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1

ncial Accounting (UK

signed to help

nd to provide detailed

d in

tion session.

AND

apers

s

eding o

erpinne

nce

. Thes

r paper

h other

en the accounting an

inks between these are sho

as dotted line arrows. This diagram indicates whe

knowledg

previous

the syllabus

of the

the broadest sense the

ral mai

the syllabus and study

guide into discrete sections.

Relational diagram of the main capabilities

This diagram illustrates the flows and links between

the main capabilities (sections) of the syllabus and

should be used as an aid to planning teaching and

learning in a structured way.

Syllabus rationale

the syllabus is

ties are linked.

The rationale also explains in further detail what the

ination intends to assess and why.

This shows the breakdown of the main capabilities

abus into subject areas. This is

the blueprint for the detailed study guide.

ing the syllabus

This section briefly explains the structure of the

ssed.

at students, tuition

hould use as the basis of

ials.

the detail of the

ely identifies what

nation session.

tion and

ivided into sections

lities identified in theivided into subject

es included

yllabus. Subject areas are broken

down into sub-headings which describe the detailed

ssed in examinations.

ay require students to

the broad intellectual level at

monstrated

shers: BPP

ishing.

Both these publishers base their

study texts on the detailed contents of the study

guides as published by ACCA. ACCA takes no

editorial responsibility for the detailed content of

these study texts although ACCA examiners will

annually review their content for general

appropriateness and relevance in supporting

effective study towards ACCA examinations.In addition ACCA examiners will recommend other

Fina )(F3)June & December 2010

This syllabus and study guide is de

with planning study a

information on what could be assesse

any examina

THE STRUCTURE OF THE SYLLABUS

STUDY GUIDE

Relational diagram of paper with other p

This diagram shows direct and indirect link

between this paper and other papers prec rStudy Guidefollowing it. Some papers are directly und d

by other papers such as Advanced Performa

Management by Performance Management e This is the main document th

links are shown as solid line arrows. Othe s providers and publishers s

only have indirect relationships with eac

such as links existing betwe d

auditing papers. The l wn study guide which comprehensiv

re could be assessed in any exami

you are expected to have underpinning e The study guide is a precise reflec

and where it would be useful to review

learning before undertaking study.

Overall aim of

This explains briefly the overall objective

paper and indicates in

capabilities to be developed within the paper.

Main capabilities

This paper’s aim is broken down into seve n (*see intellectual levels below).

capabilities which divide

This is a narrative explaining how

structured and how the main capabili

exam

Detailed syllabus

(sections) of the syll

Approach to examin

examination and how it is asse

their studies, instruction and mater

Examinations will be based on

breakdown of the syllabus. It is d

based on the main capabisyllabus. These sections are d

areas which relate to the sub-capabiliti

in the detailed s

outcomes that could be asse

These outcomes are described using verbs

indicating what exams m

demonstrate, and

which these may need to be de

Reading lists

ACCA has two official publi

Learning Media and Kaplan Publ



2

dents ma

the

ant articles will also b

tant.

broaden

d professiona

on their way

The specific capabilities within the detailed

ssessed at one

e levels:

relate to the

owledge

onal le

ide

, or

marked

nch an ar

. Howe

nowledge

ule and

the Professional level, some lower level

ue to be assessed as the student

gh each module and level. This

re will be a

casionally

sed a

G HOURS

The ACCA qualification does not prescribe or

recommend any particular number of learning hours

for examinations because study and learning

patterns and styles vary greatly between people and

organisations. This also recognises the wide

diversity of personal, professional and educational

circumstances in which ACCA students find

themselves.

23 and 35 main

on the nature of

the subject and how these areas have been broken

E

.

The Fundamentals level examinations contain

100% compulsory questions to encourage

readth of each

d by equivalent

puter based

re all paper based

-hour papers. The structure of papers varies

from ten questions in the Corporate and Business

rk questions in

ividual questions

between

10 and 30 marks.

all three-hour

paper based examinations, all containing twoy, but there will be

apers, ACCA has

d planning time.

t the beginning of

allow candidates to

lanning their

efore they start writing in their answer

books. This time should be used to ensure that all

the information and exam requirements are properly

read and understood.

