fa1_syllandsg_2011

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cialFA1)

ed to help

is intended to

could be

any examination session.

LLABUS AND

inks

eding o

nne

olid l

here there is

t link and no required underpinnin

are shown as dotted line arrows. The relational

cates where you are expect

here it wo

efore

f the syllabus

the broadest sense the

capabilities to be developed within the paper.

ral mai

the syllabus and study

guide into discrete sections.

betwe n

the syllabus an

should be used as an aid to planning teaching and

learning in a structured way.

Syllabus rationale

This is a narrative explaining how the syllabus is

structured and how the main capabilities are linked.

The rationale also explains in further detail what theexamination intends to assess and why.

Detailed syllabus

main capabilities

to subject areas. This is

detailed study guide.

llabus

This section briefly explains the structure of the

examination and how it is assessed.

ts and

ould use as the

ion and materials

detail of theively identifies what

ation session.

ection and

vided into sections

entified in the

ivided into subject

capabilities included

bject areas are broken

hich describe the detailed

outcomes that could be assessed in examinations.

outcomes are described using verbsnts to

ctual level at

e demonstrated

rtner - content (ALP-

e programme through which ACCA approves

learning materials from high quality content

ned to support study towards ACCAs

ACCA has one Platinum Approved Learning Partner

content which is BPP Learning Media. In addition,

there are a number of Gold Approved Learning

Partners - content.

For information about ACCA's

Approved Learning Partners - content, please go

ACCA's Content Provider Directory.

Recording FinanTransactions (December 2011

This syllabus and study guide is design

with teaching and learning and

provide detailed information on what

assessed in

THE STRUCTURE OF THE SY

STUDY GUIDE

Relational diagram with other papers

This diagram shows direct and indirect l

between this paper and other papers prec

following it. Some papers are directly underpi

by other papers. These links are shown as s

arrows. The links between papers w

only an indirec

rstudy guide which comprehend s

ine could be assessed in any examin

g breakdown of the syllabus. It is di

diagram therefore indi ed re d

to have underpinning knowledge and w uld areas which relate to the sub-

be useful to review previous learning b

undertaking study.

Overall aim o

of theThis explains briefly the overall objective

paper and indicates in

Main capabilities

This papers aim is broken down into seve n ACCA's Approved Learning Pa

capabilities which divide

Relational diagram of main capabilities

This diagram illustrates the flows and links e

the main capabilities (sections) of d

This shows the breakdown of the

(sections) of the syllabus in

the blueprint for the

Approach to examining the sy

Study Guide

This is the main document that studen

learning and content providers sh

basis of their studies, instruct

respectively.

Examinations will be based on the

The study guide is a precise refl

based on the main capabilities id

syllabus. These sections a

in the detailed syllabus. Su

down into sub-headings w

Theseindicating what exams may require stude

demonstrate, and the broad intelle

which these may need to b

(*see intellectual levels below).

Learning Materials

c) is th

providers desig

qualifications.


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cribers,

ed by

u will also

ading which the

Examiner has suggested may be useful

f

here

e

The Directory also lists materials by Subs

these materials have not been quality assur

ACCA but they may be useful reading. Yo

find details here of Additional Re

supplementary reading for students.

ACCA's Content Provider Directory can be ound

http://www.accaglobal.com/learningprovid rs/alpc/c

ontent_provider_directory/search/.

in S

tant.

ECTUAL

ssively

ills

nge of levels

relate

) and ot

ark, thes

Accounta

its equivalent, at the

Intermediate level and to first year degree level at

le)

ivalent to

y guides assess both

tinction

, within each subject area, between assess

knowledge and skills and in assessing their

ness

is

LEARNING

HOURS

For the Introductory Certificate in Financial and

Management Accounting the approximate number

of standard learning hours that a candidate needs to

commit to each examination is based on the credit

value of the Qualifications and Credit Framework(QCF) UK, units which make up the syllabus. For

FA1, Recording Financial Transactions, the total

the syllabus is 16

des direct tuition

sment time.

England, Wales and

Northern Ireland, passing the exam related to the

above syllabus gives credit for the following QCF

ording and processingancial transactions

ording financial

ing and reconciling the cash book

y cash records

transactions and

al balanceing the journal

counts

terised accounting software

varies within and

d levels.

