maintaining a petty cash record

Enter and analyze petty cash transactions in the accounting system, including any sales tax effect where applicable.[S]
Demonstrate the use of the imprest and non-imprest systems of maintaining a petty cash record.[S]
Reconcile the petty cash record with cash in hand.[S]
Prepare and account for petty cash reimbursements.[S]

G Sales and credit transactions

Recording sales, customer account balances and receivables

Record sales transactions taking into account:[S]
1. Various types of discount
2. Sales tax
3. The impact on the sales tax ledger account where applicable.
Enter sales invoices and credit notes issued to customers into the accounting system.[S]
Prepare the receivables general ledger account by accounting for:[S]
1. Sales
2. Sales returns
3. Receipts from customers, including checking the accuracy and validity of receipts against relevant supporting information
4. Discounts
5. Contra entries
Prepare entries in the accounting system to record cash sales, credit sales and receipts from customers.[S]
Account for irrecoverable debts and allowances for irrecoverable debts.[S]

H Purchases and credit transactions

Recording purchases, supplier account balances and payables

Record purchase transactions taking into account:[S]
1. Various types of discounts
2. Sales tax
3. The impact on the sales tax general ledger account where applicable
Enter supplier invoices and credit notes received from suppliers into the accounting system [S]
Prepare the payables general ledger account by accounting for:[S]
1. Purchases
2. Purchase returns
3. Payments to suppliers, including checking the accuracy and validity of the payment against relevant supporting information
4. Discounts
5. Contra entries
Prepare entries in the accounting system to record cash purchases, credit purchases and payments to suppliers.[S]

I Reconciliation

Purpose of reconciliations

Describe the purpose of reconciliations to external documents as a checking device to aid management and help identify errors.[K]
Explain why it is important to reconcile to external documents regularly and to deal with discrepancies quickly and professionally.[K]

Reconcile the cash records

Reconcile the cash records to a bank statement and deal with any discrepancies.[S]

Reconcile individual supplier accounts

Reconcile the balances on individual supplier accounts to supplier statements and deal with any discrepancies.[S]

J Preparing the trial balance

Prepare the trial balance

Extract an initial trial balance.[S]

Correcting errors

Identify the types of errors that are revealed by extracting a trial balance.[K]
Identify the types of errors that are not revealed by extracting a trial balance.[K]
Prepare manual journal entries to correct errors in the trial balance.[S]
Identify when a suspense account is required and clear the suspense account using manual journal entries.[S]
Redraft the trial balance following correction of all errors.[S]

FA2

A Accounting principles, concepts and characteristics

The key principles, concepts and characteristics of accounting

Explain key principles and concepts of accounting:[K]
1. Going concern
2. Accrual accounting
3. Materiality
4. Consistency
5. Prudence
6. Duality
7. Business entity
8. Historical cost
Explain the qualitative characteristics of useful financial information:[K]
1. Relevance
2. Faithful representation
3. Comparability
4. Verifiability
5. Timeliness
6. Understandability

Maintaining financial records

Explain the importance of maintaining financial records for internal and external use.[K]
Describe the type of accounting records that a business should maintain and the main uses of these records.[K]
Describe the key features of a computerised accounting system, including the use of external servers to store data (the cloud).[K]

The regulatory framework

Describe the main requirements of IFRS® Accounting Standards in relation to syllabus area D.[K]

B The principles and process of double-entry bookkeeping

The elements of financial statements

Explain the meaning of the accounting equation and demonstrate its impact on double-entry bookkeeping.[K]
Describe the meaning of income, expenses, assets, liabilities and capital in an accounting context.[K]
Describe the components of financial statements for a sole trader.[K]

Recording financial data and the flow of accounting information in the production of financial statements

Explain how financial data is initially recorded in the accounting system.[K]
Identify reasons for closing off general ledger accounts and producing a trial balance.[K]
Explain the process of preparing a set of financial statements from a trial balance.[K]

C The preparation of journal entries and general ledger accounts

Preparation of journal entries

Prepare journal entries to record transactions in an appropriate format.[S]

Preparation of general ledger accounts

Explain the purpose and use of general ledger accounts.[K]
Post journal entries into the appropriate general ledger account.[S]
Illustrate the year-end procedures on the general ledger accounts, bringing forward and carrying forward balances as appropriate.[S]

D Recording transactions and events

Sales and purchases

Record sales and purchase transactions.[S]
Record sales and purchase returns.[S]
Account for discounts received.[S]
Account for the following discounts allowed to customers in accordance with IFRS Accounting Standards:[S]
1. trade discounts
2. settlement discounts.
Identify sources of information on sales tax and explain the relationship between the entity and the relevant government agency (revenue/ tax authority).[K]
Explain the general principles of the operation of a sales tax including:[K]
1. requirements for registration
2. main information to be included on business documentation
3. types of taxable supplies and their classification for sales tax
4. accounting for and payment of sales tax
5. penalties for late returns or late payment of sales tax.
Explain the different methods of accounting for and reporting of sales tax.[K]
Identify and obtain sales tax data from the accounting system.[S]
Calculate sales tax on inputs (purchases) and outputs (sales), enter the appropriate information into the accounting system and calculate the sales tax due to/ from the business.[S]
Illustrate the main components of a sales tax return.[S]
Calculate the cash flow impact on the business of the payment of sales tax and the potential impact on the business of any changes in legislation for sales tax.[S]

Cash and bank

Record cash and bank transactions in general ledger accounts.[S]
Report cash and bank balances in the financial statements.[S]

Inventories

Describe the need for adjustments for inventories when preparing financial statements.[K]
Record cost of sales and closing inventories.[S]
Identify and apply the alternative methods of valuing inventories.[K]
Explain and apply the requirements of IFRS Accounting Standards for valuing inventories.[S]
Identify which costs should be included when measuring inventories.[K]
Explain the use of continuous and period-end inventories records.[K]
Calculate the value of closing inventories using ‘FIFO’ (first in, first out) and ‘AVCO’ (average cost) – both periodic weighted average and continuous weighted average.[S]
Identify the impact of inventories valuation methods on profit, assets and capital, including:[S]
1. periodic weighted average
2. continuous weighted average
3. FIFO
4. Report inventories in the financial statements.

Tangible non-current assets and depreciation

Define non-current assets.[K]
Explain the difference between current and non-current assets.[K]
Explain the difference between asset (capitalized) and expense items.[K]
Classify expenditure as asset expenditure (capitalized) or expenses charged to profit or loss.[S]
Explain the impact of misclassification of asset expenditure as expenses and vice versa on the statement of profit or loss and the statement of financial position.[K]
Prepare journal entries to record the acquisition and disposal of non-current assets (including part exchange) in accordance with IFRS Accounting Standards.[S]
Calculate and record gains or losses on disposal of non-current assets in the statement of profit or loss, including part exchange transactions and scrapping of assets.[S]
Explain the purpose of depreciation.[K]
Calculate depreciation charge using straight-line and diminishing-balance (reducing-balance) methods.[S]
Identify the circumstances where different methods of calculating depreciation would be appropriate.[K]
Illustrate how the depreciation charge and accumulated depreciation are recorded in general ledger accounts.[S]
Explain the purpose and function of a non-current asset register.[K]
Prepare the non-current asset register for all or part of the following:[S]
1. Acquisition, including authorisation
2. Part exchange and cash non-current asset purchases
3. Depreciation
Identify and resolve any discrepancies relating to the accounting records for noncurrent assets.[S]
Report non-current assets and depreciation in the financial statements.[S]

Accrued expenses (accruals), prepaid expenses (prepayments), accrued income and deferred income

Apply accrual accounting to accruals, prepayments, accrued income and deferred income.[S]
Calculate the adjustments needed for accruals, prepayments, accrued income and deferred income when preparing financial statements.[S]
Illustrate the process of adjusting for accruals, prepayments, accrued income and deferred income when preparing financial statements.[S]
Prepare manual journal entries and update the general ledger accounts for the creation and reversal of accruals, prepayments, accrued income and deferred income.[S]
Identify the impact of accruals, prepayments, accrued income and deferred income on profit, net assets and capital.[K]
Report accruals, prepayments, accrued income and deferred income in the financial statements.[S]

Receivables, payables and provisions

Explain and identify examples of receivables and payables.[K]
Prepare manual journal entries to write off an irrecoverable debt.[S]
Identify the impact of irrecoverable debts on the statement of profit or loss and on the statement of financial position.[S]
Calculate the movement in the allowance for irrecoverable debts and the closing balance.[S]
Prepare manual journal entries to create and adjust an allowance for irrecoverable debts.[S]
Illustrate how to include movements in the allowance for irrecoverable debts in the statement of profit or loss and how the closing balance of the allowance should be reported in the statement of financial position.[S]
Account for contras between receivables and payables.[S]
Explain the nature of provisions and liabilities in accordance with IFRS Accounting Standards.[K]
Distinguish between a provision and other liabilities.[S]
Account for provisions and other liabilities.[S]
Report provisions and other liabilities in the financial statements.[S]