During reading and planning time candidates may

only annotate their question paper. They may not

write anything in their answer booklets until told to

do so by the invigilator.

text books where appropriate, which stu y Each syllabus contains between

read in order to widen their reading beyond

approved study texts. Relev e

published in student accoun

INTELLECTUAL LEVELS

The syllabus is designed to progressively

and deepen the knowledge, skills an l between modules and leve

values demonstrated by the student

through the qualification.

syllabuses and study guides are a of syllabus.

three intellectual or cognitiv

Level 1: Knowledge and comprehension

Level 2: Application and analysisLevel 3: Synthesis and evaluation

Very broadly, these intellectual levels three

three cognitive levels at which the Kn

module, the Skills module and the Professi vel Law (F4) paper to four 25 ma

are assessed.

Each subject area in the detailed study gu

included in this document is given a 1, 2

3 superscript, denoting intellectual level, at The Professional level papers are

the end of each relevant line. This gives aindication of the intellectual depth at whi

ation

ea

ver,

sections. Section A is compulsor

some choice offered in Section B.

For all three hour examination p

introduced 15 minutes reading an

could be assessed within the examin

while level 1 broadly equates with the K

module, level 2 equates to the Skills mod

level 3 to

skills can contin

progresses throu

reflects that at each stage of study the

This additional time is allowed a

each three-hour examination to

read the questions and to begin p

answers b

requirement to broaden, as well as deepen

capabilities. It is also possible that oc

some higher level capabilities may be asses t

lower levels.

LEARNIN

subject area headings depending

down.

GUIDE TO EXAM STRUCTUR

The structure of examinations varies within and

ls

candidates to study across the b

The Knowledge module is assesse

two-hour paper based and com

examinations.

The Skills module examinations a

Financial Management (F9). Ind

odule papers will attractwithin all Skills m



3

Section

with all

this

nts a choice of two fro

ns

ns, ea

Section B w

offer a choice of two from three questions totallin

attracting

arks.

ation

T

xaminat n

techniques,

s specified.

ssurance

d

le

ctly

ntially be

essions..

For paper based examinations regulation issued orth September

st of the

ing year to May 31 of the year after. Please

for the paper

.

e above dates may be

examinable even if the effective date is in the

The term issued or passed relates to when

regulation or legislation has been formally approved.

The term effective relates to when regulation or

legislation must be applied to an entity transactions

and business practices.

The study guide offers more detailed guidance on

the depth and level at which the examinable

The study guide

re be read in conjunction with the

examinable documents list.

inable for the June

le for corresponding

tween the start of

nd the beginning of

inations are also examinable for

the corresponding computer based examinations

between the start of the December examination

session and the beginning of June.

The Essentials module papers all have a A

future.

documents will be examined.

should therefocontaining a major case study question

requirements totalling 50 marks relating to

case. Section B gives stude m

three 25 mark questions.

Section A of each of the Options papers contai

ch

ill

g

Computer based examinations

Documents listed as being exam

examinations are also examinab

computer based examinations be

the June examination session a

December. Documents which are examinable for

the December exam

50-70 compulsory marks from two questio

attracting between 25 and 40 marks.

30-50 marks, with each question

between 15 and 25 m

The pass mark for all ACCA Qualific

examination papers is 50%.

GUIDE TO EXAMINATION ASSESSMEN

ACCA reserves the right to examine anything

any econtained within the study guide at

session. This includes knowledge,

io

principles, theories, and concepts a

For the financial accounting, audit and a ,

law and tax papers except where indicate

otherwise, ACCA will publish examinab

documents once a year to indicate exa

what regulations and legislation could pote

assessed within identified examination s

legislation passed on or before 30

annually, will be assessed from June 1

follow st

refer to the examinable documents

(where relevant) for further information.

Regulation issued or legislation passed in

accordance with th



4

Syllabus

ding of the

underlying principles and concepts relating to

financial accounting and

use of double-entry accounting techniques including

the preparation of basic financial statements

MAIN CAPABILITIES

uccessful completion of this paper, candidates

A Explain the context and purpose of financial

ve characteristics of

d the fundamental

accounting

e use of double-entry and

D Record transactions and events

including identifyingand correcting errors)

pare basic financial statements for

incorporated and unincorporated entities.

