1

l Accounting

signed to help nd to provide detailed

d in tion session.

AND

apers

s eding oerpinne

nce . Thes

r paperh other

en the accounting aninks between these are sho

as dotted line arrows. This diagram indicates wheknowledg previous

the syllabus

of the the broadest sense the

ral mai the syllabus and study

guide into discrete sections. Relational diagram of the main capabilities This diagram illustrates the flows and links between the main capabilities (sections) of the syllabus and should be used as an aid to planning teaching and learning in a structured way.

Syllabus rationale

the syllabus is ties are linked.

The rationale also explains in further detail what the ination intends to assess and why.

This shows the breakdown of the main capabilities abus into subject areas. This is

the blueprint for the detailed study guide.

ing the syllabus This section briefly explains the structure of the

ssed.

at students, tuition hould use as the basis of

ials. the detail of the

ely identifies what nation session.

tion and ivided into sections

lities identified in the ivided into subject

es included yllabus. Subject areas are broken

down into sub-headings which describe the detailed ssed in examinations.

may require students to the broad intellectual level at

monstrated

shers: BPP ishing.

Both these publishers base their study texts on the detailed contents of the study guides as published by ACCA. ACCA takes no editorial responsibility for the detailed content of these study texts although ACCA examiners will annually review their content for general appropriateness and relevance in supporting effective study towards ACCA examinations. In addition ACCA examiners will recommend other

Financia(INT) (F3) December 2009 This syllabus and study guide is dewith planning study ainformation on what could be assesseany examina

THE STRUCTURE OF THE SYLLABUSSTUDY GUIDE Relational diagram of paper with other p This diagram shows direct and indirect linkbetween this paper and other papers prec r

Study Guide following it. Some papers are directly und d by other papers such as Advanced PerformaManagement by Performance Management e This is the main document th

links are shown as solid line arrows. Othe s providers and publishers s

only have indirect relationships with eacsuch as links existing betwe d auditing papers. The l wn study guide which comprehensiv

re could be assessed in any exami

you are expected to have underpinning e The study guide is a precise reflec

and where it would be useful to reviewlearning before undertaking study. Overall aim of This explains briefly the overall objectivepaper and indicates in capabilities to be developed within the paper. Main capabilities This papers aim is broken down into seve n (*see intellectual levels below).

capabilities which divide

This is a narrative explaining how structured and how the main capabili

exam

Detailed syllabus

(sections) of the syll

Approach to examin

examination and how it is asse

their studies, instruction and materExaminations will be based on

breakdown of the syllabus. It is dbased on the main capabisyllabus. These sections are dareas which relate to the sub-capabilitiin the detailed s

outcomes that could be asseThese outcomes are described using verbs indicating what exams demonstrate, andwhich these may need to be de

Reading lists ACCA has two official publiLearning Media and Kaplan Publ

2

dents ma the

ant articles will also btant.

broadend professionaon their way

The specific capabilities within the detailed ssessed at one

e levels:

relate to theowledge

onal le

ide , or markedn ch an ar. Howe

nowledgeule and

the Professional level, some lower levelue to be assessed as the student gh each module and level. This

re will be a

casionally sed a

G HOURS The ACCA qualification does not prescribe or recommend any particular number of learning hours for examinations because study and learning patterns and styles vary greatly between people and organisations. This also recognises the wide diversity of personal, professional and educational circumstances in which ACCA students find themselves.

23 and 35 main on the nature of

the subject and how these areas have been broken

E

.

The Fundamentals level examinations contain 100% compulsory questions to encourage

readth of each

d by equivalent puter based

re all paper based -hour papers. The structure of papers varies

from ten questions in the Corporate and Business rk questions in

ividual questions between

10 and 30 marks.

all three-hour paper based examinations, all containing two

y, but there will be

apers, ACCA has d planning time.

t the beginning of allow candidates to

lanning their efore they start writing in their answer

books. This time should be used to ensure that all the information and exam requirements are properly read and understood. During reading and planning time candidates may only annotate their question paper. They may not write anything in their answer booklets until told to do so by the invigilator.

text books where appropriate, which stu y Each syllabus contains betweenread in order to widen their reading beyondapproved study texts. Relev e published in student accoun

INTELLECTUAL LEVELS The syllabus is designed to progressively and deepen the knowledge, skills an l between modules and levevalues demonstrated by the student through the qualification.

