Accounting & Finance

Unit Description: You will develop the financial reporting skills of those who manage or seek to manage the day-to-day finances and financial needs of small and medium enterprises (SMEs) and small and medium practices (SMPs). You will develop the ability to prepare financial statements according to the International Accounting Standard for Small and Medium-Sized entities (IFRS for SMEs) and to interpret financial statements prepared according to that standard.

Unit Content:

Understand the regulatory framework for financial reporting

• Accounting principles, i.e. relevance, reliability, comparability and understandability.
• Outline, explain and assess the purposes of accounting standards.
• Working knowledge of IFRS for SMEs.
• Working knowledge of IASB.
• Accounting concepts (e.g. Prudence, Consistency, Going Concern, Materiality, Matching, Money Measurement, Realisation, etc.).
• The different types of accounting statements and their purpose.

Can prepare and interpret a statement of cash flows

• Explain the purpose of statements of cash flows.
• Prepare a statement of cash flow (indirect method).
• Prepare the note to the statement of cash flow reconciling operating profit to net cash flow from operating activities.
• Analyse and evaluate the significance of information within the statement of cash flows.
• Know how to present a business case for a set of recommendations which aim to improve the future cash flow performance of an organisation in a given context.

Can prepare a credit control policy

• The purpose of a credit control policy.
• Explain the different factors that an organisation will consider before it allows credit to a customer including credit checks and referencing.
• Differentiate between internal information held by the business (past orders) and external sources of information (credit referencing agencies) which can inform decisions relating to the availability of credit to customers.
• Factors which may impact upon changes in an organisation's credit control policy, including legislation.
• Credit control policy sections: mission, scope, goals and responsibilities; analysis - evaluation, bad debt (irrecoverable accounts) policy; collections; review schedule.
• Analyse and evaluate an organisation's approach to credit policy with reference to its business objectives.

Unit Description: You will develop the ability to prepare financial statements according to the International Accounting Standards for Small and Medium-Sized entities (IFRS for SMEs). You will gain knowledge and skills required to enable you to measure performance and assess the financial position of small and medium enterprises (SMEs) and small and medium practices (SMPs).

Unit Content:

Understand the relationship between organisational ownership and the nature of financial reporting statements

• Capital Structures of different business organisations to include: sole traders; partnerships; limited liability partnerships; limited companies; manufacturing companies; not for profit organisations.
• Financial Reporting Statements for different business organisations, for example: income statements; statements of financial position; manufacturing accounts; income and expenditure accounts for not-for-profit organisations; accounting policies; notes to the financial statements; auditor's report.

Understand the role of accounting and accounting records within an organisation

• Accounting systems e.g. double entry bookkeeping, ledger accounts e.g. assets, liabilities, capital, posting transactions, balancing ledger accounts, making transfers to final accounts, interpreting ledger accounts and their balances; computerised systems, other accounting records.
• Classification of different types of income and expenditure - capital and revenue.
• Production of trial balance from ledger account balances.

Can prepare financial reporting statements for different types of organisation

• The application of accounting concepts and principles to financial reporting statements: valuation of non-current assets; depreciation of non-current assets, i.e. straight line method and reducing (diminishing) balance method; calculation of net book value; period end adjustments (valuation of inventory, depreciation, irrecoverable debts, provision for doubtful debts, accruals, prepayments); application of relevant accounting standards, for example IASs and IFRSs.
• Preparation of financial reporting statements for sole traders, partnerships, limited companies/corporations, or parts thereof, suitable for external users such as shareholders, owner managers, creditors, employees and public: main elements of annual accounts of small enterprises e.g. in UK private limited companies, i.e. income statement and statement of financial position; the main elements of published accounts e.g. in UK Public Limited Companies' annual reports, i.e. general corporate information, accounting policies, income statement, statement of financial position, statement of cash flows, notes to the financial statements, chairperson's and directors' reports and auditor's report.

Can use techniques to measure performance and assess the financial position of organisations

• Calculation and interpretation of: liquidity ratios; profitability ratios; working capital ratios; efficiency ratios; resource utilisation ratios. The usefulness of ratio analysis when assessing the performance of a business.
• Develop and calculate relevant performance indicators for a business measuring profitability and performance and apply benchmarking and balanced scorecard as methods of appraisal (comparing different companies and to industry averages).
• Distinguishing between qualitative and quantitative measures and application to case study material.
• The role of different quality systems in the continuous improvement of business processes and performance: quality control and testing; quality assurance; total quality management (TQM). The internal and external costs associated with weak quality systems.
• The use of financial reports and financial analysis by different stakeholder groups. For example: shareholders; employees; potential investors; directors; managers; suppliers; customers; lenders; government; analysts.

Unit Description: You will develop knowledge and ability in identifying and evaluating sources of finance, managing and improving working capital, preparing budgets for functional departments and understand the importance of budgetary control for small and medium enterprises (SMEs) and small and medium practices (SMPs).

Unit Content:

Understand financing options for different organisations

• Main forms of short-term and long-term financing available to SMEs and SMPs. For example: loans; debentures; business grants; business angels; own savings; mortgages; share capital; bank overdraft; crowdfunding; retained profits; invoice financing; leasing and asset finance.
• Advantages and disadvantages of differing financing methods. Explanation of main features of differing financing methods.
• Understanding of how organisations can access finance and explanations of the difficulties that organisations can face in accessing finance.
• Matching finance to long- and short-term funding needs.
• Use of the CAMPARI model or similar models to evaluate the viability of different finance options.

Understand how organisations manage cash flow and working capital

• Different factors that an organisation will consider before it allows credit to a customer including credit checks and referencing. Differentiation between the factors that are available within the organisation (internal) such as past orders and external such as credit referencing by an agency. Use the CAMPARI model or similar and relate the model to a scenario.
• Measurement of how effectively an organisation is measuring its liquidity position within a business with the calculation and interpretation of performance ratios.
• Understanding of how to control inventory effectively so that inventory shortages do not occur. Knowledge of Just in Time (JIT) along with costs associated with inventory holding and implications of inventory shortages. Inventory stock calculations, including FIFO, LIFO and AVCO. Purposes of Economic Order Quantity (EOQ) and re-order levels.
• Application of investment knowledge to a scenario to discuss the alternative options for investing surplus cash including subscribing for shares in other companies to acquiring non-current assets.
• Measurement of the working capital cycle for an organisation considering inventory (stock) days, receivable (debtor) days and payables (creditor) days.
• Interpretation of financial information including annual financial statements with practical, relevant tactics and strategies for improving organisational performance. Comparison of organisational data with competitor/industry averages to track performance.