Capital and finance costs

Distinguish between capital injected by the business owner(s) and amounts received from third parties for an unincorporated business (sole trade/partnership).[K]
Demonstrate the impact of changes in capital on the financial statements.[K]
Prepare the capital general ledger account for an unincorporated business.[S]

E Reconciliations

Bank reconciliation

Explain the purpose of reconciling the bank general ledger account to the corresponding bank statement or internet banking records.[K]
Prepare the reconciliation of the bank general ledger account to the bank statement or internet banking records.[S]
Identify errors and omissions in the bank general ledger account and the bank statement or internet banking records.[K]
Identify timing differences in a bank reconciliation.[K]
Make correcting entries in the bank general ledger account.[S]
Identify the bank balance to be reported in the financial statements.[K]

Payables account reconciliations

Explain the purpose of reconciling the payables general ledger account to external documents.[K]
Prepare a reconciliation of the payables general ledger account to supplier statements.[S]
Identify errors and omissions in the payables general ledger account and supplier statements.[S]
Make correcting entries in the payables general ledger account.[S]
Identify the payables balance to be reported in the financial statements.[S]

F Preparing a trial balance and correcting errors

Preparing a trial balance

Explain the purpose of the trial balance.[K]
Distinguish between errors which will be detected by extracting a trial balance and those which will not.[S]
Calculate and explain the impact of errors on the statement of profit or loss and the statement of financial position.[S]
Identify the limitations of the trial balance.[K]
Prepare the initial trial balance.[S]
Explain the process of finalizing the trial balance.[K]
Explain and record year-end adjustments on the trial balance, including:[S]
1. Inventories
2. Non-current asset transactions
3. Depreciation
4. Accruals, prepayments, accrued income and deferred income
5. Allowance for irrecoverable debts
6. Irrecoverable debts
7. Provisions
Prepare a final trial balance including calculating the final reported profit or loss.[S]
Prepare the opening trial balance for the next accounting period.[S]

Correction of errors using manual journal entries

Explain the purpose of and reasons for creating a suspense account.[K]
Identify different types of bookkeeping errors, including those that result in suspense accounts.[K]
Describe the action required to correct errors, including clearing any suspense accounts.[K]
Prepare correcting manual journal entries and update the general ledger accounts and trial balance for any corrections made.[S]
Explain how the financial statements are affected by the correction of errors.[S]

G Preparing financial statements

Preparation of the financial statements, including incomplete records

Explain the process of preparing a set of financial statements from a trial balance.[K]
Explain the format and purpose of the statement of profit or loss and the statement of financial position for a sole trader.[K]
Prepare the financial statements for a sole trader from a trial balance.[S]
Describe the circumstances which lead to incomplete records.[K]
Describe the methods of constructing accounts from incomplete records.[K]
Prepare the financial statements or elements thereof using incomplete record techniques such as:[S]
1. Markups and margins
2. General ledger accounts to derive missing figures
3. Manipulation of the accounting equation

H Partnerships

Partnership agreement

Define a partnership.[K]
Explain the purpose and content of a partnership agreement.[K]
Explain, calculate and account for appropriations of profit:[S]
1. Salaries of partners
2. Interest on drawings
3. Interest on capital
4. Share of residual profit or loss

Partnership accounting records

Explain the difference between partners’ capital and current accounts.[K]
Prepare the partners’ capital and current accounts.[S]

Partnership financial statements and change in partnership

Prepare the financial statements for a partnership.[S]
Explain and account for the admission of a new partner including the treatment of any goodwill arising.[S] Note: Candidates will not be expected to calculate the value of goodwill in a partnership

FFA

A The context and purpose of financial reporting

The context and purpose of financial statements for external reporting a) Define financial reporting: recording, analysing and summarising financial data.[K] b) Identify and define types of business entity: sole trader, partnership, limited liability company.[K] c) Explain the legal differences between a sole trader, partnership and a limited liability company.[K] d) Identify the advantages and disadvantages of operating as a sole trader, partnership or limited liability company.[K] e) Define the nature, principles and scope of financial reporting.[K]
Stakeholders’ needs a) Identify the users of financial statements and state and differentiate between their information needs.[K]
The main elements of financial statements a) Describe the purpose of each of the financial statements:[K] i) Statement of financial position ii) Statement of profit or loss and other comprehensive income iii) Statement of changes in equity iv) Statement of cash flows b) Identify and define assets, liabilities, equity, income and expenses.[K]
The regulatory framework a) Explain the purpose and objectives of the regulatory system, including the roles of the:[K] i) IFRS Foundation® ii) International Accounting Standards Board (IASB® ) iii) IFRS® Advisory Council iv) IFRS Interpretations Committee (IFRIC® ) v) International Sustainability Standards Board (ISSB™) b) Explain the role of IFRS® Accounting Standards in preparing financial statements.[K]
Duties and responsibilities of those charged with governance a) Explain what is meant by governance, specifically in the context of the preparation of financial statements.[K] b) Describe the duties and responsibilities of directors in the preparation of the financial statements.[K]

B Accounting principles,

concepts and qualitative characteristics 6. Key principles and concepts of accounting a) Define and apply key principles and concepts of accounting:[K] i) Going concern ii) Accrual accounting iii) Materiality iv) Offsetting v) Consistency vi) Prudence vii) Duality viii) Business entity ix) Historical cost and current value x) Substance over form

Qualitative characteristics of useful financial information a) Define and apply the qualitative characteristics of useful financial information:[K] i) Relevance ii) Faithful representation iii) Comparability iv) Verifiability v) Timeliness vi) Understandability

C The use of double-entry

bookkeeping and accounting systems

Double-entry bookkeeping principles including the maintenance of accounting records a) Identify and explain the function of the main data sources in an accounting system.[K] b) Summarise the contents and purpose of different types of business documentation, including: [K] i) Quotation ii) Sales order iii) Purchase order iv) Goods received note v) Goods despatched note vi) Customer (sales) invoice vii) Supplier (purchase) invoice viii) Supplier statement ix) Credit note x) Debit note xi) Remittance advice xii) Receipt c) Explain and apply the accounting equation.[S] d) Describe the key features of a computerised accounting system, including the use of external servers to store data (the cloud).[K] e) Describe how an accounting system contributes to providing useful accounting information and complies with organisational policies and deadlines.[K] f) Identify the main types of business transactions, for example, sales, purchases, payments, receipts.[K]
General ledger accounts and journal entries a) Describe the main types of general ledger accounts, including their nature and function.[K] b) Describe how financial data is initially recorded in the accounting system.[K] c) Explain the use of journal entries and how journal entries are processed to general ledger accounts.[S] d) Identify correct journal entries from given narrative.[S] e) Illustrate how to balance and close the general ledger accounts at the year end.[S]

D Recording transactions and

events 3. Sales and purchases a) Record sale and purchase transactions in the general ledger accounts.[S] b) Record sales returns and purchase returns in the general ledger accounts.[S] c) Describe the principles of the operation of a sales tax.[K] d) Calculate sales tax on transactions and record it in the sales tax general ledger account.[S] e) Account for discounts received.[S] f) Account for the following discounts allowed to customers in accordance with IFRS Accounting Standards:[S] i) trade discounts ii) settlement discounts. 4. Cash a) Record cash transactions in the bank general ledger account.[S] b) Describe the need for a record of petty cash transactions.[K] 5. Inventories a) Describe the need for adjustments to inventories in preparing financial statements.[K] b) Record cost of sales and closing inventories.[S] c) Apply the requirements of IFRS Accounting Standards for valuing inventories.[S] d) Identify which costs should be included in valuing inventories.[S] e) Explain the use of continuous and periodend inventories records.[K] f) Calculate the value of closing inventories using ‘FIFO’ (first in, first out) and ‘AVCO’ (average cost) – both periodic weighted average and continuous weighted average.[S] g) Identify the impact of inventory valuation methods on profit and on assets.[S] 6. Tangible non-current assets a) Define non-current assets.[K] b) Compare the difference between current and non-current assets.[K] c) Explain the difference between asset (capitalised) and expense items.[K] d) Classify expenditure as asset expenditure or expenses charged to profit or loss.[S] e) Record the acquisition and disposal of tangible non-current assets in the general ledger accounts in accordance with IFRS Accounting Standards.[S] f) Calculate and record gains or losses on disposal of tangible non-current assets in the statement of profit or loss, including part exchange transactions.[S] g) Record the revaluation of a tangible noncurrent asset in the general ledger accounts and illustrate how it is presented in the statement of profit or loss and other comprehensive income and in the statement of financial position.[S] h) Calculate the gain or loss on disposal of a revalued tangible non-current asset.[S] i) Illustrate how tangible non-current asset balances and movements are disclosed in financial statements.[S] j) Explain the purpose and function of a non-current asset register.[K] 7. Depreciation a) Explain the purpose of depreciation.[K] b) Calculate the charge for depreciation using straight-line and diminishingbalance (reducing-balance) methods.[S] c) Identify the circumstances where different methods of depreciation would be appropriate.[K] d) Illustrate how the depreciation charge and accumulated depreciation are recorded in the general ledger accounts.[S]

