Define financial reporting: recording, analysing and summarising financial data.

Identify and define types of business entity: sole trader, partnership, limited liability company.

Explain the legal differences between a sole trader, partnership and a limited liability company.

Identify the advantages and disadvantages of operating as a sole trader, partnership or limited liability company.

Define the nature, principles and scope of financial reporting.

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

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.

Identify and define assets, liabilities, equity, income and expenses.

Explain the purpose and objectives of the regulatory system, including the roles of the: IFRS Foundation, International Accounting Standards Board (IASB), IFRS Advisory Council, IFRS Interpretations Committee (IFRIC), International Sustainability Standards Board (ISSB).

Explain the role of IFRS Accounting Standards in preparing financial statements.

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

Describe the duties and responsibilities of directors in the preparation of the financial statements.

Test your knowledge across all Section A topics

Identify gaps before moving to the next section

Define and apply key principles and concepts of accounting

Define and apply the qualitative characteristics of useful financial information

Test your knowledge across all Section B topics

Identify gaps before moving to the next section

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

Summarise the contents and purpose of different types of business documentation.

Explain and apply the accounting equation.

Describe the key features of a computerised accounting system, including cloud storage.

Describe how an accounting system contributes to providing useful accounting information and complies with policies.

Identify the main types of business transactions.

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

Describe how financial data is initially recorded in the accounting system.

Explain the use of journal entries and how they are processed to general ledger accounts.

Identify correct journal entries from given narrative.

Illustrate how to balance and close the general ledger accounts at the year end.

Test your knowledge across all Section C topics

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Record sale and purchase transactions in the general ledger accounts using correct double-entry

Record sales returns and purchase returns accurately in the general ledger

Describe the principles of the operation of a sales tax system

Calculate sales tax on transactions and record it in the sales tax general ledger account

Account for discounts received from suppliers

Account for trade discounts and settlement discounts allowed to customers in accordance with IFRS Accounting Standards

Record cash transactions in the bank general ledger account using correct double-entry

Describe the need for a record of petty cash transactions and explain how a petty cash system operates

Describe the need for adjustments to inventories when preparing financial statements

Record cost of sales and closing inventories in the general ledger

Apply the requirements of IFRS Accounting Standards for valuing inventories

Identify which costs should be included in valuing inventories

Explain the use of continuous and period-end inventory records

Calculate the value of closing inventories using FIFO and AVCO methods

Identify the impact of inventory valuation methods on profit and net assets

Define non-current assets and compare them with current assets

Explain the difference between capital expenditure and revenue expenditure

Classify expenditure as capital or revenue

Record the acquisition and disposal of tangible non-current assets in the general ledger

Calculate and record gains or losses on disposal including part-exchange transactions

Record the revaluation of a tangible non-current asset and illustrate its presentation

Calculate the gain or loss on disposal of a revalued tangible non-current asset

Illustrate how tangible non-current asset balances and movements are disclosed

Explain the purpose and function of a non-current asset register

Explain the purpose of depreciation

Calculate depreciation using straight-line and diminishing-balance methods

Identify circumstances where different depreciation methods are appropriate

Illustrate how depreciation charge and accumulated depreciation are recorded in the general ledger

Calculate and update general ledger accounts for depreciation on a revalued asset including excess depreciation transfer

Calculate adjustments to depreciation for changes in useful life or residual value

Record depreciation in the statement of profit or loss and statement of financial position

Identify types of intangible assets

Compare the difference between tangible and intangible non-current assets

Identify the definition and treatment of research and development under IFRS Accounting Standards

Calculate and account for amounts to be capitalised as development expenditure or recognised as an expense

Explain the purpose of amortisation

Calculate and account for amortisation

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

Calculate the adjustments needed for these items when preparing financial statements

Illustrate the process of adjusting for these items in financial statements

Prepare manual journal entries and update general ledger accounts for creation and reversal

Identify the impact of these items on profit and net assets

Report these items correctly in the financial statements

Identify and explain examples of receivables and payables

Identify the benefits and costs of offering credit facilities to customers

Describe the purpose of an aged receivables analysis

Describe the purpose of customer credit limits

Prepare journal entries to write off an irrecoverable debt

Prepare journal entries to recognise a recovered irrecoverable debt

Demonstrate the impact of irrecoverable debts on financial statements

Prepare journal entries to create and adjust an allowance for irrecoverable debts

Illustrate how to include movements in the allowance in the financial statements

Account for contras between receivables and payables

Prepare, reconcile and explain the purpose of supplier statements

Define a provision, contingent liability and contingent asset under IFRS Accounting Standards

Distinguish between and classify items as provisions, contingent liabilities or contingent assets

Illustrate the different methods of accounting for provisions, contingent liabilities and contingent assets

