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 .

GridWeightage
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                       

icmap syllabus of O1 Fundamentals of Financial Accounting:

icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting icmap syllabus of O1 Fundamentals of Financial Accounting

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