e) Calculate and update the general ledger accounts to record the depreciation on a revalued tangible non-current asset, including the transfer of excess depreciation between the revaluation surplus and retained earnings.[S] f) Calculate the adjustments to depreciation necessary if changes are made in the estimated useful life and/ or residual value of a tangible non-current asset.[S] g) Record depreciation in the statement of profit or loss and statement of financial position.[S] 6. Intangible non-current assets and amortisation a) Compare the difference between tangible and intangible non-current assets.[K] b) Identify types of intangible assets.[K] c) Identify the definition and treatment of “research” and “development” in accordance with IFRS Accounting Standards.[K] d) Calculate and account for amounts to be capitalised as development expenditure or to be recognised as an expense from given information.[S] e) Explain the purpose of amortisation.[K] f) Calculate and account for amortisation.[S] 7. Accrued expenses (accruals), prepaid expenses (prepayments), accrued income, and deferred income a) Apply accrual accounting to accruals, prepayments, accrued income and deferred income.[S] b) Calculate the adjustments needed for accruals, prepayments, accrued income and deferred income when preparing financial statements.[S] c) Illustrate the process of adjusting for accruals, prepayments, accrued income and deferred income when preparing financial statements.[S] d) Prepare manual journal entries and update the general ledger accounts for the creation and reversal of accruals, prepayments, accrued income and deferred income.[S] e) Identify the impact of accruals, prepayments, accrued income and deferred income on profit and net assets.[S] f) Report accruals, prepayments, accrued income and deferred income in the financial statements.[S] 8. Receivables and payables a) Identify and explain examples of receivables and payables.[K] b) Identify the benefits and costs of offering credit facilities to customers.[K] c) Describe the purpose of an aged receivables analysis.[K] d) Describe the purpose of customer credit limits.[K] e) Prepare manual journal entries to write off an irrecoverable debt.[S] f) Prepare manual journal entries to recognise an irrecoverable debt that is subsequently recovered .[S] g) Demonstrate the impact of irrecoverable debts on the statement of profit or loss and on the statement of financial position.[S] h) Prepare manual journal entries to create and adjust an allowance for irrecoverable debts.[S]

i) Illustrate how to include movements in the allowance for irrecoverable debts in the statement of profit or loss and how the closing balance of the allowance should appear in the statement of financial position.[S] j) Account for contras between receivables and payables.[S] k) Prepare, reconcile and explain the purpose of supplier statements.[S] 9. Provisions and contingencies a) Define a provision, contingent liability and contingent asset in accordance with IFRS Accounting Standards.[K] b) Distinguish between and classify items as provisions, contingent liabilities or contingent assets.[S] c) Illustrate the different methods of accounting for provisions, contingent liabilities and contingent assets.[K] d) Calculate provisions and changes in provisions.[S] e) Prepare manual journal entries for the movement in provisions.[S] f) Report provisions in the financial statements.[S] 10. Capital structure and finance costs a) Describe the capital structure of a limited liability company including:[K] i) Ordinary (equity) shares ii) Preference shares (redeemable and irredeemable) iii) Borrowings b) Describe the nature of equity, including retained earnings and other components of equity.[K] c) Identify and record the other components of equity which may appear in the statement of financial position.[S] d) Record movements in the share capital and share premium accounts.[S] e) Define an issue of bonus shares and its advantages and disadvantages.[K] f) Define a rights issue and its advantages and disadvantages.[K] g) Calculate and record an issue of bonus shares in the statement of financial position.[S] h) Calculate and record a rights issue in the statement of financial position.[S] i) Calculate and record dividends in the general ledger accounts and the financial statements.[S] j) Calculate and record interest expenses in the general ledger accounts and the financial statements.[S] k) Identify the components of the statement of changes in equity.[K]

E Reconciliations

Bank reconciliations a) Explain the purpose of bank reconciliations.[K] b) Identify the main reasons for differences between the bank general ledger account and the bank statement/ internet banking records.[K] c) Identify and correct errors and/ or omissions in the bank general ledger account.[S] d) Prepare the reconciliation of the bank general ledger account to the bank statement/ internet banking records.[S] e) Derive bank statement and bank general ledger account balances from given information.[S] f) Identify the bank balance to be reported in the financial statements.[S]
Payables account reconciliations a) Explain the purpose of the payables general ledger account and how it relates to double-entry bookkeeping.[K] b) Explain the purpose of reconciling the payables general ledger account to external documents.[K] c) Prepare a reconciliation of the payables general ledger account to supplier statements.[S] d) Identify and correct errors which would be highlighted by performing a reconciliation of the payables general ledger account.[K] e) Identify the payables balance to be reported in the financial statements.[S]

F Preparing a trial balance

Trial balance a) Describe the purpose of a trial balance.[K] b) Extract general ledger balances into a trial balance.[S] c) Prepare extracts of an opening trial balance.[S] d) Explain the limitations of a trial balance.[K]
Correction of errors a) Identify the types of error which may occur in accounting systems.[K] b) Identify errors which would be highlighted by the extraction of a trial balance and those which would not.[K] c) Prepare manual journal entries to correct errors.[S] d) Calculate the impact of errors on the statement of profit or loss and other comprehensive income and the statement of financial position.[S]
Suspense accounts a) Explain the purpose of a suspense account.[K] b) Identify errors leading to the creation of a suspense account.[K] c) Record entries in a suspense account.[S] d) Prepare journal entries to clear a suspense account.[S]

G Preparing financial statements

Statement of financial position a) Explain how the accounting equation, IFRS Accounting Standards and the business entity concept underlie the statement of financial position.[K] b) Prepare a statement of financial position or extracts as applicable.[S]
Statement of profit or loss and other comprehensive income a) Calculate revenue, cost of sales, gross profit, operating profit, profit before financing and income taxes, profit before income taxes, profit (for the year) and total comprehensive income (for the year) from given information.[S] b) Prepare a statement of profit or loss and other comprehensive income or extracts as applicable.[S]

c) Record the income tax expense in the statement of profit or loss, including the under-/ over-provision of tax in the prior year.[S] d) Identify items requiring separate disclosure on the face of the statement of profit or loss.[K] e) Explain the interrelationship between the statement of financial position and the statement of profit or loss and other comprehensive income.[K] 3. Disclosure notes a) Explain the purpose of notes to the financial statements (disclosure notes).[K] b) Draft the following disclosure notes:[S] i) Non-current assets, including tangible and intangible assets ii) Provisions iii) Events after the reporting period iv) Inventories 4. Events after the reporting period a) Define an event after the reporting period in accordance with IFRS Accounting Standards.[K] b) Classify events as adjusting or nonadjusting.[S] c) Distinguish between how adjusting and non-adjusting events are reported in the financial statements.[K] 5 Statement of cash flows (excluding partnerships) a) Differentiate between profit and cash flow.[K] b) Describe the need for management to control cash flow.[K] c) Explain the benefits and drawbacks to users of the financial statements of a statement of cash flows.[K] d) Classify the effect of transactions on cash flows.[S] e) Calculate the figures needed for the statement of cash flows in accordance with IFRS Accounting Standards, including:[S] i) Cash flows from operating activities (direct and indirect methods for calculating cash from operating activities before income taxes) ii) Cash flows from investing activities iii) Cash flows from financing activities f) Prepare a statement of cash flows or extracts as applicable.[S] g) Identify the treatment of given transactions in a statement of cash flows.[K] 5. Incomplete records a) Apply techniques used in incomplete record situations:[S] i) Use of accounting equation ii) Use of general ledger accounts to calculate missing figures iii) Use of cash and/ or bank summaries iv) Use of profit percentages to calculate missing figures.

H Preparing basic consolidated

financial statements 6. Subsidiaries a) Define and describe the following terms in the context of group accounting:[K] i) Parent ii) Subsidiary iii) Control iv) Consolidated (group) financial statements v) Non-controlling interests vi) Trade (simple) investment

b) Identify subsidiaries within a group structure.[K]

c) Describe the components of and prepare a consolidated statement of financial position or extracts thereof, including:[S] i) Fair value adjustments at acquisition on property, plant and equipment (excluding depreciation adjustments) ii) Fair value of consideration transferred from cash and shares (excluding deferred and contingent consideration) iii) Elimination of intra-group trading balances (excluding assets in transit) iv) Removal of unrealised profit arising on intra-group trading v) Acquisition of subsidiaries part way through the financial year d) Calculate goodwill (excluding impairment of goodwill) where non-controlling interest is valued at its fair value at the acquisition date as follows:[S] Fair value of consideration X Fair value of non-controlling interests X Less fair value of net assets at acquisition (X) Goodwill at acquisition X

e) Describe the components of and prepare a consolidated statement of profit or loss or extracts thereof including:[S] i) Elimination of intra group trading balances (excluding assets in transit) ii) Removal of unrealised profit arising on intra-group trading iii) Acquisition of subsidiaries part way through the financial year 2. Associates a) Define and identify an associate and significant influence and identify the situations where significant influence exists.[K] b) Describe the key features of a parentassociate relationship and be able to identify an associate within a group structure.[K] c) Describe the principle of the equity method of accounting for associate entities.[K] I Interpretation of financial statements 3. Importance and purpose of analysis of financial statements a) Describe how the interpretation and analysis of financial statements is used in a business environment.[K] b) Explain the purpose of interpretation of ratios.[K] 4. Ratios a) Calculate key accounting ratios related to:[S] i) Profitability ii) Liquidity iii) Efficiency iv) Position b) Explain the interrelationships between ratios.[K] 5. Analysis of financial statements a) Calculate and interpret the relationship between the elements of the financial statements regarding profitability, liquidity, efficient use of resources and financial position.[S] b) Draw valid conclusions from the information contained within the financial statements and present these to the appropriate user of the financial statements.[S]