100% compulsory

questions to encourage candidates to study across

the breadth of each syllabus.

ssessed by two-hourbased

mination papers is

ENT

amine anything

ide at any

cludes knowledge,

es, principles, theories, and concepts as

it and tax papers,

otherwise, ACCA will

publish examinable documents once a year to

indicate exactly what regulations and legislation

could potentially be assessed within identified

examination sessions.

Examinations regulation issuedor legislation passed

on or before 30th September annually, will be

assessed from June 1st of the following year to May31st of the year after. Please refer to the

Relevant articles will also be published

Accoun

tudent Preparing and recdocumentation

LEVEL OF ASSESSMENTS INTELL

DEMAND

ACCA qualifications are designed to progre

broaden and deepen the knowledge and sk

demonstrated by the student at a ra

their way through each qualification. These

intellectual levels as designated by the UK

qualifications and credit framework (QCF

qualifications frameworks. As a benchm

levels progress from GCSE equivalent at the

Introductory level of the Foundations in

(FIA) programme, to A level, or

on Compu

to GUIDE TO EXAM STRUCTURE

her

eThe structure of examinations

etween modules an

ncyThe FIA examinations contain

All FIA examinations are athe Advanced level. The Advanced Diploma (the

Skills module plus professional Ethics Modu

within the ACCA Qualification is equ

undergraduate degree level and the Professional

level is benchmarked at Masters level.

Throughout, the stud

knowledge and skills. Therefore a clear dis

drawn

is

ing

GUIDE TO EXAMINATION ASSESSM

ACCA reserves the right to ex

contained within any study gu

examination session. This in

techniqu

application within an accounting or busi

context. The assessment of knowledge is denoted by

a superscriptK and the assessment of skills

denoted by the superscriptS.

VALUE OF ASSESSMENTS GUIDED

learning hours or credit value of

credits or 160 hours which inclu

time, self study, revision and asses

For QCF registered learners in

units:

Principles of recfin

Banking procedures

Maintain Maintain pett Processing ledger

extracting a tri Maintain Maintaining control ac

b

paper based and computer

examinations.

The pass mark for all FIA exa

50%.

specified.

For the financial accounting, aud

except where indicated


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the paper (where

relevant) for further information.

d in

es to when

ly approved.

The term effective relates to when regulation or

s

idance on

h the examinable

documents will be examined. The study guide

should therefore be read in conjunction with the

examinable documents list.

examinable documents for

Regulation issued or legislation passe

accordance with the above dates may be

examinable even if the effectivedate is in thfuture. The term issued or passed relate

regulation or legislation has been formal

legislation must be applied to entity transaction

and business practices.

The study guide offers more detailed gu

the depth and level at whic


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Qualification structure

s candidates who wish to be awarded the Introductory Certificate in Financial

and Management Accounting to pass both the FA1 and MA1 examinations and successfully complete the

Foundations in Professionalism module.

The FIA suite of qualifications is designed so that a student can progress through three discrete levels;

Introductory, Intermediate and Advanced, However, entry is possible at any point. Students are recommended to

enter FIA at the level which is most appropriate to their needs and abilities and to take examinations in order, but

this is not a r ement.

The qualification structure require

Introductory

FA1 MA1 Certificate inFinancial and

Management

Accounting

FiP*+ =+

* Foundations in Professionalism

Syllabus structure

equir

FA1

FA2

FFAFIA


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Syllabus

of the

influence th

iness

functions in contributing to the efficient, effective

l management and development of an

organisation and its people and systems.

ng financial

e t

ording financia

e t ia

ce stage. It also covers relevant ban ing

procedures associated with bookkeeping,

maintaining and reconciling cash and petty cash

records and preparing the journal and relevant

ting

errors.

