icmap syllabus of O1 Fundamentals of Financial Accounting

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icmap syllabus of O1 Fundamentals of Financial Accounting

Syllabus GRID:

Here is the grid of Syllabus of Fundamentals of Financial Accounting .

Grid	Weightage
CONCEPTUAL, SYSTEM AND REGULATORY FRAMEWORK 1. Accounting Nature and Objectives 2. Introduction to Financial Accounting 3. Accounting Regulatory Framework 4. Accounting Concepts and Conventions	10%
ACCOUNTING SYSTEMS AND ACCOUNTS PREPARATION 5. Source Documents and Books 6. Double Entry and Ledger accounting 7. Trial balance and Financial statements 8. Accruals and prepayments 9. Tangible non-current assets 10. Intangible non-current assets 11. Bad debts and allowances for receivables 12. Provisions and Contingencies 13. Accounting for Inventories 14. Accounting for Sales Tax 15. Accounting for Payroll 16. Bank Reconciliation’s 17. Control accounts 18. Correction of Errors	50%
FINAL ACCOUNTS 19. Sole traders’ accounts 20. Company accounts 21. Manufacturing accounts 22. Incomplete records 23. Income and expenditure accounts 24. Statements of cash flows 25. Financial Ratios	40%

Detailed Syllabus Contents:

The detailed Syllabus of Fundamentals of Financial Accounting for upcoming attempt is given below.

PART-A

Conceptual, System and Regulatory Framework

1. Accounting Nature and Objectives

Financial Accounting definition & objectives,
Cost Accounting definition & Objectives
Management Accounting definition & Objectives
Difference between financial accounting and cost and management accounting

2. Introduction to Financial Accounting

Explain the meaning and identify the examples of the following terms
Capital
Assets
Liabilities
Expenditures (Capital & Revenue)
Revenue
Accounting Equation
Understand and explain the accounting equation

3. Accounting Regulatory Framework

Define Company Law
Define types of companies as per Company Laws i.e., private and public limited, listed and non-listed companies etc. Guarantee limited company, single Member Company
IAS, IFRS
Define IAS/ IFRS and its role
Explain purpose of implementation company laws, IAS, IFRS in Financial reporting
Accounting bodies
Identify and understand the role of regulatory bodies i. e, IFRS Foundation (IFRSF), the International Accounting Standards Board (IASB), the IFRS Advisory Council (IFRS AC) and the IFRS Interpretations Committee (IFRS IC)

4. Accounting Concepts and Conventions

Accounting Concepts & Principles (Going Concern, Accruals, Prudence, Consistency, Materiality, Substance over form, Business Entity, Money Measurement)
Cost and Values (Historical Cost Convention, Theory of Capital Maintenance, Current Purchasing Power Accounting, Current Cost Accounting, Fair Value, Value to the business)

PART – B

Accounting Systems and Accounts Preparation

5. Source Documents and Books

Identify various Source Documents (Sale & Purchase Order, Credit & Debit Note, GRN) and explain its purpose
Books (Sale day book, Purchase day book, Sales Return day book, Purchase Return day book, Cash book, Petty Cash book)
Concepts and layout
Recording of transaction in books and posting the item in the ledger accounts.

6. Double Entry and Ledger Accounting

Principles of double entry bookkeeping
Journal
Posting from day book to nominal ledger and balance off ledger account
Sales and Purchase accounts, including personal accounts and Control accounts

7. Trial balance and Financial statements

Trial Balance

Need and objective of trial balance
Preparing of trial balance
Need and recording of adjustments
Preparing of Adjusted trial balance

Income Statement, Balance Sheet/Statement of Financial Position

Preparation of basic layout off financial statement and Illustrate some example of financial statements

Accounts Coding System-Define chart of accounts

8. Accruals and prepayments

Accruals and Prepayments

Prepare journal and adjusting entries of accruals and prepayments
Explain the matching concept with related to accruals and prepayments
How the amount of accruals and prepayments are depicted in financial statements?

