acca paper f1 – accountant in...

ACCA Paper F1 –

Accountant in Business

TutorThomas Kane

Introduction

Accountant in Business Course

• Business Environment• Influence on Organisations• Role of Accountant• Other Business Functions• Effective, efficient and ethical organisation• Basic Principles of effective management

Introduction

Structure of the Course – 12 Lectures

• Class 1 – Business Organisations and their Stakeholders, The Business Environment (Ch1&2)

• Class 2 – The Macro-Economic Environment (Ch3)

• Class 3 – Micro Economic Factors (Ch4)• Class 4 – Business Organisation, Structure and

Strategy, Organisational Culture and Committees (Ch5&6)

Introduction

Structure of the Course

• Class 5 – Corporate Governance and Social Responsibility (Ch7)

• Class 6 – The Role of Accounting (Ch8)• Class 7 – Control, Security and Audit, Identifying

and Preventing Fraud (Ch9&10)• Class 8 – Leading and Managing People,

Recruitment and Selection (Ch11&12)

Introduction

Structure of the Course

• Class 9 – Diversity and Equal Opportunities, Individuals, Groups and Teams (Ch13&14)

• Class 10 – Motivating Individuals and Groups, Training and Development (Ch15&16)

• Class 11 – Performance Appraisal, Personal Effectiveness and Communication (Ch17&18)

• Class 12 – Ethical Considerations (Ch19)

Introduction

Exam – 2 hours

• Section A – 46 Multiple Choice Compulsory Questions

• Section B – 6 Multi-Task Compulsory Questions

Chapter 1

Topics

• Type of Business Organisation• Stakeholders

Types of Business

Organisation

An Organisation

• A social arrangement which pursues collective goals, that controls its own performance and has a boundary separating it from its environment.

Types of Business

Organisation

Organisations are more productive:

• Overcoming individual limitations• Saving time• Sharing accumulated knowledge• Synergy• Specialisation

Types of Business

Organisation

How do organisations differ from one another:

• Ownership – public or private• Control• Activities• Profit Orientation• Legal Status

Types of Business

Organisation

How do organisations differ from one another:

• Size• Sources of Finance• Technology Usage

Types of Business

Organisation

Which of the following is not an organisation?

• Ryanair• Simon Community• Irish Rugby Supporters• Deloitte

Types of Business

Organisation

Which of the following is not an organisation?

• KPMG• The Irish Army• Fianna Fail Voters• Microsoft

Stakeholders

Definition

• The individuals or groups that have an interest in what the organisation does are it’s stakeholders.

Stakeholders

Three main groups of stakeholders

• Internal• External• Connected

Stakeholders

Internal Stakeholders

• Employees• Management

Stakeholders

External Stakeholders

• Community• Government• Pressure Groups

Stakeholders

Connected Stakeholders

• Shareholders• Customers• Suppliers• Financiers

Stakeholders

Primary Stakeholders

• Direct Interest in an organisation• E.g. Employees, Investors who rely on

organisation for financial well being

Stakeholders

Secondary Stakeholders

• Indirect Interest in an organisation• E.g. Community or government

Stakeholders

Mendelow’s Matrix

Stakeholders

Under Mendelow’s matrix, how should an organisatio treat a stakeholder who has low interest and high power?

• Keep satisfied• Keep informed• Monitor• Engage actively

Chapter 2

Topics

• Analysing the environment• Employment Protection• Data Protection• Health and Safety Protection• Social, cultural and technological trends• Michael Porter

Analysing the Environment

General Environment

• Physical Environment• Macro Environment

Analysing the Environment

Macro Environment

• Political/ Legal Factors• Economic Factors• Socio-Cultural Factors• Technological Factors

Analysing the Environment

Task Environment

• Customers• Suppliers• Competitors

Analysing the Environment

Practical Example – Identify the macro environmental factors affecting the hotel industry

