The accounting equation, the dual aspect, debits and credits, ledgers, the trial balance and the full accounting cycle from source document to financial statements.
Preparing the income statement and statement of financial position for a sole trader, including cost of sales, gross and profit for the year, and the capital account.
The accounting concepts, year-end adjustments for accruals, prepayments, irrecoverable debts and provisions, and the role of ethics and the professional accountant.
Capital and revenue expenditure, depreciation by the straight-line and reducing-balance methods, the disposal of non-current assets and the asset disposal account.
The partnership agreement, the appropriation account, capital and current accounts, interest on capital and drawings, and changes in partnership.
Share capital, ordinary and preference shares, debentures, rights and bonus issues, reserves, and the statement of changes in equity.
The format of published financial statements, relevant International Accounting Standards, the qualitative characteristics and the elements of the statements.
Preparing a statement of cash flows under IAS 7, operating, investing and financing activities, and reconciling profit to cash from operations.
Profitability, liquidity, efficiency and gearing ratios, their formulae and interpretation, and the limitations of ratio analysis.
Prime cost, factory overheads, the manufacturing account, work in progress, the transfer to the income statement and manufacturing profit.
Fixed and variable costs, contribution, break-even analysis, marginal vs absorption costing and the reconciliation of profit between the two methods.
The purpose of budgets, preparing sales, production, purchases and cash budgets, and budgetary control through comparison with actual results.
Standard costs, material, labour and sales variances, splitting variances into price/rate and usage/efficiency, and interpreting favourable and adverse variances.
Payback period, accounting rate of return and net present value, discounting cash flows, and choosing between competing projects.