Can prepare budgets and report on variances

• Consideration of the use and benefits of preparing budgets.
• Factors and assumptions affecting budget preparation: uncertainty, historical data, economic conditions, market conditions, seasonal trends, technological changes, regulatory changes, foreign exchange rates, cost assumptions, effectiveness of sales and marketing, customer retention, competition, variations in efficiency.
• Preparation of the functional budgets to include: sales budgets; production budgets; material budgets; labour budgets; overhead budgets; cash budgets. Preparation of Master/consolidated Budgets including Forecasted Income Statements and Statements of Financial Position.
• Target setting following budget preparation - clear targets which are specific, measurable, achievable, realistic with a time period specified for which the target should be achieved.
• Manipulation of cost figures using the different cost behaviours. The high low method will be required for isolating the fixed and variable elements of semi-variable costs.
• Comparison of actual sales and revenue to flexed standards and calculate meaningful variances with relevant and logical reasoning. Variances to include: materials price; material usage; labour rate; labour efficiency; fixed overhead expenditure; fixed overhead capacity, efficiency and volume.
• Splitting a variance between controllable and uncontrollable elements and make valid arguments as to why they have occurred and suggest realistic improvements.
• How budgets affect employee behaviour and impact of this on business performance.

Unit Description: You will develop the skills to provide relevant information for short-term and long-term decision making in relation to costing and pricing, whilst ensuring that employees are motivated to achieve individual objectives and the objectives of the business as a whole.

Unit Content:

Understand costing accounting techniques and pricing strategies

• Costing Approaches: traditional absorption costing; marginal costing; target costing.
• Responsibility Accounting - explanation of different types of responsibility such as cost centres, profit centres, revenue centres etc.
• Pricing Strategies: marginal pricing; cost plus pricing; customer based pricing; competitive pricing (skimming and penetration); mark up and margins. Application of pricing theory to scenarios identifying relevant methods that an organisation can use to achieve advantage over its competitors.
• Contribution - selling price per unit less variable costs per unit = contribution per unit. Carry out break-even analysis. Carry out what-if analysis.

Can use cost accounting techniques and pricing strategies

• Complete calculations for different costing approaches: for 'cost per unit' under the different methods and explain the differences between each of the costing methods with recommendations of suitability for a particular business. To apply marginal costing principles, explaining the term contribution and its importance in preparing a range of short-term decision-making calculations (breakeven point, margin of safety, contributions/sales ratio, what-if analysis).
• Indexation factors to forecast information for costing purposes: the ability to use different indexation factors e.g. retail price index for forecasting purposes.
• Market-Based Pricing Strategies - complete calculations and apply the following pricing strategies: marginal pricing; cost plus pricing; customer based pricing; competitive pricing (skimming and penetration); mark up and margins.

Understand employee management techniques used to improve quality

• Motivational Methods: Herzberg; Maslow; Taylor; Mayo.
• Rewarding Employees - financial rewards: time rate; overtime; piece rate; commission; performance related pay; profit sharing; salaries; fringe benefits. Non-financial rewards: membership of sports clubs and gyms; training and development; crèche facilities; subsidised shopping and discounts; flexible working arrangements.
• Working practices to improve motivation, productivity and efficiency: job rotation; job enlargement; job enrichment; empowerment; team working.
• Factors for setting personal targets - SMART targets: specific; measurable; achievable; realistic; time-bound.

Unit Description: You will gain understanding of taxation as it affects individuals, within the regulatory context in which they are working. Within a UK context, you will focus on income tax, National Insurance (NI) contributions and capital gains tax.

Unit Content:

Understand theories and principles of taxation systems

• Principles and features: principles of the UK tax systems or other tax system as applicable; tax bases; tax structures; progressive, regressive and proportional tax criteria.
• Tax planning, tax avoidance and tax evasion: key differences between tax planning, tax avoidance and tax evasion; ethical implications; current legislation; requirements to report tax evasion.

Can calculate personal tax payable for a taxpayer

• Personal allowances (or other allowances in own jurisdiction). Application of relief for pension payments and charitable donations.
• Income tax rates. Calculation of income tax.
• Calculation of National Insurance contributions for employees and employers in UK or other statutory deductions relevant to own jurisdiction.
• Tax planning techniques to minimise tax liabilities, for example, in the UK, ISAs, interest allowances on savings accounts and dividends. Tax and national insurance rates and bands. Common benefits in kind and how to determine their value. How to minimise tax liabilities e.g. using allowances, in UK use of ISAs, dividends allowance and annual pension contributions.

Can account for capital gains tax

• Chargeable gains and allowable assets. Chargeable gains and allowable persons. Connected persons. Chattels and wasting chattel rules.
• Calculation of chargeable gains and allowable losses. Calculation of gains and losses arising from the disposal of shares.
• Calculation of capital gains tax. Personal allowances, rates and bands.

Unit Description: You will develop your understanding of the business environment and the internal and external conditions in which different organisations operate. You will also gain an understanding of organisational responsibilities and structures.

Unit Content:

Understand types of organisations, their purposes and responsibilities

• Types of organisations and their purpose - including private (sole trader, partnership, limited, public limited), public, government, voluntary, charitable/not-for-profit.
• Purposes of different types of organisations across public, private and not-for-profit sectors - including profit, growth, return on investment (ROI), sales, service, customer satisfaction, corporate responsibility, ethical, environmental and social responsibilities, expressed though vision, mission, aims and objectives, long and short-term goals, values, culture.
• Responsibilities - meeting legal requirements of country or countries in which it is operating (e.g. consumer legislation, employee legislation, equal opportunities and anti-discriminatory legislation, environmental legislation, health and safety legislation), quality and safety of products and services offered, ethical practices, meeting stakeholder interests, dealing with potential conflicts of interest, producing and implementing policies, recruitment of expertise.
• Meeting objectives of different stakeholders - stakeholders including internal and external stakeholders, e.g. financial institutions, other lenders, debtors and creditors, owners/managers/employers, customers and clients, employees, government, trade unions, suppliers, community; objectives including financial, corporate, social, ethical and environmental, achieve business plan e.g. meet customer demand through production/sales of products and services, ensure repeat business through standards of service, ensure commitment of suppliers through payment agreements, generate profit for owners, and meet environmental objectives; potential conflict between objectives of different stakeholder groups, power and influence of different stakeholder groups in different contexts.

