FA2 – Maintaining Financial Records

COURSE DESCRIPTION

This syllabus and study guide are designed to help with teaching and learning and is intended to provide detailed information on what could be assessed in any examination session. The syllabus is assessed by a two hour paper-based or computer-based examination. Questions will assess all parts of the syllabus and will include both computational and non-computational elements. The examination will consist of 50 two mark questions.

The Aim of FIA FA2 exam is to develop knowledge and understanding of the underlying principles and concepts relating to Maintaining Financial Records and technical proficiency in the use of double-entry accounting techniques including the preparation of basic financial statements

CERTIFICATION

Students are awarded an Intermediate Certificate in Financial and Management Accounting when they have successfully completed Papers FA2 and MA2

LEARNING OUTCOMES

On completion of FA2 paper candidates will able to explain and understand the following:

1. Explain generally accepted accounting principles and concepts
2. Outline the principles and process of basic bookkeeping
3. Preparing journals and ledger accounts
4. Record transactions and events
5. Prepare a trial balance (including identifying and correcting errors)
6. Reconcile the control accounts and cashbook
7. Extending the trial balance, year-end adjustments and final accounts
8. Account for partnerships.

DETAILED SYLLABUS

A Generally accepted accounting principles and concepts

1. The key accounting principles and characteristics
2. Maintaining financial records
3. The regulatory framework

B The principles and process of bookkeeping

1. The elements of financial statements
2. Books of prime entry and the flow of accounting information in the production of financial statements

C The preparation of journals and ledger accounts

1. Preparation of journals from the books of prime entry
2. Preparation of ledger accounts

D Recording transactions and events

1. Sales and purchases
2. Cash
3. Inventory
4. Tangible non-current assets and depreciation
5. Accruals and prepayments
6. Receivables, payables and provisions
7. Capital and finance costs

E Preparing a trial balance and correcting errors

1. Trial balance
2. Correction of errors

F Reconciliations

1. Control account reconciliations