syllabuses and study guides are a of syllabus. three intellectual or cognitiv

Level 1: Knowledge and comprehension Level 2: Application and analysis Level 3: Synthesis and evaluation Very broadly, these intellectual levels threethree cognitive levels at which the Knmodule, the Skills module and the Professi vel Law (F4) paper to four 25 maare assessed. Each subject area in the detailed study guincluded in this document is given a 1, 23 superscript, denoting intellectual level, at

The Professional level papers are

the end of each relevant line. This gives aindication of the intellectual depth at whi

ationea ver,

sections. Section A is compulsorsome choice offered in Section B. For all three hour examination pintroduced 15 minutes reading an

could be assessed within the examinwhile level 1 broadly equates with the Kmodule, level 2 equates to the Skills modlevel 3 to skills can continprogresses throureflects that at each stage of study the

This additional time is allowed aeach three-hour examination toread the questions and to begin panswers b

requirement to broaden, as well as deepen capabilities. It is also possible that ocsome higher level capabilities may be asses t lower levels. LEARNIN

subject area headings depending

down.

GUIDE TO EXAM STRUCTUR The structure of examinations varies within and

ls

candidates to study across the b

The Knowledge module is assessetwo-hour paper based and comexaminations. The Skills module examinations a

Financial Management (F9). Indodule papers will attractwithin all Skills m

3

Section with all

this nts a choice of two fro

ns ns, ea

Section B woffer a choice of two from three questions totallin

attracting arks.

ation

T

xaminat n techniques, s specified.

ssuranced

le ctly

ld potentially be ions..

issued olation passed on or before 30 September

ne 1st of the ear after.

June 200 , mber 2009 (and March 2010 where

ulations issuedmbe

e above dates may be the

hen regulation or legislation has been formally approved. The term effective relates to when regulation or legislation must be applied to an entity transactions and business practices. The study guide offers more detailed guidance on the depth and level at which the examinable documents will be examined. The study guide

re be read in conjunction with the examinable documents list.

inable for the June le for corresponding tween the start of d the beginning of

inations are also examinable for the corresponding computer based examinations between the start of the December examination session and the beginning of June.

The Essentials module papers all have a A

examinable even if the effective date is infuture.

The term issued or passed relates to w

should therefocontaining a major case study question requirements totalling 50 marks relating to case. Section B gives stude m

ch ill

g

Computer based examinations Documents listed as being examexaminations are also examinabcomputer based examinations bethe June examination session anDecember. Documents which are examinable for the December exam

three 25 mark questions. Section A of each of the Options papers contai50-70 compulsory marks from two questioattracting between 25 and 40 marks.

30-50 marks, with each question between 15 and 25 m

The pass mark for all ACCA Qualificexamination papers is 50%. GUIDE TO EXAMINATION ASSESSMEN ACCA reserves the right to examine anything

any econtained within the study guide atsession. This includes knowledge,

io

principles, theories, and concepts a For the financial accounting, audit and a , law and tax papers except where indicateotherwise, ACCA will publish examinabdocuments once a year to indicate exawhat regulations and legislation couassessed within identified examination sess For paper based examinations regulation legis th

r

annually, will be assessed from Jufollowing year to May 31st of the yTherefore, paper based examinations inDece

9

applicable) will be assessed on regand legislation passed on or before 30 Septe

r

2008.

Regulation issued or legislation passed in accordance with th

4

Syllabus

MAIN CAPABILITIES

uccessful completion of this paper, candidates

tal

d

tifying

On s

should be able to:

ding of the underlying principles and concepts relating to financial accounting anduse of double-entry accounting techniques including the preparation of basic financial statements

A. Explain the context and purpose of financial

ve characteristics of d the fundamen

accounting

e use of double-entry an

D. Record transactions and events

including iden and correcting errors)

pare basic financial statements for incorporated and unincorporated entities.

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

AIM To develop knowledge and understan

technical proficiency in the F. Pre

reporting B. Define the qualitati

FA (F3)

FR (F7)

CR (P2)

financial information anbases of

C. Demonstrate thAB (F1) accounting systems

E. Prepare a trial balance (

The context and purpose of financial reporting

(A)

The qualitative characteristics of financial information and

the fundamental bases of accounting (B)

Recording

The use of double-entry and accounting systems (C)

Preparing a trial balance (E)

transactions

and events (D)

Preparing basic financial statements (F)

5

RATIONALE

counting,

s context and teristics

syllabus thouble

ing, and . The

e use of the trial balance ahow to identify and correct errors, and then the

ncial statements for incorporatn

ncial reporting

of, financial reporting

2.