Understand the structure of organisations

• Organisational structures - hierarchical structure (e.g. flat, matrix, functional, divisional), centralization vs. decentralisation, specialisation, departmentalisation or other form of distribution of work, span of control, chain of command and level of formality in procedures.
• Functions of the departments: human resource management, physical resource management, finance, marketing and sales, communications, quality of service delivery, operations, logistics, decision-making, performance management, defining the expected type of communication and relationship between employees.
• The nature of inter-relationship in order to deliver mission and meet business strategy and objectives, impact of culture.
• Impact of globalisation: requirements for operating globally, limitations of certain organisational structures in the global field with respect to intercultural relations, geographical distances and different time zones.
• Improvements in structure to improve performance and competitiveness of an organisation.

Understand the impact of the market environment on organisations

• Market forces - concept of supply and demand and their relationship, time and supply, equilibrium and disequilibrium, excess demand, other market forces such as competition, government, changes in consumer tastes and preferences, speculation and expectation etc. Examples of pricing strategies (e.g. skimming, premium, penetration, economy).
• Interventions in the marketplace - government initiatives: taxing and subsidies, setting maximum and minimum prices, tools of market regulation, state ownership and funding. Impact of the planned interventions: correcting market failures, re-distribution of income and wealth, managing monopolistic situations, improvement of market performance, mobility and social inclusion.
• Interpretation of financial and non-financial data - market reports, size of market, financial performance, social and environmental information, technological changes, trends, consumer behaviour, competition etc.

Understand the nature of the national environment in which organisations operate

• National policies and other influences e.g. changing views of public and private sector organisations in terms of accountability, competitiveness, corporate social responsibility. Impact for public sector of resource constraints, accountability and transparency. Impact for private sector of regulatory compliance e.g. monetary, fiscal and competition policies and balancing of profit and purpose (more accountability and responsibility).
• Impact of national fiscal and monetary policy on business organisations and their activities - impact of fiscal and monetary policy: level of profit, size and nature of employment, redundancy, imports, exports, trading partners, business behaviour, consumer behaviour, propensity to save, propensity to spend, tastes and preferences, expansion, downsizing. Government Policy and related agencies: including fiscal policy, monetary policy, public-private partnerships, central and local government spending, quantitative easing, interest rates, competition commission, sector regulators.
• Impact of competition policy on the chosen organisation - main aims/impact of competition policy: including to promote competition in markets and price between suppliers, improve markets, contribution to efficiency and competitiveness, wider consumer choices for goods and services, technological innovation. Other regulatory mechanisms will differ between country in which organisation located but UK examples include: 4 pillars of competition policy in the UK (antitrust and cartels, market liberalisation, state aid control, merger control), Competition Act 1998, Enterprise Act 2002, Office of Fair Trading, Ofgem, Ofwat, Civil Aviation Authority, Companies Act, Enterprise, Training and Skills Policies, Public Sector Borrowing.
• Opportunities and challenges for organisations: innovation and efficiency, public-private partnerships, aligning with market and increasing market share e.g. introducing sustainable products and services, innovation and technological advancements in response to policy changes may result in opportunities and growth.
• Benefits and challenges of operating in different economic environments. Benefits may include the ability to: complete effective market analysis; adapt to cyclical changes; expand business operations; communicate effectively (within the domestic business environment); access and purchase high quality materials and labour; benefit from economies of scale. Challenges may include: inability to communicate effectively with the international business environment; diseconomies of scale; increase in regulations and international legislations; difficulty in adapting and meeting the needs of different cultures; language barriers.

Understand the relationship between organisations, sustainable practices and the environment

• Relationship of organisations include: to economy - operates within economy and contributes to economic growth, economy affects organisation activities and environment; to society - meets needs for products and services, employs labour, corporate responsibilities, society shapes organisations and environment; to environment - organisation impacts environment, organisation responsibility to environment, the business case for developing sustainable practices.
• Current risks may include: climate change and extreme weather - risk to supply chains, infrastructure and insurance premiums, material for many organisation especially agriculture, energy, insurance; regulatory changes relating to environment e.g. emissions and waste regulations - risk of penalties, costs of compliance, reduced market access, material for all organisations globally; resource scarcity - risk of scarcity of minerals, water etc which increase costs, disrupt activities and supply chains, most important for manufacturing and resource-intensive organisations; biodiversity - risks of reputational damage, legal action, disruption to supply chain where ecosystems are damaged, important for agriculture, forestry etc.; shareholder and stakeholder views - shareholders may be concerned with profit maximisation, shorter term gain and regulatory compliance, stakeholders may have more diverse views on sustainability in long-term, social responsibility, reputation, public health, safety community wellbeing etc.

Unit Description: You will gain knowledge and understanding of the national and international economic environment and their impact on how businesses operate. You will also consider the implications for business of changes in the economic environment.

Unit Content:

Understand micro-economic factors affecting organisations

• The features of the micro-economic environment, perfect competition and its features. Supply and demand, the determination of equilibrium price in a perfect market, the impact of changes in the conditions of demand and supply on equilibrium price, elasticity of supply and demand, how elasticity of demand is measured, implications of elasticity of demand and supply for organisations, factors of productions and the theory of diminishing returns.
• Business objectives and behaviour in a micro-economic context: the implications of profit maximisation as a business objective, business ethics, mission, vision and values and their impact on business objectives, the factors which impact upon business objectives set by different types of businesses (sole traders, partnerships, limited companies, and the role of corporate governance, third sector organisations), the tactical and strategic implications of the product life cycle.
• Market structures and business behaviour: total, average and marginal revenue, perfect competition, monopoly, monopolistic competition, oligopoly, labour and factor markets in a national market.

Understand macro-economic factors affecting organisations

• The features of the macro-economic environment, the gross domestic product (GDP) and how it is measured, issues encountered when measuring GDP including data sources and reliability. Determinants of GDP including the stock of factors of production, labour, capital, enterprise, technical knowledge, economic and political stability.
• The determinants of the national income (consumption, investment, government expenditure minus exports), aggregate supply and demand; the circular flow of income, the multiplier effect.
• Inflation, deflation and the economic cycle.
• Government policies and their impact: government economic priorities including inflation, unemployment, growth and international trade, fiscal policy including taxation and Government expenditure; monetary policy including interest rates; supply-side policies.

