The recognised standard

Unit: Accounting Principles

Summary

Develops a solid understanding of fundamental accounting principles and techniques and is ideal for those working in an analytical or managerial role.

Syllabus Topics

1. Accounting principles and techniques (30%) 
• Reasons for keeping accounts
• Account, ledger and transaction types
• The accounting equation
• Rules of double entry, cash and credit transactions, VAT, and discounts
•  Use of control accounts to ensure ledger accuracy.

2. Trial balance and financial statements (20%) 
• Trial balances as platform for financial statements.
• Error correction, undetected errors and suspense account.
• Statements: Income, Financial Position and Retained Earnings Reconciliation.
• Adjustments to monetary values (incl. accrued/prepaid items, depreciation, bad debts, allowance for doubtful debt)
• Concepts, conventions and accounting standards.

3. Differences in financial reporting (10%) 
• Sole trader and micro, small, medium, and large company reporting.
• Regulatory/legal requirements (FRS/UK Companies Act)
• Company report content by management and auditors.
• Relative usefulness to credit managers.

4. Budgetary control (20%) 
• Budgetary control process.
• Different budget types
• Cash budgets and relevance
• Variance analysis

5. Business performance (20%) 
• Working capital
• Cash operating cycle
• Ratio calculation and meaning
• Business performance measurement