lements of financial reports

ncial es of

accounting

itative characteristics of financial

2. used in the preparation of financial information

of double-entry and accounting

1. Double-entry book-keeping principles includ g the maintenance of accounting records and sources of information 2. Ledger accounts, books of prime entry, and journals 3. Accounting systems and the impact of information technology on financial reporting

D Recording transactions and events

1. Sales and purchases

. Cash

Tangible non-current assets

5. Depreciation

6. Intangible non-current assets and amortisation

prepayments

ayables

nd contingencies

10. Capital structure and finance costs

E Preparing a trial balance

lance

ion of errors

reconciliations

s

accounts

financial statements

1. Statements of financial position

Income statements and statements of comprehensive income

3. Events after the reporting period 4. Accounting for partnerships 5. Statements of cash flows (excluding

partnerships) 6. Incomplete records

The syllabus for Paper F3, Financial Acintroduces the candidate to the fundamentals of financial accounting, explaining itpurpose with reference to qualitative characof useful financial information and to the fundamental bases of accounting. The concentrates in depth on the basics of the dentry system and on recording, processreporting business transactions and eventssyllabus then covers th

en 4. -

nd

preparation of fina ed a d unincorporated entities.

DETAILED SYLLABUS A The context and purpose of fina 1. The reasons for, and objectives

Users and stakeholders needs

3. The main e

4. The regulatory framework B The qualitative characteristics of fina information and the fundamental bas

1. The qual reporting

Alternative bases

C The use systems

in

2

3. Inventory

7. Accruals and

8. Receivables and p

9. Provisions a

1. Trial ba

2. Correct

3. Control accounts and 4. Bank reconciliation 5. Suspense

F Preparing basic

2.

6

er-based ons will

ill include both tional elements.

The examination will consist of 40 two mark questions, and 10 one mark questions.

APPROACH TO EXAMINING THE SYLLABUS The syllabus is assessed by a two hour papor computer-based examination. Questiassess all parts of the syllabus and wcomputational and non-computa

7

Study Guide A PURPOSE OF

1. The reasons for and objectives of financial

) g,

ncial data.[1]

b) Identify and define types of business entity

ty

) een a so

ility

d antages and disadvantages ooperating as a limited liability company, sole

) d scope

) ts and

3. The main elements of financial reports

) of each of

b ilities, equity,

4. ) system

s of the International Accounting Standards Committee Foundation (IASCF), the International Accounting Standards Board (IASB), the Standards Advisory Council (SAC) and the International Financial Reporting Interpretations Committee (IFRIC).[1]

b) Understand the role of International Financial

Reporting Standards.[1]

HARACTERISTICS OF N AND THE

ACCOUNTING

1. The qualitative characteristics of financial

understand and apply accounting ts and qualitative characteristics:[1]

ir presentation oing concern ccruals

cy

e Reliability

thful representation stance over form

xii)Completeness

)Understandability

een qualitative

ternative bases used in the preparation of

a) Identify and explain the main characteristics of ses e.g. historical cost, ealisable value,

nd disadvantages

ting.[1]

c) Understand the provision of International Financial Reporting Standards governing financial statements regarding changes in accounting policies.[1]

d) Identify the appropriate accounting treatment if

a company changes a material accounting policy.[1]

THE CONTEXT ANDFINANCIAL REPORTING

reporting

a Define financial reporting recordinanalysing and summarising fina ii) G

iv) Consistensole trader, partnership, limited liabilicompany.[1]

c Recognise the legal differences betwtrader, partnership and a limited liabcompany.[1]

le viii)Fai

) Identify the adv f

xiii)Comparability xivtrader or partnership.

[1]

e Understand the nature, principles anfinancial reporting.[1]

of xv) Business entity concept

2. Users and stakeholders needs

a Identify the users of financial statemenstate and differentiate between their information needs.[1]

a Understand and identify the purpose

the main financial statements.[1]

) Define and identify assets, liabrevenue and expenses.[1]

The regulatory framework

a Understand the role of the regulatoryincluding the role

B THE QUALITATIVE CFINANCIAL INFORMATIOFUNDAMENTAL BASES OF

reporting a) Define,

cepcon i) Fa

iii) A

v) Materiality vi) Relevanc vii)

ix) Sub x) Neutrality xi) Prudence

b) Understand the balance betwcharacteristics.[1]

2. Al

financial information

alternative valuation bareplacement cost, net reconomic value.[1]

b) Understand the advantages aof historical cost accoun

8

C LE-ENTRY AND ACCOUNTING SYSTEMS

1 iples including the maintenance of accounting

the mainm.[1]

b ifferen

luding: odoice,

emittanceadvice, receipt.