Understand the implications for organisations of operating in an international economic environment

• The features of the international economic environment: multinational operations, international trade, exchange rates, free trade and protectionism, trade agreements, emerging markets e.g. BRIC, trading blocs e.g. EU, geographical areas, for example: European Union, North America, East and Southeast Asia.
• The features of the global monetary system: international currencies, exchange rates and their determination, impact of changes in exchange rates on factor input costs, international capital movements and the implications for national economies.
• Implications for businesses: responding to national and international competition, opportunities for businesses operating in an international economic environment, operating in emerging economies, understanding the challenges of different economic systems and cultures, growth and downturns in the global economy, global collaboration, sustainability issues.

Unit Description: You will develop an understanding of how law within a national jurisdiction, impacts on business organisations and professional accountancy practice.

Unit Content:

Understand the elements of law affecting commercial practice

• Contract law - elements of a valid contact; how contracts may be terminated; remedies for breach of contract; relevant law/case law.
• Law of agency - principles of agency; rights and duties of agents (including partnerships); implications of the agency relationship; relevant law/case law.
• Law of tort - what constitutes liability for negligence; negligent misstatement; vicarious liability; remedies for claims of negligence; relevant law/case law.

Understand company and insolvency law

• Formation, financing and administration of companies - procedures for company and limited liability partnership registration including memorandum and articles of association; advantages and disadvantages of limited companies and limited liability partnerships compared to partnerships, sole traders and other legal structures; veil of incorporation and when it can be lifted; requirements of Companies Act(s) in own jurisdiction (currently 2006 Act in the UK) for statutory accounts, audit, meetings, registers and general administration; exemptions for medium, small and micro-enterprises; procedures for the issue of shares including shares issued at a premium and pre-emption rights; capital maintenance including reduction of capital, redemption of shares, purchase of own shares, distribution of profits; share transfer requirements.
• Directors, officers and shareholders - appointment and removal of directors; director's powers, role and duties; consequences of breach of duty; influence of shareholders on company through meetings and resolutions; shareholder statutory rights and member rights for limited liability partnerships; role of company secretary in company and limited liability partnership.
• Insolvency - implications of fixed and floating charges over assets; company voluntary arrangements; administration orders; receivership; compulsory and voluntary liquidation; means of termination of companies and other business organisations; priorities for distribution on liquidation; rights of creditors and employees; bankruptcy and personal insolvency.

Understand the impact of criminal law on business and professional organisations

• Legal principles, legislation, case law and ethical codes - ethical codes relating to business and professional organisations e.g. government guidance, codes issued by professional bodies or specific industries; status of each e.g. law, regulation, guidance; relationship and interaction.
• Corporate governance and ethical practice. Malpractice, fraud and bribery - elements and consequences of malpractice; defences against malpractice for professional accountants; elements and consequences of fraud; elements and consequences of bribery.
• Money Laundering - national and international regulations relating to money laundering; what constitutes money laundering; reporting and other requirements for professional accountants in relation to money laundering; consequences of failing to meet money laundering requirements; penalties for money laundering.
• Computer misuse and cybercrime - cybercrime offences and penalties in a given jurisdiction. In the UK this will cover: Computer Misuse Act 1990, offences and penalties under the Computer Misuse Act, cybercrime under Fraud Act 2006.

Understand areas of law affecting business and professional operations

• Data protection legislation - use of information in business; requirements of Data protection legislation in own jurisdiction. In the UK this will cover the Data Protection Act 2018, GDPR; impact of requirements on business; penalties for non-compliance.
• Intellectual property law - the different types of intellectual property; protection through copyright, patents and trademarks; protection of digital assets; remedies for unlawful use of intellectual property; importance of intellectual property for businesses.
• Employment law - employed and non-employed status; legal consequences of employment; key features of employment contracts; termination of employment contracts; unfair, wrongful and constructive dismissal; statutory redundancy; employer obligations re social security; equal opportunities legislation.

Unit Description: You will develop skills to extract accurate financial data from business accounts in order to prepare financial statements for different types of business organisations. You will be able to assess business processes and performance, and make justified recommendations for improvements.

Unit Content:

Can prepare financial statements for sole traders and partnerships

• Preparation of Financial Reporting Statements for sole traders and partnerships, for example: income statements; statements of financial position; capital and current accounts; appropriation accounts.
• Period end adjustments: valuation of inventory; depreciation of non-current assets, i.e. straight-line method, reducing (diminishing) balance method; irrecoverable debts; provision for doubtful debts; accruals; prepayments.
• Accounting process: identification, recording, classification, measurement, reporting and communication.
• The use of sole trader and partnership financial statements to: shareholders; employees; potential investors; directors; managers; suppliers; customers; lenders; government; analysts.

Can prepare company financial statements

• Preparation of Financial Reporting Statements for limited companies: main elements of Private Limited Companies' annual accounts, i.e. income statement and statement of financial position; main elements of Public Limited Companies' annual reports, i.e. general corporate information, accounting policies, income statement, statement of financial position, statement of cash flows, notes to the financial statements, chairperson's and directors' reports and auditor's report.
• Period end adjustments: valuation of inventory; depreciation of non-current assets, i.e. straight line method, reducing (diminishing) balance method; irrecoverable debt; provision for doubtful debts; accruals; prepayment.
• Identification and explanation of errors which do not affect the Trial Balance: omission, commission, principle, compensating, original entry and reversal. Understanding of how to correct errors that do not affect the Trial Balance. Correction of Errors including the Suspense Account. Journal entries supporting the correction of errors. Statements of revised profit; revised statement of financial position extracts. Explanation of the effect of errors on financial statements.
• Application and explanation of relevant accounting concepts. Application of relevant accounting standards, for example, IASs, International Financial Reporting Standards (IFRSs) and UK GAAP for FRS102 and FRS 105.
• The importance of government policies towards anti-money laundering and other international transactions.

Can interpret financial statements and make justified recommendations

• Calculation and interpretation of: liquidity ratios; profitability ratios; working capital ratios; efficiency ratios; resource utilisation ratios.
• Interpretation of accounting ratios and comparison of them to similar companies and industry average ratios.
• Justified recommendations and conclusions to meet the needs of relevant parties. The usefulness of ratio analysis when assessing the performance of a business.

Unit Description: You will develop the financial management skills of those who manage the performance, risk and financial decision-making needs of small and medium enterprises (SMEs), and small and medium practices (SMPs).