MAIN CAPABILITIES

this paper, candidates

should be able to explain and understand the

A. Types of business transactions and

tions and the double entry

system

C. Banking system and transactions

yroll

ts

G. Sales and Credit transactionsH. Purchases and Credit transactionsI. ReconJ. Preparing the trial balance

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

AIM

To introduce knowledge and understanding

business and its environment and the

has on how organisations are structured

role of the accounting and other key bus

is

and on the documentation

and ethica

RATIONALE

The syllabus for Paper FA1, Recordi

transactions, introduces the candidat

fundamentals of preparing and recdocumentation from originating docume

processing ledger transactions up to th

balan

o the E. Ledger accoun

lnts and F. Cash and Bankr l

k

control accounts and identifying and correc

On successful completion of

following:

B. Duality of transac

D. Pa

ciliation

Types of business transactions and

documentation (A)

Duality of transactions and the double entry

system (B)

Banking

system and

transactions

(C)

Preparing the trial

balance (J)

Ledger accounts (E)

Reconciliations (I)

Purchases and Credit

transactions (H)

Cas and Bank (F)h Sales and Credit

transactions (G)

ayroll (D)P


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Study Guide

A SINESS TRANSACTION AND

a) purpose of a range of business

ude but not limited to:[K]

i) Invoice

f discount

g where applicable the effect that trade

discounts have on sales tax.[K]

c pare different forms of

.[K]

d rity procedu

relating to the use of:[K]

t cards for receipts and payments

2 s documentation

) iness

to include but not limited to: [K]

b) Prepare the financial documents to be sent to

c) Prepare remittance advices to accompany

payments to suppliers. [S]

d) Prepare a petty cash voucher including the

sales tax element of an expense when

presented with an inclusive amount. [s]

3. Process of recording business transactions

within the accounting system

racteristics of

accounting data records in[K]

cate, display and

accounting data records to meet user

requirements and explain how to deal with

lain the tools and techniques used to

process accounting transactions and period-end

how errors are identified

curity, data

es and the storage of

ering

ding: [K]

i) Describing the need for a coding system for

ithin a double entry

er invoices and

into the books of

.[S]

e accounting

documents and management reports produced

puterised accounting systems and the

link between the accounting system and other

IONS AND THE

ENTRY SYSTEM

ent of the books

their format.[K]

b) Explain how transactions are entered in the

books of prime entry.[K]

c) Outline how the books of prime entry integrate

with the double entry book-keeping system [K]

d) Enter transactions including the sales tax effect

where applicable into the books of primeentry.[S]

TYPES OF BUmeeting the business requirements.

b) Explain how users can lo

check

DOCUMENTATION

1. Types of business transaction

Outline the

documents to incl

ii) Credit note

iii) Remittance Advice

b) Understand the various types o

includin

) Identify and com

payment

) Describe the processing and secu res financial transactions w

book-keeping system

ii) Describe the use of a coding system within ai) Cash

ii) Cheques

iii) Credit Cards

iv) Debi

. Types of busines

a Outline the content of a range of bus

documents

i) Invoice

ii) Credit note

iii) Remittance Advice

credit customers including: [S]

i) Sales invoices

ii) Credit notes

iii) Statements of account

a) Describe the sources and cha

accounting data and

data entry errors. [K]

c) Exp

routines and consider

and dealt with. [K]

d) Consider the risks to data se

protection procedur

data.[K]

e) Understand the principles of coding in ent

counting transactions incluac

filing system

f) Code sales invoices, suppli

credit notes ready for entry

prime entry

g) Describe and prepare th

by com

systems in the business. [K]

B DUALITY OF TRANSACT

DOUBLE

1. Books of prime entry

a) Outline the purpose and cont

of prime entry including


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2. Double entry system

[K]

b) Understand and apply the accounting

relates

m.[K]

d) Process financial transactions from the books

ntry into the double entry

bookkeeping system.[S]

3. The

) ng the

at of the

b) Prepare journal entities directly from

ct errors.[S]

a) Define and distinguish between the elements of

t of a statement of financial

nsive

IONS

a) Explain the differences between the services

institutions.[K]

b stem

c) Identify and compare different forms of

payment.[K]

d) Describe the processing and security

procedures relating to the use of cash,

cheques, credit cards, debit cards for receipts

and payments.[K]

2. Documentation

for an organisation

retention policy. [K]

tify the different categories of documents

that may be stored as part of a document

tion policy.[K]

OLL

ions within the

entries in the

general ledger to process payroll transactions.[S]

t payment methods in aques, automated

c) Explain why authorisation of payroll

ns and security of payroll information

sation.[K]

E LEDGER ACCOUNTS

1. Prepare ledger accounts

[S]

b) Record journal entries in the ledger accounts. [S]

accounts.[S]