RELATI CAPABILITIES

On s

should be able to:

AIM

To develop knowledge and understan

FA (F3)

FR (F7)

CR (P2)

reporting

B Define the qualitati

financial information an

bases of

C Demonstrate thAB (F1)accounting systems

E Prepare a trial balance (

technical proficiency in the F Pre

ONAL DIAGRAM OF MAIN

The context and purpose

of financial reporting

The qualitative characteristics

of financial information a

damental bases

accounting (B)

nd

the fun of(A)

The use of double-entry and accounting systems (C)

Preparing a rial balance (E) t

Recording

transactions

and events (D)

Preparing basic financial statements (F)



5

RATIONALE

counting

s context and

terist

syllabus th

ouble

ing and

. The

e use of the trial balance a d

how to identify and correct errors, and then the

ncial statements for incorporat

n

ncial reporting

of financial

reporting

2.

lements of financial reports

ncial

es of

accounting

itative characteristics of financial

2. used in the preparation of

financial information

of double-entry and accounting

1. Double-entry book-keeping principles includ g

the maintenance of accounting records and

sources of information

2. Ledger accounts, books of prime entry and

journals

3. Accounting systems and the impact of

information technology on financial reporting

D Recording transactions and events

1. Sales and purchases

2. Cash

4. Tangible fixed assets

5. Depreciation

nd amortisation

prepayments

tors

tingencies

10. Capital structure and finance costs

ance

lance

ion of errors

reconciliations

4. Bank reconciliations

5. Suspense accounts

c financial statements

nd loss accounts

3. Events after the balance sheet date

4. Accounting for partnerships

5. Cash flow statements (excluding partnerships)

6. Incomplete records

This syllabus for Paper F3 Financial Ac

introduces the candidate to the fundamentals of

financial accounting, explaining it

purpose with reference to qualitative charac

of useful financial information and to the

fundamental bases of accounting. The

concentrates in depth on the basics of the d

entry system and on recording, process

reporting business transactions and events

syllabus then covers th

ics

en 3. Stock

-

n

preparation of fina ed 6. Intangible fixed assets a

a d unincorporated entities.

DETAILED SYLLABUS

A The context and purpose of fina

1. The reasons for and objectives

Users’ and stakeholders’ needs

3. The main e

4. The regulatory framework

B The qualitative characteristics of fina

information and the fundamental bas

1. The qual

reporting

Alternative bases

C The use

systems

in

7. Accruals and

8. Debtors and credi

9. Provisions and con

E Preparing a trial bal

1. Trial ba

2. Correct

3. Control accounts and

F Preparing basi

1. Balance sheets

2. Profit a



6

APPROACH TO EXAMINING THE SYLLABUS

er-based

ons will

ill contain both

tional elements.

The examination will consist of 40 two mark

questions, and 10 one mark questions.

The syllabus is assessed by a two hour pap

or computer-based examination. Questi

assess all parts of the syllabus and w

computational and non computa



7

Study Guide

A PURPOSE OF

1. The reasons for and objectives of financial

) g,

l data.[1]

ntity –

mpany.[1]

c) en a so

rtnership and a limited company.[1

ages o

ed company, sole trader

) d scope f

) ts and

tween their[1]

3. The main elements of financial reports

a) Understand and identify the purpose of each of

b quity,

4. The regulatory framework

a) tand the role of the regulatory system

including the roles of the Financial Reporting

Council (FRC), the Financial Reporting Review

Panel (FRRP), the Accounting Standards Board

(ASB), the Urgent Issues Task Force (UITF),

and Company legislation.[1]

b) Understand the role of Financial Reporting

Standards. [1]