Unit Content:

Understand the long-term capital requirements of organisations

• Capital requirements of organisations - definition of capital (funds required to achieve goals); how to determine capital requirements e.g. operational requirements, legal requirements for some companies (regulatory capital).
• Sources of long-term finance - debt (bank loans, bonds, leasing) and equity (shares/ownership), retained profits. Impact of different sources of finance e.g. ownership structure, impact on credit rating, assets as security, interest payments, capital repayments, dividends etc.
• Credit ratings and factors affecting the granting of credit e.g. business size, how long business has been trading, risk related to industry, credit history, debt to equity ratios.
• Financial gearing and the impact of leverage e.g. high gearing makes organisation more susceptible to economic downturn.
• Dividend valuation model (DVM) - calculation and use to calculate value of stock (sum of future dividend payments in present-day value).
• Capital asset pricing model (CAPM) (expected returns given cost of capital and risk of assets using rate of return, beta stock value and risk free rate); and weighted average cost of capital (WACC) (using cost of debt and cost of equity calculated using CAPM).
• Limitations of CAPM e.g. agreeing the rate of return, assumption of positive returns, use of historical data, assessment of risk, assumption that borrowing unlimited at risk-free rate.

Can apply different investment appraisal techniques

• Capital budgeting techniques - capital budgeting is the process of evaluating potential major projects or investments. The investment appraisal process looks at financial aspects of investment and the change that will occur using tangible costs and benefits. Identification of relevant cash flows i.e. in the future, incremental (extra revenue that will be generated), only costs and revenues that give rise to cash flow are included (e.g. not depreciation).
• Methods of investment appraisal: accounting rate of return (ARR); payback period; net present value; discounted payback period; internal rate of return (IRR).
• Advantages and disadvantages of investment appraisal methods e.g. ease/difficulty of calculation, consideration of all cash flows, time value of money, assumptions and averaging, no account of non-financial factors.

Understand the management of financial risks

• Different types of risk: translation, transaction and economic risks e.g. market risk, operational risk, liquidity risk, credit risk, foreign investment risk, equity risk, currency risk.
• Use of hedging/forward exchange contracts: manages unpredictability of exchange rates by limiting exposure and loss.
• Use of debt financing and implications for organisations e.g. changes to gearing ratio, effects on credit rating, costs of finance, risks of interest rate rises and economic downturn.

Unit Description: You will develop the financial management skills of those who manage or seek to provide information for performance management, continuous improvement, budgetary and financial control and the management of internal risk in small and medium enterprises (SMEs) and small and medium practices (SMPs).

Unit Content:

Understand how to improve business performance

• Target setting.
• Strategic management accounting practices, such as value engineering, value analysis and life cycle costing.
• Balanced scorecard.
• Understanding of cost drivers, cost functions and cost behaviours.

Can prepare budgets for organisations and analyse causes of costs and sales variances

• Budgeting process - functions and administration of budgets; sales/production budgets; sensitivity analysis (What if? Analysis).
• The features, organisational implications and advantages and disadvantages of different approaches to budgeting: flexible budgeting; incremental budgeting; activity-based budgeting; zero-based budgeting; limits to budgeting.
• Operation of a standard costing system. Variance analysis, including the ability to suggest improvements. How standards are set. Reconciliation of budgeted profit to actual profit (or contribution). Analysis of variances and reconciliation of budgeted and actual profit.

Understand internal and external factors that affect organisations

• Internal factors, for example liquidity, credit risk, operational risk. External factors, for example taxes, inflation, exchange rates and interest rates.
• Risk management processes and controls: understanding of key business risks, people risks, process risks; different kinds of controls, e.g. behavioural, social and output; financial controls - detective, preventative and corrective controls; advantages and disadvantages of different risk management processes and controls.
• Performance reports - collating and analysing information for financial and non-financial dimensions from a range of sources; ways to improve financial and non-financial performance and monitoring.

Unit Description: You will understand taxation as it affects small and medium enterprises (SMEs) and small and medium practices (SMPs). You will develop the skills to prepare basic tax computations and advise others of the effects of taxation and impact of tax on decision-making.

Unit Content:

Can calculate tax for the self-employed and complete self-assessment tax returns

• Expenditure which is allowed in calculating taxable trade profits. Basis of assessment for employment income. Deductions for employment income - including statutory approved mileage rates.
• Property business profits; rent-a-room relief; premiums received from the grant of a short lease; property business loss.
• Tax payable on savings income; tax payable on dividend income; tax exempt investments. Compute taxable income and tax payable including adjustments to net income for pension and gift aid payments.
• Badges of trade - HM Revenue & Customs (HMRC) now lists nine badges of trade: profit seeking motive; the number of transactions; the nature of the asset; existence of similar trading transactions or interests; changes to the asset; the way the sale was carried out; the source of finance; interval of time between purchase and sale; method of acquisition. Tax status of workers.
• Plant and machinery capital allowance computation including: writing down allowance, annual investment allowance, first year allowance, balancing adjustments.
• Trading losses - carry forward and current year, terminal and early year losses. Calculate trading profit assessments for opening years, current year, closing year and overlap profits (including partners in partnerships). Loss restrictions that apply to partners of a limited liability partnership.
• The purpose (economic, social, environmental) of a tax system in a modern economy. Capital and revenue taxes, direct and indirect tax. Overall structure of the UK tax system. Differentiate between tax avoidance and evasion.
• Self-assessment time limits for returns, payments, calculation of payments on account. The scope of any statutory pension contributions such as NI in UK. The calculation of pension contributions such as NI classes 1, 1A, 2 and 4 in the UK. Penalties for late returns - non-payment of tax.

Can calculate taxable income and corporation tax and prepare corporation tax returns

• Define the terms 'period of account', 'accounting period', 'financial year', 'taxable total profits' and 'augmented profits'. When an accounting period starts and ends and what determines a company's residency.
• Expenditure allowable in calculating trading profits. Plant and machinery capital allowance computations. Property business income. Relief for property business losses. Interest under loan relationship rules. Chargeable gains. Qualifying charitable payment. Trading loss relief - carried forward and current/prior period relief.
• Calculate corporation tax payable/repayable including recognising the effects of receiving dividends, short and long accounting periods, marginal relief (where applicable) and associated companies. Penalties for late returns - non-payment of tax.

Can calculate VAT or equivalent tax and complete appropriate returns

• The scope VAT or equivalent indirect taxation and how it falls as tax on the final consumer such as VAT in the UK. Calculation of indirect taxes such as input and output VAT in the UK.
• List the principle zero-rated, exempt, reduced-rate supplies. Understand how input tax claims are affected by the type of supply.
• Registration for VAT or equivalent and the advantages of voluntary registration. Pre-registration input tax claims. Deregistration for VAT or equivalent tax and advantages of voluntary deregistration. Deregistration for output tax on capital assets and inventories.
• VAT (or equivalent) accounting and administration.