9. Tangible non-current assets

Depreciation

Purpose of charging depreciation
Methods of calculating depreciation (Straight line, reducing balance and sum of year’s digit)
Compute depreciation where any changes are made in estimated life and value of assets

Accounting treatment of the following:

Re-valuation of non-current assets (Reversal of revaluation is excluded)
Non-current asset disposal
Non-current asset register

10. Intangible non-current assets

Accounting treatment of Intangible Assets

Research and Development Cost

Define research and development cost
Identify the treatment of research and development cost

11. Bad debts and allowances for receivables

Sales and Accounting Concepts

Concept of debtor’s age analysis

Bad and Doubtful Debts

Nature and purpose of bad and doubtful debts
General entries and aging analysis

Bad Debts Recovered

12. Provisions and Contingencies

Categorization of liabilities (current and non-current liabilities)
Cash and Credit Purchases
Define, differentiate and classify Provisions, Contingent liabilities and Assets

13. Accounting for Inventories

What is inventory or stock
Its types; Raw Materials, Work in progress, Finished goods
Valuation of inventory as per IAS 2
Lower of cost or NRV
Valuation of Cost of sales and closing stock under FIFO, LIFO and AVCO (Both periodic and perpetual)
Stock and Work -in-progress
Accounting for Stocks – closing stock
Ledger Accounts for stock
Physical Count
Impact of inventory on Statement of Profit or Loss and Statement of Financial Positions from Trial Balance

14. Accounting for Sales Tax

Principles of Sales Tax (input tax, output tax and net tax)
Bookkeeping Entries for Sales Tax
Define Standard Rated, Zero Rated and Exempt Supplies and impact of zero rated and exempted supply in sales tax.

15. Accounting for Payroll

Define Wages and Salaries (Calculation of wages under piece rate and hourly based system is excluded)
Concept of Gross wages, deductions and net wages
Accounting entries of Wages from the Employee’s Viewpoint
The Wages Book
Accounting for Payroll

16. Bank Reconciliation’s

Concept of Cash book, single column, double column and triple column cash book
Understanding of Bank statement and basic concepts
Reasons of differences between cash book balance and bank statement balance
Identifying differences in balances by ticking
Preparation of revised cash book
Preparation of bank reconciliation statement
Concept of which balance to be shown in statement of financial position

17. Control accounts

Ledger Accounts and the Division of the ledger Understanding of Control Accounts
Use of Control Accounts
Purchase and Sale Day Books (Define and recording of transaction)
Control Accounts Reconciliation

18. Correction of Errors

Types of Errors
Suspense Accounts
Correcting Entries
Impact of correction of errors on financial statements

PART – C

Final Accounts

19. Sole traders’ accounts

Chart of Accounts
Preparation of Financial Statements

20. Company accounts

Types of Limited Company
Company Finance (Define concept)
Financial Statements (extract of financial statement showing form of capita finance)
Issuance of Shares Reserves (Define the concept)
Financial Statements of Companies

21. Manufacturing accounts

Preparation of Manufacturing Accounts

22. Incomplete records

Incomplete Records: Basic Approach
Cash and Bank Transactions
Using Ratios and Percentages (Find out missing figures by using profit percentages)
Preparation of Financial Statements

23. Income and expenditure accounts

Format of Income and Expenditure Accounts
Preparation of Income and Expenditure Accounts
Special Funds (Define Special funds i.e. capital fund, donation, annual subscription, life membership fees)
Preparation of Financial Statements
Interpretation of Accounts

24. Statements of cash flows

Format of a Statement of Cash Flows
Preparation of a statement of Cash Flows by Direct and Indirect Method
Uses of Statement of Cash Flows

25. Financial Ratios

Analysis of Accounting Statements and Use of Ratios
Liquidity, Working Capital and Solvency Ratios
Financial Gearing
Investor Ratios
Possible Drawbacks of Ratio Analysis
Appraising the Position and Prospects of a Business