HARACTERISTICS OF

N AND THE

ACCOUNTING

1. The qualitative characteristics of financial

d apply accounting

ts and qualitative characteristics: [1]

ue and fair view / fair presentation

oing concern

ccruals

cy

e

Reliability

hful representation

tance over form

) Comparability

xiv) Understandability

t

een qualitative

rnative bases used in the preparation of

a) Identify and explain the main characteristics of

bases e.g. historical cost,

realisable value,

nd disadvantages

ting.[1]

c) Understand the provision of Financial

Reporting Standards governing financial

statements regarding changes in accounting

policies.[1]

d) Identify the appropriate accounting treatment if

a company changes a material accounting

policy.[1]

THE CONTEXT AND

FINANCIAL REPORTING

reporting

a Define financial reporting – recordin

analysing and summarising financia ii) G

b) Identify and define types of business e

sole trader, partnership, limited co

iv) Consisten

Recognise the legal differences betwe

trader, pa

le vii)]

viii)Fait

d) Identify the advantages and disadvant

operating as a limit

f x) Neutralor

ity

xi) Prudencepartnership.[1]

e Understand the nature, principles an

financial reporting.[1]

o

2. Users’ and stakeholders’ needs

a Identify the users of financial statemen

state and differentiate be

information needs.

the main financial statements.[1]

) Define and identify assets, liabilities, e

revenue and expenses.[1]

Unders

B THE QUALITATIVE C

FINANCIAL INFORMATIO

FUNDAMENTAL BASES OF

reporting

a) Define, understand an

concep

i) Tr

iii) A

v) Materiality

vi) Relevanc

ix) Subs

xii) Completeness

xiii

xv) Business entity concep

b) Understand the balance betw

characteristics.[1]

2. Altefinancial information

alternative valuation

replacement cost, net

economic value.[1]

b) Understand the advantages a

of historical cost accoun



8

C LE-ENTRY AND

ACCOUNTING SYSTEMS

1 iples

including the maintenance of accounting

the main

m.[1]

b ifferen

luding:

od

emittance

advice, receipt.

c) tand and apply the concept of double-concept.[1]

d) g

)

ng

nisational

es and deadlines.[1]

nsactionseceipts.[1]

ry and

nd their

b) Understand and illustrate the uses of journa

s into ledger

c) ven narrative ]

d) Illustrate how to balance and close a ledger

account.[1]

3. Accounting systems and the impact of

information technology on financial reporting

a) Understand the basic function and form of

accounting records in a typical manualsystem.[1]

tion and form of

accounting records in a typical computerised[1]

c) Compare manual and computerised accounting

dvantages of[1]

rated accounting

software packages.[1]

TIONS AND EVENTS

1. Sales and purchases

Record sale and purchase transactions inday books.[1]

b) Understand and record sales and purchase

tand the general principles of the

x (VAT).[1]

d) Calculate VAT on transactions and record the

consequent accounting entries. (Various rates

of VAT may be used).

[1]

d and discounts

ceived.

ledger accounts.[1]

b) Understand the need for a record of petty cash

Describe the features and operation of a petty

cash imprest system.[1]

d) Account for petty cash using imprest and non-

imprest methods.[1]

e) Understand the importance of, and identify

controls and security over the petty cash

system.[1]

THE USE OF DOUB

. Double-entry book-keeping princ

records and sources of information

a) Identify and explain the function of

data sources in an accounting syste

) Outline the contents and purpose of d

types of business documentation, inc

quotation, sales order, purchase order, go

t e) Understand the uses of integ

s

received note, good despatched note, invoice,

statement, credit note, debit note, r[1]

D RECORDING TRANSAC

Undersentry accounting and the duality

Understand and apply the accountin

equation.[1]

e Understand how the accounting system

contributes to providing useful accounti

information and complies with orga

polici

f) Identify the main types of business trae.g. sales, purchases, payments, r

2. Ledger accounts, books of prime ent

journals

a) Identify the main types of ledger accounts and

books of prime entry, and understa

nature and function.[1]

ls transactions.[1]

c)

and the posting of journal entrie

accounts.[1]

Identify correct journals from gi .[1

b) Understand the basic func

system.

systems.[1]

d) Identify advantages and disa

computerised accounting systems.

a)ledger accounts and in

returns.[1]

c) Unders

operation of Value Added Ta

e) Account for discounts allowe

re [1]

