“TOPIC 1: FINANCIAL ACCOUNTING ‘SUB:TOPIC | OBJECTIVES UNITCONTENTSkiIk, [SUGGESTED LEARNING | SUGGESTED ‘Learners shouldbe able: | atinides and knowledge) | ACTIVITIESAND NOTES | RESOURCES Inodvctionto |* identifyusersof |e Usersof accounting | ‘Mentifyingusersof «ICT tools Accounting | accounting information and their _| accountng information _|¢ Braille ‘and Business | information and their | — information needs. ‘and ther information Ethics information needs | Business edics needs. ‘+ explain the imporance | applications 4+ Explaining importance of ‘of good business + Types of business good business ethics tics organisations ‘Applying business ethics 4 apply basnes ethics = formal intunting projects. in day today business = non-formal. | «Lining ypes of business transactions branches of accounting | organisations + listypes of business ~ financial + Explaining the branches, “organisations accounting of accounting. + explain the branches = financial of accounting reporting = cnstaccounting © management accounting, Accounting | explain the accounting |#Thehistrical cost |¢. Stating the accounting | * ICT tools Concepts concepts convention. concerts, + Published + apply accounting | Theconcept of money |* Discussing applications | financial concepts in preparing | measuremen. ofthe accounting financial statements |e The principle of concepts substance over form. | # Applying accounting = Thepradence concept. | concepts in preparing © Thematching (accruals) | financial statements. cent + Presenting esearch = The concept of data on accounting» | maralty concepts + The consistency ‘Analysing importance of concept the accounting concepts The going concem in preparing financial cmt statements ‘+ The alison concept. | Double entry | explain the concept of |* Accouns for expenses |+ Explaining the concept of * ICT ols uptotheTiial | — double entry ‘and income including, | double entry + Baile Balance | «identify the two prepayments and | Identifying the two accounts involved ina | accruals accounts involved ina transaction 1+ Account of aon ‘wansaction. recor business ‘umeat asses, bilides | + Recording business transactions in double | and capital transactions in double entry Accounts of disposals | entry. + balance off ledger fofnoncurent assets. |+ Balancing off ledger ‘accours Accounts of provision | accounts + diferenice debit for depreciation. ‘+ Distinguishing debit balances from credit | Accounts for bad debts. | balances from credit, balances Accounts of allowances | balances. + exracteiatbalances | fordoubuldebss, | Extracting atria balance from te ledger ‘+ Trial balance. from the ledge 1+ deft acting journal ‘+ Observing double eney ‘entries for accruals, ‘ronsoctions. repayment and ‘+ Distinguishing between depreciation depreciation anprovision fo Urea, bo debs ni allowance for outlast, ‘WalBalance + idenify evo which |» Ew whichdo not + Examining eles of [+ ICT vols andéros | rereveledand ax | afec valbulaness, | exorson wialbalanes. |+ Brae feveled by ial” |* Erorswhichafeet + Identifying erors which balance tial bolancesand | are revealed and not disingush berween | Suspense accouns. | revealed by tial errors whichaffect | + Cometon of errors | balances tal balances and through the journal +. Distinguishing berseen those errs which do. | prope errors which affect tal notaect tial + Preparation of suspense bslanes and thos eons balances aoe Which do aca al conectemorsusing —|s Preparation of Balances jourmalenres Cnet al alances. |* Comecting er sing Drepare suspense | 4 Crecon of gross ual ets. accones ee + Preparing suspense raw up conected |« Comecton af et proit|_—sceouN. tal balances oneelse + Preparing comecte tial draw yp sotenentsof 6 Comecion of working tances, conected et prof |" Gap Drawing wp statemens of eomected ne prof Cory demons | + Gonol accounts ——|* Disasing imporance |» ICT wal Applications | imparance of commol_|¢ Agjusmentstoconral_ ol conrolaplicaions, | « Accounting pplication in| ‘sccouTS and personal [+ Presenting researched | soivare ‘organisations counts dain oncauses of [* Resource persons examine diferences | Reconciliation of difeencesbetween” |= Brae betwcen cont personal ledge bank an cash balances accounts ant personal | talncestocomol |» Preparing consol edger accounts account balances. acts al bank repre contol | * Upset cashbook. | reconciliation sateen secon + Bankreconiiaion [4 Reconciling personal Ident cases of statement. ledger and coool edger diflerencesbetween |» ‘Trextment of bank alances. Cashbookand bank |” overdraft + Comecting eos inthe bualnces + Errors inthe cash book | cashbookand on bank daw pbank sandon the bak Setement reconciaton Sttements, Stems coneet errs inthe ‘sh books on Bak Valuaionof [+ saie the provisions of [+ Taventay vahaion - [+ Ouliningie meaning of |» ICT wols Asses Inceratonal ase Iematonl Accounting | Accounting Accounting Sand?) - Investor vtuaion | Standard ‘oftware cutie the provisions | basis Costar net | Outiningthe meaning of |» Copies of of internation reasble value Intemational Accounting. |" Temtionsl ‘Accouning Standard |* Valuation meds: — | Sanda 16 Accousing 16 Peru ad __| Explaining methods | Staal 2 and‘= explain inventory pevioic wed to value inventory) [16 valuation methods + Firstin Fist Out |* Compuringthe valueof |# Braille ‘© explain aon-current (FIFO) inventory. assets valuation + Weighted Average 6 Comparing inventory methods Cost (AVEO). Valuation methods, ' calculatethe value of |* Non-currentassets Calculating the value of entory valuation A516. ron-Curent assets. ‘© calculate the value of | |* Non-current assets on-current assets valuation methods + Replacement cost = Disposal or exit, value (Net ralisable value Financial |» idenify financial |» Statements of profit |» Identifying financial IGP Tools statements statements that are and Toss and other statements that are ‘© Published prepared fr sole comprehensive income | prepared for sole financial proprictoss, {or soe proprietors, proprietors, partnerships ssarement partnerships, and partnerships and and companies which = Braille Companies which may | companies which may | may be small ¢o medium be small medium | be small o medium scale enterprises or large scale enterprises or scale enterprises ot businesses large businesses large businesses. Identifying elements of ‘© Icemify elemensot |* Statements of changes | the financial statements the financlal Inequlty of companies. | of sole proprietors, statements of sole | Capital and current Partnerships and proprieos, accounts of ‘companies which may be partnerships and partnerships. ‘small to mediumscale | ‘companies which may | Statements of financial | enterprises or large: besmall to medium —| position of sole Dousinesses, scale enterprises or proprietors, ‘+ Effecing year-end large businesses Partnerships and adjustments using the (© effect year-end ‘companies which may | accruals concept adjustments using the | besmall to medium | ¢ Preparing statements of accruals concept ‘= prepare statements of profit and loss and ‘other comprehensive income for sole proprietors, partnerships and ‘companies which may bbe small to medium scale enterprises or large businesses in accordance withthe requirements of IASI ‘© prepare statements of ‘changes in equity ofa company prepare copital and ccurentaccounts of partnership ‘enterprises or large businesses Statements of cash flows (1AS7). [Notes to financial statements, Directors’ reports Auditors reports. profit and loss and other ‘comprehensive income forsole proprietors, partnerships and ‘companies which may be small .o medium scale enterprises or large businesses ‘© Preparing appropriation accounts, current ‘accounts and capital ‘accounts of partnerships. 4 Preparing statements of changes in equity ofa ‘companies. Preparing statements of financial posidon of sole proprietors, partnerships {and companies which ‘may be small vo medium 1+ prepare statements offinancial position of sole proprietors, partnerships and companies which may be small to medium, enterprises or large businesses in accordance with the requirements of [ASI prepare statemenst of cash flows for sole proprietors, partnerships and companies which may be small to medium scale enterprises ot large businesses in accordance with the requirements of 1AS7 identify notes related to statements of profit and loss and other comprehensive income for a companies according toIAS1 identify notes relate to statements of financial position for companies according, wo 1ASL prepare notes t0 financial statements summarise contents of the auditors’ and directors’ reports, scale enterprises or large businesses in accordance with the requirements of IAS. ‘© Distinguishing between statements of cash flows of unincorporated businesses and those of comp: Explaining revenue (distributable) reserves and capital (non- distributable) reserves. ‘© Preparing statement of cash flows for sole proprietors, partnerships and companies which ‘may be small to medium scale enterprises or large businesses in accordance with the requirements of as7. Preparing notes to financial statements, ‘The financial statements referred tn in this certian are those for internal use and not for publication Incomplete Records ‘Accounting calculate missing figures using relevant ratios and ledger calculate capital using, statements of affairs calculate profit or loss using the accounting equation prepare statements of profit and loss and other comprehensive prepare statements of financial position ‘Statements of affairs Statements of profit and loss and other ‘comprehensive income. Profit