Calculate provisions and changes in provisions

Prepare journal entries for the movement in provisions

Report provisions in the financial statements

Describe the capital structure of a limited liability company including ordinary shares, preference shares and borrowings

Describe the nature of equity including retained earnings and other components

Identify and record other components of equity in the statement of financial position

Record movements in share capital and share premium accounts

Define a bonus issue and its advantages and disadvantages

Define a rights issue and its advantages and disadvantages

Calculate and record a bonus issue in the statement of financial position

Calculate and record a rights issue in the statement of financial position

Calculate and record dividends in the general ledger and financial statements

Calculate and record interest expenses in the general ledger and financial statements

Identify the components of the statement of changes in equity

Test your knowledge across all Section D topics

Identify gaps before moving to the next section

Explain the purpose of bank reconciliations.

Identify the main reasons for differences between the bank general ledger account and the bank statement/internet banking records.

Identify and correct errors and/or omissions in the bank general ledger account.

Prepare the reconciliation of the bank general ledger account to the bank statement/internet banking records.

Derive bank statement and bank general ledger account balances from given information.

Identify the bank balance to be reported in the financial statements.

Explain the purpose of the payables general ledger account and how it relates to double-entry bookkeeping.

Explain the purpose of reconciling the payables general ledger account to external documents.

Prepare a reconciliation of the payables general ledger account to supplier statements.

Identify and correct errors which would be highlighted by performing a reconciliation of the payables general ledger account.

Identify the payables balance to be reported in the financial statements.

Test your knowledge across all Section E topics

Identify gaps before moving to the next section

Describe the purpose of a trial balance.

Extract general ledger balances into a trial balance.

Prepare extracts of an opening trial balance.

Explain the limitations of a trial balance.

Identify the types of error which may occur in accounting systems.

Identify errors which would be highlighted by the extraction of a trial balance and those which would not.

Prepare manual journal entries to correct errors.

Calculate the impact of errors on the statement of profit or loss and other comprehensive income and the statement of financial position.

Explain the purpose of a suspense account.

Identify errors leading to the creation of a suspense account.

Record entries in a suspense account.

Prepare journal entries to clear a suspense account.

Test your knowledge across all Section F topics

Identify gaps before moving to the next section

Explain how the accounting equation, IFRS Accounting Standards and the business entity concept underlie the statement of financial position.

Prepare a statement of financial position or extracts as applicable.

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.

Prepare a statement of profit or loss and other comprehensive income or extracts as applicable.

Record the income tax expense in the statement of profit or loss, including the under-/over-provision of tax in the prior year.

Identify items requiring separate disclosure on the face of the statement of profit or loss.

Explain the interrelationship between the statement of financial position and the statement of profit or loss and other comprehensive income.

Explain the purpose of notes to the financial statements (disclosure notes).

Draft the following disclosure notes: Non-current assets (tangible/intangible), Provisions, Events after the reporting period, Inventories.

Define an event after the reporting period in accordance with IFRS Accounting Standards.

Classify events as adjusting or non-adjusting.

Distinguish between how adjusting and non-adjusting events are reported in the financial statements.

Differentiate between profit and cash flow.

Describe the need for management to control cash flow.

Explain the benefits and drawbacks to users of the financial statements of a statement of cash flows.

Classify the effect of transactions on cash flows.

Calculate the figures needed for the statement of cash flows in accordance with IFRS Accounting Standards, including cash flows from operating, investing, and financing activities.

Prepare a statement of cash flows or extracts as applicable.

Identify the treatment of given transactions in a statement of cash flows.

Apply techniques used in incomplete record situations: Use of accounting equation, Use of general ledger accounts to calculate missing figures, Use of cash and/or bank summaries, Use of profit percentages to calculate missing figures.

Test your knowledge across all Section G topics

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Define and describe key group accounting terms including parent, subsidiary, and control.

Identify subsidiaries within a group structure based on control criteria.

Describe the components of and prepare a consolidated statement of financial position.

Calculate goodwill where non-controlling interest is valued at fair value.

Describe the components of and prepare a consolidated statement of profit or loss.

Define and identify an associate and significant influence.

Describe the key features of a parent-associate relationship.

Describe the principle of the equity method of accounting for associate entities.

Test your knowledge across all Section H topics

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

Explain the purpose of interpretation of ratios.

Calculate key accounting ratios related to: Profitability, Liquidity, Efficiency, Position.

Explain the interrelationships between ratios.

Calculate and interpret the relationship between the elements of the financial statements regarding profitability, liquidity, efficient use of resources and financial position.

Draw valid conclusions from the information contained within the financial statements and present these to the appropriate user of the financial statements.

Test your knowledge across all Section I topics

Identify gaps before moving to the next section