FR

A The conceptual and regulatory framework for financial reporting

The need for a conceptual framework and the characteristics of useful information.

a) Describe what is meant by a conceptual framework for financial reporting.[2] b) Discuss whether a conceptual framework is necessary and what an alternative system might be.[2] c) Discuss what is meant by relevance and faithful representation and describe the qualities that enhance these characteristics.[2] d) Discuss whether faithful representation constitutes more than compliance with IFRS Accounting Standards.[1] e) Discuss what is meant by understandability and verifiability in relation to the provision of financial information.[2] f) Discuss the importance of comparability and timeliness to users of financial statements.[2] g) Discuss the principle of comparability in accounting for changes in accounting policies.[2]

Recognition and measurement

a) Define what is meant by ‘recognition’ in financial statements and discuss the recognition criteria.[2] b) Apply the recognition criteria to: [2] i) assets and liabilities. ii) income and expenses. c) Explain and compute amounts using the following measures: [2] i) historical cost ii) current cost iii) value in use/ fulfilment value iv) fair value d) Discuss the advantages and disadvantages of historical cost accounting.[2] e) Discuss whether the use of current value accounting fully addresses the issues related to historical cost accounting.[2]

Regulatory framework

a) Explain why a regulatory framework is needed, including the advantages and disadvantages of IFRS Accounting Standards over a national regulatory framework.[2] b) Explain why IFRS Accounting Standards, on their own, are not a complete regulatory framework.[2] c) Distinguish between a principles-based and a rules-based framework and discuss whether they can be complementary.[1] d) Describe the standard-setting process of the International Accounting Standards Board (IASB® ), including revisions to and interpretations of IFRS Accounting Standards.[2] e) Explain the relationship of national standard setters to the IASB in respect of the standard-setting process.[2] f) Explain the purpose and role of the International Sustainability Standards Board (ISSB™ ).[2]

The concepts and principles of groups

and consolidated financial statements a) Describe the concept of a group as a single economic unit.[2] b) Explain and apply the definition of a subsidiary within relevant IFRS Accounting Standards.[2] c) Using IFRS Accounting Standards and other regulation, identify and outline the circumstances in which a group is required to prepare consolidated financial statements.[2] d) Describe the circumstances when a group may claim exemption from the preparation of consolidated financial statements.[1] e) Explain the need for using coterminous year ends and uniform accounting polices when preparing consolidated financial statements.[2] f) Explain why it is necessary to eliminate intra group transactions.[2] g) Explain the objective of consolidated financial statements.[2] h) Explain why it is necessary to use fair values for the consideration for an investment in a subsidiary together with the fair values of a subsidiary’s identifiable assets and liabilities when preparing consolidated financial statements.[2] i) Define an associate and explain the principles and reasoning for the use of the equity method of accounting.[2]

B Accounting for transactions in financial statements

Tangible non-current assets

a) Define and compute the initial measurement of a non-current asset, including borrowing costs and an asset that has been self-constructed.[2] b) Identify subsequent expenditure that may be capitalised, distinguishing between asset and expense items.[2] c) Discuss the requirements of relevant IFRS Accounting Standards in relation to the revaluation of non-current assets.[2] d) Account for revaluation and disposal gains and losses for non-current assets.[2] e) Compute depreciation based on the cost and revaluation models and on assets that have two or more significant parts.[2] f) Discuss why the treatment of investment properties should differ from other properties.[2] g) Apply the requirements of relevant IFRS Accounting Standards to an investment property.[2]

Intangible non-current assets

a) Discuss the nature and accounting treatment of internally generated and purchased intangible assets.[2] b) Distinguish between goodwill and other intangible assets.[2] c) Describe the criteria for the initial recognition and measurement of intangible assets.[2] d) Describe the subsequent accounting treatment of intangible assets.[2] e) Describe and apply the requirements of relevant IFRS Accounting Standards to research and development.[2]

Impairment of assets

a) Define, calculate and account for an impairment loss, including the principle of impairment tests in relation to goodwill.[2] b) Account for the reversal of an impairment loss on an individual asset.[2] c) Identify the circumstances that may indicate impairments to assets.[2] d) Describe what is meant by a cashgenerating unit.[2] e) State the basis on which impairment losses should be allocated and allocate an impairment loss to the assets of a cash-generating unit.[2]

Inventories and agriculture

a) Describe and apply the principles of inventories valuation.[2] b) Apply the requirements of relevant IFRS Accounting Standards for biological assets and agricultural produce.[2]

Financial instruments

a) Explain the need for an accounting standard on financial instruments.[1] b) Define financial instruments in terms of financial assets and financial liabilities.[1] c) Explain and account for the factoring of receivables.[2] d) Indicate for the following categories of financial instruments how they should be measured and how any gains and losses from subsequent measurement should be treated in the financial statements: [2] i) amortised cost ii) fair value through other comprehensive income, including an irrevocable election for equity instruments that are not held for trading iii) fair value through profit or loss e) Distinguish between debt and equity.[2] f) Apply the requirements of relevant IFRS Accounting Standards to the issue and interest expenses of: [2] i) equity ii) redeemable preference shares and debt instruments with no conversion rights (principle of amortised cost) iii) convertible debt

Leasing

a) Account for right-of-use assets and lease liabilities in the records of the lessee.[2] b) Explain the exemption from the recognition criteria for leases in the records of the lessee.[2] c) Account for sale and leaseback transactions where sales proceeds are equal to fair value.[2]

Provisions and events after the reporting period

a) Explain why an accounting standard on provisions is necessary.[2] b) Distinguish between legal and constructive obligations.[2] c) State when provisions may and may not be made and demonstrate how they should be accounted for.[2] d) Explain how provisions should be measured.[1] e) Define contingent assets and liabilities and describe their accounting treatment and required disclosures.[2] f) Identify and account for:[2] i) warranties/ guarantees ii) onerous contracts iii) environmental, decommissioning and similar provisions iv) restructuring g) Events after the reporting period:[2] i) distinguish between and account for adjusting and non-adjusting events after the reporting period ii) identify items requiring separate disclosure, including their accounting treatment and required disclosures

Taxation

a) Account for current taxation in accordance with relevant IFRS Accounting Standards. [2] b) Explain the effect of taxable and deductible temporary differences on accounting and taxable profits.[2] c) Compute and record deferred tax amounts in the financial statements.[2]

Reporting financial and non-financial performance

a) Discuss the importance of identifying and reporting the results of discontinued operations.[2] b) Define and account for non-current assets held for sale and discontinued operations.[2] c) Indicate the circumstances where separate disclosure of material items of income and expense is required.[2] d) Account for changes in accounting estimates, changes in accounting policy and correction of prior period errors.[2] e) Earnings per share (EPS):[2] i) calculate the EPS in accordance with relevant IFRS Accounting Standards (dealing with issues of bonus shares, full market value issues and rights issues) ii) explain the relevance of the diluted EPS and calculate the diluted EPS involving convertible debt and share options (warrants) f) Describe the objective, scope and core content of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. [1]

Revenue

a) Explain and apply the principles of recognition of revenue:[2] i) Identification of contracts ii) Identification of performance obligations iii) Determination of transaction price iv) Allocation of the price to performance obligations v) Recognition of revenue when/as performance obligations are satisfied. b) Explain and apply the criteria for recognising revenue generated from contracts where performance obligations are satisfied over time or at a point in time.[2] c) Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation.[2] d) Explain and apply the criteria for the recognition of contract costs.[2] e) Apply the principles of recognition of revenue and, specifically, account for the following types of transaction:[2] i) principal versus agent ii) repurchase agreements iii) bill-and-hold arrangements iv) consignment arrangements f) Prepare financial statement extracts for contracts where performance obligations are satisfied over time or at a point in time.[2]

Government grants

a) Apply relevant IFRS Accounting Standards in relation to accounting for government grants.[2]

Foreign currency transactions

a) Explain the difference between functional and presentation currency and explain why adjustments for foreign currency transactions are necessary.[2] b) Account for the translation of foreign currency transactions and monetary/ nonmonetary foreign currency items at the reporting date.[2]

C Analysing and interpreting the financial statements of single entities and groups

Limitations of financial statements

a) Indicate the problems of using historical information to predict future performance and trends.[2] b) Discuss how financial statements may be manipulated to produce a desired effect.[2] c) Explain why figures in a statement of financial position may not be representative of average values throughout the period; for example, due to:[2] i) seasonal trading ii) major asset acquisitions near the end of the accounting period. d) Explain how the use of consolidated financial statements might limit interpretation techniques.[2]