Unit Description: You will further develop your understanding and skills in the application of quantitative methods appropriate to support decision making in organisations.

Unit Content:

Understand how to collect, process and interpret data

• Four rules of number (addition, subtraction, multiplication, division); negative numbers; hierarchy and order of operations; decimal places and significant numbers; fractions, decimals and percentages; factors, multiples, common factors; reduce ratios to their simplest form; interpret scales.
• Sampling Techniques: simple random sampling (SRS); stratified sampling; cluster sampling; systematic sampling; multistage sampling.
• Data Collection Methods: interviews; questionnaires and surveys; observations; focus groups; ethnographies, oral history, and case studies; documents and records.
• Statistical techniques: analysis of variance (ANOVA); correlation.

Can use numerical and algebraic methods

• Problem-solving tasks involving ratios and proportion. Algebraic expressions, formulae and equations. Expand and factorise quadratic expressions. Manipulate expressions and formulae (to include both linear and quadratic expressions).
• Measures of dispersion; calculation of the mean, median and mode from grouped and ungrouped data.
• Prepare and interpret graphs of algebraic equations. Plot graphs of linear and quadratic equations. Calculation of gradient. Calculation of the intercept of a linear graph. Solve quadratic equations from a graph.

Can design an investigation in a business context with appropriate inferential testing

• The null hypothesis and the alternative hypothesis. The stages involved in carrying out hypothesis testing from statistical data. The application of hypothesis testing.
• Inference testing and business decision-making. The benefits of hypothesis testing. The limitations of hypothesis testing.
• Best practice in presenting statistical data in a business context.

Unit Description: You will develop the knowledge and skills to become proficient in the assessment and evaluation of the reporting decisions made by management, and their implications for a range of stakeholders and entities.

Unit Content:

Understand fundamental ethical and professional principles in relation to accounting standards and corporate reporting

• Professional behaviour characteristics and practical examples. Compliance with accounting standards. Ethical requirements. Understanding of the consequences of non-compliance. Consequences of unethical behaviour.
• Understanding of different Accounting Bodies in different countries around the world, including AAT, ACCA, ICAEW, CIMA, CIPFA.
• International Accounting Standards, to include: IAS 1 Presentation of financial statements; IAS 2 Inventories; IAS 7 Statement of cash flows; IAS 8 Accounting policies, changes in accounting estimates and errors; IAS 10 Events after the reporting period; IAS 16 Property, plant and equipment; IFRS 15 Revenue; IAS 36 Impairment of assets; IAS 37 Provisions, contingent liabilities and contingent assets; IAS 38 Intangible assets.

Understand the appropriateness of the financial reporting framework

• Financial Performance of different entities: revenue; non-current assets; financial instruments; leases; employee benefits; income taxes; provisions, contingencies and events after the reporting date; share-based payment; fair value measurement; reporting requirements of small and medium sized entities; other reporting issues.
• Sole traders and partnerships: understanding of Financial Reporting Statements for sole traders and partnerships, for example: income statements; statements of financial position; capital and current accounts; appropriation accounts.
• Understanding of Financial Reporting Statements for limited companies: main elements of Private Limited Companies' annual accounts, i.e. income statement and statement of financial position; main elements of Public Limited Companies' annual reports, i.e. general corporate information, accounting policies, income statement, statement of financial position, statement of cash flows, notes to the financial statements, chairperson's and directors' reports and auditor's report.
• Period end adjustments: valuation of inventory; depreciation of non-current assets, i.e. straight line method, reducing (diminishing) balance method; irrecoverable debts; provision for doubtful debts; accruals; prepayments.

Can prepare financial statements for groups of entities

• Statements of cash flows. Structure and preparation of group accounts.
• Associate and joint arrangements - understanding and practical application. Changes in group structures - application of the relevant accounting procedures in the financial statements of a parent company. Foreign transactions and entities.

Can interpret financial statements and make justified recommendations for business stakeholders

• Calculation and interpretation of: liquidity ratio; profitability ratios; working capital ratios; efficiency ratios; resource utilisation ratios.
• Interpretation of accounting ratios and comparison of them to similar companies and industry average ratios. Justified recommendations and conclusions to meet the needs of relevant parties. The usefulness of ratio analysis when assessing the performance of a business. Application of relevant accounting standards, for example, IASs and IFRSs, international financial reporting standards and UK GAAP for FRS102 and FRS 105.
• Stakeholders to include: shareholders; employees; potential investors; directors; managers; suppliers; customers; lenders; government; analysts.
• Current issues in corporate reporting may include accounting policy changes, developments in sustainability reporting and materiality in the context of reporting.

Unit Description: You will develop an understanding of key financial management knowledge and skills, and prepare information to advise management and/or clients on complex strategic financial management issues facing an organisation.

Unit Content:

Understand the impact of macroeconomics on different organisations

• The definitions, concepts and application of the following: macro-economics; measurement of national income and issues involved; data sources and reliability; equilibrium and circular flow; multiplier; inflation; deflation; economic cycle.
• Government policies and their impact: fiscal policy; monetary policy; taxation; expenditure; interest rates; aggregate demand and supply; supply side policies; inflation; unemployment; balance of payments; economic growth and development.
• Determinants of national income: stock of factors of production, labour, capital, enterprise, technical knowledge, political stability, government expenditure, exports.

Understand the role of senior financial advisers and executives in multinational organisations

• Role of a senior financial executive in a multinational organisation. Role of a senior financial advisor in a multinational organisation. Purpose and aims of a financial strategy. Understanding of how to formulate a financial strategy.
• Review of the management of international trade and finance. Transfer pricing.
• Importance of ethical and governance issues. Ethical and governance issues and how these are addressed. Key dividend polices for multinational companies.

Can evaluate investment decisions

• Appraisal methods: capital budgeting; concept of opportunity costs applied to capital investment decisions; the investment appraisal process; identification of relevant cash flows. Methods of investment appraisal: accounting rate of return (ARR), payback period, net present value, discounted payback period, internal rate of return (IRR), environmental management accounting (EMA) and triple bottom line. Advantages and disadvantages of investment appraisal methods. Making and justifying recommendations.
• Critical success factors, e.g. the assessment of the impact of financing and capital structure on an organisation in relation to: agency effects; pecking order propositions; static trade-off theory; Modigliani and Miller propositions, before and after tax.
• Assessing risk and returns using CAPM and WACC.
• Assessing performance: balanced scorecard; shareholder value; economic value added; environmental impact analysis.