2. Cash

a) Record cash transactions in



9

3. Stock

a) stments for stock in

ts.[1]

.[1]

ing

irements

stock.[1]

) ded in[1]

f) d period

end stock records.[1]

g) ng FIFO

cost).[1

h) Understand the impact of accounting concepts

of stock.[1]

i) Identify the impact of stock valuation methods

4. Tangible fixed assets

a) ssets.[1]

b the difference between current an

fixed assets.[1]

c)

d ue

expenditure.[1]

e) the acquisiti

isposal of fixed assets.

f) Calculate and record profits or losses on

disposal of fixed assets in the profit and loss

account including part exchange transactions.[1]

g) Record the revaluation of a fixed asset in ledger

accounts, the balance sheet and in the

statement of total recognised gains and

losses.[1]

culate the profit or loss on disposal of a

revalued asset.[1]

ces and

movements are disclosed in financial

d[1]

epreciation

e purpose of

rge for depreciation using

e and reducing balance methods.[1]

es where different

appropriate.[1]

expense and

ciation are recorded in[1]

evalued fixed asset

excess depreciation

between the revaluation reserve and[1]

f) Calculate the adjustments to depreciation

e made in the estimated

useful life and/or residual value of a fixed

n in the profit and loss

account and balance sheet.[1]

mortisation

Recognise the difference between tangible and

intangible fixed assets.[1]

b) Identify types of intangible assets.[1]

c) Identify the definition and treatment of

“research costs” and “development costs” in

accordance with Financial Reporting

Standards.[1]

Recognise the need for adju

preparing financial statemen

b) Record opening and closing stock

c) Identify the alternative methods of valu

stock.[1]

d) Understand and apply the ASB requ

for valuing

e Recognise which costs should be inclu

valuing stock.

Understand the use of continuous an

Calculate the value of closing stock usi

(first in, first out) and AVCO (average ]

on the valuation

on profit and on assets.[1]

Define fixed a

) Recognise d necessary if changes ar

Explain the difference between capital and

revenue items. [1]

) Classify expenditure as capital or reven

Prepare ledger entries to record

and d [1]

on

h) Cal

i) Illustrate how fixed asset balan

statements.[1]

j) Explain the purpose and function of a fixe

asset register.

5. D

a) Understand and explain th

depreciation.[1]

b) Calculate the cha

straight lin

c) Identify the circumstanc

methods of depreciation would be

d) Illustrate how depreciation

accumulated depre

ledger accounts.

e) Calculate depreciation on a r

including the transfer of

accumulated profits.

asset.[2]

g) Record depreciatio

6. Intangible fixed assets and a

a)



10

d as

diture or to be expensed[1]

) ion.[1]

f) Calculate and account for the charge for

7 ts

) t appl s

ts needed

preparing

tatements.[1]

) accrual

d) Prepare the journal entries and ledger entrie

f an accrual or prepayment.

e) and and identify the impact on profi

and net assets of accruals and prepayments. ]

8 tors

) nd

creditors.[1]

b) Identify the benefits and costs of offering credit

) d debtors

analysis.[1]

d [1]

) rite off

f) Record an irrecoverable debt recovered.[1]

g) Identify the impact of irrecoverable debts on

the profit and loss account and on the balance

sheet.[1]

h) Prepare the bookkeeping entries to create and

adjust an allowance for debtors.[1]

movements in the

he profit and loss

losing balance of the

allowance should appear in the balance

j) Account for contras between trade debtors and

stand the purpose

ier statements.[1]

s current or long term liabilities[1]

9. Provisions and contingencies

f “provision”,“contingent liability” and “contingent asset”.[1]

ssify items as

s, contingent liabilities or contingent

assets.[1]

Identify and illustrate the different methods of

, contingent liabilities

and contingent assets.[1]

d) Calculate provisions and changes in

e movement in provisions.[1]

he final accounts.[1]

pital structure and finance costs

the capital structure of a limited

liability company including: [1]

deemable and

b) Record movements in the share capital and

share premium accounts.[1]

c) Identify and record the other reserves which

may appear in the company balance sheet.[1]

d) Define a bonus (capitalisation) issue and its

advantages and disadvantages.[1]

