Financial Accounting for CPA Foundation Level

Downloads

Financial Accounting Study Notes

Course Syllabus

1. Introduction to Accounting
   • Nature and Purpose of Accounting
   • The objective of Financial Accounting
   • The Elements of Financial Statements
   • The Accounting Equation
   • The Users of Accounting Information
2. The Accounting Process and Systems
   • The Source documents such as receipts and invoices
   • The Books of Prime entry/Original Entry from the journals, cashbooks, Petty cash books and registers
   • The Ledger and the concept of double entry
   • The Trial Balance
   • The Financial Statements
3. Regulation and other principles guiding the accounting profession
   • The legal sources of regulation
   • The professional sources of regulation (local and international bodies) and ethical requirements
   • Accounting Standards
   • Common accounting principles/concepts
   • Qualities of useful financial information
4. Accounting for Assets and Liabilities
   • Property, Plant and Equipment (depreciation, acquisition, disposal, exchange, excluding revaluations)
   • Intangible Assets
   • Financial Assets and Financial Liabilities (Definition, Examples and Classification only)
   • Inventory
   • Cash in hand and cash at bank (bank reconciliation statements)
   • Trade Receivables (Measurement and credit Losses)
   • Trade payables
   • Accrued Incomes/Expenses and Prepaid Incomes/Expenses
5. Financial Statements of a sole trader
   • Statement of Profit or Loss
   • Statement of Financial Position
6. Financial Statements of a partnership
   • The partnership deed/agreement
   • The statement of Profit or Loss and appropriation
   • Partners' capital and current accounts
   • The statement of financial position
   • Accounting treatment and presentation when there is a change in profit/loss sharing ratio, admission/retirement of a partner, dissolution of a partnership
7. Financial Statements of a company
   • Important concepts of a company (Ordinary and Preference share capital, issuing
     new shares by way of full market price, bonus shares and rights issue, Reserves, retained profits and corporation tax)
   • Statement of Profit or Loss
   • Other comprehensive incomes
   • Statement of Financial Position
   • Statement of Cash flows
8. Financial Statements of a manufacturing entity
   • Manufacturing Statement of production
   • Statement of Profit or Loss
   • Statement of Financial Position
9. Statements of a not-for-profit entity
   • Objectives of Not-for-profit organisations
   • Statement of Income and Expenditure
   • Statement of Financial Position
10. Correction of errors and preparing financial statements with incomplete records
    • Types and causes of errors
    • Correcting errors in source documents, the books of prime entry, the ledger, the trial balance and financial statements
    • Reasons for incomplete information
    • Preparation of financial statements from incomplete information
11. Analyzing Financial Statements
    • The objective of analysing financial statements
    • Analysing financial statements using financial ratios (Liquidity, Profitability, Solvency, Efficiency, Investor/Value and Cash Flow categories)
12. Accounting in the Public Sector
    • Features of public sector entities (as compared to private sector)
    • Structure of the public sector (National and county governments, State Corporations, Departments and Agencies)
    • Regulation and oversight (International Public Sector Accounting Standards Board, Director of Accounting Services, National Treasury, Parliamentary Committees, Accounting Officers at national and county levels)
    • Objectives of public sector financial statements and Standards (IPSAS)
    • Accounting techniques in public sector such as budgeting, cash, accrual, commitment and fund accounting)

Sample Reading and Reference Material

1. Wood, F & Robinson, S. (2018). Bookkeeping and Accounts (9th edition). Harlow. Pearson Education Ltd.
2. Glautier, M., Underdown, B., & Morris, D. (2011). Accounting: Theory and Practice (8th edition.). Harlow. Pearson Education Ltd.
3. Sangster, A. & Wood, F. (2018). Frank Wood’s Business Accounting Volume 1 (14th edition.) Harlow. Pearson Education Ltd.
4. KASNEB e-learning resources (link on the KASNEB website)
5. KASNEB approved study packs