estimation. Statements of financial position. = Calculating missing figures using relevant © ICT tools ratios and ledger Resource persons secon. * Braille Calculating capital using statements of affairs, ‘© Calculating profit using the accounting equation, ‘© Preparing statements of profit and loss and other comprehensive income. Preparing statements of financial position. Visiting small to ‘medium enterprises.Business [© expan business [> Company taking over |» Explaining bxiness + Resource Purchase purchase sole proprietor or purchase, persons ‘+ Tecordaccounting |—_—parteships which may | © Recorfing eres to + Braille foie cone books | besmallto medium | -closethe backs of + ICTs of businesses akon | sale enterprises or | ( iene aen over. over ings bese. Refordng accounting 4 recordaccounting | * Business purchase atric fr purchase by erties for purchase by | accounts. cash sue of shares and Cash isveof shares” | * Journal ees Joan ote fn oan notes + ‘Satemensof financial | Calculating good + ‘alealate godill | postion aterpurnase. + Preparing business + prepare bine pruthase account pruthase accounts Preparing snemenss of + prepare snements of financial position after Financial poston ater the busines purchase thebusines purchase Sources of [ist ypes of shares ~]® Typesof dares Tapaningsaucwal | * 1CT ols capital diferent lon notes |= Ordinary capital. Print media ftom convenle lon | Preference Disinguishing pes ot | rile stock 2 Redeemable Shares 1 Resource persons + describe advantages odinary Dierentiating loan notes ate diving of Redeemable fom cumvertble lan Pali tourcesal breterece stock capital © Loanotes (oan J Describing avantoges |] and disodvanaies of = Redeemable ‘arious sources of 1 imedeemable. | capt + Converible loan stock, Advantages and disadvantages of Yaronssourees of capita ats | Further |= explain esos for | + Pamesship changes” |« Discussing reasons for |» IGT tos ‘considerations | partnership changes | Goodwill and parinership changes. ‘© Resource persons {in Partnership |e account for changes in| revaluation of assets. | Preparing journal entries ¢ Braille Accounting, 2 partnerships ‘© Financial statements. and capital accounts to prepare capital and | partnership. show effects of ‘current accounts to dissolutions, partnership changes. reflect changes of | Resaton accounts, | Drawing up revaluation sondwill nd : accounts revaluation of assets prepare statements of financial position after changes in partnerships prepare ledger accounts 1 close books of partnerships Capital and current ‘accounts. ‘© Drafting statements of, financial postion after parership changes. ‘+ Preparing journal entries and ledger accounts to ‘lose books of| partnerships.Manufacturing [+ classify manufacturing | «Manufacturing Classifying * ICT ols Businesses costs for small to accounts. manufacturing costs for |# Braille rmedium scale ‘© Manufacturing profit. | small tomedium scale 6 Resource pet enterprises orlarge |» Unrealised profi enterprises or large businesses ‘Statements of profit and | businesses. + explain manufacturing |” Jose and other [2 Explaining profitand unrealised | Comprehensive income, | Manufacturing profit and profit + Statements of financial} uaealised prof + draw up tion ‘© Preparing manufacturing amanufacturing accounts and financial accounts statements. + prepare financial * Visiting manufacturing statements for companies. manufacturing companies Departmental | apportion expenses | Costs and ancillary | Apportioning expenses to |» ICT wols Accounting | and ancillary incomes | income. departments using © Resource pet to departments using _|* Departmental appropriate bases. * Braille appropriate bases statements of profit and |* Drafting departmental + preparedepartmental | loss and other statements of profit and statements of profit | comprehensive income. | loss and other and loss and other | Statements of financial | comprehensive income comprehensive position. Preparing statements of income financial position ] ‘© draft statements of |__ financial position | a Non-Profit | * state sources of ‘© Sources ofincome: | Discussing sources of | * Resource pe making income for not for = Subscriptions Income for not for profit * Braille Organisations | profit organisations = Life membership | onganisations. ‘+ prepare suibscriptions fees ‘+ Preparing subscriptions accounts taking into = Donations | accounts. account subscriptions = Income | Drafting income and in advance and arrears generating expenditure accounts. © explain the activities such as... Calculating accumulated accounting treatment inner antes fund. cof various types of balon Sine Drafing statements of donations * Income statements for financial position for not ‘© prepare income and | _ income generating for profit organisations expenditure accounts |__ activities. © calculate accumulated |* Income and expenditure fund for not for profit, | accounts. ‘organisations draft statements of financial position for. not for profit ‘= Accumulated fund. ‘© Statements of financial positionSUB-TOPIC | OBJECTIVES UNIT CONTENTSIdli atindes | SUGGESTED LEARNING | SUGGESTED ‘Learners should be and knowledge) ACTIVITIES AND NOTES | RESOURCES: able: Tssueand |» statethemain |» Types of shares. Stating types of shares. |» Published Redemption of| types of shares | Raising and repaymentof | Analysing effects of financial Shares used in raising | share capital. issue of shares on statements apical © Bonus issue. ‘statements of financial | * ICT tools + analysectfecs of |. Rights cue position, # Resource per ise of shares 0” |6 Share premium © Explaining reasons for |e Braille the statement o redemption © Raising and repayment of "Pt financial postion |* TON © Discussing effecs of . asses diferent © Extratts of statements of bonus and rights issue. ves penne * Discussing differences + explain why |e Capital Redemption Reserve | between rights and companies may Scour. bonus issue. redeem or © Calculating bonus and purchase own, rights ise. shares © Examining uses of © examine uses of stare prentum and share premium their effect on capital el he afc capa stractre > Greting Capt «+ calcite bonus Redemption Reseve fed ights sues coms tie show thar + Drafting eur of atfecton capi Sten of financial + deingush fete Breweenrghs td bes roe + reste Capital, Redemption Reserve accounts : hereon of tatement of financial poston Tesue and [+ explain purposes = Raking and repayment of |» Disawsing wes of |» Published redemption of |" Sfloanatsand | loan loannotesandtiete |” financial Ioana: | theretecson | Extndis of sarements of effects on statemenss | statements Statements of facial postion Stfinancal postion, | Brae iinancal postion + Drafingestmctsof |e ICT ols + Gates of Semon of financial saemenmct Xt poston finan postion theciserTetemaiomal T+ explain purposes _|* Intemational Accounting |» Discussing purposes |» Published ‘Accounting | and importance of | Standards (LAS) andimportance ofthe | financial Standards various standards | - Presentation of nancial | _interational statements ‘sate provisions of | statements ‘accountng siandards. | + Copies of various = 2inventores + Analysing application | ineratonal international = 7 Statements of cashflows | ofthe provision ofthe | accounting accounting * Accounting policies, standart in the Standards standards changes in accountng preparation of| ‘Resource persons + apply estates and eras financial statements. |e Braille international = 10 Events afer the + Applying sandardsin 6 ICT ols accounting reporting period preparing financial standards when | - 16 Proper plan and statements. preparing esuipment Discussing contents of financial = 3b impairment of assets | the international statements = 3B Inangibe assets. accounting standards Tnterpreation [+ list the accounting | ® Profitability Ratios * Classifying accounting |* ICT tools and nalyssof| ratios = Gross profit margin ratios into profitability, | + Print media financial |e explain the > Net profit margin financial resource |» Braille stotemens |” Seeountingratios |)” ~ Retum on assets uiilstin and and their = Ret on equity investment importante = Retum on capital employed |» Calculation of + caleulate he ~ Operating expenss0 counting cation. cadena ratios s + Explaining importance me poeta aos of scrounge = interpret Caveat ratio + Analysing financial accountingratos |= Quick ratio statements of ‘+ analysefinancal | ~ Accounts receivable brsinesses or projects statements using callection period sing ratios fccounting res | ~ ACCOUnIS payable payment petod * Resource utilisation ratios ‘Investment ratios Rate of inventory tumover, ‘oval assets turnover "Non-current assets turnover (Current assets tumover Capital employed turnover Earnings per share Price earings ratio Debt toequity ratio Dividend yield Dividend cover Dividend per share Gearing, Earnings veld.and marginal profits. Coatwmsand |= deine cost > Cos. © Datnng cos + ICT ols pupae temitology | Coxing ceminoloy. * Resawoe persons + expe | Costing + Brpinigiie | Beatle purposes of cast |e Cost unit [purposes of cast decounting | Cost cee scouting + Gnsycon |S CORTE a Ching cont * separate fixed and | Relevant and imelevant costs. |* SePstating fixed and vatuiecass |, Rent din voruble cous + distinguish ieee * Distinguishing weEtigana |* Fixed; variable, sen-ined and | Senco ‘management semi-variable costs. ‘management management | Coxtaccountg nd cone ‘management counting ‘Absorption — [expan Overhead apportionment, |» Expatingabsorpion |» TCT ols Costing tbacrponcsiog| “pci an allmnen cating pate 4 apporion, Ce. Greed asp + Apponining aloeateandallot | = ‘Oveheod tnorption rates |” allxating ad along costo cox > Overead analy shee | coats 0 cot ene. center + Overandundrabsorpion |» Preparing ovehead + eee (apple). analyse hee + Theprofi satemens + Calling ovetad prepare ovethad |» Uses and imkatons of absorption rates. anaysissheet | absorpion costing. + denying and dena and explaining the wes explain the uses and imitations of and limitation of absorption costing. absorption costing + Calealng losing + calcite closing, inverory using inventry using abortion costing absorption casing Calculating under and + caleulateunder over absorption of and over overheads. absorption of Explaining the cases overheads of under and over explain the causes atsoriion of of under and over overeads absorption of Preparing absorption ‘overheads profit statements * pepe bsorpton profit samen) | Marginal > value inventory ~]>” Closing inven. + Vauing inventory] ICT tools Costing using marginal) + Contbuton sing marginal costing. |» Graphs contig 2 The profit statements + Preparing prot 6 Baile ‘* prepare profit ‘© Reconciliation of absorption ‘statements. suaferens based Explaining ferenceson marginal costing © explain differences between marginal ‘and absorption costing calculate contribution of products apply marginal costing techniques to make tactical or operational decisions use contribution to sales ratio to calculate profits ‘or losses at various activity levels + calculate and ‘> The differences between ‘marginal and absorption costing. Margin of safety. Contribution to sales ratio. Short run decision making, Cost-volume-profit analysis. ‘between marginal costing and absorption costing. Calculating contribution of products. © Applying marginal ‘costing techniques in decision making, © Calculating and’ interpreting margin of safety. © Reconciling profit calculated on marginal ‘and absorption basis. interpret: margin of safey ‘aleulated using absorption and ‘marginal costing Job and Batch | explain elements | * Elements ofjob and batch | * Explaining elements of © IGT Tools Costing ofjob and batch | costing. job and batch costing. | « costing + Prime cost of ajob ora batch. | * Determining + caleulaecosts | + Absorption of oveheads toa | overheads absorbed by andproft fora | job orabatch. a job, joborabatch | + Total cost ofa job. * Calelating costs and + Selling rice ofa job ora fit for a job or a reene ead both, * Conducting educational ous. Standard + explainstandard |» Standards + Explaining standard | * ICT tools Costing costing + Types of standards costing. # Resource persor # setstandards |» Types of variances material, |* Settingofstandards. | Braille + identify types of | labour and sales. * Calculating materia, standards Variance analysis. labour and sales + calculate + Reconciliation statements, variances. variances Analysing variances, + explain the causes + Reconciling standard of variances amounts to actual imerpret the amounts. diferent types ofBudgeting and [+ explain ‘© Importance of budgeting and | * Explaining * ICT tools Budgetary importance of budgetary control systems. importance of ‘© Print media Control budgeting and | Behavioural aspects of budgeting and © Braille budgetary control | budgeting. budgetary control systems ‘© Types of budgets: systems. © explain ~ Sales Explaining behavioural =. Production and purchases | behavioural aspects of| aspects of in units and value budgeting and budgeting and ~ Cash budgetary control. budgetary control} Master. Preparing various ‘prepare various) | Limiting factors on preparation | types of budgets. types of budgets | of budgets. + explain effects of |» Flexed budget statements. | * Explaining effects of limiting factors on |» Causes of differences between | limiting factors on the eg ea eg bude + Preparing exe > prepare flexed budget sanements Dr semen + denying and ety and explaining causes of explain causes of Aiterencesbesween fiterences cl and flexed Pewee acta budgets. an flexed + Making business badges decisions and ‘+ make business recommendations decisions and ‘ing supporting data, recommendations using supporting daa Tnvesmnent |» ase capil |» Invement appraisal + Using capital + IF ioals ‘Appraisal invesment techniques and decison invesmentapprisal |* Brille appraisal criteria techniques to assess techniques to “Accounting Rte of Reun | the viability of assess vibiltyof | Paybock Pod investment projec. investment Ne Present Value + Stang the decision pres Inweral Rat of Return criteria of each capital ‘+ state decision) |» Advantages and disadvantages | investment appralsal ertera ofeach | of investment appraisal, technique Capital investment | techniques + Analysing advantages poral and disadvantages of technique ‘ach invesement analyse appraisal technique, advanages and disadvantages of each investment appraisal technique