) Calculate amounts to be capitalised

development expen

from given information.

e Explain the purpose of amortisat

amortisation.[1]

. Accruals and prepaymen

a Understand how the matching concep

to accruals and prepayments.[1]

ie

b) Identify and calculate the adjustmen

for accruals and prepayments in

financial s

c Illustrate the process of adjusting for

and prepayments in preparing financial

s

statements.[1]

s

for the creation o [1]

c)

Underst t accounting for provisions[1

. Debtors and credi

a Explain and identify examples of debtors a

e) Account for th

facilities to customers.[1]

c Understand the purpose of an age

) Understand the purpose of credit limits.

e Prepare the bookkeeping entries to w

irrecoverable debt.[1]

an irredeemable)

iii) Loan notes.

i) Illustrate how to include

allowance for debtors in t

account and how the c

sheet.[1]

creditors.[1]

k) Prepare, reconcile and under

of suppl

l) Classify items a

in the balance sheet.

a) Understand the definition o

b) Distinguish between and cla

provision

provisions.[1]

f) Report provisions in t

10. Ca

a) Understand

i) Ordinary shares

ii) Preference shares (re



11

e) ts issue and its advantages and

disadvantages.[1]

s

n the balance sheet.[1]

g) Record and show the effects of a rights issue in

d the

er accou

atements.[1]

ement of

movements in reserves.

k) Identify the components of the statement ofised gains and losses.[1]

E PREPARING A TRIAL BALANCE

1. Trial balance

) ce.[1]

b) Extract ledger balances into a trial balance.[1

c) Prepare extracts of an opening trial balance.

[1]

d) nd the limitations of a

2. Correction of errors

a) ay occur in

ghlighted b

the extraction of a trial balance.[1]

c) cial

Reporting Standards governing financial

statements regarding material errors which

result in prior period adjustment.[1]

d) Prepare journal entries to correct errors.[1]

e) Calculate and understand the impact of errors

on the profit and loss account and balance

sheet.[1]

3. Control accounts and reconciliations

tand the purpose of control accounts for

b) Understand how control accounts relate to the

counts from given

on.

onciliations for

performing a control account reconciliation.[1]

f) Identify and correct errors in control accountsnts.[1]

Understand the purpose of bank[1]

s for differences

between the cash book and the bank

/or omissions.[1]

d) Prepare bank reconciliation statements.[1]

e) Derive bank statement and cash book balances

n.[1]

e to be reported in the

ccounts.[1]

account.[1]

b) Identify errors leading to the creation of a

suspense account.[1]

c) Record entries in a suspense account.[1]

d) Make journal entries to clear a suspense

account.[1]

Define a righ

f) Record and show the effects of a bonu

(capitalisation) issue i

the balance sheet.[1]

h) Record dividends in ledger accounts an

financial statements.[1]

c) Prepare ledger control ac

informati [1]

i) Calculate and record interest in ledg

and the financial st

nts d) Perform control account rec

debtors and creditors.[1]

j) Identify the components of the stat[1]

total recogn

a Identify the purpose of a trial balan

]

Identify and understa

trial balance.[1]

Identify the types of error which m

bookkeeping systems.[1]

b) Identify errors which would be hi y

Understand the provision of Finan

a) Unders

debtors and creditors.[1]

double-entry system.[1]

e) Identify errors which would be highlighted by

and ledger accou

4. Bank reconciliations

a)

reconciliations.

b) Identify the main reason

statement.[1]

c) Correct cash book errors and

from given informatio

f) Identify the bank balanc

final a

5. Suspense accounts

a) Understand the purpose of a suspense



12

F G BASIC FINANCIAL

S

a) gnise how the balance sheet equation and

derlie the balance

b the nature of reserves.[1]

) any

sheet.[1]

d balance sheet from giv

information.[1]

pears in

ts apply[1]

) s profit[1]

iture in

) nd loss

account of a company including the under a

or year.[1]

een th

loss account.[1]

) sure on

the face of the profit and loss account.[1]

3. Events after the balance sheet date

a) Define an event after the balance sheet date in

accordance with Financial Reporting

Standards.[1]

b) Classify events as adjusting or non-adjusting.[1]

djusting and non-

adjusting events are reported in the financial]

the typical content of

agreement, including profit-

rms.[1]

tand the nature of: [1]

i) Capital accounts

iii) Division of profits

) Calculate and record the partners’ shares of

profit/losses.[1]

inimum profit

shares.

e) Calculate and record partners’ drawings.[1]

drawings.[1]

erest on capital.[1]

salaries.

