Pro\inciples of Accouting Syllabus

CONTENT
Introduction to Accounting-

·         The nature and purpose of accounting-

·         Objectives of accounting-

·         Users of accounting information and their respective needs

·         -The accounting equation-

·         Qualities of useful accounting information-

·         Regulatory framework of accounting (regulatory bodies such as ICPAK, IFAC, IASB, Accounting standards (IAS/IFRS), their importance and limitations and professional ethics)-

·         Accounting concepts/principles

Recording transactions-

·         Source documents (quotations, purchases order, statement of account, remittance advice, receipts, petty cash vouchers, sales and 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-

·         Computerized accounting systems-

·         Role of computers, application and accounting software in the accounting process, benefits and challenges of operating computerized accounting systems

Accounting for assets and liabilities

·         Assets-

·         Property, plant and equipment

·         recognition, capital and revenue expenditure, measurement (depreciation and revaluation), disposal and disclosures –

·         property, plant and equipment schedule-

·         Intangible assets –

·         recognition, measurement (amortisation, impairment and revaluation), disposals and disclosures.

·         Inventory –

·         recognition, measurement and valuation using specific cost method (FIFO and weighted average cost) Trade receivables –

·         bad debts and allowance for doubtful debts and receivables control accounts Accrued income and prepaid expenses Cash at bank –

·         cashbook and bank reconciliation statement Cash in hand –

·         cash book and petty cash book

Liabilities-

·         Bank overdraft –

·         cash book and bank reconciliation-

·         Trade payables –

·         payables control accounts-

·         Loans –

·         accounting treatment of repayment of principal and interest-

·         Prepaid income and accrued expenses

Correction of errors and suspense account
Financial statements of a sole trader-

·         Income statement-

·         Statement of financial position

Financial statements of a partnership-

·         Partnership agreement-

·         Distinction between current and fixed capital-

·         Income statement-Statement of financial position

Financial statements of a company-

·         Types of share capital –

·         ordinary shares and preference shares-

·         Issue of shares (exclude issue by installment and forfeiture)-

·         Types of reserves –

·         share premium, revaluation reserve, general reserves and retained profits-

·         Income tax –

·         Accounting treatment and presentation (exclude computation)

·         -Financial statements

·         –Income statement and statement of financial position-

·         Published financial statements –

·         description of a complete set of published financial statements only

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

Financial statements of a not-for-profit  organization-

·         Features-

·         Types of funds and their accounting treatment-

·         Income and expenditure account-

·         Statement of financial position

Group accounts-

·         Consolidated income statement and consolidated statement of financial position (simple group structures comprising a holding company and one subsidiary company and/or one associate company)

·         -Consolidated statement of cash flow

Analyzing  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

Financial statements of public sector entities

·         -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 IPSAS-Accounting techniques in public sector (budgeting, cash, accrual, commitment and fund) (Preparation of financial statements should be excluded)

 Emerging issues and trends