Can assess and plan acquisitions and mergers

• Definitions of acquisitions and mergers. Practical examples of planning an acquisition and a merger including management of change. Business valuation - definition and purpose.
• Strategic implications of mergers: risk identification; analysis; impact analysis and assessment; post-merger values.
• Management models that enable the understanding of the current market position (e.g. BCG Matrix, Ansoff Matrix, Porter's 5 forces). Strategies to enhance value.
• Sources of finance: internal and external sources of finance, to include: loans; debentures; mortgages; retained earnings; government sources; shares; sale of assets.

Can apply treasury and risk management techniques

• Hedging: nature & objectives; hedging risk on individual equities; hedging market risk on equity portfolios; hedging interest rate risk.
• Speculation: nature & objectives; speculation using futures; speculation using options.
• Arbitrage: nature & objectives; arbitrage using futures; arbitrage using options.
• Use of the Capital Asset Pricing Model: cost of capital; WACC; use of exchange rates; interest rates; foreign exchange rate risk.
• Risk mitigation techniques to include: risk avoidance; risk mitigation; transfer of risk; risk acceptance.
• The use of financial derivatives to hedge against forex and interest rate risks. Consideration of the following: forward exchange market and creation of a money market hedge; synthetic foreign exchange agreements; exchange-traded currency futures contracts; currency swaps; FOREX swaps; currency options; forward rate agreements; interest rate futures; interest rate swaps; interest rate options, including collars.

Unit Description: You will develop an understanding of the strategic role of management accounting as a discipline for planning and controlling business performance, to ensure strategic objectives can be set, monitored and controlled.

Unit Content:

Understand strategic planning and control

• Strategic implementation techniques: objective setting; portfolio management tools; definition of the Balanced Scorecard - a strategic planning and management system used extensively in business to align business activities to the vision and strategy of the organisation, to improve internal and external communications and to monitor organisation performance against strategic goals; portfolio theory; risk analysis including risk identification, and risk assessment matrix, risk management plans, retention or transfer of risks and the implications; environmental and ethical issues - review and use of Mendelow's matrix.
• Strategic management accounting: role of strategic performance management; role of performance measurement in working towards corporate objectives; comparison of planning and control at strategic and operational levels; scope of potential conflict between strategic business plans and decisions; evaluation of methods to benchmark performance; changing role of the management accountant as outlined by Burns and Scapens.
• Strategic analysis of the internal and external environment, to include: SWOT; consideration of links to the political climate and market conditions; PESTEL; Porter's generic strategies; Five Forces Framework; RBV (Resource-Based View); Core Competences; Value Chain; McKinsey's 7Ss; Boston Consulting Group.
• Performance Hierarchy, to include: the purpose, structure and content of a mission statement; consideration of how this will impact on performance measurement and management; critical success factor analysis in developing performance metrics; how strategic objectives are passed down an organisation; the significance of planning activities against controlling activities.
• Performance management and control to include fixed and flexible, rolling, activity based, zero based and incremental budgeting. Key uses of budgetary control for: co-ordination; responsibility allocation; motivation; planning/evaluation; communication. Comparison of manufacturing businesses and service businesses from a budget perspective.
• Consideration of the use and benefits of preparing budgets. Target setting following budget preparation - clear targets which are specific, measurable, achievable, realistic with a time period specified for which the target should be achieved. Drawbacks of using forecasted data such as uncertainty and changes in demand.
• Use of variance analysis to include: materials price; material usage; labour rate; labour efficiency; fixed overhead expenditure; fixed overhead capacity, efficiency and volume. Splitting a variance between controllable and uncontrollable elements and make valid arguments as to why they have occurred and suggest realistic improvements.

Understand performance management information systems

• Preparation of key management information systems. The use of enterprise resource planning systems. Use of the 5Ss. External and internal factors. Sources of management information - to include their costs, benefits and limitations.
• Recording and processing methods, including IT developments, for example unified corporate databases, RFIDs, cloud and network technology. Data Analytics. Impact of Big Data. Role of the management accountant in relation to data analytics and big data.
• Management reports and integrated reporting to stakeholders.
• Understanding the use of accounting software packages: accounting software - types of software including in-house prepared spreadsheets, commercial software packages; accounting software features, including calculation of payroll, VAT, invoice preparation; usefulness to different business organisations.

Understand strategic performance measurement and performance evaluation

• Capital investment appraisal in relation to finance invested in a business organisation for the purpose of furthering its strategic objectives. Aspects of strategy may include: scope of operations; resource allocation; competitive advantage; synergy.
• Financial effects of strategic decisions, to include: a definition of strategic decisions relating to long term, complex decisions developed by management; the importance of strategic decisions which can consist of less complex, medium term and tactical decisions.
• Strategic performance measures in the private sector. Review of measures of performance to include the interpretation of: liquidity ratios; profitability ratios; working capital ratios; efficiency ratios; resource utilisation ratios; net present value; internal rate of return; economic value added.
• Development and calculation of relevant performance indicators for a business measuring profitability and performance and apply benchmarking and balance scorecard as a method of appraisal (comparing different companies and to industry averages). Distinguishing between qualitative and quantitative measures and application to case study material.
• Explanation of why quality and continuous improvement is important with knowledge of the different testing and sampling methods/total quality management and internal and external quality costs.
• The use of publicly available reports and financial analysis by different stakeholder groups. For example: shareholders; employees; potential investors; directors; managers; suppliers; customers; lenders; government; analysts.
• The usefulness of ratio analysis when assessing the performance of a business, with consideration of: strategic performance measures for profit making, not-for-profit and for-purpose organisations (a for-purpose company is a completely new type of organisation that combines the purpose of a non-profit organisation with a sustainable business model and the growth incentives of a for-profit company); non-financial performance indicators; role of quality in management information; role of quality in performance measurement systems.
• Application of Japanese business techniques to include: Kaizen; target costing; Just in Time; Total Quality Management.
• Performance measurement and the link with Human Resource Management issues. Behavioural aspects of performance measurement. Views of performance measurement and management - balanced scorecard approach, performance pyramid, the theory of Fitzgerald and Moon, activity-based management and valued based management approaches.
• Strategic performance issues in complex business structures, for example, strategic alliances, joint ventures and complex supply chain structures. Corporate failure - to include the use of Z-scores and Argenti.

