Free ACCA Financial Accounting (FA/FFA) Complete Course

The Context and Purpose of Financial Statements for External Reporting

Define financial reporting as the process of recording, analysing and summarising financial data

Stakeholders' Needs

Identify the users of financial statements and state and differentiate between their information needs

The Main Elements of Financial Statements

Describe the purpose of each of the financial statements: Statement of financial position, Statement of profit or loss and other comprehensive income, Statement of changes in equity, Statement of cash flows

The Regulatory Framework

Explain the purpose and objectives of the regulatory system, including the roles of the IFRS Foundation, IASB, IFRS Advisory Council, IFRIC, and ISSB

Duties and Responsibilities of Those Charged with Governance

Explain what is meant by governance in the context of the preparation of financial statements

Key Principles and Concepts of Accounting

Define and apply key principles and concepts of accounting: Going concern, Accrual accounting, Materiality, Offsetting, Consistency, Prudence, Duality, Business entity, Historical cost and current value, Substance over form

Qualitative Characteristics of Useful Financial Information

Define and apply the qualitative characteristics of useful financial information: Relevance, Faithful representation, Comparability, Verifiability, Timeliness, Understandability

Double-Entry Bookkeeping Principles Including the Maintenance of Accounting Records

Identify and explain the function of the main data sources in an accounting system

General Ledger Accounts and Journal Entries

Describe the main types of general ledger accounts including their nature and function

Sales and Purchases

Record sale and purchase transactions in the general ledger accounts

Cash

Record cash transactions in the bank general ledger account

Inventories

Describe the need for adjustments to inventories in preparing financial statements

Tangible Non-Current Assets

Define non-current assets

Depreciation

Explain the purpose of depreciation

Intangible Non-Current Assets and Amortisation

Identify types of intangible assets

Accruals, Prepayments, Accrued Income, and Deferred Income

Apply accrual accounting to accruals, prepayments, accrued income and deferred income

Receivables and Payables

Identify and explain examples of receivables and payables

Provisions and Contingencies

Define a provision, contingent liability and contingent asset under IFRS

Capital Structure and Finance Costs

Describe the capital structure of a limited liability company

Bank Reconciliations

Explain the purpose of bank reconciliations

Payables Account Reconciliations

Explain the purpose of the payables general ledger account and its relation to double-entry

Trial Balance

Describe the purpose of a trial balance

Correction of Errors

Identify the types of error which may occur in accounting systems

Suspense Accounts

Explain the purpose of a suspense account

Statement of Financial Position

Explain how the accounting equation, IFRS Accounting Standards and the business entity concept underlie the SFP

Statement of Profit or Loss and Other Comprehensive Income

Calculate revenue, cost of sales, gross profit, operating profit, profit before tax, profit for the year and total comprehensive income

Disclosure Notes

Explain the purpose of notes to the financial statements

Events After the Reporting Period

Define an event after the reporting period under IFRS

Statement of Cash Flows

Differentiate between profit and cash flow

Incomplete Records

Apply techniques used in incomplete record situations: accounting equation, ledger accounts to calculate missing figures, cash/bank summaries, profit percentages

Subsidiaries

Define and describe parent, subsidiary, control, consolidated financial statements, non-controlling interests, and trade investments

Associates

Define and identify an associate and significant influence

Importance and Purpose of Analysis of Financial Statements

Describe how interpretation and analysis of financial statements is used in a business environment

Ratios

Calculate key accounting ratios related to profitability, liquidity, efficiency, and position

Analysis of Financial Statements

Calculate and interpret the relationship between financial statement elements regarding profitability, liquidity, efficiency, and financial position