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Course Content

  • Strategic position
  • Strategic choices
  • Strategic action
  • Business process change
  • Information technology
  • Quality issues
  • Project management
  • Financial analysis
  • People

To introduce the student to the knowledge of basic cost information required for management accounting. To develop the knowledge and ability to recognise, collect and record basic cost and revenue information for planning and control including the use of spreadsheets in management accounting.

This syllabus gives as an introduction to business structure and purpose, and to accountancy as a central business function.

The syllabus commences with an examination of the structure and governance of businesses, briefly introducing ethics. It then looks at business in the context of its environment, including economic, legal, and regulatory influences on such aspects as governance, employment, health and safety, data protection and security.

Financial Accounting introduces the candidate to the fundamentals of financial accounting, explaining its context and purpose with reference to qualitative characteristics of useful financial information and to the fundamental bases of accounting.

The syllabus then concentrates in depth on the basics of the doubleentry system and on recording, processing, and reporting business transactions and events.

The syllabus then covers the use of the trial balance and how to identify and correct errors, and then the preparation of financial statements for incorporated and unincorporated entities.

To introduce the fundamental principles of accounting and to develop the knowledge and understanding of the techniques used to maintain accounting records.
To produce accounting records including ledger accounts, sales tax records (where applicable), control accounts, reconciliations, and extract and correct an initial trial balance also making the adjustments necessary to produce an extended trial balance. The syllabus also covers accounting for the business transactions of sole traders and partnerships.

Financial Accounting introduces the candidate to the fundamentals of financial accounting, explaining its context and purpose with reference to qualitative characteristics of useful financial information and to the fundamental bases of accounting.

The syllabus then concentrates in depth on the basics of the doubleentry system and on recording, processing, and reporting business transactions and events.

The syllabus then covers the use of the trial balance and how to identify and correct errors, and then the preparation of financial statements for incorporated and unincorporated entities.

Management Accounting introduces candidates to costing principles and techniques, and elements of management accounting which are used to make and support decision-making.

The syllabus starts by introducing the nature and purpose of cost accounting, distinguishing it clearly from financial accounting. The next section is cost classification and behaviour.

This is followed immediately by applied business mathematics and the use of computer spreadsheets, which are essential for candidates to understand the measurement and behaviour of business costs and to be able to classify them accordingly.

The next area of the syllabus represents a central part of this paper and it introduces candidates to a variety of costing techniques used in business. It is followed by the preparation and use of budgeting and standard costing as essential tools for planning and controlling business costs.

The syllabus finishes with an introduction to the use of management accounting in supporting decision-making.

Financial Management is designed to equip candidates with the skills that would be expected from a finance manager responsible for the finance function of a business.

The paper, therefore, starts by introducing the role and purpose of the financial management function within a business. Before looking at the three key financial management decisions of investing, financing, and dividend policy, the syllabus explores the economic environment in which such decisions are made.

The syllabus begins by introducing more specialised management accounting topics. There is some knowledge assumed from Paper F2 – primarily overhead treatments. The objective here is to ensure candidates have a broader background in management accounting techniques.

The syllabus then considers decision-making. Candidates need to appreciate the problems surrounding scarce resource, pricing and make-or-buy decisions, and how this relates to the assessment of performance. Risk and uncertainty are a factor of real-life decisions and candidates need to understand risk and be able to apply some basic methods to help resolve the risks inherent in decision-making. Budgeting is an important aspect of many accountants’ lives.

The syllabus explores different budgeting techniques and the problems inherent in them. The behavioural aspects of budgeting are important for accountants to understand, and the syllabus includes consideration of the way individuals react to a budget. Standard costing and variances are then built on. All the variances examined in Paper F2 are examinable here.

The new topics are mix and yield variances, and planning and operational variances. Again, the link is made to performance management. It is important for accountants to be able to interpret the numbers that they calculate and ask what they mean in the context of performance.

The syllabus concludes with performance measurement and control. This is a major area of the syllabus. Accountants need to understand how a business should be managed and controlled. They should appreciate the importance of both financial and non-financial performance measures in management. Accountants should also appreciate the difficulties in assessing performance in divisionalised businesses and the problems caused by failing to consider external influences on performance.

Management Accounting introduces candidates to costing principles and techniques, and elements of management accounting which are used to make and support decision-making.

The syllabus starts by introducing the nature and purpose of cost accounting, distinguishing it clearly from financial accounting. The next section is cost classification and behaviour.

This is followed immediately by applied business mathematics and the use of computer spreadsheets, which are essential for candidates to understand the measurement and behaviour of business costs and to be able to classify them accordingly.

The next area of the syllabus represents a central part of this paper and it introduces candidates to a variety of costing techniques used in business. It is followed by the preparation and use of budgeting and standard costing as essential tools for planning and controlling business costs.

The syllabus finishes with an introduction to the use of management accounting in supporting decision-making.

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