[1]

nt account.[1]

Prepare an extract of a capital account.[1]

it and loss account,

nd balance sheet

l) Define goodwill, in relation to partnership

m) Identify the factors leading to the creation of

goodwill in relation to partnership accounts.[1]

n) Calculate the value of goodwill from given

information.[1]

Note: Questions on partnerships may include the

effect of admission of new partners

PREPARIN

STATEMENT

1. Balance sheets

Reco

business entity convention un

sheet.[1]

) Understand

c Identify and report reserves in a comp

balance

) Prepare extracts of a en

c

e) Understand why ‘profit and loss’ ap

company balance sheet.[1]

a

2. Profit and loss accounts

a) Prepare extracts of a profit and loss account

from given information.[1]

b) Understand how accounting concep

revenue and expenses.

to g) Calculate and record int

c Calculate revenue, cost of sales, gros

and net profit from given information.

d) Disclose items of income and expend

the profit and loss account.[1]

j)

e Record corporation tax in the profit a

nd of a partnership.[1]

overprovision of tax in the pri

f) Understand the interrelationship betw

balance sheet and profit and

e accounts.[1]

g Identify items requiring separate disclo

c) Distinguish between how a

statements.[1

4. Accounting for partnerships

a) Understand and identify

a partnership

sharing te

b) Unders

ii) Current accounts

d) Account for guaranteed m[1]

f) Calculate and record interest on

h) Calculate and record partner

i) Prepare an extract of a curre

k) Prepare extracts of the prof

including division of profit, a



13

5. Cash flow statements (excluding partnerships)

[1

b) Understand the need for management to

c) ise the benefits and drawbacks to us

sh flow

ment.

cash

e) ow

cluding:[1]

om operating activities

tments or servicing of

vi) Management of liquid resources

and direct metho [1]

from cash flow statements[1]

h given transactions in a

6

a) Understand and apply techniques used in

incomplete record situations:[1]

i) Use of accounting equation

ii) Use of ledger accounts to calculate missing

figures

iii) Use of cash and/or bank summaries

iv) Use of profit percentages to calculate

missing figures.

READING LIST

l publishers:

ing Media

Contact number: +44(0)20 8740 2222

e: www.bpp.com

a) Differentiate between profit and cash flow.

]

control cash flow.[1]

Recogn ers

of the financial statements of a ca

state [1]

d) Classify the effect of transactions on

flows.[1]

Calculate the figures needed for the cash fl

statement in

i) Net cash inflow fr

ii) Return on invesfinance

iii) Taxation

iv) Capital expenditure

v) Equity dividends paid

vii) Financing .

f) Calculate the cash flow from operating

activities using the indirect d

g) Prepare extractsfrom given information.

) Identify the treatment of

company’s cash flow statement.[1]

. Incomplete records

ACCA’s officia

BPP Learn

Websit

ct number: +44(0)118 989 0629

Website: www.kaplanpublishing.co.uk

Kaplan Publishing

Conta

:

nd A Sangster Business Accounting 1 FT

494

ing:

re (ATC) International

al.com

Additional reading

F Wood a

Prentice Hall ISBN 0273681

Alternative read

Accountancy Tuition Cent

Contact: info@atc-glob

Website: www.atc-global.com

er: +44 (0)845 257 5729

Website: www.GetThroughGuides.com

Get Through Guides

Contact numb

International Financial Publishing Limited

Contact number: +44 (0)1344 751674Website: www.ifpbooks.com

http://www.getthroughguides.com/

http://www.getthroughguides.com/

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