Tiêu đề Financial Accounting.pdf ✅

FINANCIAL ACCOUNTING Page 1 FINANCIAL ACCOUNTING CPA FOUNDATION LEVEL STUDY TEXT Revised: September 2021
FINANCIAL ACCOUNTING Page 2 SYLLABUS FINANCIAL ACCOUNTING GENERAL OBJECTIVE This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to prepare financial statements for different entities LEARNING OUTCOMES A candidate who passes this paper should be able to: • Prepare books of original entry and basic ledger accounts under double entry system • Prepare basic financial statements of sole traders. partnerships, companies and manufacturing entities and not for profit organisations • Comply with the regulatory framework in the accounting field • Account for assets and liabilities • Analyse financial statements by use of ratios and statement of cash flows CONTENT 1. Introduction to Accounting - The nature and purpose of accounting - Objectives of accounting - Users of accounting information and their respective needs - The accounting equation - Reguratory framework of accounting (regulatory bodies such as ICPAK, IFAC, IASB, IPSAB - Accounting standards (IAS/IFRS), (Importance and limitations) - Professional ethics - Accounting concepts/principles - Qualities of useful accounting information 2 Recording transactions - Source documents (quotations_ purchases order, statement of account. remittance advice, receipts, petty cash vouchers_ sales arid purchase invoices, credit notes and debit notes, bank statements) - Books of original entry: sales journal, purchases journal, returns inward, returns outward journal, cashbook, petty cashbook and general journal - Double entry and the ledger; general ledger, sales ledger, purchases ledger - The trial balance - Computerised accounting systems- Role of computers, application and accounting softwares in the accounting process, benefits and challenges of operating computerised accounting systems

FINANCIAL ACCOUNTING Page 4 8. Financial statements of a manufacturing entity - Features of a manufacturing entity - Classification and apportioning costs between manufacturing and selling and administration - Financial statements - manufacturing account, income statement and statement of financial position 9. Accounts from incomplete records - Features - Types of incomplete records (Pure single entry, simple single entry, quasi single entry) - Ascertaining of profit by capital comparison - Preparation of statement of affairs and profit determination - Techniques of obtaining complete accounting information 9. Financial statements of a not-for-profit organisation - Distinction between not for profit making organisation and profit making organisation - Nature of receipts and payments accounts - Accounting treatment of some special items - Income and expenditure account - Statement of financial position 10. Analysing financial statements - Statement of cash flows (categories of cash, methods of preparing statement of cash flows and the importance) - Financial ratios — definition, categories, analysis and interpretation, application and limitations 11. Introduction to public sector Accounting - Features of public sector entities (as compared to private sector) - Structure of the public sector (National and county governments: state corporations and other agencies) - Regulatory structures and oversight [IPSASB, PSASB (establishment, mandate and functions), Director of Accounting Services, National Treasury, Parliamentary Committees. Accounting Officers at national and county levels] - Objectives of public sector financial statements - Objectives of IFSAS - Accounting techniques in public sector (budgeting, cash, accrual: commitment and fund) (Preparation of financial statements should be excluded) 12. Emerging issues and trends