Financial Accounting, Diploma Level

INFORMATION ABOUT THE FINANCIAL ACCOUNTING SYLLABUS

Syllabus changes since December 2007: The syllabus now incorporates International Generally Accepted Accounting Practices (IGAAP), and international terminology. Thus, students should ensure that they are conversant with International Financial Reporting Standards (IFRS) rather than UK standards, international format for financial statements (i.e. Income Statement, Statement of Financial Position (Balance Sheet), Cash Flow and Statement of Recognised Gains and Losses), and that they use the following terminology: Income statement for profit and loss statement Non-current assets for fixed assets Revenue for turnover Trade receivables for trade debtors Trade payables for trade creditors Inventory for stock Enterprise for entity/company

Students should note that the following items are additions to the syllabus: Describe the role and scope of auditing in business both external and internal auditing. Identify the main characteristics of useful information. Describe and explain the treatment of goodwill in consolidated accounts in accordance with IGAAP. Describe and explain working capital management.

The following items have been emphasised in the current syllabus more than in the old Accounting syllabus (pre-December 2007) and therefore candidates should ensure they study these areas in some depth: Explain the twelve traditional accounting concepts. Prepare consolidated accounts i.e. Statements of Financial Position (Balance Sheets) and Income Statement for a holding company and its subsidiary both at the date of acquisition and for subsequent periods. Describe and explain the various sources of finance available to businesses, long-term shareholders and financial institutions, short-term bank overdraft, short-term loans, hire purchase, leasing, debt factoring, internal cash flow.