Calculation and interpretation of accounting ratios and trends to address users’ and stakeholders’ needs

a) Define and compute relevant financial ratios.[2] b) Explain the aspects of performance that specific ratios are intended to assess.[2] c) Analyse and interpret ratios to give an assessment of an entity’s/ a group’s performance and financial position in comparison with:[2] i) prior period’s financial statements ii) another similar entity/ group for the same reporting period iii) industry average ratios. d) Interpret financial statements (including the statements of cash flows) together with other financial and non-financial information to assess the performance and financial position of an entity and to give advice from the perspectives of different stakeholders.[2] e) Discuss how the use of current values affects the interpretation of financial statements and how this would compare to using historical cost.[2] f) Indicate other information, including nonfinancial information, which may be of relevance to the assessment of an entity’s performance and financial position.[1]

Limitations of interpretation techniques

a) Discuss the limitations in the use of ratio analysis for assessing performance and financial position.[2] b) Discuss the effect that changes in accounting policies or the use of different accounting polices between entities can have on the ability to interpret performance and financial position.[2] c) Compare the usefulness of information presented in the statement of cash flows to the information presented in the statement(s) of financial performance ..[2] d) i) explain why the trend of EPS may be a more accurate indicator of performance than a company’s profit trend and the importance of EPS as a stock market indicator[2] ii) discuss the limitations of using EPS as a performance measure.[2]

Not-for-profit and public sector entities

a) Explain how the interpretation of the financial statements of a not-for-profit or public sector organisation might differ from that of a profit-oriented entity with reference to the different aims, objectives and reporting requirements.[1]

D Preparation of financial statements

Preparation of single entity financial statements

a) Prepare an entity’s statement of financial position and statement of profit or loss and other comprehensive income in accordance with the structure and content prescribed within IFRS Accounting Standards and with accounting treatments as identified within syllabus areas A, B and C.[2] b) Prepare and explain the contents and purpose of the statement of changes in equity.[2] c) Prepare extracts from the statement of cash flows for a single entity in accordance with relevant IFRS Accounting Standards, using the indirect method only.[2]

Preparation of consolidated financial statements for a simple group

a) Prepare a consolidated statement of financial position for a simple group (parent and up to two subsidiaries controlled by the parent and one associate of the parent) dealing with preand post-acquisition profits, noncontrolling interests (at fair value or as a proportion of net assets at the acquisition date) and goodwill.[2] b) Prepare a consolidated statement of profit or loss and consolidated statement of profit or loss and other comprehensive income for a simple group with an acquisition or disposal in the period and non-controlling interests.[2] c) Explain and account for other components of equity; for example, share premium and a revaluation surplus.[2] d) Account for the effects of intra group transfer of assets and intra group dividends.[2] e) Account for the effects of fair value adjustments, including their effect on goodwill, to: [2] i) depreciating and non-depreciating non-current assets ii) inventories iii) monetary liabilities iv) assets and liabilities not included in the subsidiary’s own statement of financial position, including contingent assets and liabilities f) Account for the impairment of goodwill.[2] g) Describe and apply the required accounting treatment for goodwill.[2] h) Indicate why the fair value of a consideration for an investment may be less than the fair value of the acquired identifiable net assets and how the difference (gain from a bargain purchase) should be accounted for.[2] i) Explain and illustrate the effect of the disposal of a parent’s investment in a subsidiary in the parent’s individual financial statements and/ or those of the group, including as a discontinued operation (restricted to disposals of the parent’s entire investment in the subsidiary).[2]

AA

A Audit framework and regulation

The concept of audit and other assurance engagements a) Identify and describe the objective and general principles of external audit engagements.[2] b) Explain the nature and development of audit and other assurance engagements.[1] c) Discuss the concepts of accountability, stewardship and agency.[2] d) Define and provide the objectives of an assurance engagement.[1] e) Explain the five elements of an assurance engagement.[2] f) Describe the types of assurance engagement.[2] g) Explain the level of assurance provided by an external audit and other review engagements and the concept of true and fair presentation.[1]
External audits a) Describe the regulatory environment within which external audits take place.[1] b) Discuss the reasons and mechanisms for the regulation of auditors.[1] c) Explain the statutory regulations governing the appointment, rights, removal and resignation of auditors.[1] d) Explain the regulations governing the rights and duties of auditors.[1] e) Describe the limitations of external audits.[1] f) Explain the development and status of International Standards on Auditing (ISAs).[1] g) Explain the relationship between ISAs and national standards.[1] h) Explain the overall objectives and importance of quality management procedures in conducting an audit.[2] i) Explain the quality management procedures which should be in place over engagement resources, engagement performance, monitoring and remediation and compliance with ethical requirements.[2] j) Evaluate quality management deficiencies and provide recommendations to allow compliance with quality management requirements. [2]
Corporate governance a) Discuss the objectives, relevance, and importance of corporate governance.[2] b) Discuss the provisions of international codes of corporate governance (such as OECD) that are most relevant to auditors.[2] c) Describe good corporate governance requirements relating to directors’ responsibilities (e.g. for risk management and internal control) and the reporting responsibilities of auditors.[2] d) Evaluate corporate governance deficiencies and provide recommendations to allow compliance with international codes of corporate governance.[2] e) Analyse the structure and roles of audit committees and discuss their benefits and limitations.[2] f) Explain the importance of internal control and risk management.[1]
Professional ethics and ACCA’s Code of Ethics and Conduct a) Define and apply the fundamental principles of professional ethics of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.[2] b) Define and apply the conceptual framework, including the threats to the fundamental principles of self-interest, self-review, advocacy, familiarity, and intimidation.[2] c) Discuss the safeguards to offset the threats to the fundamental principles.[2] d) Describe the auditor’s responsibility with regard to auditor independence, conflicts of interest and confidentiality.[1] e) Discuss the steps an auditor should take in relation to any breaches of ACCA’s Code of Ethics and Conduct.[2]

B Planning and risk assessment

Obtaining, accepting and continuing audit engagements a) Discuss the requirements of professional ethics and ISAs in relation to the acceptance / continuance of audit engagements. [2] b) Explain the preconditions for an audit.[2] c) Explain the process by which an auditor obtains an audit engagement. [2] d) Discuss the importance and purpose of engagement letters and their contents.[1]
Objective and general principles a) Identify the overall objectives of the auditor and the need to conduct an audit in accordance with ISAs.[2] b) Explain the need to plan and perform audit engagements with an attitude of professional scepticism, and to exercise professional judgement.[2]
Assessing audit risks a) Explain the components of audit risk.[1] b) Describe the audit risks in the financial statements and explain the auditor’s response to each risk.[2] c) Define and explain the concepts of materiality and performance materiality.[2] d) Explain and calculate materiality levels from financial information.[2]
Understanding the entity and its environment and the applicable financial reporting framework a) Explain how auditors obtain an initial understanding of the entity and its environment and the applicable financial reporting framework.[2] b) Describe and explain the nature, and purpose of, analytical procedures in planning.[2] c) Compute and interpret key ratios used in analytical procedures.[2]
Fraud, laws and regulations a) Discuss the effect of fraud and misstatements on the audit strategy and extent of audit work.[2] b) Discuss the responsibilities of internal and external auditors for the prevention and detection of fraud and error.[2]

c) Explain the auditor’s responsibility to consider laws and regulations.[2] 6. Audit planning and documentation a) Identify and explain the need for, benefits of and importance of planning an audit.[2] b) Identify and describe the contents of the overall audit strategy and audit plan.[2] c) Explain and describe the relationship between the overall audit strategy and the audit plan.[2] d) Explain the difference between an interim and final audit.[1] e) Describe the purpose of an interim audit, and the procedures likely to be adopted at this stage in the audit.[2] f) Describe the impact of the work performed during the interim audit on the final audit.[2] g) Explain the need for, and the importance of, audit documentation.[1] h) Describe the form and contents of working papers and supporting documentation.[2] i) Explain the procedures to ensure safe custody and retention of working papers.[1]

