ACCOUNTING ( IAS) LEVEL 3

The aim of the examination is to test the candidate’s:
(a) understanding of accounting information deriving from all sources - manual, mechanical and electronic
(b) ability to prepare accounting statements and data in accordance with basic international accounting conventions and accounting practice with reference to:

• disclosure of accounting policies
• inventories and construction contracts
• accounting for depreciation
• Cash Flow Statements
• business combination accounts

(c) ability to use, appreciate and analytically interpret accounting statements and data

Syllabus

1 Questions may be set on topics included in the syllabuses for First Level Book-keeping and Second Level Book-keeping and Accounts

2 Recording transactions
Candidates should understand and be able to undertake all methods for recording transactions, including the influence of information technology upon accounting systems

3 Preparation of accounting statements and data
Candidates will be required to prepare accounting statements and data following established concepts and conventions, including the framework for the preparation and presentation of financial statements, IAS, and up to date presentations:

(a) income statements and balance sheets for sole traders, partnerships, companies and non-trading organisations.
(b) accounting for specific partnership circumstances:

• changes in partnership interests
• dissolution
• admission or retirement of partners
• conversion into a company

(c) accounting for specific company circumstances:

• issue/redemption of shares or debentures
• distributable profits
• profits prior to incorporation
• amalgamations
• reconstructions
• capital reduction

(d) accounting for business combinations in line with IAS 27 and IAS 22 (r98)
(e) accounting for:
branches (excluding foreign branches)
investments in line with IAS 32 (r98) and IAS 39
joint ventures (not IAS 31 (r98))
interest on capital
(f) Cash Flow Statements in line with IAS 7 (r92)
(g) cash budgets
(h) accounting ratios, working capital statements
Note:
Questions will not be set on the treatment of taxation in accounts, associated companies, or changing price levels.
4 Use and interpretation of accounting statements and data
(a) use of accounting statements and other relevant data to measure business performance and to estimate future business performance
(b) use of statements as an aid to management decisions
(c) understanding the terminology used in accounting statements and other data
(d) appreciation of the effects of accounting concepts and up-to-date accounting methods on final accounting statements in line with IAS 1 (r97)
Candidates will need to be aware of current international accounting practice, in particular:
(a) IAS 1 (r97) ‘Presentation of Financial Statements’
(b) IAS 2 (r93) ‘Inventories’
(c) IAS 7 (r92) ‘Cash Flow Statements’
(d) IAS 16 (r98) ‘Property, Plant and Equipment
(e) IAS 22 (r98) ‘Business Combinations’
(f) IAS 27 ‘Consolidated Financial Statements’
(g) IAS 32 (r98) and 39 ‘Financial Instruments’ (in part)
(h) IAS 36 ‘Impairment of Assets’
(i) IAS 38 ‘Intangible Assets’
Note
Where a relevant IAS is revised the new version will be examinable 18 months after the date of its introduction.

Course duration: 50 hours