Financial Accounting syllabus

Financial Accounting

• 1 Basic Understanding of Financial Accounting (2 LHs)

  • Financial accounting concepts, objectives and scope
  • Book-keeping, accounting and accountancy
  • Accounting information quality, users and financial statement elements
  • Limitations of financial accounting
• 2 Conceptual Framework of Accounting (3 LHs)

  • GAAP and basic accounting concepts
  • Consistency, conservatism, materiality and disclosure
  • Cash versus accrual accounting
  • NAS, IAS, NFRS, IFRS and NFRS disclosures
• 3 Accounting Process (8 LHs)

  • Accounting events and accounting equation
  • Debit/credit rules; journal, ledger and trial balance
  • Opening and closing entries
  • Adjusting entries for prepaid and outstanding items
  • Adjusted trial balance
• 4 Accounting for Cash and Bank Reconciliation Statements (4 LHs)

  • Cash, bank and bank-account types
  • Cheques: types, parties, honor and dishonor
  • Bank statement and bank reconciliation preparation
• 5 Accounting for Property, Plant and Equipment (4 LHs)

  • PPE types and acquisition cost
  • Straight-line, diminishing-balance and units-of-activity depreciation
  • Disposal and effect of depreciation on profit
  • Intangible assets; capital versus revenue
• 6 Basic Financial Statements (18 LHs)

  • NAS 1, 2, 7, 8, 10 and 16
  • Profit-or-loss statement
  • Statement of financial position
  • Other comprehensive income
  • Changes in equity
  • Cash flow statement: direct and indirect methods
• 7 Value Added Statement (3 LHs)

  • Value added concept and applications
  • Prepare statement of value generated and applied
• 8 Analysis of Financial Statement (6 LHs)

  • Horizontal, vertical, trend, comparative and common-size analysis
  • Ratio analysis concepts and limitations
  • Liquidity and capital-structure ratios
  • Efficiency and profitability ratios
  • Earnings evaluation: EPS, DPS and price-earnings ratio