C Internal control

Systems of internal control a) Explain why an auditor needs to obtain an understanding of the components of internal control relevant to the preparation of the financial statements.[1] b) Describe and explain the five components of a system of internal control.[2] i) control environment ii) the entity’s risk assessment process iii) the entity’s process to monitor the system of internal control iv) the information system and communication v) control activities
The use and evaluation of systems of internal control by auditors a) Explain how auditors record systems of internal control including the use of narrative notes, flowcharts and questionnaires.[2] b) Evaluate internal control components, including deficiencies and significant deficiencies in internal control.[2] c) Discuss the limitations of internal control components. [2]
Tests of controls a) Describe computer systems controls including general IT controls and information processing controls. [2] b) Describe control objectives, control procedures, control activities, direct controls, indirect controls and tests of controls in relation to:[2] i) The sales system ii) The purchases system iii) The payroll system iv) The inventory system v) The bank and cash system vi) Non-current assets
Communication on internal control a) Discuss the requirements and methods of how reporting significant deficiencies in internal control are provided to management and those charged with governance.[2] b) Explain, in a format suitable for inclusion in a report to management, significant deficiencies within a system of internal control and provide control recommendations for overcoming these deficiencies to management.[2] c) Discuss the need for auditors to communicate with those charged with governance. [2]
Internal audit and governance and the differences between external audit and internal audit a) Discuss the factors to be taken into account when assessing the need for internal audit.[2] b) Discuss the elements of best practice in the structure and operations of internal audit.[2] c) Compare and contrast the role of external and internal audit.[2]
The scope of the internal audit function, outsourcing and internal audit assignments a) Discuss the scope of internal audit and the limitations of the internal audit function.[2] b) Explain outsourcing and the associated advantages and disadvantages of outsourcing the internal audit function.[1] c) Discuss the nature and purpose of internal audit assignments including value for money, IT, financial, regulatory compliance, fraud investigations and customer experience.[2] d) Discuss the nature and purpose of operational internal audit assignments. [2] e) Describe the format and content of internal audit review reports and make appropriate recommendations to management and those charged with governance.[2]

D Audit evidence

Assertions and audit evidence a) Explain the assertions contained in the financial statements about:[2] (i) Classes of transactions and events and related disclosures; (ii) Account balances and related disclosures at the period end. b) Describe audit procedures to obtain audit evidence, including inspection, observation, external confirmation, recalculation, reperformance, analytical procedures and enquiry.[2] c) Discuss the quality and quantity of audit evidence.[2] d) Discuss the relevance and reliability of audit evidence.[2]
Audit procedures a) Discuss substantive procedures for obtaining audit evidence.[2] b) Discuss and provide examples of how analytical procedures are used as substantive procedures.[2] c) Discuss the problems associated with the audit and review of accounting estimates.[2] d) Describe why smaller entities may have different control environments and describe the types of evidence likely to be available in smaller entities.[1] e) Discuss the difference between tests of controls and substantive procedures.[2]
Audit sampling and other means of testing a) Define audit sampling and explain the need for sampling.[1] b) Identify and discuss the differences between statistical and non-statistical sampling.[2] c) Discuss and provide relevant examples of the application of the basic principles of statistical sampling and other selective testing procedures.[2] d) Discuss the results of statistical sampling, including consideration of whether additional testing is required.[2]
The audit of specific items For each of the account balances stated in this sub-capability: Explain the audit objectives and the audit procedures to obtain sufficient, appropriate evidence in relation to: a) Receivables:[2] i) direct confirmation of accounts receivable ii) other evidence in relation to receivables and prepayments iii) other evidence in relation to current assets and iv) completeness and occurrence of revenue. b) Inventory:[2] i) inventory counting procedures in relation to year-end and continuous inventory systems ii) cut-off testing iii) auditor’s attendance at inventory counting v) direct confirmation of inventory held by third parties vi) valuation and vii) other evidence in relation to inventory. c) Payables and accruals:[2] i) supplier statement reconciliations and direct confirmation of accounts payable ii) obtain evidence in relation to payables and accruals iii) other evidence in relation to current liabilities and iv) purchases and other expenses, including payroll. d) Bank and cash:[2] i) bank confirmation reports used in obtaining evidence in relation to bank and cash ii) other evidence in relation to bank and iii) other evidence in relation to cash. e) Tangible and intangible non-current assets [2] i) evidence in relation to non-current assets ii) depreciation and iii) profit/loss on disposal. f) Non-current liabilities, provisions and contingencies:[2] i) evidence in relation to non-current liabilities and ii) provisions and contingencies. g) Share capital, reserves and directors’ remuneration:[2] i) evidence in relation to share capital, reserves and directors’ remuneration.
Automated tools and techniques a) Explain the use of automated tools and techniques in the context of an audit, including the use of audit software, test data and other data analytics tools.[1] b) Discuss and provide relevant examples of the use of automated tools and techniques including test data, audit software and other data analytics tools.[2] c) Explain and evaluate the benefits and challenges of using automated tools and techniques in an audit engagement.[2]
The work of others a) Discuss why auditors rely on the work of others.[2] b) Discuss the extent to which external auditors are able to rely on the work of experts, including the work of internal audit.[2] c) Explain the audit considerations relating to entities using service organisations.[2] d) Explain the extent to which reference to the work of others can be made in the independent auditor’s report.[1]
Not-for-profit organisations a) Apply audit techniques to not-for-profit organisations.[2]

E Review and reporting

Subsequent events a) Explain the purpose of a subsequent events review.[1] b) Explain the responsibilities of auditors regarding subsequent events.[1] c) Discuss the procedures to be undertaken in performing a subsequent events review.[2]
Going concern a) Define and discuss the significance of the concept of going concern.[2] b) Explain the importance of and the need for going concern reviews.[2] c) Explain the respective responsibilities of auditors and management regarding going concern.[1] d) Identify and explain potential indicators that an entity is not a going concern.[2] e) Discuss the procedures to be applied in performing going concern reviews.[2] f) Discuss the disclosure requirements in relation to going concern issues.[2] g) Discuss the reporting implications of the findings of going concern reviews.[2]
Written representations a) Explain the purpose of and procedure for obtaining written representations.[2] b) Discuss the quality and reliability of written representations as audit evidence.[2] c) Discuss the circumstances where written representations are necessary and the matters on which representations are commonly obtained.[2]
Audit finalisation and the final review a) Discuss the importance of the overall review in ensuring that sufficient, appropriate evidence has been obtained.[2] b) Describe procedures an auditor should perform in conducting their overall review of financial statements.[2] c) Explain the significance of uncorrected misstatements.[1] d) Evaluate the effect of dealing with uncorrected misstatements.[2]
The Independent Auditor’s Report a) Identify and describe the basic elements contained in the independent auditor’s report.[1] b) Explain unmodified audit opinions in the auditor’s report.[2] c) Explain the circumstances in which a modified audit opinion may be issued in the auditor’s report.[2] d) Explain the impact on the auditor’s report when a modified opinion is issued.[2] e) Describe the format and content of key audit matters, emphasis of matter and other matter paragraphs.[2]

AAA-INT

A Regulatory environment

International regulatory frameworks for audit and assurance services a) Explain the need for laws, regulations, standards, and other guidance relating to audit, assurance and related services.[2] b) Outline and explain the need for the legal and professional framework including:[2] i) public oversight of audit and assurance practice ii) the impact of corporate governance principles on audit and assurance practice c) Discuss the role of the audit committee and its impact on audit and assurance practice in relation to: [2] i) the relationship with the external auditor, including the appointment, removal, and monitoring of effectiveness; and ii) the oversight and approval of the provision of non-audit services.
Money laundering a) Define ‘money laundering’ and discuss international methods for combatting money laundering.[2] b) Explain the scope of criminal offences of money laundering and how professional accountants may be protected from criminal and civil liability.[2] c) Explain the need for ethical guidance in this area.[2] d) Describe how accountants meet their obligations to help prevent and detect money laundering including record keeping and reporting of suspicion to the appropriate regulatory body.[2] e) Explain the importance of customer due diligence (CDD) also referred to as Know Your Customer (KYC) and recommend the information which should be gathered as part of CDD/KYC.[2] f) Recognise potentially suspicious transactions and assess their impact on reporting duties.[2] g) Describe, with reasons, the basic elements of an anti-money laundering program.[2]
Laws and regulations a) Compare and contrast the respective responsibilities of management and auditors concerning compliance with laws and regulations in an audit of financial statements.[2] b) Describe the auditors’ considerations of compliance with laws and regulations and plan audit procedures, when possible, non-compliance is discovered.[2] c) Discuss how and to whom noncompliance should be reported.[2] d) Recognise and recommend when withdrawal from an engagement is necessary.[2] B Professional and ethical considerations
Code of Ethics for Professional Accountants a) Explain the fundamental principles and the conceptual framework approach.[1] b) Identify, evaluate, and respond to threats to compliance with the fundamental principles.[3] c) Discuss and evaluate the effectiveness of available safeguards.[3] d) Recognise and advise on conflicts in the application of fundamental principles.[3 e) Discuss the importance of professional scepticism in planning and performing an audit.[2] f) Consider the ethical implications of the external auditor providing non-audit services to a client including an internal audit service.[2] g) Assess whether an engagement has been planned and performed with an attitude of professional scepticism and evaluate the implications.[3]
Fraud and error a) Identify and develop an appropriate response to circumstances which indicate a high risk of error, irregularity, fraud or misstatement in the financial statements or a given situation.[2] b) Compare and contrast the respective responsibilities of management and auditors for fraud and error.[2] c) Describe the matters to be considered and recommend procedures to be carried out to investigate actual and/or potential misstatements in a given situation.[2] d) Explain how, why, when and to whom fraud and error should be reported and the circumstances in which an auditor should withdraw from an engagement.[2] e) Consider the current and possible future role of auditors in preventing, detecting, and reporting error and fraud.[2]
Professional liability a) Recognise circumstances in which professional accountants may have legal liability and the criteria that need to be satisfied for legal liability to be recognised.[2] b) Describe the factors to determine whether or not an auditor is negligent and discuss the auditor’s potential liability in given situations.[2] c) Compare and contrast liability owed to a client with liability owed to third parties (ie contract vs establishing duty of care).[3] d) Evaluate the practicability and effectiveness of ways in which liability may be restricted including the use of liability limitation agreements.[3] e) Discuss and appraise the principal causes of audit failure and other factors that contribute to the ‘expectation gap’ (e.g. responsibilities for fraud and error) and recommend ways in which that gap may be bridged.[3] C Quality management
Quality management (firm and engagement level) a) Explain the principles and purpose of quality management of audit and other assurance engagements.[1] b) Describe the elements of a system of quality management (SoQM) relevant to a given firm.[2] c) Evaluate the firm’s system of quality management (SoQM) and whether this is effective in the proactive prevention and identification of deficiencies.[3] d) Evaluate whether appropriate quality management has been applied to a given engagement.[3]
Advertising, tendering, and obtaining professional work and fees a) Outline the determinants of fee-setting and justify the bases on which fees and commissions may and may not be charged for services.[3] b) Discuss the ethical and other professional problems, for example, lowballing, involved in establishing and negotiating fees for a specified assignment.[3] c) Recognise and explain the matters to be considered prior to tendering for an audit or other professional engagement and explain the information to be included in the proposal.[2]
Professional appointments a) Explain the professional and ethical matters to be considered and the procedures that an audit firm/professional accountant should carry out before accepting a specified new client/engagement or continuing with an existing engagement, including:[3] i) client acceptance ii) engagement acceptance (new and existing engagements) iii) establishing whether the preconditions for an audit are present iv) agreeing the terms of engagement. b) Recognise the key issues that underlie the agreement of the scope and terms of an engagement with a client.[2] D Planning and conducting an audit of historical financial information
Planning, materiality and assessing the risk of material misstatement a) Define materiality and performance materiality and demonstrate how it should be applied in financial reporting and auditing.[2] b) Discuss and demonstrate the use of analytical procedures in the planning of an assignment.[3] c) For a given assignment:

