The aim of the examination is to test candidate’s
- understanding of accounting information deriving from all sources-manual, mechanical and electronic
- ability to prepare accounting statements and data in accordance with basic accounting conventions and current accounting practice with reference to
- disclosure of accounting policies
- stocks and long term contracs
- accounting for depreciation
- cash flow statements
- group accounts
- ability to use, appreciate and analytically interpret accounting statements and data
1.0 Questions may be set on topics included in the syllabus for the first level Bookkeeping and Second Level Bookkeeping and Accounts
2.0 Candidates should have an understanding of the recording of transactions, including the influence of information technology upon accounting systems.
3.0 Candidates will be required to prepare accounting statements and data following established concepts and convention, including the Companies Acts, SSAPs and up-to-data presentatios:
(a) Income Statements and balance sheets for sole traders, partnerships, companies and non-trading organizations
(b) Accounting for specific partnership circumstances like changes in partnership interests; dissolution; admission or retirement of partners; conversion into a company
© Accounting for specific company circumstances like issue/redemption of shares or debentures; distributable profits, profits prior to incorporation; amalgamations, reconstructions and capital reduction
(d) Accounting for groups of companies
(e) Accounting for branches(excluding foreign branches);investments, joint ventures and interest on capital
(f) Cash flow statements
(g) Budget, including simple break-even analysis
(h) Accounting ratios, working capital statements
Questions will NOT be set on treatment of taxation in accounts, associate companies and changing price levels.
4.0 Use and interpretation of accounting statements and data
(a) use of accounting statements and other relevant data to measure business performance and to estimate future business performance
(b) use of statement as an aid to management decisions
© understanding the terminology used in accounting statements and other data
(d) appreciation of the effect of accounting concepts and up-to-date accounting methods on final accounting statements
(e) economic, legal and social influences on accounting statements and data
A 3 ½ hour examination. Question 1 will be an extended question, divided into a number of sub-sections, to which 49% of the marks available will be allocated. 3 other questions are to be answered from a choice of 4.
Notes: Calculators are allowed for all levels provided they give no printout, no word display facilities and are silent and cordless.