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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
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