evaluate business risks relevant to the audit, and
evaluate and prioritise significant audit risks and risks of material misstatement.[3] d) Interpret the results of analytical procedures, in an unbiased manner and apply professional scepticism to support the identification of contradictory information and assessment of risks of material misstatement.[3] e) Evaluate the results of planning and risk assessment procedures to determine the relevant audit strategy, including the auditor’s responses.[3] f) Explain the planning procedures specific to an initial audit engagement.[2] g) Discuss the importance of the auditor gaining an understanding of the entity including the applicable financial reporting framework, its accounting policies, significant classes of transactions, balances and disclosures and the entity’s system of internal control and recommend additional information which may be required in gaining that understanding.[2] h) Discuss how transnational audits may differ from other audits of historical financial information (e.g. in terms of applicable financial reporting and auditing standards, listing requirements and corporate governance requirements).[2] i) Assess when it is appropriate to adopt the standard for auditing less complex entities, including assessing regulatory, qualitative and quantitative characteristics of a company. j) Recognise matters which are not relevant to the planning of an assignment.[2]

Evidence and testing considerations a) Identify and describe audit procedures (including substantive procedures and tests of controls (for both direct and indirect controls)) to obtain sufficient appropriate audit evidence from identified sources to support the relevant assertions and disclosures.[2] b) Assess and describe how IT can be used to assist the auditor, and recommend the use of automated tools and techniques, such as audit software, test data and other data analytics tools where appropriate.[2] c) Evaluate and interpret the results of data analytics tools when used during planning or evidence collection.[2] d) Recommend additional information which may be required to effectively carry out a planned engagement or a specific aspect of an engagement.[2] e) Apply the further considerations and audit procedures relevant to initial engagements.[2] f) Apply analytical procedures to financial and non-financial data.[2] g) Explain the specific audit problems and procedures concerning related parties and related party transactions.[2] h) Recognise circumstances that may indicate the existence of unidentified related parties and recommend appropriate audit procedures.[2]
Audit procedures and obtaining evidence a) Design appropriate audit procedures relating to:[3] i) inventory (including standard costing systems) ii) non-current assets iii) intangible assets iv) biological assets v) investment properties vi) assets held for sale and discontinued operations vii) financial instruments viii) accounting estimates including fair values ix) government grants x) leases xi) impairment xii) provisions, contingent liabilities, and contingent assets xiii) borrowing costs xiv) employee benefits xv) share-based payment transactions xvi) taxation (including deferred tax) xvii) related parties xviii) revenue from contracts with customers xix) statement of cash flows xx) business combinations xxi) events after the end of the reporting period xxii) the effects of foreign exchange rates xxiii) segmental reporting xxiv) financial statement notes and related disclosures xxv) earnings per share xxvi) changes in accounting policy xxvii) payroll and other expenses b) Explain how the auditor’s responsibilities for corresponding figures, comparative financial statements, and ‘other information’, are discharged.[3] c) Explain the auditor’s main considerations in respect of sustainability information and how they impact on entities and their financial statements.[2]
Using the work of others a) Recognise when it is justifiable to place reliance on the work of an expert (e.g. a surveyor employed by the audit client or audit firm).[2] b) Evaluate the potential impact of an internal audit department on the planning and performance of the external audit.[2] c) Assess the appropriateness and sufficiency of the work of internal auditors and the extent to which reliance can be placed on it. [2] d) Recognise and evaluate the impact of outsourced functions, such as payroll, on the conduct of an audit.[3]
Group audits a) Recognise the specific matters to be considered before accepting appointment as group auditor to a group in a given situation.[3] b) Identify, assess and respond to the risks associated with the audit of group financial statements, including:[2] i) assessment of group and component performance materiality; ii) assessment of aggregation risk in a given scenario; iii) the impact of non-coterminous year ends; iv) changes in group structure or a complex group structure c) Identify and describe the procedures to be performed at the planning stage of an audit of group financial statements, including consideration of the role and work of component auditors.[3] d) Recommend and discuss the communications between the group auditor and the component auditor in a given situation.[3] e) Recognise the audit problems and describe audit procedures specific to: a business combination, including.[3] i) the classification of investments; ii) the determination and impairment of goodwill; iii) group accounting policies; iv) intra-group trading; v) equity accounting for associates and joint ventures vi) changes in group structure, including acquisitions and disposals vii) accounting for a foreign subsidiary f) In respect of the consolidation process identify and explain the relevant audit risks and audit procedures necessary to obtain sufficient appropriate evidence.[3] g) Evaluation of the quality of work performed by a component auditor and assess the sufficiency and quality of the audit evidence obtained.[2] h) Explain the responsibilities of the component auditor before accepting appointment, and the procedures to be performed in a group situation.[2] i) Justify the situations where a joint audit would be appropriate, including identification of additional risks and challenges associated with the engagement in a given scenario.[2] E Completion, review, and reporting
Subsequent events and going concern a) Design audit procedures to identify subsequent events which may require adjustment to, or disclosure in, the financial statements of a given entity.[2] b) Evaluate indicators that the going concern basis of accounting may be in doubt and recognise mitigating factors.[2] c) Recommend audit procedures or evaluate the evidence that might be expected to be available and assess the appropriateness of the going concern basis of accounting in given situations.[3] d) Assess the adequacy of disclosures in financial statements relating to going concern and explain the implications for the auditor’s report with regard to the going concern basis of accounting.[3]
Completion and final review a) Apply analytical procedures for the purposes of evaluation and review and evaluate the results in the context of other audit evidence.[3] b) Assess whether an engagement has been planned and performed in accordance with professional standards.[3] c) Evaluate whether reports issued are appropriate in the relevant circumstances.[3] d) Evaluate as part of the final review the matters (e.g. materiality, risk, relevant accounting standards) and audit evidence to confirm if sufficient appropriate evidence has been obtained.[3] e) Evaluate the use of written representations from management to support other audit evidence.[2] f) Justify the review procedures which should be performed in a given assignment, including the need for an engagement quality review and the appropriateness of the review performed.[2] g) Recommend appropriate additional procedures or actions required following review of the assurance work.[2] h) Describe the importance of the role of the engagement quality reviewer.[2] i) Evaluate the appropriateness of the engagement quality reviewer in a given scenario, recommending further actions which may be taken within the firm.[2]
Auditor’s reports a) Determine the form and content of an auditor’s report and assess the appropriateness of the contents of an auditor’s report containing an unmodified opinion.[3] b) Recognise and evaluate the factors to be considered when forming an audit opinion in a given situation, including the effect of uncorrected misstatements, and justify audit opinions which are consistent with the results of audit procedures.[3] c) Critically appraise the form and content of an auditor’s report in a given situation.[3] d) Assess whether or not a proposed audit opinion is appropriate.[3] e) Advise on the actions which may be taken by the auditor in the event that a modified auditor’s opinion is issued.[3] f) Explain the implications for the auditor’s report on the group financial statements of an entity where the opinion on a component is modified in a given situation.[2] g) Recognise when the use of an emphasis of matter paragraph, other matter paragraph and KAM disclosure would be appropriate and recommend and justify the content of each.[3] h) Discuss the courses of action available to an auditor if a material inconsistency or material misstatement exists in relation to other information such as contained in the integrated report.[2]
Reports to those charged with governance and management a) Critically assess the quality of a report to those charged with governance and management.[3] b) Advise on the content of reports to those charged with governance and management in a given situation.[3] F Other assignments
Audit-related and assurance services a) Describe the nature of audit-related services, the circumstances in which they might be required, and the comparative levels of assurance provided by professional accountants and distinguish between:[2] i) audit-related services and an audit of historical financial statements ii) an attestation engagement and a direct engagement. b) Describe the main categories of assurance services that audit firms can provide and assess the benefits of providing these services to management and external users.[3] c) Describe the level of assurance (reasonable, high, moderate, limited, negative) for an engagement depending on the subject matter evaluated, the criteria used, the procedures applied, and the quality and quantity of evidence obtained.[3]