c) tand and apply the concept of double-concept.[1]

d) g

)

ng nisationa

es and deadlines.[1]

nsactions

eceipts.[1]

ry and

nd their

b) Understand and illustrate the uses of journals

s into ledger

c) ven narrative d) Illustrate how to balance and close a ledger

account.[1]

3. Accounting systems and the impact of

information technology on financial reporting a) Understand the basic function and form of

accounting records in a typical manual system.[1]

tion and form of accounting records in a typical computerised

[1]

c) Compare manual and computerised accounting

dvantages of [1]

rated accounting

software packages.[1]

TIONS AND EVENTS

1. Sales and purchases

Record sale and purchase transactions in day books.[1]

b) Understand and record sales and purchase

d) Calculate sales tax on transactions and record

the consequent accounting entries.[1]

ed and discounts

[1]

b) Understand the need for a record of petty cash

Describe the features and operation of a petty cash imprest system.[1]

using imprest and non-

e) Understand the importance of, and identify

controls and security over the petty cash system.[1]

3. Inventory a) Recognise the need for adjustments for

inventory in preparing financial statements.[1]

THE USE OF DOUB

. Double-entry book-keeping princ

records and sources of information

a) Identify and explain the function of data sources in an accounting syste

) Outline the contents and purpose of dtypes of business documentation, incquotation, sales order, purchase order, go

t e) Understand the uses of integ

s received note, goods despatched note, invstatement, credit note, debit note, r

[1]

D RECORDING TRANSAC

Unders

entry accounting and the duality

Understand and apply the accountinequation.[1]

e Understand how the accounting systemcontributes to providing useful accountiinformation and complies with orgapolici

l

f) Identify the main types of business trae.g. sales, purchases, payments, r

2. Ledger accounts, books of prime entjournals

a) Identify the main types of ledger accounts and books of prime entry, and understanature and function.[1]

and the posting of journal entrieaccounts.[1]

Identify correct journals from gi .[1] d) Account for petty cash

imprest methods.[1]

b) Understand the basic func

system.

systems.[1]

d) Identify advantages and disa

computerised accounting systems.

a)

ledger accounts and in

returns.[1]

c) Understand the general principles of the

operation of a sales tax.[1]

e) Account for discounts allowreceived.[1]

2. Cash a) Record cash transactions in ledger accounts.

transactions.[1] c)

9

b) Record opening and closing inventory.[1]

c) y the alternative methods of valuing

d) Understand and apply the IASB requirement

) ded in

.

d perio

) y usin

nd AVCO (average cost).[1]

h ng concepts entory.[1]

inventory valuation

methods on profit and on assets.[1]

4. current assets

a) urrent assets.[1]

current and

ent assets.[1]

c) n capital and revenue items. [1]

d enue

) uisition

t assets.[1]

f) d ecord profits or losses on

e income cluding part exchange

transactions.[1]

g) Record the revaluation of a non-current asset in

ledger accounts, the statement of comprehensive income and in the statement of financial position.[1]

h) Calculate the profit or loss on disposal of a

revalued asset.[1]

urrent asset balances and movements are disclosed in financial

[1]

j) Explain the purpose and function of an asset gister.[1]

he purpose of

preciation using

educing balance methods.[1]

ces where different would be

ropriate.[1]

expense and are recorded in

counts.[1]

evalued non-ansfer of excess

epreciation between the revaluation reserve and retained earnings.[1]

ments to depreciation

g) Record depreciation in the income statement financial position.[1]

ets and amortisation

se the difference between tangible and intangible non-current assets.[1]

e assets.[1]

and treatment of

research costs and development costs in accordance with International Financial Reporting Standards.[1]

d) Calculate amounts to be capitalised as

development expenditure or to be expensed from given information.[1]

e) Explain the purpose of amortisation.[1]

Identif

inventory.[1]

s refor valuing inventories.[1]

e Recognise which costs should be incluvaluing inventories [1]

f) Understand the use of continuous anend inventory records.[1]

d

g Calculate the value of closing inventorFIFO (first in, first out) a

g

) Understand the impact of accounti

on the valuation of inv

i) Identify the impact of

Tangible non-

Define non-c

b) Recognise the difference betweennon-curr

Explain the difference betwee

) Classify expenditure as capital or rev

expenditure.[1]

e Prepare ledger entries to record the acqand disposal of non-curren

Calculate an rdisposal of non-current assets in thstatement in

i) Illustrate how non-c

statements.