• Political/Legal• Economic• Socio-Cultural• Technological

Analysing the Environment

Practical Example – Identify the macro environmental factors affecting the hotel industry

• Political/Legal– Employment Law– Health and Safety Law– Data Protection Law– Tax Law– Other Government Activities

Analysing the Environment

Practical Example – Identify the macro environmental factors affecting the hotel industry

• Economic– Recession– Less Foreign Tourists– Less Disposable Income– More Labour available at a lower cost (subject to min

wage)– Very Competitive marketplace

Analysing the Environment

Practical Example – Identify the macro environmental factors affecting the hotel industry

• Socio-Cultural– Culture of holidaying abroad during boom– Culture of holidaying at home during recession– What types of holidays are popular?

Analysing the Environment

Practical Example – Identify the macro environmental factors affecting the hotel industry

• Technological– Online Marketing– Online Bookings– In-hotel Wi-Fi– TVs, phones

Analysing the Environment

What does the government do that influences an industry

• Product Standards• Environmental Protection Laws• Monetary Policy - ECB• Research & Development Policy• Regional Policy• Labour

Analysing the Environment

Potential Government Impact an Industry

• Capacity Expansion• Demand for products and services• Divestment• Emerging Industries• Entry barriers• Competition

Analysing the Environment

International Trade

• May be a higher level of political risk• Comparative Advantage• Protectionism

Employment Protection

Legislation

• Retirement• Resignation• Dismissal• Disciplinary procedures• Redundancy• Equal Opportunities

Employment Protection

Life Cycle of an Employee

• Recruitment and selection – Equal Opportunities• Performance – Disciplinary Procedures• Termination – Retirement, Resignation,

Dismissal, Redundancy

Data Protection

Legislation

• Data Protection Act 1988• Data Protection (Amendment) Act 2003

Data Protection

Definitions

• Data is any information in a form that can be processed

• Processing means performing any operation or set of operations on data, including storage

Data Protection

Data Protection Principles

• Data should be processed fairly and lawfully• Obtained for specified and lawful purposes• Adequate, relevant and not excessive• Accurate and up to date• Not kept for longer than necessary• Processed in accordance with the rights of data

subject

Data Protection

Data Protection Principles

• Measures taken against unauthorised use• Not transferred to countries where data

protection rights are not upheld

Data Protection

Example 1 – Unfair Processing

• HSE used video clips of foster family for training purposes

Data Protection

Example 2 – Obtaining Data

• Employee moved employment and took the client list to his new employment and contacted them on behalf of his new employer

Data Protection

Example 3 – Excessive Data

• Individual asked for DOB and mother’s maiden name when applying for pet insurance

Data Protection

Example 4 – Accurate & up to date

• Financial institution failed to inform the credit bureau that an individual’s loan had been paid back on time

Data Protection

Example 5 – Retention

• Rental car company holding credit card details from previous transactions charge the credit card for disputed charge

Data Protection

Example 6 – Unauthorised Use

• Employee of an insurance company uses employers computer system to look up third party to an accident the employee was engaged in

Data Protection

Example 7 – Holding data outside the EU

• Global companies warehousing data in a single location

Health & Safety Protection

Legislation

• Safety, Health & Welfare at Work Act 2005 and 2010

• Health & Safety Authority

Health & Safety Protection

Employer Duties

• Work Practices must be safe• Environment must be safe• Plant/machinery must be maintained• Employees must be trained adequately• Communication of H&S policies• Risk Assessment and Controls

Health & Safety Protection

Employer Duties

• Share Information• Identify the most at risk• Employ Competent Advisors

Health & Safety Protection

Employee Duties

• Take reasonable care• Allow employer to carry out duties• Not interfere with machinery• Inform employer of risks• Use equipment properly

Health & Safety Protection

Health & Safety Policy

• Statement of Principles• Safety Procedures• Compliance with law• Equipment Instructions• Training Requirements