ACCA F3 INT Syllabus and Study Guide

1 l Accounting ) signed to help nd to provide detailed d in tion session. AND apers ks eding o erpinne nce . Thes r paper h other en the accounting an inks between these are sho as dotted line arrows. This diagram indicates whe knowledg previous Overall aim of the syllabus of the the broadest sense the ral mai e 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. the syllabus This section briefly explains the structure of the ssed. at students, tuition hould use as the basis of rials. 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 June 2009 This syllabus and study guide is de with planning study a information on what could be assesse any examina THE STRUCTURE OF THE SYLLABUS STUDY GUIDE Relational diagram of paper with other p This diagram shows direct and indirect lin between this paper and other papers prec r Study Guide following it. Some papers are directly und d by other papers such as Advanced Performa Management 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 eac such 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 review learning before undertaking study. This explains briefly the overall objective paper and indicates in capabilities to be developed within the paper. Main capabilities This paper’s aim is broken down into seve n capabilities which divid This is a narrative explaining how structured and how the main capabili exam Detailed syllabus (sections) of the syll Approach to examining examination and how it is asse their studies, instruction and mate Examinations will be based on breakdown of the syllabus. It is d based on the main capabi syllabus. These sections are d areas which relate to the sub-capabiliti in the detailed s outcomes that could be asse These outcomes are described using verbs indicating what exams demonstrate, and which these may need to be de (*see intellectual levels below). Reading lists ACCA has two official publi Learning Media and Kaplan Publ 2 dents ma the ant articles will also b tant. broaden d professiona on their way at one e levels: relate to the owledge onal le ide , or marked n ch an ar . Howe nowledge ule and the Professional level, some lower level ue 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. e 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 planning 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 between read in order to widen their reading beyond approved 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 lev values demonstrated by the student through the qualification. The specific capabilities within the detailed s are assessed syllabuses and study guide of s three intellectual or cognitiv Level 1: Knowledge and comprehension Level 2: Application and analysis Level 3: Synthesis and evaluation Very broadly, these intellectual levels three three cognitive levels at which the Kn module, the Skills module and the Professi vel Law (F4) paper to four 25 ma are assessed. Each subject area in the detailed study gu included in this document is given a 1, 2 3 superscript, denoting intellectual level, at The Professional level papers ar the end of each relevant line. This gives a indication of the intellectual depth at whi ation ea ver, sections. Section A is compulsor some choice offered in Section B. For all three hour examination p introduced 15 minutes reading an could be assessed within the examin while level 1 broadly equates with the K module, level 2 equates to the Skills mod level 3 to skills can contin progresses throu reflects that at each stage of study the This additional time is allowed a each three-hour examination to read the questions and to begin answers b requirement to broaden, as well as deepen capabilities. It is also possible that oc some 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 els candidates to study across the b yllabus. The Knowledge module is assesse two-hour paper based and com examinations. The Skills module examinations a Financial Management (F9). Ind odule papers will attractwithin all Skills m 3 Section with all this nts a choice of two fro ns ns, ea Section B w offer a choice of two from three questions totallin attracting arks. T xaminat n techniques, s specified. ssurance d ble ctly ld potentially be ions.. issued o lation passed on or before 30 September ne 1st of the ear after. June 200 , mber 2009 (and March 2010 where ulations issued mbe 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 ore 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 in future. The term issued or passed relates to w should theref containing 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 exam examinations are also examinab computer based examinations be the June examination session an December. Documents which are examinable for the December exam three 25 mark questions. Section A of each of the Options papers contai 50-70 compulsory marks from two questio attracting between 25 and 40 marks. 30-50 marks, with each question between 15 and 25 m The pass mark for all ACCA Qualification examination papers is 50%. GUIDE TO EXAMINATION ASSESSMEN ACCA reserves the right to examine anything any econtained within the study guide at session. This includes knowledge, io principles, theories, and concepts a For the financial accounting, audit and a , law and tax papers except where indicate otherwise, ACCA will publish examina documents once a year to indicate exa what regulations and legislation cou assessed within identified examination sess For paper based examinations regulation legis th r annually, will be assessed from Ju following year to May 31st of the y Therefore, paper based examinations in Dece 9 applicable) will be assessed on reg and 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 and use 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 an bases 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 th ouble ing, and . The e use of the trial balance a ct errors, and then the n 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 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 sive 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 Ac introduces the candidate to the fundamentals of financial accounting, explaining it purpose with reference to qualitative charac of useful financial information and to the fundamental bases of accounting. The concentrates in depth on the basics of the d entry system and on recording, process reporting business transactions and events syllabus then covers th en 4. - nd how to identify and corre preparation of financial statements for incorporated 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 6. Intangible non-current assets and amortisation 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. comprehen 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 pap or computer-based examination. Questi assess all parts of the syllabus and w computational 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 of operating as a limited liability company, sole ) d scope g. ) 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 y Relevance Reliability thful representation stance over form ty 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 AND FINANCIAL REPORTING reporting a Define financial reporting – recordin analysing and summarising fina ii) G iv) sole trader, partnership, limited liabili company.[1] c Recognise the legal differences betw trader, partnership and a limited liab company.[1] le viii)Fai ) Identify the adv xiii)Comparability xivtrader or partnership. [1] e Understand the nature, principles an financial reportin [1] of xv) Business entity concept 2. Users’ and stakeholders’ needs a Identify the users of financial statemen state and differentiate between their information needs.[1] a Understand and identify the purpose the main financial statements.[1] ) Define and identify assets, liab revenue and expenses.[1] The regulatory framework a Understand the role of the regulatory including the role B THE QUALITATIVE C FINANCIAL INFORMATIO FUNDAMENTAL BASES OF reporting a) Define, ncepco i) Fa iii) A Consistenc iality v) Mater vi) vii) ix) Sub x) Neutrali xi) Prudence b) Understand the balance betw characteristics.[1] 2. Al financial information alternative valuation ba replacement cost, net r economic value.[1] b) Understand the advantages a of historical cost accoun 8 C LE-ENTRY AND ACCOUNTING SYSTEMS 1 iples including the maintenance of accounting the main m.[1] b ifferen luding: sales order, purchase order, good te, invoice, remittance advice, receipt.[1] c) tand and apply the concept of double- concept.[1] d) g ) ng nisational es and deadlines.[1] nsactions eceipts.[1] ry and nd their b) Understand and illustrate the uses of journals o 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 d types of business documentation, inc quotation, t e) Understand the uses of integ s received note, goods despatched no statement, credit note, debit note, Unders entry accounting and the duality Understand and apply the accountin equation.[1] e Understand how the accounting system contributes to providing useful accounti information and complies with orga polici f) Identify the main types of business tra e.g. sales, purchases, payments, r 2. Ledger accounts, books of prime ent journals a) Identify the main types of ledger accounts and books of prime entry, and understa nature and function.[1] and the posting of journal entries int accounts.[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. D RECORDING TRANSAC a) ledger accounts and in returns.[1] c) Understand the general principles of the operation of a sales tax.[1] e) Account for discounts allow received.[1] 2. Cash a)