Unit Description: You will develop a detailed understanding of the techniques and key aspects of taxation and have the opportunity to study the taxation regime within a chosen jurisdiction. You will develop your knowledge of the tax system, together with your ability to apply that knowledge to the issues commonly encountered by individuals and businesses in the selected tax jurisdiction. This knowledge will allow you to interpret and analyse the information provided and communicate the outcomes in a manner appropriate to the intended audience.

Unit Content:

Understand the aspects of the taxation system in your chosen jurisdiction

• Income Tax and National Insurance (or equivalent taxes in chosen jurisdiction) to include: the scope of tax; income from employment; income from self-employment; property and investment income; the comprehensive computation of taxable income and the income tax liability; national insurance contributions or equivalent for employed and self-employed persons; the use of exemptions and reliefs in deferring and minimising income tax liabilities; concepts of residence, domicile and deemed domicile.
• Chargeable Gains and Capital Gains tax liabilities (or equivalent taxes) to include: the scope of tax; the basic principles of computing gains and losses; gains and losses on the disposal of movable and immovable property; gains and losses on the disposal of shares and securities; the computation of capital gains tax; the use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets.
• Inheritance tax (or equivalent taxes) to include: the scope of tax; the basic principles of computing transfers of value; liabilities arising on chargeable on the death of an individual person; calculation of Inheritance Tax liabilities; payment systems for Inheritance Tax liabilities; the liabilities arising on the chargeable lifetime transfers and on the death of an individual; the use of exemptions in deferring and minimising inheritance tax liabilities.
• Corporation tax (or equivalent taxes) to include: the scope of tax; taxable total profits; chargeable gains for companies; the comprehensive computation of the tax liability; the effect of a group corporate structure for tax purposes; the use of exemptions and reliefs in deferring and minimising tax liabilities.
• Stamp taxes to include: the scope of stamp taxes; liabilities arising on transfers; use of exemptions and reliefs in deferring and minimising stamp taxes.
• Government taxation policy to include: purpose; scope and scale; distinction between direct and indirect taxation; evaluation of the use of direct and indirect taxation as policy tools.
• Value Added Tax (VAT) or equivalent tax to include: the scope of tax; registration requirements; tax rates; cash and accruals systems of accounting for VAT/indirect tax; computation of liabilities and completion of Returns; special schemes for accounting VAT in UK or equivalent in chosen jurisdiction; computation of input VAT and output VAT for SMEs for equivalent in chosen jurisdiction.

Can assess the impact of relevant taxes in given situations

• Identification of relevant taxes. Identification of key advice that is required to be supplied on the taxes applicable in a specific situation.
• Alternative ways of achieving personal or business outcomes leading to different tax consequences - to include comparisons of alternative scenarios.
• Assessment of how taxation affects financial decisions for both incorporated and unincorporated business organisations. Assessment of how taxation affects financial decisions of individuals.
• Ways to optimise tax expenditure: advantages and disadvantages of different courses of actions for individuals and both incorporated and unincorporated business organisations.
• Potential penalties and risks arising from non-compliance with statutory obligations imposed in a set scenario.

Can apply taxation planning measures to minimise or defer tax liabilities

• Range of different types of investment and other expenditure that may result in a reduction in tax liabilities for individuals and both incorporated and unincorporated business organisations. Be able to advise on the appropriateness of each of these types.
• Understanding of legitimate tax planning. Mitigation of tax based on numerical analysis and reasoned argument. Assessment of ethical and professional issues.

Can communicate taxation information to all relevant stakeholders

• Stakeholders, to include: shareholders; employees; potential investors; directors; managers; suppliers; customers; lenders; government; analysts; HMRC.
• Communication to include: emails; reports; letters; memoranda; meeting notes; face to face communication.
• Balancing tax disclosure with information for stakeholders - why they are different, non-tax factors affecting. Understanding of the limitations of any analysis completed. Assumptions made when providing a client with information.
• Factors to be considered in regard to paying an appropriate level of tax - corporate responsibility, reputation, public opinion, damage to business etc.

Unit Description: You will develop a sound understanding of audit and assurance within the legal and regulatory environment, within which you practise. You will have opportunity to consider the audit of financial statements, including planning, evidence and review.

Unit Content:

Understand the regulatory environment and the professional and ethical considerations

• The regulatory environment, to include: laws; international regulatory frameworks for audit and assurance services; rules and regulations to control the behaviour and actions of business activities; compliance with regulatory environment including professional and ethical considerations when carrying out audit and assurance engagements.
• Professional conduct - regulation of members of professional bodies acting under statutory or contractual powers. Rules of professional conduct to ensure proper standards of professional conduct are observed. Rules to include: integrity; objectivity; confidentiality; competency.
• Regulations relating to Money Laundering. Code of Ethics and Conduct. Risk of Fraud and Error in audit and assurance services. Professional Liability.

Understand issues and developments in audit and assurance

• Definition of audit risk. The difference between assurance and compliance.
• The difference between internal and external audits including: compliance and regulation; scope and purpose; reporting lines within the management hierarchy; audit outcomes.
• Types of audit risk: inherent risk; control risk; detection risk. The audit risk model - used by auditors to manage the overall risk. Link between account preparation and the audit conducted.
• Different kinds of controls, e.g. behavioural, social and output. Financial controls - detective, preventative and corrective controls. Controls, feedback and feed forward controls. Advantages and disadvantages of controls.
• Understanding of key business risks; people risks, process risks. Role of internal control function; how controls help to manage risk. Management of risk within organisations.
• Organisational structures including responsibility centres, department and functional relationships. External business factors, for example taxes and interest rates that affect budget processes. Principles and theories related to the development of budgets and forecasts.

Can plan and conduct an audit

• Audit strategies and plans. Audit process to include: requesting documents; preparing an audit plan; holding an open meeting; drafting a report; end meeting - to discuss the report.
• Design appropriate audit procedures in relation to: inventory; non-current assets; intangible assets; investment properties; assets held for sale and discontinued operations; financial instruments; fair values; government grants; leases; impairment; provisions, contingent liabilities and contingent assets; borrowing costs; employee benefits; share-based payment transactions; taxation (including deferred tax); related parties; revenue from contracts with customers; statement of cash flows; business combinations; events after the end of the reporting period; the effects of foreign exchange rates; segmental reporting; earnings per share; changes in accounting policy.
• Sustainable, environmental and integrated reporting: importance of this; international framework for reporting; implications for auditors.