Specific assignment  Due Diligence  Review of interim financial information  Prospective financial information  Forensic audits For each of the other assignments listed above: a) Define and describe the purpose of each type of assignment and analyse the appropriate level of assurance which may be offered by a professional firm in relation to these assignments. [3] b) Evaluate the matters to be considered before accepting the engagement, including any ethical and professional considerations. [3] c) Plan the assignment, applying professional scepticism, to gather suitable evidence and provide an appropriate level of assurance in line with the objectives of the assignment. [2] d) Discuss the level of assurance that the auditor may provide and explain the other factors to be considered in determining the nature, timing, and extent of examination procedures.[1] e) Describe and recommend appropriate substantive, examination or investigative procedures which can be used to gather sufficient appropriate evidence in the circumstances.[2]
The audit of performance information (pre-determined objectives) in the public sector a) Describe the audit of performance information (pre-determined objectives) and differentiate from performance auditing. [2] b) Plan the audit of performance information (pre-determined objectives) and describe examination procedures to be used in the audit of this type of information.[3] c) Discuss the audit criteria of reported performance information, namely compliance with reporting requirements, usefulness, measurability and reliability.[3] d) Discuss the form and content of a report on the audit of performance information.[2] e) Discuss the content of an audit conclusion on an integrated report of performance against pre-determined objectives.[3]
Reporting on other assignments a) Analyse the form and content of the professional accountant’s report for an assurance engagement as compared with an auditor’s report.[2] b) Discuss the content of a report for an examination of prospective financial information.[2] c) Discuss the effectiveness of the ‘negative assurance’ form of reporting and evaluate situations in which it may be appropriate to modify a conclusion.[3]
The assurance of sustainability information a) Evaluate the matters to be considered before accepting sustainability assurance engagements, including any ethical and professional considerations.[3] b) Plan an engagement to provide assurance on a report on social, environmental or sustainability matters.[2] c) Describe the difficulties in measuring and reporting on economic, environmental, social and sustainability information and evaluate the appropriateness of given performance measures, non-financial key performance measures and sustainability indicators.[2] d) Discuss the level of assurance that the auditor may provide in reporting on sustainability information: i) As part of ‘other information’ with the financial statements; or ii) Separate sustainability report[1] e) Describe and recommend appropriate substantive, examination or investigative procedures to detect potential misstatements in respect of socioenvironmental and sustainability matters.[2] f) Evaluate the evidence gathered as part of an assurance engagement to conclude on whether sufficient appropriate evidence has been obtained. g) Discuss the form and content of an independent assurance report on the sustainability information. [2] G Current issues and developments Discuss the relative merits and the consequences of different standpoints taken in current debates and express opinions supported by reasoned arguments.
Professional and ethical developments a) Discuss emerging ethical issues and evaluate the potential impact on the profession, firms and auditors.[3] b) Discuss the content and impact of exposure drafts, consultations and other pronouncements issued by IFAC and its supporting bodies (including IAASB, IESBA and TAC).[2]
Developments in sustainability assurance a) Discuss current issues and challenges in the development of sustainability assurance standards, including the need for a standardised set of assurance standards.[2]
Other current issues a) Discuss current developments in auditing standards including the need for new and revised standards and evaluate their impact on the conduct of audits. [3] b) Discuss current developments in business practices, practice management, audit methodology and evaluate the potential impact on the conduct of an audit and audit quality. [3] c) Discuss the proposed changes to the audit profession and critically evaluate the implications of these changes for companies and audit firms and their impact on audit process and quality.[3] d) Discuss current developments in emerging technologies, including big data and the use of automated tools and techniques such as data analytics, and sustainability reporting and the potential impact on the conduct of an audit and audit quality.[3] e) Discuss the impact of significant global events on audit practice.[3] H Professional skills
Communication a) Inform concisely, objectively and unambiguously, adopting a suitable style and format, using appropriate technology.[3] b) Advise using compelling and logical arguments, demonstrating the ability to counter argue where appropriate.[3] c) Clarify and simplify complex issues to convey relevant information in a way that adopts an appropriate tone and is easily understood by, and reflects the requirements of the intended audience.[3]
Analysis and Evaluation a) Investigate relevant information from a range of sources, using appropriate analytical techniques to establish reasons and causes of issues, connections between different sources of information and to determine significant risks and appropriate responses.[3] b) Consider information, evidence, and findings carefully, reflecting on their implications and how they impact the engagement, audit firm or audit client.[3] c) Assess and apply appropriate judgement when considering ethical and professional issues, audit matters and when making conclusions or recommendations, taking into account the implications of such decisions on the audit firm, engagement and audit client.[3] d) Appraise information objectively, in order to effectively prioritise audit issues, explore suitable audit responses and when making decisions, devising courses of action or determining audit conclusions.[3]
Professional scepticism and judgement a) Explore the underlying reasons for issues, applying an attitude of a questioning mind, beyond what is immediately apparent from the usual sources and opinions available and demonstrate the ability to be to alert to, and identify, conditions which might indicate misstatements or the existence of fraud or error.[3] b) Question contradictory information or facts, opinions, assertions and the reliability or inherent bias of information presented, by seeking corroboratory or additional information to either support or reject its acceptance.[3] c) Challenge and critically assess the information and evidence presented, or decisions made, to reach a conclusion on whether sufficient appropriate evidence has been obtained on which to base the audit opinion.[3] d) Demonstrate appropriate professional judgement, including the application of appropriate auditing, accounting and ethical standards, to draw conclusions and make informed decisions about the courses of action which are appropriate in the context of the engagement.[3]
Commercial acumen a) Demonstrate awareness of any wider external factors or implications, in a given scenario, for the adult engagement, audit firm or audit client.[3] b) Recognise key issues and limitations and consider the plausibility, and the practical and commercial implications, of recommendations made in the context of the engagement and audit firm. [3] c) Show insight and perception in understanding the wider implications and impact of implementing relevant recommendations and demonstrate acumen in arriving at suitable conclusions. [3]

Career Path

Explorer

5. Financial (The syllabus detailed study guide)

FA1

A Types of business transactions and documentation

Types of business transaction

Types of business documentation

B Duality of transactions and double-entry bookkeeping

Double-entry bookkeeping

Journal entries

Elements of the financial statements

C Banking system and transactions

The banking process

Documentation

D Payroll

Process payroll transactions within the accounting system

E General ledger accounts

Prepare general ledger accounts

F Cash and bank

Maintaining cash records

Maintaining a petty cash record

G Sales and credit transactions

Recording sales, customer account balances and receivables

H Purchases and credit transactions

Recording purchases, supplier account balances and payables

I Reconciliation

Purpose of reconciliations

Reconcile the cash records

Reconcile individual supplier accounts

J Preparing the trial balance

Prepare the trial balance

Correcting errors

FA2

A Accounting principles, concepts and characteristics

The key principles, concepts and characteristics of accounting

Maintaining financial records

The regulatory framework

B The principles and process of double-entry bookkeeping

The elements of financial statements

Recording financial data and the flow of accounting information in the production of financial statements

C The preparation of journal entries and general ledger accounts

Preparation of journal entries

Preparation of general ledger accounts

D Recording transactions and events

Sales and purchases

Cash and bank

Inventories

Tangible non-current assets and depreciation

Accrued expenses (accruals), prepaid expenses (prepayments), accrued income and deferred income

Receivables, payables and provisions

Capital and finance costs

E Reconciliations

Bank reconciliation

Payables account reconciliations

F Preparing a trial balance and correcting errors

Preparing a trial balance

Correction of errors using manual journal entries

G Preparing financial statements

Preparation of the financial statements, including incomplete records

H Partnerships

Partnership agreement

Partnership accounting records

Partnership financial statements and change in partnership

FFA

A The context and purpose of financial reporting

B Accounting principles,

C The use of double-entry

D Recording transactions and

E Reconciliations

F Preparing a trial balance

G Preparing financial statements

H Preparing basic consolidated

FR

A The conceptual and regulatory framework for financial reporting

The need for a conceptual framework and the characteristics of useful information.

Recognition and measurement

Regulatory framework

The concepts and principles of groups

B Accounting for transactions in financial statements

Tangible non-current assets