5. Depreciation a) Understand and explain t

depreciation.[1]

b) Calculate the charge for destraight line and r

c) Identify the circumstan

methods of depreciationapp

d) Illustrate how depreciation

accumulated depreciation ledger ac

e) Calculate depreciation on a rcurrent asset including the trd

f) Calculate the adjust

necessary if changes are made in the estimated useful life and/or residual value of a non-current asset.[2]

and statement of 6. Intangible non-current ass a) Recogni

b) Identify types of intangibl

c) Identify the definition

10

f) nd account for the charge for [1]

a) Understand how the matching concept applies

b) Identify and calculate the adjustments needed

aring

accruaal

statements.

d entries l or prepayment.[1]

) on profit ets of accruals and prepayments. ]

) ables

yables.[1]

offering credit

[1]

c) Understand the purpose of an aged receivab

its.[1]]

e) Prepare the bookkeeping entries to write off a

f) Record a (irrecoverable) debt recovered.[1]

g) debts oatement of

on.[1]

h) Prepare the bookkeeping entries to create and

adjust an allowance for receivables.[1]

i) Illustrate how to include movements in the

allowance for receivables in the income statement and how the closing balance of the allowance should appear in the statement of financial position.[1]

n trade receivables [1]

k) Prepare, reconcile and understand the purpose .[1]

Classify items as current or non-current statement of financial

position.

es

f provision, tingent asset.[1]

ssify items as ties or contingent

Identify and illustrate the different methods of accounting for provisions, contingent liabilities

d changes in

in provisions.[1]

inal accounts.[1]

apital structure and finance costs

ucture of a limited mpany including: [1]

edeemable and redeemable)

iii) Loan notes.

ents in the share capital and [1]

c) Identify and record the other reserves which may appear in the company statement of financial position.[1]

d) Define a bonus (capitalisation) issue and its

advantages and disadvantages.[1]

e) Define a rights issue and its advantages and

disadvantages.[1]

Calculate aamortisation.

7. Accruals and prepayments

to accruals and prepayments.[1]

for accruals and prepayments in prepfinancial statements.[1]

c) Illustrate the process of adjusting forand prepayments in preparing financi

[1]

ls a) Understand the definition ocontingent liability and con

) Prepare the journal entries and ledger

for the creation of an accrua e Understand and identify the impact

and net ass [1

8. Receivables and payables

a Explain and identify examples of receivand pa

b) Identify the benefits and costs of facilities to customers.

les 10. C

analysis.[1]

d) Understand the purpose of credit lim

(irrecoverable) debt.[1]

Identify the impact of (irrecoverable)

the income statement and on the stfinancial positi

n share premium accounts.

j) Account for contras betwee

and payables.

of supplier statements l)

liabilities in the [1]

9. Provisions and contingenci

b) Distinguish between and claprovisions, contingent liabiliassets.[1]

c)

and contingent assets.[1]

d) Calculate provisions an

provisions.[1]

e) Account for the movement f) Report provisions in the f

a) Understand the capital strliability co

i) Ordinary shares ii) Preference shares (r

ir

b) Record movem

11

f) bonus ) issue in the statement of

[1]

g) Record and show the effects of a rights issue in ]

h) nd the

in ledger

[1]

the statement of equity.[1]

E

a) Identify the purpose of a trial balance.[1]

b er balances into a trial balance.[1

ng trial balance.[1]

d) stand the limitations of a trial balance.[1]

2.

a) may occur in

[1]

c) ational verning

ents regarding material errors stment.[1]

s.[1]

e) Calculate and understand the impact of errors

on the income statement, statement of comprehensive income and statement of financial position.[1]

3. Control accounts and reconciliations a) Understand the purpose of control accounts for

accounts receivable and accounts payable.[1]

s relate to the double-entry system.[1]

Prepare ledger control accounts from given

d) Perform control account reconciliations for counts payable.[1]

be highlighted by ing a control account reconciliation.[1]

and correct errors in control accounts

[1]

4. Bank reconciliations

ose of bank reconciliations.[1]

b) Identify the main reasons for differences and the bank

statement.[1]

ook errors and/or omissions.[1]

bank reconciliation statements.[1]

bank statement and cash book balances

.[1]

f) Identify the bank balance to be reported in the

e of a suspense account.[1]

b) Identify errors leading to the creation of a

suspense account.[1]

c) Record entries in a suspense account.[1]

d) Make journal entries to clear a suspense

account.[1]

Record and show the effects of a(capitalisationfinancial position.

the statement of financial position.[1

Record dividends in ledger accounts afinancial statements.[1]

accounts receivable and ac

i) Calculate and record finance costs accounts and the financial statements.

j) Identify the components of changes in

E PREPARING A TRIAL BALANC

1. Trial balance

) Extract ledg ]

c) Prepare extracts of an openi

Identify and under

Correction of errors

Identify the types of error which

bookkeeping systems.[1]

b) Identify errors which would be highlighted by the extraction of a trial balance.

