AS Level Content
1. Financial Accounting
1.1 Types of Business Entity
- Sole trader
- Partnership
- Limited company (including public limited company (plc))
- Advantages and disadvantages of each type
- Sources of finance and methods of funding
1.2 The Accounting System
- Double entry system principles
- Accounting equation
- Books of prime entry
- Ledger accounts and trial balance
- Accounting concepts (e.g., business entity, historic cost, going concern, etc.)
- Computerized accounting systems
1.3 Capital and Revenue Income and Expenditure
- Differentiating capital and revenue items
- Impact on profit/loss and asset values
1.4 Changing Asset Values
- Depreciation methods (reducing balance, straight-line)
- Measuring asset values (cost model, revaluation model)
- Recording depreciation and disposals
1.5 Reconciliation and Verification
- Reconciliation procedures (trial balance, bank reconciliation)
- Error correction (suspense accounts, ledger entries)
- Control accounts (sales and purchases ledger)
1.6 Preparation of Financial Statements
- Adjustments (accruals, prepayments, irrecoverable debts, etc.)
- Financial statements for sole traders, partnerships, limited companies
1.7 Analysis and Communication of Accounting Information
- Users of accounting information
- Key accounting ratios (profitability, liquidity, efficiency)
2. Cost and Management Accounting
2.1 Costs and Cost Behaviour
- Fixed, variable, semi-variable, stepped costs
- Direct and indirect costs
- Inventory valuation (FIFO, AVCO)
- Just in time (JIT) management
2.2 Costing Applications
- Traditional costing methods (unit, job, batch costing)
- Absorption costing (cost centres, overhead allocation)
- Marginal costing (contribution, break-even analysis)
A Level Content
3. Financial Accounting
3.1 Preparation of Financial Statements
- Partnerships (goodwill, revaluation, changes in partnership)
- Clubs and societies (receipts and payments, income and expenditure)
- Manufacturing businesses (manufacturing account, statement of profit or loss)
- Limited companies (profit or loss, financial position, cash flows)
3.2 Regulatory and Ethical Considerations
- International Accounting Standards (IAS)
- Ethical principles (integrity, objectivity, professional competence, confidentiality, professional behaviour)
- Auditing and stewardship of limited companies
3.3 Business Acquisition and Merger
- Mergers and acquisitions accounting
- Goodwill calculation
- Financial statements for new entities post-acquisition/merger
3.4 Computerised Accounting Systems
- Transferring accounts to a computerized system
- Ensuring data integrity
3.5 Analysis and Communication of Accounting Information
- Advanced ratios (working capital cycle, gearing, earnings per share)
- Interpreting and evaluating ratios
- Making recommendations based on financial analysis
4. Cost and Management Accounting
4.1 Activity Based Costing (ABC)
- Application and uses of ABC
- Identifying cost drivers
- Calculating total cost and selling price using ABC
4.2 Standard Costing
- System and advantages of standard costing
- Variance analysis (material, labour, overheads, sales)
- Interrelationships between variances
4.3 Budgeting and Budgetary Control
- Purpose and benefits of budgeting
- Preparing budgets (sales, production, purchases, labour, cash)
- Flexible budgeting and variance analysis
- Behavioural aspects of budgeting
4.4 Investment Appraisal
- Capital investment appraisal techniques (payback, ARR, NPV, IRR)
- Evaluating investment decisions
- Non-financial factors in investment decisions