1. Maintaining a cash book

a) Record applicable transactions within the

cashbook, including any sales tax effect where

applicable. [S]

b) Prepare the total, balance and cross cast cash

book columns.[S]

c) Identify and deal with discrepancies.[S]

a) Define the accounting equation.

equation.[K]

c) Explain how the accounting equation

the double entry book-keeping syste

to reten

of prime e

journal

a Understand the use of the journal includi

reasons for, content and formjournal.[K]

transactions, books of prime entry as

applicable or to corre

4. Elements of the financial statements

the financial statements.[K]

b) Identify the conten

position and statement of comprehe

income.[K]

C BANK SYSTEM AND TRANSACT

1. The banking process

offered by banks and banking

) Describe how the banking clearing sy

works.[K]

a) Explain why it is important

to have a formal document

b) Iden

D PAYR

1. Process payroll transact

accounting system

a) Prepare and enter the journal

b) Identify the differenpayroll system, e.g. cash, che

payment. [K]

transactio

is important in an organi

a) Enter transactions from the books of prime

entry into the ledgers.

c) Balance and close off ledger

F CASH AND BANK


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2. Maintaining a petty cash book

a) actions in

ng any sales tax

b) Balance off the petty cash book using impre

) k with cash in

ash[S]

S

1

) ntfor th

various types of discount including the sales

ntrol

) receivab

b to be sent to

omers.[S]

c) repancies

s control account or

for:[S]

iii) Payments from customers including

checking the accuracy and validity of

receipts against relevant supporting

information

iv) Settlement discounts

v) Irrecoverable debt and allowances for

irrecoverable debts including any effect of

sales tax where applicable

H. PURCHASES AND CREDIT TRANSACTIONS

ansactions and accountfor

the various types of discount including the[S]

s and credit notes into the

appropriate book of prime entry. [S]

d reconciliations

ol account or

ting for: [S]

returns

iii) Payments to suppliers including checkingccuracy and validity of the payment

g information

iv) Settlement discounts

and reconciliation

purpose of control accounts as a

checking devise to aid management and help

ok-keeping errors.[K]

t to reconcile control

accounts regularly and deal with discrepancies

y. [K]

ment with the cash

book. [S]

ivables control account

a) Reconcile the balance on the receivables

control account with the list of balances. [S]

4. Reconcile the payables control account

a) Reconcile the balance on the payables control

account with the list of balances. [S]

Enter and analyse petty cash trans

the petty cash book includi

effect where applicable.[S]

st sales tax effect where applicable.

and non imprest systems. [S]

c Reconcile the petty cash boo

hand.[S]

d) Prepare and account for petty c

reimbursement.

G SALES AND CREDIT TRANSACTION

. Recording Sales

a Record sales transactions and accou e against relevant supportin

tax effect where applicable.[S]

b) Prepare the financial documents to be sent to

credit customers.[S]

2. Customer account balances and co

accounts

a Describe the usefulness of an aged

analysis. [K]

le

) Produce statements of account

credit cust

Explain the need to deal with disc

quickly and professionally.[K]

d) Prepare the receivable

receivables ledgers by accounting

i) Sales

ii) Sales returns

1. Recording Purchases

a) Record purchase tr

b) Enter supplier invoice

2. Supplier balances an

a) Prepare the payables contr

payables ledgers by accoun

i) Purchases

ii) Purchase

the a

I RECONCILIATION

1. Purpose of control accounts

a) Describe the

identify bo

b) Explain why it is importan

quickly and professionall

2. Reconcile the cash book

a) Reconcile a bank state

3. Reconcile the rece


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J PREPARING THE TRIAL BALANCE

a) ger balances, clearly showing the

balances carried down and brought down as

l balance. [S]

2.

a) Identify types of error in a book-keeping system

ing system

closed by extracting a trial[K]

c) Use the journal to correct errors disclosed by

d) t journal to correct errors not disclosed

e) Identify when a suspense account is required

and clear the suspense account using the

journal.[S]

f) Redraft the trial balance following correction of

all errors. [S]

1. Prepare the trial balance

Prepare led

appropriate. [S]

b) Extract an initial tria

Correcting errors

that are disclosed by extracting a trial

balance.[K]

b) Identify types of error in a book-keep

that are not disbalance.

the trial balance. [S]

use he

by the trial balance. [S]

fa1_syllandsg_2011

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