Understand the provision of Intern

Financial Reporting Standards gofinancial statemwhich result in prior period adju

d) Prepare journal entries to correct error

b) Understand how control account

c) information.[1]

e) Identify errors which wouldperform

f) Identify and ledger accounts.

a) Understand the purp

between the cash book

c) Correct cash b d) Prepare

e) Derive from given information

final accounts.[1] 5. Suspense accounts a) Understand the purpos

12

F G BASIC FINANCIAL STATEMENTS

a) nting equation and

business entity convention underlie the ion.[1]

b reserves.[1]

) mpany

tion.[1]

ncial from given information.

tained earnin s

any statement of financia

2 atements and statements of

comprehensive income

a) an income statement and from given

b) Understand how accounting concepts apply to

) profit

comprehensive .[1]

d diture in

e) Record income tax in the income statement of

ior year.[1]

f) Understand the interrelationship between th

statement of financial position, income statement and statement of comprehensive income. [1]

g) Identify items requiring separate disclosure on

the face of the income statement.[1]

3. Events after the reporting period

he reporting period in ce with International Financial

g or non-adjusting.[1]

Distinguish between how adjusting and non-nts are reported in the financial

statements.[1]

hips

and identify the typical content of hip agreement, including profit-rms.[1]

[1]

ii) Current accounts

shares of

d) Account for guaranteed minimum profit

partners drawings.[1]

f) Calculate and record interest on drawings.[1]

g) Calculate and record interest on capital.[1]

er salaries. [1]

current account.[1]

j) Prepare an extract of a capital account.[1]

it, and statement of inancial position of a partnership.[1]

l) Define goodwill, in relation to partnership

accounts.[1]

m) Identify the factors leading to the creation of

goodwill in relation to partnership accounts.[1]

n) Calculate the value of goodwill from given

information.[1]

PREPARIN

1. Statements of financial position

Recognise how the accou

statement of financial posit ) Understand the nature of

c Identify and report reserves in a costatement of financial posi

d) Prepare extracts of a statement of fina

position [1]

e) Understand why the heading reappears in a comp

g l

position.[1]

. Income st

Prepare extracts of statement of comprehensive incomeinformation.[1]

revenue and expenses.[1]

c Calculate revenue, cost of sales, grossprofit for the year, and total income from given information

,

) Disclose items of income and expenthe income statement. [1]

a company including the under and overprovision of tax in the pr

e including division of proff

a) Define an event after t

accordanReporting Standards.[1]

b) Classify events as adjustin c)

adjusting eve

4. Accounting for partners a) Understand

a partnerssharing te

b) Understand the nature of: i) Capital accounts

iii) Division of profits c) Calculate and record the partners

profit/losses.[1]

shares.[1]

e) Calculate and record

h) Calculate and record partn

i) Prepare an extract of a

k) Prepare extracts of the income statement,

13

ips may include the

5. Statements of cash flows (excluding

a) tween profit and cash flow.[1

to

c) Recognise the benefits and drawbacks to users

atement ofh flows. [1]

d f transactions on cash

e) r the stateme

activities h flows from investing activities iii) Cash flows from financing activities

f)

from statements of cash flows

[1]

h given transactions in a

6 a) Understand and apply techniques used in

incomplete record situations: [1] i) Use of accounting equation ii) Use of ledger accounts to calculate missing

figures iii) Use of cash and/or bank summaries iv) Use of profit percentages to calculate

missing figures.

READING LIST

official publishers:

ing Media Contact number: +44(0)20 8740 2222

Note: Questions on partnersh effect of admission of new partners

partnerships)

Differentiate be ] Websitb) Understand the need for management

control cash flow.[1]

of the financial statements of a stcas

) Classify the effect o

flows.[1]

Calculate the figures needed fo nt of cash flows including:[1] i) Cash flows from operating ii) Cas

Calculate the cash flow from operating activities using the indirect and direct method.[1]

g) Prepare extracts from given information.

) Identify the treatment of

companys statement of cash flows.[1]

. Incomplete records

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